OAO Severstal

OAO Severstal

September 14, 2010 10:53 ET

Severstal Increases Stake in Crew Gold Corporation

AMSTERDAM, THE NETHERLANDS--(Marketwire - Sept. 14, 2010) - Severstal Gold N.V. ("Severstal Gold"), a subsidiary of OAO Severstal ("Severstal") (LSE:SVST)(RT:CHMF), announced today that it has purchased Endeavour Financial Corporation's entire stake in Crew Gold Corporation ("Crew Gold") of 46,203,403 common shares ("Common Shares") at a price of US$4.65 (CAD$4.78) per share. Severstal completed the purchase of 43,453,403 Common Shares on September 14, 2010. The closing on the balance of the Common Shares is expected to occur not later than September 17, 2010. The securities represent ownership and control of approximately 43.21% of the issued and outstanding Common Shares as at the date hereof.

Following this transaction, Severstal will have ownership and control over 99,845,011 Common Shares, representing approximately 93.38% of the issued and outstanding Common Shares as at the date hereof. The purchases are private, over the counter transactions occurring outside of Canada from a non-resident of Canada.

In connection with the acquisition, Neil Woodyer, Frank Giustra and Michael Beckett resigned as directors of Crew Gold.

The additional acquisition of Common Shares was effected to increase Severstal's ownership position. Severstal controlled Crew prior to this purchase and will continue to control Crew.

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 (www.sedar.com) 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.

About Severstal

OAO Severstal is one of the world's leading integrated steel and mining companies with listings in Russia and on the London Stock Exchange. Incorporated in 1993, the company focuses on high value added and unique niche products. Its main steel-making assets are in Russia, the United States and Europe. In 2009, Severstal produced 16.7 million tonnes of steel.

Severstal's Gold Mining division was established in 2007 and now includes a number of gold mining assets and gold exploration fields in Russia, Kazakhstan and Burkina Faso.

The addresses of Severstal and Severstal Gold are:

  OAO Severstal
  2/3 Klara Tsetkin street, RU-127299
  Moscow, Russia
  Phone: +7 (495) 926 77 66
  Fax: +7 (495) 926 77 61
  Severstal Gold N.V.
  Strawinskylaan 3105 Atrium
  1077 ZX Amsterdam
  The Netherlands

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.

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