Court denied MMK's motion to lift injunction

Open Joint Stock CompanyMagnitogorsk Iron and Steel Works(OJSC MMK)

Press Release

Arbitration Court of Chelyabinsk Region denied MMK's motion to lift injunction relief banning MMK to finalize acquisition of Flinders Mines Limited

April 12, 2012 Magnitogorsk

OJSC MMK (hereinafter MMK) announces that Arbitration Court of Chelyabinsk Region has denied MMK's motion seeking a discharge of the injunction relief order issued in support of the legal action brought by MMK's minority shareholder Elena Egorova. Ms. Egorova has been challenging the legitimacy of the MMK Board of Directors' resolutions with respect to the acquisition of 100 percent stake in Flinders Mines Limited.

The court's ruling kept in force the injunction relief order restraining MMK from implementing MMK Board's resolutions aimed at acquisition of Flinders Mines Limited.

On April2, 2012 MMK was notified that a minority shareholder of MMK, Ms. Elena Egorova, brought an action to the Arbitration Court of Chelyabinsk Region (city of Chelyabinsk, Russian Federation) on March 29, 2012. The plaintiff has challenged the legitimacy of the MMK Board of Directors' resolutions with respect to the acquisition of 100 percent stake in Flinders Mines Limited. As a result, on March 30, 2012 the Arbitration Court of Chelyabinsk Region issued an injunctive relief order supporting the plaintiff's claim.

MMK officially reiterates that the company continues to consider the plaintiff's action as ungrounded and further states that the company has been acting in full conformity with applicable laws in the course of implementing the transaction to purchase 100 percent shares of Flinders Mines Limited.

MMK will continue to use its procedural rights in order to prove the illegitimate and unjustified character of the plaintiff's action and to insist that the plaintiff's claim should be rejected and the injunction relief discharged.

The preliminary hearing of Egorova vs. MMK lawsuit is scheduled for April 25, 2012.

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