Chelyabinsk Zinc Plant reports 56% production increase for 1H 2010

Chelyabinsk, Russia – July 29, 2010 – Chelyabinsk Zinc Plant (LSE, RTS, MICEX: CHZN), Russia’s largest producer of zinc and zinc alloys, is pleased to announce its production results for the six
months ended June 30, 2010.
In Q2 2010 Chelyabinsk Zinc Plant’s (CZP) production increased by 9% Q-o-Q to 42,003 tonnes of salable SHG zinc and zinc based alloys (Q1 2010 – 38,570 tonnes). In 1H 2010 production totaled
80,573 tonnes, an increase of 56% as compared to the same period of 2009 (51,686 tonnes). 43.7% of metal was supplied to the domestic market.
CZP’s subsidiary, Nova Zinc LLC, operator of Akzhal zinc and lead ore mine in Kazakhstan, processed 722.4 thousand tonnes of ore in 1H 2010, 21% more than for the same period of 2009
(596.3 thousand tonnes). Production of zinc in zinc concentrate in 1H 2010 decreased by 18% to 14,038 tonnes over the prior year result of the same period of 17,217 tonnes. Lead in lead concentrate production decreased by 13% to 1,822 tonnes (vs. 2,088 tonnes in 1H 2009). Average zinc content in the ore for the period was 2.25% with average lead content of 0.32%, compared to 3.17% and 0.43% respectively a year
ago. The decrease of zinc and lead content in the ore was caused by usage in processing “offbalance” ores. This is due to the necessity of stripping operations up to 2012.
CZP’s subsidiary, The Brock Metal Company Limited (the leading UK supplier of zinc die-casting alloys) sold 14,713 tonnes of products in 1H 2010, 45% more than for the same period of 2009
(9,785 tonnes).