Closing and issuance of notes due 2022

Not for release, publication or distribution in whole or in part, directly or indirectly, in or into the United States of America.

 Steel Capital S.A. Closes Issue of Loan Participation Notes

17 October 2012, Moscow, Russia- Steel Capital S.A. announced today the successful closing and issuance of its US$750,000,000 5.90% loan participation notes due 2022 (the "Notes") under its US$3,000,000,000 Loan Participation Note Programme. The Notes have been issued for the sole purpose of financing a loan to OAO Severstal. The Notes are expected to be admitted to trading on the Main Market of the London Stock Exchange on 18 October 2012.

The Issuer has on-lent the proceeds from the issue of the Notes to Severstal. Severstal intends to apply the borrowed funds primarily for general corporate purposes.

For further information, please contact:

Vladimir Zaluzhsky

Head of Investor Relations

Email: vladimir.zaluzhsky@severstal.com

Tel: +7 (495) 926 7766/67 ext. 6375

Elena Kovaleva

Head of External Communications

Email: ev.kovaleva@severstal.com

Tel: +7 (495) 926 7766/67 ext. 6447

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