Evraz Regulatory News (EVR)

EVRAZ Q4 2011 and FY 2011 OPERATIONAL RESULTS

17 January 2012 - EVRAZ plc (LSE: EVR) and Evraz Group S.A. (LSE: EVRZ) (together referred to as "EVRAZ") today released its operational results for the fourth quarter of 2011 and full year 2011.

FY 2011 HIGHLIGHTS:

·; Crude steel production grew by 3% compared to FY2010 mainly due to an increase in volumes in the Czech Republic, resulting from the resolution of a pricing dispute with a supplier of hot metal while other major steelmaking assets continued to operate at full capacity.

·; Steel product mix shifted further in favour of finished goods.

·; Coking coal production decreased by 16% due to several longwall repositionings and temporary stoppages of some mines for additional implementation of safety equipment and procedures.

·; Prices for steel products and coking coal improved compared to the previous year.

Q4 2011 HIGHLIGHTS:

·; Crude steel volumes increased by 3% quarter-on-quarter due to completion of scheduled maintenance in Q3 on the back of full utilisation of major steelmaking assets.

·; Share of semi-finished steel increased compared to Q3 due to seasonally lower demand for finished steel in Russia.

·; Coking coal production gained momentum in Q4 2011 after most of the issues negatively affecting performance of the first three quarters of 2011 were resolved.

·; Prices for steel products and coking coal contracted compared to Q3 reflecting negative seasonality and market volatility.

STEEL

In 2011, EVRAZ's overall production of crude steel increased by 3% against 2010 and quarter-on-quarter. The trend of redistribution of available steel volumes towards higher value added finished products has become even more evident as domestic markets for EVRAZ's plants in Russia, Ukraine, North America and South Africa, respectively, showed signs of recovery in 2011. The Q4 2011 pricing was, as usual, affected by seasonal factors, as well as global growth concerns.

Russia

Crude steel production volumes slightly increased in 2011 compared to 2010 and by 3% in Q4 2011 compared to Q3 due to completion of scheduled maintenance. As the key steelmaking facilities remained fully utilised and the demand for domestically consumed finished products improved, the 2011 production of semi-finished steel decreased by 10% vs. 2010 reflecting shift of the mix towards high value-added finished products. Consequently, the production volumes of construction and flat-rolled products increased year-on-year by 10% and 13% respectively. In Q4 2011, the output of semi-finished goods increased by 13% with production of finished goods either remaining flat, as was the case with construction products, or decreasing (-5% for flat-rolled products), due to a seasonal shift in demand.

Railway products output decreased by 9% in Q4 2011 compared to the previous quarter due to scheduled rail mill repair at EVRAZ NTMK in October and the re-equipment of the rail mill's finishing lines aimed at improving rail quality. This is part of a large-scale rail production reconstruction project being carried out at EVRAZ's Russian plants to satisfy pent-up demand from the Russian Railways.

Ukraine

In 2011, EVRAZ DMZ steel mill reduced production of semi-finished goods by 36% compared to 2010 as a result of improved demand for finished goods. In Q4 2011, the output of semi-finished steel rose by 35% over Q3, whilst the output of construction products declined by 25%, due to seasonality.

North America

Crude steel production was flat year-on-year and decreased by 9% in Q4 2011 compared to the previous quarter due to scheduled maintenance of steel making facilities in Pueblo and Regina in October. Annual rail production at EVRAZ Pueblo advanced 24% over 2010 reflecting increased demand for ongoing and upcoming projects from US Class One railroads. Construction product output, mainly rods and bars, decreased by 21% in 2011 compared to 2010 and by 9% in Q4 2011 over Q3 as available crude steel volumes at EVRAZ Pueblo were used to produce higher margin rails as well as seamless pipe.

Flat-rolled production increased by 14% year-on-year due to improved end-user demand for plate, and by 4% in Q4 2011 over Q3 following maintenance stoppages in Q3 at EVRAZ Portland and EVRAZ Claymont.  Production of tubular goods fell 6% in 2011 vs. 2010 and 18% in Q4 2011 vs. Q3, as a result of temporary idling of a Regina spiral mill due to subdued demand for large diameter pipe (LDP). Regina spiral mill resumed operations in January 2012 and EVRAZ is currently participating in a number of tenders for LDP. Demand for oil country tubular goods (OCTG) remains robust and is expected to remain strong before the spring floods in Western Canada

Europe

The production of crude steel at EVRAZ Vitkovice Steel (EVS) in 2011 doubled compared to the previous year after settlement of the 2010 dispute with ArcelorMittal Ostrava (AMO) over hot metal supplies to EVS. Increase in steel production in Q4 2011 is largely explained by maintenance works in Q3.

South Africa

In Q4 2011, the production at EVRAZ Highveld Steel and Vanadium improved over Q3, a quarter which had been negatively affected by planned maintenance stoppages and the overhaul of steelmaking and rolling production.

MINING

Iron Ore

Production of saleable iron ore products in Russia increased year-on-year and was mainly attributable to more stable operations and debottlenecking at Evrazruda and the launch of a debottlenecking and expansion programme at EVRAZ KGOK. In Q4 2011 sinter production grew by 22% compared to the previous quarter's smaller volumes as a result of the scheduled major repair of sintering facilities at EVRAZ KGOK. Production of saleable concentrate declined by 9% as more concentrate was used in sinter production. Production of ore at the Mapochs mine in South Africa decreased in Q4 2011 compared with Q3 because of a two-week stoppage of the mine for safety improvements in October.

Coking Coal

In Q4 2011, raw coking coal production at Yuzhkuzbassugol increased by 19% against Q3 following the resumption of operations at the Abashevskaya mine on 23 October and at the Osinnikovskaya mine on 20 December and the launch of production at the Ulyanovskaya mine on 18 October. As a result, coking coal concentrate production grew by 13% over the previous quarter.

Steam Coal

Raw steam coal production decreased by 33% in Q4 2011 from Q3 impacted by completion of the face mining and the commencement of longwall repositioning at the Gramoteinskaya mine on 15 December. Year-on-year production fell 23% mainly resulting from shutdown of the Tagaryshskaya mine since the beginning of 2011. Two mines, Gramoteinskaya and Kusheyakovskaya, will be undergoing longwall repositioning till the end of March 2012, negatively impacting the Q1 2012 steam coal production.

VANADIUM

In Q4 2011, the Company's production of primary vanadium (vanadium slag) increased by 20% from Q3 as a result of higher steel production volumes in Russia and South Africa as well as increased efficiency of vanadium extraction at EVRAZ NTMK. The 24% growth of FeV production volumes year-on-year reflects our focus on increase of finished vanadium products in the sales mix. EVRAZ Stratcor increased production of oxides, vanadium aluminium and chemicals by 32% quarter-on-quarter as a result of better feedstock availability.

* * *

Please note that the total volume of rolled steel products in the table below excludes those re-rolled at other Group's mills. These volumes are eliminated as intercompany sales for purposes of Evraz's consolidated operating results.

PRODUCTION VOLUMES

*Numbers may not add to totals due to rounding. Percent changes based on numbers prior to rounding.

1 Calculated in pure vanadium equivalent.

2 EVRAZ holds a 40% effective interest in the Raspadskaya coal company.

AVERAGE SELLING PRICES

Notes:

Semi-finished products include slabs, billets, pipe blanks and other semi-finished products.

Construction products include beams, channels, angles, rebars, wire rods, wire, and other construction products.

Railway products include rails, wheels, tyres and other railway products.

Flat-rolled products include commodity plate, specialty plate and other flat products.

Tubular products include large diameter line pipes, ERW pipes and casings, seamless pipes and other tubular products.

Other steel products include rounds, grinding balls, mine uprights, strips etc. For Ukraine they also include railway products, for Europe - slabs and crane rails; for South Africa - rails.

###

For further information:

Investor Relations:Alexander BoreykoDirector, Investor RelationsLondon: +44 207 832 8990 Moscow: +7 495 232 1370

ir@evraz.com

Media Relations:Oleg KuzminVP, Corporate CommunicationsLondon: +44 207 832 8998 Moscow: +7 495 937 6871media@evraz.com

EVRAZ is a vertically integrated steel, mining and vanadium business with operations in the Russian Federation, Ukraine, USA, Canada, Czech Republic, Italy and South Africa. EVRAZ was ranked the 15th largest steel producer in the world based on crude steel production of 16.3 million tonnes in 2010. A significant portion of the Group's internal consumption of iron ore and coking coal is covered by its mining operations. The Group's consolidated revenues for the year ended 31 December 2010 were US$13,394 million and consolidated adjusted EBITDA amounted to US$2,350 million. EVRAZ plc holds 99.8% of Evraz Group S.A.