License for the Tsentralnyi field

OAO Severstal OBTAINS exploration and development LICENSE FOR THE Tsentralnyi field in THE Tyva Republic, RUSSIA

Moscow, September 21, 2010. ОАО Severstal ("Severstal") (LSE: SVST; RTS: CHMF), one of the world's leading vertically integrated steel and mining companies, has obtained a license for further exploration and coal extraction at the Tsentralnyi field in the western part of the Ulug-Khemskiy basin in the Tyva Republic, Russia. This license has been granted by Rosnedra, the Federal Agency of Subsoil Use.

The new license will give Severstal access to an estimated 639 mln tonnes of high quality hard coking coal. Severstal will pay $19.5 mln for the license.

Vadim Larin, CEO Severstal Resources, commented:

"This license is an important strategic development for Severstal Resources, significantly adding to our reserves and our ability to access new markets. It will also create significant number of new jobs in the Tyva Republic region."

ОАО Severstal is one of the world's leading integrated steel and mining companies. The Company's shares are traded on the Russian Trading System (CHMF), MICEX (CHMF, RTS) and LSE (SVST). With assets in Russia, Ukraine, Kazakhstan, Italy, France, the USA and Africa, Severstal reported revenue of over $13 billion and EBITDA of $844 million in 2009*. The Company was also ranked 13th in Metal Bulletin's 2009 global ranking of Top Steelmakers, producing 16.7 million tonnes of crude steel. As of June 30, 2010, Severstal is the 3rd largest steel producer in Russia, the 4th largest steel producer in the US, and the 2nd largest steelmaker in Italy (via Lucchini in which Severstal has a 49% stake). Severstal's mining assets in Russia and the USA mean that the Company has strong self-sufficiency in coking coal and iron ore in Russia, and good self-sufficiency in coking coal in the USA. Severstal's gold business, part of its Resources Division, is Russia's second largest gold producer.

* Figures from Severstal annual report and include Lucchini.

Severstal Resources, the mining division of OAO Severstal, is one of Russia's biggest mining companies. It consists of two iron ore mining complexes (Karelsky Okatysh and Olcon), a coking coal complex (Vorkutaugol) in northwest Russia, a ferroniobium producer (Stalmag) in east Russia, a coking coal complex in the US (PBS Coals), an iron ore exploration project in Liberia and a mine design company (SPb-Giproshakht). Severstal Resources also includes a significant gold business with assets in Russia, Kazakhstan, Guinea and Burkina Faso.

For further information, please contact:

Severstal, Investor Relations

Vladimir Zaluzhsky

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

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

[email protected] 

Severstal PR

Sergey Loktionov

[email protected]

+7 (495) 926 77 67 ext. 6446#

Hudson Sandler

Andrew Hayes / Maria Ignatova / Alex Brennan

+44 (0)20 7796 4133