PBS Coals aquisition

RNS Number : 7387H
OAO Severstal
07 November 2008

SEVERSTAL RESOURCES COMPLETES bid FOR shares of PBS Coals Limited (formerly, penfold capital acquisition corporation)

MOSCOW, Russia and TORONTO, Ontario November 7, 2008: Through its mining division Severstal Resources, OAO Severstal (LSE: SVST; RTS: CHMF, "Severstal") announced completion of the offer (the "Offer") by 7027940 Canada Limited (the "Offeror"), an affiliate of Severstalto purchase the outstanding common shares of PBS Coals Limited (formerly, Penfold Capital Acquisition Corporation)(TSX: PBS, "PBS").

Approximately 99% of the total issued and outstanding common shares of PBS were tendered to the Offer. As previously announced, the Offeror took up and accepted for payment all of the PBS common shares tendered to the Offer on November 3, 2008 and the Offeror provided the depositary with the funds necessary to make such payment on November 5, 2008Since more than 90% of the outstanding common shares of PBS were tendered to the Offer, the Offeror will acquire the remaining PBS common shares under the compulsory acquisition provisions of the Canada Business Corporations Act. The Offeror intends to de-list the shares of PBS from the Toronto Stock Exchange and apply for an order to cease being a reporting issuer in Canada as soon as reasonably practicable.

Forward Looking Statements:

This communication may contain projections and other forward-looking statements regarding future events or the future financial performance of OAO Severstal (Severstal). Forward looking statements are identified by terms such as "expect," "believe," "anticipate," "estimate," "intend," "will," "could," "may" or "might", the negative of such terms, or other similar expressions. Severstal wishes to caution you that these statements are only predictions and that actual events or results may differ materially. Severstal does not intend to update these statements to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. Factors that could cause the actual results to differ materially from those contained in projections or forward-looking statements of Severstal may include, among others, general economic conditions in the markets in which Severstal operates, the competitive environment in, and risks associated with operating in, such markets, market change in the steel and mining industries, as well as many other risks affecting Severstal and its operations.


For further information:

For SeverStal

Dmitry Druzhinin, Investor Relations

Olga Antonova, Public Relations

+7 495 926 7766


Taylor Rafferty for Severstal

Michael Henson 

+1 212 889 4350 (o)

+1 917 902 0767 (m)

John Dudzinsky

+1 212 889 4350 (o)

+1 646 715 2980 (m)