MMK Board approved 20Bn ruble bond issue

Open Joint Stock Company

Magnitogorsk Iron and Steel Works

Press Release

August 31, 2012

MMK Board approves 20Bn ruble bond issue with up to 10 years maturity period

Magnitogorsk Iron and Steel Works (MMK; MMK:LI) announces that the Company's Board of Directors approved the launch of the ruble-denominated bonds program enabling MMK to issue up to 20 billion ruble worth of bonds during the next 12 months with the bonds maturity period of up to 10 years.

Registering the bonds issue is an option the company may use to increase its flexibility in terms of financial instruments available for refinancing its debt. No decision has been taking yet with respect to the time of placement. It will depend on the actual time slot available offering most favorable terms for the Company.

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About MMK

MMK is among the world's largest steel producers and is one of the leaders of Russia's steel industry. The company's operations in Russia include a large steel producing complex encompassing the entire production chain, from preparation of iron ore to downstream processing of rolled steel. MMK turns out a broad range of steel products with a predominant share of higher value added products. In 2011 MMK Group produced 12.2 mln tons of crude steel and 11.2 mln tons of commercial steel products. The MMK Group's revenue in 2011 totalled USD 9.306 bln, with EBITDA at USD 1.336 bln. 

Investor Relations Department:

Andrey Serov, Head of IR

tel.: +7 (3519) 24-52-97

E-mail: [email protected]

MMK Communications Department