Norilsk Nickel Board of directors approves reduction of 2012 investment expenditures

Norilsk Nickel (Norilsk Nickel or the Company) announces of today’s approval of the 2012 investment expenditures reduction granted by the Company’s Board of Directors, as proposed by the management.

The scope of investment reduction steps will bring down the budgeted 2012 expenditure by approximately 10 percent. Measures can be grouped into 3 categories:

• About 80 percent of the curtailment is covered by optimizing equipment procurement and construction schedules without substantially impacting general project deadlines set forth by the Company’s Strategy for Production and Technology Development (approved by the Board of Directors as of October 27, 2011 and targeted at maintaining and subsequently raising production volumes);
• About 10 percent of the curtailment is covered by cutting down worn-out equipment replacement program and by creating maintenance programs to provide for extended operation thereof;
• The remaining 10 percent of savings is provided for by other streamlining activities, namely by lowering the costs of equipment and materials planned for purchase within the framework of process solutions optimization program for ongoing projects.

The Company is substantively targeted at maintaining production potential and further on raising its profitability indicators by incrementally implementing the Strategy for Production and Technology Development. The Company maintains that by implementing the Strategy it serves the interests of shareholders in raising production and financial indicators and in improving the general operations efficiency.

The Company’s management is continuously seeking new approaches for lowering expenditures, particularly considering the current global metal market trends.

The Company’s Board of Directors has approved the presented materials. The management has been authorized to direct further efforts at reducing investment and operations expenditures in 2012, while presenting proposals for reducing the 2013 draft budget expenditures.

ABOUT MMC NORILSK NICKEL

MMC Norilsk Nickel, a company incorporated under the laws of the Russian Federation, is the largest diversified mining and metals company in Russia, the world's largest producer of nickel and palladium and one of the world's largest producers of platinum, rhodium, copper and cobalt. In addition to this, MMC Norilsk Nickel produces a large number of other by-products, including gold, silver, tellurium, selenium, iridium and ruthenium.

The key production units of the Company’s group in Russia are at the Taymyr and Kola Peninsulas. MMC Norilsk Nickel international assets include operations in Finland, Australia, Botswana and South Africa.

MMC Norilsk Nickel’s shares are traded at MICEX-RTS. ADR’s on the Company’s shares are traded on the other the counter market in the US and at the London and Berlin stock exchanges.