Afferro and Severstal Delay Closing of Transaction

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02 April 2012

AFFERRO MINING INC. AND OAO SEVERSTAL

Afferro and Severstal Announce Delay to Closing of the Transaction

Afferro Mining Inc. ("Afferro", TSX-V & AIM: AFF) and OAO Severstal ("Severstal", LSE: SVST) today announce that they have agreed to delay the closing of Afferro's sale of its 38.5 percent minority interest in Severstal Liberia Iron Ore Ltd. to Lybica Holding B.V. ("Lybica"), an affiliate of Severstal (the "Transaction"), due to ongoing taxation discussions with the Republic of Liberia's Ministry of Finance (the "Ministry").

As disclosed on 28 February 2012, the parties have received correspondence from the Ministry claiming that Lybica should withhold tax at the rate of 15 percent upon payment of the purchase price of the Transaction. After consulting with Liberian tax advisers and legal counsel, neither Severstal nor Afferro believe that such a tax is payable. This advice is consistent with the advice obtained by the parties prior to entering into the Transaction. Representatives of both companies continue to work to resolve this matter in a prompt manner and as a result have amended the share purchase agreement to provide an outside closing date of 4 April 2012.

For further information please contact one of the following:

Afferro Mining Inc.

Luis da Silva / Bevan Metcalf /Jeremy Cave

Tel: +44 (0) 20 7257 2930

Website: www.afferro-mining.com

Evolution Securities Limited

Nominated Adviser: Neil Elliot

Corporate Broker: Chris Sim

Tel: +44 (0) 20 7071 4300

RBC Capital Markets

Joint Broker: Martin Eales / Richard Hughes

Tel: +44 (0) 20 7653 4000

Pelham Bell Pottinger

Charles Vivian / James MacFarlane

Tel: +44 (0) 20 7861 3232

OAO Severstal

www.severstal.com

Severstal Investor Relations

Vladimir Zaluzhsky

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

vladimir.zaluzhsky@severstal.com

Severstal Public Relations

Elena Kovaleva

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

elena.kovaleva@severstal.com

About Afferro Mining Inc.

Afferro is an established exploration and development company listed on the TSX-V (AFF) and AIM (AFF). Afferro's portfolio includes the 100% owned Nkout iron ore project and surrounding iron ore targets in Cameroon. At Nkout, Afferro has an NI 43-101 compliant indicated mineral resource estimate of 944Mt at 32.7% Fe and an inferred mineral resource estimate of 1.05Bt at 31.6% Fe. Afferro has a 38.5% interest in Severstal Liberia Iron Ore Ltd. which indirectly owns the Putu iron ore project in Liberia.

About ОАО Severstal

ОАО Severstal is one of the world's leading vertically integrated steel and steel related mining companies, with assets in Russia, the USA, the Ukraine, Latvia, Poland, Italy, Liberia and Brazil. Severstal is listed on MICEX-RTS and the company's GDRs are traded on the LSE. Severstal reported revenue of $13,573 million and EBITDA of $3,263 million in 2010. Severstal's crude steel production in 2011 was 15.3 million tonnes. www.severstal.com

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release