Posting of Circular

28 October 2013

Publication of related party circular containing a notice of General Meeting in relation to the proposed sale of non-strategic alluvial assets for a cash consideration of US$25 million

and a letter regarding electronic communications to shareholders

Petropavlovsk PLC (the "Company") refers to the announcement made by the Company on 17 September 2013 regarding the proposed sale of the Group's entire interest of 76.62% of the issued shares in OJSC Berelekh ("Berelekh"), a company which holds licences to mine and explore alluvial operations, to OJSC Susumanzoloto ("Susumanzoloto") for a total cash consideration of US$25 million ("the Transaction").

Further to this announcement, Petropavlovsk confirms that a circular ("the Circular"), containing details of the Transaction, has been published today in accordance with the Listing Rules of the UK Listing Authority. Berelekh is being sold by Peter Hambro Mining (Cyprus) Limited, a wholly-owned subsidiary of the Company, to Susumanzoloto, in which Mr Vladimir Khristov ("Mr Khristov"), who is a director of both Susumanzoloto and Berelekh, holds an aggregate 79.57 per cent. interest. Berelekh is being sold together with its subsidiary undertaking, Mal'diak, in which Mr Khristov indirectly holds an aggregate 17.8 per cent. interest. The Transaction is a "related party transaction" for the purposes of the Listing Rules because Susumanzoloto is an associate of Mr Khristov who is a director of Berelekh and a substantial shareholder in Mal'diak, both of which are, and until completion of the Transaction will remain, Subsidiaries of Petropavlovsk. As a result of the above factors, the Transaction is conditional, inter alia, upon the approval of shareholders.

The Circular contains a notice convening a general meeting (the "General Meeting") of the Company's shareholders. At the General Meeting, the Company's shareholders will be asked to approve the Transaction and authorise the Directors of the Company and of any relevant subsidiaries of the Company to implement the Transaction (the "Resolution"). The procedures and timings for shareholders to vote on the Resolution are set out in the notes to the notice of the General Meeting in the Circular. The General Meeting will be held at 11 a.m. on 14 November 2013 at 3 More London Riverside, London SE1 2AQ.

The Circular will shortly be mailed to shareholders and made available for viewing on the Petropavlovsk website at www.petropavlovsk.net. A copy of the circular has also been submitted to the National Storage Mechanism and will shortly be available for inspection at www.hemscott.com/nsm.

Accompanying the Circular is a separate letter to shareholders in relation to electronic communications which shareholders are encouraged to read. At the Company's annual general meeting in 2010, shareholders approved changes to the Articles of Association of Petropavlovsk to incorporate the Companies Act 2006 ("CA 2006") provisions on electronic communications. The CA 2006 requires the Company to ask its shareholders how they would like to receive shareholder information from the Company and this is the purpose of that letter. A copy of that letter has also been submitted to the National Storage Mechanism and will shortly be available for inspection at www.hemscott.com/nsm.

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