Russian company Lenzoloto owned by Polyus Gold registered a net profit of RUR 492.42 million in the second quarter of 2010. In the first quarter, the profit figure was only RUR 3.62 million. Lenzoloto’s combined profit for the first half of the year of RUR 496.04 million was close to 88 times larger than the company’s RUR 5.61 million profit posted for the first half of 2009. According to the company’s statement, most of the increase in profit in the second quarter is attributable to the distribution of dividends by Lenzoloto’s subsidiaries to their parent company. Lenzoloto itself is not involved in either gold or silver ore production. The company is primarily involved in managing its subsidiary ZDK Lenzoloto.

Lenzoloto has 44 licenses for the production of placer gold with +‘1+‘2 balance reserves of over 14 million tons. ZDK Lenzoloto has 45 licenses for different fields.

Company Polyus, the principal production arm of Polyus Gold, owns 64.08 percent of the charter capital in Lenzoloto, which translates into the ownership of 83.62 percent of common shares.