Severstal completes the sale of two mines, and associated assets, to Arcelor Mittal

Further to the announcement on 31st January 2008, OAO Severstal announces today the completion of the sale to ArcelorMittal of its 97.9% stake in the Beryozovskaya Mine and its 99.46% stake in the Pervomayskaya Mine. As part of the deal, Severstal also sold to ArcelorMittal the Severnaya Coal Preparation Plant, 100% of the Zhernovskaya-3 deposit and controlling stakes in three companies that provide the mines with transport, assembly, repair and power supply services . Arcelor Mittal acquired the assets for a total consideration of $651.8 mln in cash.

In 2007, the Beryozovskaya and Pervomayskaya produced 1.77 mln tn of coking coal concentrate.

Severstal is an international mining and steel company. Severstal focuses on high value-added and unique niche products and has a successful track record of acquiring and integrating high-quality assets in North America and Europe. Severstal owns mining assets in Russia, thus securing its supplies of raw materials. In 2006 Severstal produced 17.5 mln tones of steel.

Severstal Resurs manages Severstal’s mining assets. In 2007 Severstal's Mining division produced 5.8 mln tn of coal concentrate, 1.8 mln tn of coking coal, 2.1 mln tn of steam coal, 10.0 mln tn of iron ore pellets and 4.6 mln tn of iron ore concentrate.