Dividend Declaration

The Board of Directors of Novolipetsk Steel, NLMK (LSE: NLMK), the leading Russian steel producer, today recommended an interim dividend in respect of the first six months of 2010 of RUR 0.62 per ordinary share (1 Global Depositary Share = 10 ordinary shares).

Payment of the dividend is subject to shareholders’ approval at the Extraordinary General Meeting of NLMK on 30 September 2010. The payment procedure is exercised in accordance with the following cash dividend process:

- NLMK will transfer funds for dividend payments on Global Depositary Shares (GDSs) to the depositary bank on 24 November 2010. The Depositary bank will set payment date no later than 10 days after receipt of funds. Dividends on GDSs will be paid, by default, in U.S. dollars (USD) based on USD/RUR spot F/X rate on the day of currency conversion by the Depositary bank.
- Dividends on ordinary shares will be paid within three months following approval at the Extraordinary General Meeting of NLMK.

The Board of Directors approved a record date for the half-yearly dividend on 25 August 2010 at 24.00 (or on 26 August 2010 at 00.00) Moscow time.