MMK and ERG strike a strategic deal

23-12-2016, Astana

PRESS RELEASE

ММК and ERG sign a strategic agreement for iron ore delivery

OJSC Magnitogorsk Iron and Steel Works (MMK) and Eurasian Resources Group (ERG) have signed a strategic agreement for the supply of iron ore. The agreement provides for the supply of more than 30 million tonnes of iron ore, including pellets and concentrate, from the Sokolovsko-Sarbayskaya mine (JSC SSGPO, part of ERG) to OJSC MMK through 2020. This is the largest agreement of its kind in the industry in recent years.

This new contract provides OJSC MMK, a leader in the Russian metals industry, with the iron ore it will require for the next four years, while for SSGPO, a leading producer and exporter of iron ore in the Eurasian region, it secures guaranteed sales volumes.

The new agreement, which continues the long-standing partnership between two companies, was signed by the CEO of OJSC MMK, Pavel Shilyaev, and the Sales and Executive Director of ERG Sales, Yuri Sentsov. The signing was attended by the Chairman of OJSC MMK, Viktor Rashnikov, and the Chairman of ERG, Alexander Mashkevich.

Notes for editors:

MMK is one of the world's largest steel producers and a leading Russian metals company. The company's operations in Russia include a large steel-producing complex encompassing the entire production chain, from the preparation of iron ore to downstream processing of rolled steel. MMK turns out a broad range of steel products with a predominant share of high-value-added products. In 2015, the company produced 12.2 million tonnes of crude steel and 11.2 million tonnes of commercial steel products. MMK Group had sales in 2015 of USD 5,839 million and EBITDA of USD 1,668 million.

Contacts

Investor Relations Department

Andrey Serov

+7 3519 24-52-97

serov.ae@mmk.ru

Communications department

Dmitry Kuchumov Sergei Vykhukholev

+7 499 238-26-13 +7 499 238-26-13

kuchumov.do@mmk.ru vykhukholev.sv@mmk.ru