Evraz Results

Link to Evraz Group web site (www.evraz.com)

2010 Highlights:

Financials:

Consolidated revenue US$13,394 million (+37% vs. 2009)

Consolidated adjusted EBITDA US$2,350 million (+90%)

Net profit US$532 million (net loss US$292 million in 2009)

Operating cash flow US$1,662 million

Total debt US$7,811 million (vs. US$7,923 million as of 31 December 2009) of which short-term debt US$714 million (vs. US$1,992 million as of 31 December 2009)

Steel segment:

Crude steel production 16.3 million tonnes (+7%)

Total external steel sales volumes 15.5 million tonnes (+9%)

Steel segment revenue US$12,123 million (+35%)

Mining segment:

Iron ore production 19.8 million tonnes (+6%)

Raw coking coal production 7.5 million tonnes (-27%)

Steam coal production 3.8 million tonnes (-8%)

Mining segment revenue US$2,507 million (+72%)

Vanadium segment:

Primary vanadium (slag) production 20,969 tonnes (+8%)

External vanadium product sales volumes 19,776 tonnes (+9%)

Vanadium segment revenue US$566 million (+56%)

Corporate developments:

Successful tender for the licences to develop the Mezhegey coking coal deposit in March 2010 and the Mezhegey Eastern coking coal deposit in October 2010

Launch of major rail mill modernisation projects

Commencement of implementation of pulverised coal injection (PCI) technology at two Russian steel mills

Approval for construction of Yuzhny Rolling Mill in the Rostov Region of Southern Russia and the Kostanay Rolling Mill in Kazakhstan, each with 450,000 tonnes of construction steel capacity

Acquisition in December 2010 of INPROM, a Russian metal service company, to strengthen EVRAZ's distribution network

Conversion in January 2011 of old order mining rights into new order mining rights for Mapochs Mine in South Africa

Financial management:

Approximately US$ 3.6 billion of 2010-2011 maturities refinanced in 2010 through:

RUB30 billion (approx. US$1 billion) total rouble bond issues in March and November

US$950 million 5-year Gazprombank loan in May

US$404 million 4-year loan from Nordea Bank in July

CAD300 million (approx. US$285 million) 4-year committed revolving credit facility secured by Evraz Inc. NA Canada in September

US$950 million 5-year pre-export finance facility in November

AGM held on 17 May 2010 approved the decision not to pay any dividends in respect of 2009

CAPEX:

CAPEX in 2010 amounted to US$832 million compared with US$441 million in 2009

CAPEX for FY2011 is expected to total approximately US$1.2 billion