Evidence from historical mining and past drilling suggests that the mineralised structure, previously mined in the Mount Boppy pit, continues to the south. In Polymetals opinion there is potential for extensions to the mineralisation within this area.

Potential exploration targets surrounding the Mount Boppy mining leases have been identified and prioritised based on available data.

Polymetals' exploration strategy is to increase and advance its known mineral resource inventory in order to extend the Company's existing operations and bring its development projects into profitable production.

Polymetals commenced exploration activities at Canbelego in February 2011.

The extent of economic gold mineralisation at the Mt Boppy Gold Mine has been determined. Infill drilling, to fully quantify the resource value, has been brought forward and has commenced.

Aeromagnetic data analysis has identified structures parallel to the main Mt Boppy Iode. Further investigation of these structures is planned to evaluate their potential to host Mt Boppy-style gold mineralisation.

Core drilling at Hardwicks has confirmed the presence of a wide, low to moderate grade, near-surface gold mineralisation.

Canbelego exploration has the objective of increasing and advancing the Company's known mineral resource holdings via two programs: the Mt Boppy Gold Mine extension program which includes infil drilling, and the Canbelego regional exploration program.

Historically, exploration has been limited to shallow resource drilling. Polymetals' approach is to gain an improved understanding of the geological and structural setting of the project area with the aim of defining additional economic resources. The current programs comprise concurrent deep diamond core drilling, aeromagnetic and radiometric interpretation plus associated geological mapping.

Work continues.