DGAP-Regulatory: MMC Norilsk Nickel: NORILSK NICKEL REVIEWS ITS MEDIUM-TERM FINANCIAL MODEL AND REAFFIRMS ITS COMMITMENT TO DELIVERING INDUSTRY-LEADING SHAREHOLDER RETURNS

4 Apr 2016 19:00

MMC Norilsk Nickel / Miscellaneous - Urgent PriorityMMC Norilsk Nickel: NORILSK NICKEL REVIEWS ITS MEDIUM-TERM FINANCIAL MODELAND REAFFIRMS ITS COMMITMENT TO DELIVERING INDUSTRY-LEADING SHAREHOLDERRETURNS 04-Apr-2016 / 18:59 CET/CESTDissemination of a Regulatory Announcement, transmitted by EquityStory.RS,LLC - a company of EQS Group AG.The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- NORILSK NICKEL REVIEWS ITS MEDIUM-TERM FINANCIAL MODEL AND REAFFIRMS ITSCOMMITMENT TO DELIVERING INDUSTRY-LEADING SHAREHOLDER RETURNS Moscow, April 4, 2016 - In a view of sustained market volatility, the Boardof Directors of MMC Norilsk Nickel ('Norilsk Nickel' or the 'Company') willreview the Company's medium-term financial model and approve adjusteddividend targets to ensure the continued balance sheet strength of NorilskNickel, while maintaining industry-leading shareholder returns and dividendpayouts. Following the payment of the final dividend for 2015, the Company willapply new dividend targets to dividend distributions for 2016 onwards,which will be based on a variable EBITDA payout ratio linked to theCompany's leverage and calculated as follows: - 60% of EBITDA if net debt/EBITDA at corresponding year-end is less than 1.8x; - 30% of EBITDA if net debt/EBITDA at corresponding year-end is more than 2.2x; - Adjusted ratio reducing proportionally from 60% to 30% of EBITDA pro rata net debt/EBITDA at corresponding year-end if net debt/EBITDA is in the 1.8-2.2x range; - Total dividend payments for each year will be subject to a minimum payment. The minimum payment in 2017 (for 2016 financial results) is set at $1.3 bn plus the proceeds from the sale of Nkomati and in the years thereafter at $1.0 bn. Commenting on the announcement, First Vice-President of Norilsk NickelPavel Fedorov said 'Since the rollout of its new strategy in 2013, Norilskhas been delivering industry-leading shareholder returns to the Company'sinvestors. The decision to review the dividend targets amidst, probably,the most challenging market conditions in a decade demonstrates thecommitment of our core shareholders to keep Norilsk as one of thehighest-yielding stock among mining industry majors. The new approach willbe a simple and transparent proposition to all investors while ensuring abalanced and well-capitalised financial model for Norilsk Nickel'. The final dividend of Norilsk Nickel for 2015 will be calculated in linewith the existing dividend targets as the 50% of 2015 EBITDA less the twointerim dividends paid for 2015. For further information, please, contact: Media Relations: Investor Relations: Phone: +7 (495) 797 82 94 Phone: +7 (495) 786 83 20 Email: uosmail@nornik.ru Email: ir@nornik.ru ABOUT NORILSK NICKEL: Public Joint Stock Company Mining and Metallurgical Company Norilsk Nickel,a company incorporated under the laws of the Russian Federation, isRussia's largest metals and mining company, and the world's largestproducer of refined nickel and palladium and a major producer of platinum,rhodium, copper and cobalt. Norilsk Nickel also produces a number ofby-products, including gold, silver, tellurium, selenium, iridium andruthenium. The key production units of Norilsk Nickel are located in Russia at theTaimyr and Kola Peninsulas. Norilsk Nickel international assets includeoperations in Finland. Norilsk Nickel's shares are listed on the Moscow Exchange. Norilsk Nickel'sADRs are traded over the counter in the US and on the London and Berlinstock exchanges. --------------------------------------------------------------------------- 04-Apr-2016 The EquityStory.RS, LLC Distribution Services include RegulatoryAnnouncements, Financial/Corporate News and Press Releases.Media archive at www.dgap.de/ukreg --------------------------------------------------------------------------- Language: English Company: MMC Norilsk Nickel 1 st Krasnogvardeysky av., 15 123100 Moscow Russia Internet: www.nornik.ru ISIN: US55315J1025 WKN: A140M9 Listed: Regulated Unofficial Market in Berlin, Dusseldorf, Munich, Stuttgart; Open Market in Frankfurt ; London, Nasdaq Category Code: MSCU TIDM: MNOD Sequence Number: 3081 Time of Receipt: 04-Apr-2016 / 18:59 CET/CEST End of Announcement EquityStory.RS, LLC News Service --------------------------------------------------------------------------- 451157 04-Apr-2016

UK-Regulatory-announcement transmitted by DGAP - a service of EQS Group AG.The issuer is solely responsible for the content of this announcement.