13 August 2015

PАО Severstal ("Severstal" or the"Company") (MICEX: CHMF; LSE: SVST), one of the world's leading vertically integrated steel and steel-related mining companies, announces as follows. On 24 September 2012, Holdgrove Limited (the "Issuer"), a company affiliated with Severstal issued US$475,000,000 1.00 per cent per annum senior unsecured convertible bonds due 24 September 2017 (the "Bonds") which were convertible into Global Depositary Receipts listed on the London Stock Exchange, each representing one ordinary share of Severstal. The Bonds were guaranteed by Severstal.

The Bonds were offered and sold outside the United States in reliance on Regulation S of the US Securities Act 1933, as amended.

Under Condition 8(D)(ii) of the Bonds, their holders had an option to require an early redemption of their Bonds on 24th September 2015 (the "Early Redemption Date"), at the accreted principal amount at such time plus accrued interest (the "Put Option"). In order to exercise the Put Option, the relevant holders should have submitted their requests to the Issuer over the period from 26th June to 10th August 2015 (the "Requisite Period").

As of the date of this announcement the Bonds in the amount of US$451,800,000 remain outstanding. By the expiry of the Requisite Period, the holders of the Bonds in the aggregate principal amount US$390,000,000 have requested to redeem their Bonds through the Put Option. The Issuer will satisfy their requests on the Early Redemption Date. As a result of the Put Option exercise, as of the Early Redemption Date the aggregate principal amount of the residual outstanding Bonds will reduce by US$ 390,000,000 or by 82 per cent.

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