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4 July 2011

NLMK completes the purchase of a 50% interest in Steel Invest and Finance

NLMK (LSE: NLMK) (“NLMK”), one of the world’s leading steel companies, is pleased to announce the completion of the previously announced deal to purchase the remaining 50% interest in Steel Invest and Finance (“SIF”) from Duferco Group (“Duferco”). The transaction will result in SIF becoming a 100% owned indirect subsidiary of NLMK. The cash consideration for the transaction is c.$600m, payable in four equal annual installments. The Company will finance the transaction out of existing funds.

As part of the transaction, SIF has transferred to Duferco Group certain non-core assets consisting of long products operations with 0.3 m tpa capacity and Belgian steelmaking operations with 3 m tpa capacity. The acquired SIF rolling assets are consolidated on NLMK’s balance sheet from July 1, 2011. The EU regulatory authorities have already granted clearance to this acquisition.

About NLMK Group

NLMK is one of the world’s leading producers of steel with 2010 revenue of $8.4 billion and the EBITDA margin of 28%. In 2010 the Company produced 11.5 m tonnes of steel. NLMK production facilities located in Russia, the EU and US employ around 60,000 people.

The Company produces a wide range of steel products, including hot-rolled, thick hot-rolled plates, cold-rolled, pre-painted, electrical steel (transformer grain-oriented steel and dynamo steel), and other high value added grades, as well as a wide range of long products, including rebar, wire-rod and metalware. In 2010 NLMK delivered its products to customers from over 70 countries.

NLMK shares are traded in Russia on MICEX and RTS, and, in the form of GDRs, on the London Stock Exchange.

About Steel Invest and Finance SA

Steel Invest and Finance SA (SIF) comprises rolling assets located in Europe and the US with a total capacity of over 5.5 m tpa. European facilities with a capacity of around 2.6 m tpa produce a variety of flat products, including hot-rolled, cold-rolled, galvanized and pre-painted steel. European assets also include facilities for the manufacture of thick plates, with a capacity of around 1.35 m tpa. SIF’s US-based flat steel production facilities have a total capacity of 1.8 m tpa, including 0.8 m tpa of galvanized steel. Around 75% of SIF’s products are sold to the machine-building sector. In 2010 Steel Invest and Finance SA produced 3.2 m tonnes of flat steel.