Postponement of Nord Gold IPO

Postponement of Nord Gold Initial Public Offering

OAO Severstal ("Severstal" or "the Company") (LSE: SVST; RTS: CHMF), one of the world's leading integrated steel and mining companies, announces today that as a result of capital market conditions Nord Gold N.V. ("Nordgold"), a gold producer and a wholly-owned indirect subsidiary of Severstal, has postponed an initial public offering and listing of its ordinary shares.

Nordgold has rapidly grown into an established pure-play gold producer focused on emerging markets with strong fundamentals and is a growing contributor to Severstal's financial results. Nordgold will continue to develop its business and the Company is confident that given its strong fundamentals Nordgold will meet its growth targets.

For further information, please contact:

OAO Severstal

Investor Relations

Vladimir Zaluzhsky

T: +7 (495) 926-77-66 ext. 6375

[email protected] 

Public Relations

Elena Kovaleva

T: +7 (495) 926-77-66 ext. 6447

[email protected]

Hudson Sandler

Andrew/Hayes/Andrew Leach/Maria Ignatova

T: +44 (0)20 7796 4133

**************************************************************************

These materials do 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 do not constitute an advertisement of any securities in the Russian Federation. The securities of Nord Gold 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 information contained herein is not for release, publication or distribution in whole or in part in or into the United States. These materials do not contain or constitute an offer for sale or the solicitation of an offer to purchase securities in the United States. The securities referred to herein have not been and will not be registered under the US Securities Act of 1933, as amended (the "Securities Act"), and may not be offered or sold in the United States absent registration under the Securities Act or pursuant to an available exemption from, or in a transaction not subject to, the registration requirements of the Securities Act.NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART IN OR INTO THE UNITED STATES, CANADA, JAPAN, AUSTRALIA OR SOUTH AFRICA