Postponement of Nord Gold IPO

Postponement of Nord Gold Initial Public Offering

OAO Severstal ("Severstal" or "the Company") (LSE: SVST; RTS: CHMF), one of the world's leading integrated steel and mining companies, announces today that as a result of capital market conditions Nord Gold N.V. ("Nordgold"), a gold producer and a wholly-owned indirect subsidiary of Severstal, has postponed an initial public offering and listing of its ordinary shares.

Nordgold has rapidly grown into an established pure-play gold producer focused on emerging markets with strong fundamentals and is a growing contributor to Severstal's financial results. Nordgold will continue to develop its business and the Company is confident that given its strong fundamentals Nordgold will meet its growth targets.

For further information, please contact:

OAO Severstal

Investor Relations

Vladimir Zaluzhsky

T: +7 (495) 926-77-66 ext. 6375

vladimir.zaluzhsky@severstal.com 

Public Relations

Elena Kovaleva

T: +7 (495) 926-77-66 ext. 6447

elena.kovaleva@severstal.com

Hudson Sandler

Andrew/Hayes/Andrew Leach/Maria Ignatova

T: +44 (0)20 7796 4133

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