Statement in relation to Nord Gold

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART IN OR INTO THE UNITED STATES, CANADA, JAPAN, AUSTRALIA OR SOUTH AFRICA

OAO Severstal statement in relation to its subsidiary announcement

OAO Severstal ("Severstal") (LSE: SVST; RTS: CHMF), one of the world's leading integrated steel and mining companies, announces that Nord Gold N.V. ("Nord Gold"), a gold producer and a wholly-owned indirect subsidiary of Severstal intends to proceed with an initial public offering and listing of its ordinary shares ("Shares"). The global offer by Nord Gold will consist of newly issued Shares and existing Shares. The primary proceeds are to be used to repay the net amounts of loans outstanding to Severstal and to fund Nord Gold's growth strategy of exploration, development of key projects and potential acquisitions. Nord Gold intends to apply to the UK Financial Services Authority for its Shares to be admitted to the premium segment of the Official List on the London Stock Exchange and for all its Shares to be admitted for trading on the London Stock Exchange. Nord Gold has published its announcement on the Intention to Proceed with a Global Offering and Listing of Shares on the London Stock Exchange.

For further informationОАО Severstal

Vladimir Zaluzhsky

T: +7 (495) 926-77-66

M: +7 (925) 006-51-80

vladimir.zaluzhsky@severstal.com

Elena Kovaleva

T: +(495) 926 -77-66

Severstal's financial communications agent - Hudson Sandler

Andrew Hayes / Maria Ignatova

T: +44 (0)20 7796 4133 ***

These materials do not contain or constitute an offer, or an invitation to make offers, sell, purchase, exchange or transfer any securities in the Russian Federation or to or for the benefit of any Russian person or any person in the Russian Federation, and do not constitute an advertisement of any securities in the Russian Federation. The securities of Nord Gold have not been, nor will be, admitted to public placement and/or public circulation in the Russian Federation and may not be offered to any person in the Russian Federation except as provided by Russian law.

The information contained herein is not for release, publication or distribution in whole or in part in or into the United States. These materials do not contain or constitute an offer for sale or the solicitation of an offer to purchase securities in the United States. The securities referred to herein have not been and will not be registered under the US Securities Act of 1933, as amended (the "Securities Act"), and may not be offered or sold in the United States absent registration under the Securities Act or pursuant to an available exemption from, or in a transaction not subject to, the registration requirements of the Securities Act.