Severstal Resources completes bid for shares of PBS Coals Limited

Through its mining division Severstal Resources, Severstal announced completion of the offer by 7027940 Canada Limited, an affiliate of Severstal, to purchase the outstanding common shares of PBS Coals Limited (formerly, Penfold Capital Acquisition Corporation).

Approximately 99% of the total issued and outstanding common shares of PBS were tendered to the Offer. As previously announced, the Offeror took up and accepted for payment all of the PBS common shares tendered to the Offer on November 3, 2008 and the Offeror provided the depositary with the funds necessary to make such payment on November 5, 2008. Since more than 90% of the outstanding common shares of PBS were tendered to the Offer, the Offeror will acquire the remaining PBS common shares under the compulsory acquisition provisions of the Canada Business Corporations Act. The Offeror intends to de-list the shares of PBS from the Toronto Stock Exchange and apply for an order to cease being a reporting issuer in Canada as soon as reasonably practicable.