NLMK closes its debut US$500m 7-year Eurobond

NOT FOR DISTRIBUTION, DIRECTLY OR INDIRECTLY, INTO THE UNITED STATES OF AMERICA OR RUSSIAN FEDERATION

Press-release

27 September 2012

NLMK closes its debut US$500 million 7-year Eurobond 

NLMK (LSE: NLMK), a leading global steel company, today announces the closing of its debut US$500 million 7-year Eurobond offering with an annual coupon rate of 4.95%. Interest payments on the Eurobonds are payable semi-annually. The proceeds from the issue will be used for NLMK's general corporate purposes, including the refinancing of its debt.

The order book was almost 6x oversubscribed, indicating a high level of demand from a broad range of international investors, including investors in the United Kingdom (28%), the United States (20%), Switzerland (23%), as well other European investors (including Russia) (18%), Asian investors (9%) and MENA investors (2%). Approximately 60% of the issue was purchased by asset managers.

Deutsche Bank AG, London Branch, J.P. Morgan Securities and Société Générale acted as the Joint Lead Managers for the offering. The 4.95% Loan Participation Notes due 2019 were issued by Steel Funding Limited, an Irish company formed for the purpose of issuing the Notes.

Galina Aglyamova, Chief Financial Officer of NLMK, commented: "We are extremely pleased with the positive market reaction to our debut Eurobond offering. The 4.95% coupon represents the lowest coupon ever achieved for a benchmark Eurobond issue among Russia's non-state-owned companies. The success of the placement reflects the high level of investor confidence in the quality of NLMK's assets and its strategy. The issue provides us with long-term financing at attractive terms and gives NLMK more flexibility in achieving its strategic goals."

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About NLMK

NLMK is an international vertically-integrated steel company with production facilities located in Russia, Europe and the US. The liquid steel capacity of its operating units exceeds 15mtpy. The Company generated $11.7 billion of revenues and a 19.5% Adjusted EBITDA margin for the full year 2011. The Company's shares and GDSs are traded on the MICEX-RTS and LSE, respectively.

NLMK is rated "BBB-" by Standard and Poor's and Fitch. It is also rated "Baa3" by Moody's.

Contacts:

NLMK

Sergey Takhiev

Investor Relations

+7 495 915 1575

[email protected]

This announcement and the information contained herein are not for publication or distribution, directly or indirectly, in or into the United States of America. This document does not constitute an offer of securities for sale in the United States of America, nor may the securities be offered or sold in the United States of America absent registration or an exemption from registration as provided in the U.S. Securities Act of 1933, as amended, and the rules and regulations thereunder. There is no intention to register any portion of the offering in the United States of America or to conduct a public offering of securities in the United States of America. The information contained herein does not constitute an offer to sell or the solicitation of an offer to buy, nor there be any sale of the securities referred to herein in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration, exemption from registration or qualification under the securities laws of any such jurisdiction.

This document does not constitute an offer of securities to the public in the United Kingdom. Consequently, this document is directed only at (i) persons who are outside the United Kingdom or (ii) persons who have professional experience in matters relating to investments falling within Article 19(1) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the "Order"), (iii) high net worth entities falling within Article 49(2) of the Order and (iv) other persons to whom it may lawfully be communicated, (all such persons together being referred to as "relevant persons." Any investment activity to which this communication relates will only be available to, and will only be engaged with, relevant persons. Any person who is not a relevant person should not act or rely on this document or any of its contents.

The information contained herein does not contain or constitute an offer, or an invitation to make offers, sell, purchase, exchange or transfer any securities in the Russian Federation or to or for the benefit of any Russian person or any person in the Russian Federation, and does not constitute an advertisement of any securities in the Russian Federation and must not be passed on to third parties or otherwise be made publicly available in the Russian Federation. The proposed securities have not been, nor will be, admitted to public placement and/or public circulation in the Russian Federation and may not be offered to any person in the Russian Federation except as provided by Russian law.

The distribution of this document in other jurisdictions may be restricted by law and any person into whose possession this document comes should inform themselves about, and observe, any such restrictions.

This document may include forward-looking statements. These forward-looking statements include matters that are not historical facts or statements regarding NLMK's intentions, beliefs or current expectations concerning, among other things, NLMK's results of operations, financial condition, liquidity, prospects, growth, strategies, and the industry in which NLMK operates. By their nature, forwarding-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. NLMK cautions you that forward-looking statements are not guarantees of future performance and that NLMK's actual results of operations, financial condition and liquidity and the development of the industry in which NLMK operates may differ materially from those made in or suggested by the forward-looking statements contained in this document. In addition, even if NLMK's results of operations, financial condition and liquidity and the development of the industry in which NLMK operates are consistent with the forward-looking statements contained in this document, those results or developments may not be indicative of results or developments in future periods. NLMK does not undertake any obligation to review or confirm analysts' expectations or estimates or to update any forward-looking statements to reflect events that occur or circumstances that arise after the date of this announcement.