Statement in relation to Nord Gold

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OAO Severstal statement in relation to its subsidiary announcement

OAO Severstal  (“Severstal”) (LSE: SVST; RTS: CHMF), one of the world’s leading integrated steel and mining companies, announces that Nord Gold N.V. (“Nord Gold”), a gold producer and a wholly-owned indirect subsidiary of Severstal intends to proceed with an initial public offering and listing of its ordinary shares (“Shares”).  The global offer by Nord Gold will consist of newly issued Shares and existing Shares.  The primary proceeds are to be used to repay the net amounts of loans outstanding to Severstal and to fund Nord Gold’s growth strategy of exploration, development of  key projects and potential acquisitions.  Nord Gold intends to apply to the UK Financial Services Authority for its Shares to be admitted to the premium segment of the Official List on the London Stock Exchange and for all its Shares to be admitted for trading on the London Stock Exchange.  Nord Gold has published its announcement on the Intention to  Proceed with a Global Offering and Listing of Shares on the London Stock Exchange.