Bluecone Limited

February 25, 2010 10:24 ET

Severstal Increases Stake in Crew Gold Corporation and to Make Cash Offer to Shareholders

MOSCOW, RUSSIA--(Marketwire - Feb. 25, 2010) - Bluecone Limited ("Bluecone"), a subsidiary of OAO Severstal ("Severstal") (LSE:SVST)(RT CHMF), with offices at 6 Karaiskakis Street, City House, P.C. 3032, Limassol, Cyprus announced today that it acquired 145,322,919 common shares ("Common Shares") of Crew Gold Corporation at a price of NOK 1.10 (CAD 0.19602) per share on February 25, 2010. The securities acquired represent ownership and control of approximately 6.80% of the issued and outstanding Common Shares as at the date hereof.

Following this transaction, Bluecone will have ownership and control over 568,524,160 Common Shares, representing approximately 26.59% of the issued and outstanding Common Shares as at the date hereof and Bluecone has therefore determined that it would be appropriate to make a formal offer to purchase any Common Shares that Bluecone does not currently own at a price of CAD 0.19602 (the amount in CAD$ equivalent to NOK 1.10) per share pursuant to Canadian offer rules. Details of the formal offer are expected to be announced within 2 weeks from February 25, 2010.

Severstal is an international steel and mining company with a listing on the Russian Trading System, Moscow Interbank Currency Exchange and the London Stock Exchange. Incorporated in 1993, the company focuses on high value added and unique niche products and has a track record operating high-quality assets in North America and Europe.

In 2007, the Gold segment was established in Severstal. This now includes a number of gold mining assets in Russia, Kazakhstan and Burkina Faso as well as several gold exploration fields in these regions. In 2009, Severstal gold mines produced 533,967 oz tr.

This press release is issued pursuant to National Instrument 62-103 – The Early Warning System and Related Take-Over Bid and Insider Reporting Issues, which requires a report to be filed on SEDAR ( containing additional information with respect to the foregoing matters. A copy of this report may be obtained by contacting Sergey Loktionov, Public Relations, OAO Severstal at +7 495 9810910 ext. 6446.

Morgan Stanley & Co. Limited and Pareto Securities AS are acting for Bluecone and Severstal and for no-one else in connection with the acquisition of Common Shares and will not be responsible to anyone other than Bluecone and Severstal for providing the protections afforded to clients of Morgan Stanley & Co. Limited and Pareto Securities AS nor for providing advice in relation to the acquisition of Common Shares or any other matter referred to in this announcement.

Forward Looking Statements

This news release contains statements that may be forward-looking statements regarding future events or the future financial performance of OAO Severstal. Forward looking statements are identified by terms such as "expect," "believe," "anticipate," "estimate," "intend," "will," "could," "may" or "might", the negative of such terms, or other similar expressions. OAO Severstal wishes to caution you that these statements are only predictions and that actual events or results may differ materially. OAO Severstal does not intend to update these statements to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. Factors that could cause the actual results to differ materially from those contained in forward-looking statements of OAO Severstal may include, among others, general economic conditions in the markets in which OAO Severstal operates, the competitive environment in, and risks associated with operating in, such markets, market change in the steel and mining industries, as well as many other risks affecting OAO Severstal and its operations.

Contact Information