BoD RECOMMENDS DIVIDENDS FOR Q4 2015 AND Q1 2016

Press release

22 April 2016

NLMK Board of Directors recommends dividends for Q4 2015 and Q1 2016

On 22 April 2016, NLMK Group (LSE: NLMK), a vertically integrated international steel producer with operations in Russia, the EU and the USA, held a meeting of the Board of Directors. Board recommended NLMK shareholders approve Q4 2015 and Q1 2016 dividends' payment at the upcoming Annual General Shareholder Meeting (AGM) to be held on 3 June 2016.

The list of persons entitled to participate at the AGM is based on the NLMK Shareholder Register as of 15 April 2016.

Dividend payments

Q4 2015 and Q1 2016 dividends recommended by the Board totaled 21,336 million rubles, including:

· 14,564 million rubles for Q4 2015 at 2.43 rubles per ordinary share;

· 6,772 million rubles for Q1 2016 at 1.13 rubles per ordinary share.

NLMK Board of Directors has also recommended that the General Shareholder Meeting set the date, upon which those shareholders entitled to the Q4 2015 and Q1 2016 dividends are to be determined, as 14 June 2016.

2015 accrued dividends amounted to 41,653 million rubles equivalent to 67% of NLMK Group's net profit or 65% of the Company's free cash flow based on its 2015 IFRS consolidated results. In 2015, dividend payments amounted to 20,677 million rubles.*

Dividend yield ** on accrued dividends for FY2015 and Q1 2016 is 12.7% and 7.6% respectively.

***

* Dividend payments include 5,274 million rubles of dividends for H2 2014 and 15,403 million rubles of dividends for Q1 and Q2 2015.

** Dividend yield is calculated as the sum of accrued dividends for the period, divided by the sum of the company's market capitalization on the last day of the relevant period, y-o-y.

About NLMK Group

NLMK Group is the largest steelmaker in Russia and one of the most efficient in the world. NLMK's metal products are used in various industries, from construction and engineering to the manufacturing of power-generating equipment and offshore wind turbines.

NLMK's operations are located in Russia, Europe, and the United States. The Company's steel production capacity exceeds 17 million tonnes per year, of which about 16 million tonnes are produced in Russia.

NLMK has a highly competitive cash cost among global manufacturers and one of the highest profitability levels in the industry. The Company generated $8 billion in revenue, $1.95 billion in EBITDA and a net profit of $967 million in 2015. Net Debt/EBITDA is 0.56.

NLMK's ordinary shares are traded on the Moscow Stock Exchange (MICEX-RTS, ticker symbol: NLMK), and its global depositary shares are traded on the London Stock Exchange (ticker symbol: NLMK:LI). The company's investment credit rating is BBB-.

For more information on NLMK Group www.nlmk.com/en