Severstal notes purchase announcement

THIS NOTICE IS FOR INFORMATION ONLY AND IS NOT AN OFFER TO PURCHASE OR A SOLICITATION OF OFFERS TO SELL SECURITIES

28 October 2010

Chatham Enterprises LimitedResults of the Offer to purchase for cash of up to the Target Acceptance Amount of the outstanding U.S.$1,250,000,000 9.75 per cent. Loan Participation Notes due 2013issued by, but with limited recourse to, Steel Capital S.A.for the sole purpose of financing a loan to JSC "Severstal" (the "Notes")

Chatham Enterprises Limited (the "Purchaser") announces that it has accepted for purchase U.S.$706,448,000 in aggregate principal amount of the outstanding U.S.$1,250,000,000 9.75 per cent. Loan Participation Notes due 2013 issued by, but with limited recourse to, Steel Capital S.A. for the sole purpose of financing a loan to JSC Severstal (the "Notes"), pursuant to the invitation to holders of Notes to tender their Notes for purchase by the Purchaser for cash (the "Offer").

The Offer expired on 27 October 2010.

The Purchaser announces that it has determined, pursuant to a modified Dutch auction procedure as described in the Offer to Purchase Memorandum dated 29 September 2010 (the "Offer to Purchase Memorandum"), a clearing price of U.S.$1,125 per U.S.$1,000 in principal amount of the Notes accepted for purchase (the "Clearing Price").

For the avoidance of doubt, the above Closing Price results in (i) the Total Consideration being set at U.S.$1,125 per U.S.$1,000 in principal amount of the Notes accepted for purchase and (ii) the Tender Offer Consideration being set at U.S.$1,095 per U.S.$1,000 in principal amount of the Notes accepted for purchase.

All Notes tendered for purchase on a non-competitive basis and all Notes tendered at a price at or below the Clearing Price have been accepted in full. As the principal amount of Notes tendered for purchase at prices at or below the Clearing Price is equal to the Target Acceptance Amount, no pro-ration factor will be applied to such acceptances.

The Total Consideration or the Tender offer Consideration, as the case may be, together with accrued and unpaid interest from and including, the last preceding interest payment date on the Notes to, but excluding, the Settlement Date which amounts to U.S.$24.10 per U.S.$1,000 in principal amount of the Notes (the "Accrued Interest Payment") will be paid in cash on the Settlement Date to Noteholders whose Notes have been accepted for purchase by the Purchaser. Settlement is expected to occur on the date of this announcement.

Following settlement, the aggregate principal amount of the Notes outstanding and not held by the Purchaser is expected to be U.S.$543,552,000 representing approximately 43.5 per cent. of the issued aggregate principal amount of the Notes at the date of issue.

All Notes purchased by the Purchaser pursuant to the Offer will be delivered to Steel Capital S.A. for cancellation.

The Offer was made on the terms of, and subject to the conditions set forth in, the Offer to Purchase Memorandum.

Requests for information in relation to the Offer should be directed to: