EVRAZ plc: UPDATE ON PAYMENT OF INTEREST DUE ON EUROBONDS ISSUED BY EVRAZ PLC

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF THE MARKET ABUSE REGULATION (EU) NO 596/2014 WHICH IS PART OF ENGLISH LAW BY VIRTUE OF THE EUROPEAN (WITHDRAWAL) ACT 2018, AS AMENDED. EVRAZ PLC IS SOLELY RESPONSIBLE FOR THE CONTENT OF THIS ANNOUNCEMENT TRANSMITTED BY EQS GROUP.

UPDATE ON PAYMENT OF INTEREST DUE ON EUROBONDS ISSUED BY EVRAZ PLC

16 September 2022 - EVRAZ plc (“EVRAZ” or the “Company”) announces that it will not make payment of the interest due on 20 September 2022 on its 5.375% Notes due 2023 (the “2023 Notes”). The Company also does not expect to make payment of the interest due on 2 October 2022 on its 5.250% Notes due 2024 (the “2024 Notes”).

The Company is currently prohibited from making payments in respect of the 2023 Notes and the 2024 Notes without a licence from the UK sanctions regulator, the Office of Financial Sanctions Implementation of HM Treasury (“OFSI”). On 15 July 2022, the Company sent a request for a licence to OFSI in order to pay the interest due on 20 September 2022 on the 2023 Notes, amounting to approximately $18.9 million, as well as the interest due on 2 October 2022 on the 2024 Notes, amounting to approximately $18.4 million. To date, OFSI has not provided the required licence.

Even if OFSI were to provide the required licence, there would remain significant challenges to making payment of the interest due on the 2023 Notes and the 2024 Notes. It is not yet clear whether regulatory restrictions or technical issues will prevent the Paying Agent from making, or agreeing to make, payment of the interest due in respect of the 2023 Notes and the 2024 Notes to the clearing systems. In addition, even if the Company were able to make payment of interest to the clearing systems, payments to a significant number of the holders and beneficial holders of the 2023 Notes and the 2024 Notes would be blocked by the clearing systems as a result of their holdings being held through the Russian clearing system.

As a result, the Company will not make payment of the forthcoming interest payments due on the 2023 Notes and does not expect to make payment of the interest due on the 2024 Notes. The Company is in the process of exploring various options that will allow it to meet its obligations to all Noteholders. The Company will keep investors informed about key developments throughout this process.

The EVRAZ group has sufficient liquidity to make all payments due under the 2023 Notes and the 2024 Notes were it not for sanctions and regulatory restrictions. As at 30 June 2022, the Company had consolidated cash and cash equivalents of $793 million.

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+7 495 232 1370

ir@evraz.com

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