10 April 2012

Severstal completes transaction to consolidate 100% ownership of Severstal Liberia Iron Ore Ltd.

OAO Severstal (“Severstal” or the “Company”), one of the world’s leading vertically integrated steel and steel related mining companies, today announces it has completed the transaction to acquire the remaining 38.5% minority interest in Severstal Liberia Iron Ore Ltd. (“SLIO”) – a British Virgin Islands registered entity, from its partner, Afferro Mining Inc. (“Afferro”).

As per the sale and purchase agreement (“SPA”), Severstal has, through its subsidiary Lybica Holdings B.V., made an initial cash payment of US$65 million. Of this, US$55.25 million has been paid to Mano River Iron Ore Holdings Limited, Afferro’s wholly owned subsidiary, and the remaining US$9.75 million is to be held in escrow with a third party. Thus, Severstal has met all its obligations in respect of the initial payment.

The initial terms of the deferred cash payment under the SPA remain unchanged.

For further information please contact one of the following:

 

Severstal Investor Relations

Vladimir Zaluzhsky

T: +7 (495) 926-77-66

vladimir.zaluzhsky@severstal.com

 

Severstal Public Relations

Elena Kovaleva

T: +7 (495) 926-77-66

elena.kovaleva@severstal.com

 

Hudson Sandler, PR Consultant

Andrew Hayes/Andrew Leach/Maria Ignatova/Alex Brennan

T: +44 (0) 20 7796 4133

 

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ОАО Severstal is one of the world’s leading vertically integrated steel and steel related mining companies, with assets in Russia, the USA, the Ukraine, Latvia, Poland, Italy, Liberia and Brazil. Severstal is listed on MICEX-RTS and the company’s GDRs are traded on the LSE. Severstal reported revenue of $13,573 million and EBITDA of $3,263 million in 2010. Severstal’s crude steel production in 2011 was 15.3 million tonnes. www.severstal.com