Severstal announces on behalf of Lybica results of Exchange for Nordgold GDRs

Severstal announces on behalf of Lybica the results of the Exchange for Nordgold GDRs

On 30 November 2011, OAO Severstal (“Severstal”) announced the exchange by its wholly owned indirect subsidiary, Lybica Holdings B.V. (“Lybica”), of the global depositary receipts (“GDRs”) representing shares of its subsidiary, Nord Gold N.V. (“Nordgold”), for Severstal Shares and Severstal GDRs (the “Exchange”) on the terms and conditions contained in the Exchange document dated 30 November 2011 and the addenda to the Exchange document dated 5 December 2011 and 21 December 2011 (together, the “Exchange Document”). Capitalised terms used and not otherwise defined in this announcement have the meanings ascribed to them in the Exchange Document.

The Expiration Time has now passed, and Severstal hereby announces on behalf of Lybica that Lybica has received acceptances with respect to 16,065,020 Severstal GDRs and has received valid share forms of acceptance with respect to 4,309,365 Severstal Shares, for a total of 20,374,385 Severstal Securities, which represents approximately 10.6% of Nordgold share capital according to the Exchange Ratio.

Lybica has also confirmed that (i) the 5% Condition has been satisfied and (ii) the Severstal Share Delivery Period has commenced and will expire at 5:00pm Moscow time on 24 January 2012.

Delivery of the Nordgold GDRs in respect of Severstal GDRs tendered is expected to occur on 18 January 2012 and listing of the Nordgold GDRs on the London Stock Exchange is expected on the following morning. Delivery of Nordgold GDRs in respect of Severstal Shares delivered is expected to occur on or around 27 January 2012. The exchange with Rayglow Limited, an entity controlled by Mr Alexey Mordashov, of Severstal Shares for the Nordgold Shares not taken up in the Exchange is expected to occur by mid-February 2012.

Nikolai Zelenski, CEO of Nordgold, said: “We are delighted with the support shown for Nordgold by those shareholders that accepted the offer. As an independent, pure-play gold producer focussed on emerging markets I think we have huge potential to continue to grow the business and to deliver value to our shareholders.”

Chris Clark, Chairman of Severstal’s Board of Directors, said: “The listing of Nordgold marks the end of Severstal's successful involvement in gold. The transaction enables Severstal now to focus entirely on its core strengths as a leading vertically integrated steel and steel-related mining company. On behalf of Severstal, I would like to wish Nordgold, its management team and its shareholders every success for the future.”