OAO Severstal

OAO Severstal

October 11, 2010 14:14 ET

Severstal Increases Stake in High River Gold Mines

AMSTERDAM, THE NETHERLAND--(Marketwire - Oct. 11, 2010) - Nord Gold N.V. (previously – Severstal Gold N.V.) ("Nord Gold"), a subsidiary of OAO Severstal ("Severstal") (LSE:SVST)(RT:CHMF), announced today that it entered into an agreement to acquire 19,000,000 common shares ("Common Shares") of High River Gold Mines Ltd. ("High River") at a price of CAD$1.05 per share on October 8, 2010 (the "Transaction"). The closing of the Transaction is expected to occur by October 18, 2010. The securities to be acquired pursuant to the Transaction represent ownership and control of approximately 2.26% of the issued and outstanding Common Shares as at the date hereof.

Following the Transaction, Severstal will have beneficial ownership and control over 610,362,172 Common Shares, representing approximately 72.64% of the issued and outstanding Common Shares as at the date hereof. The additional acquisition of Common Shares will occur in a private transaction outside of Canada from a non-Canadian seller.

The additional acquisition of Common Shares was effected to increase Severstal's ownership position. Severstal controlled High River prior to the Transaction and will continue to control High River. Severstal may in the future increase or decrease its ownership of securities of High River from time to time depending on such factors as the business and prospects of High River and future market conditions.

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#, sergey.loktionov@severstal.com

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. Its main assets are in Russia, Ukraine, Kazakhstan, Italy, France, the USA and Africa. The company focuses on high value added and unique niche products. In 2009, Severstal produced 16.7 million tonnes of steel.

Nord Gold is an established international, pure-gold producer focused on emerging markets with currently eight producing mines, two development projects, five advanced exploration projects and a broad portfolio of early exploration projects and licenses located across West Africa in Guinea and Burkina Faso, Kazakhstan and the Russian Federation.

The addresses of Severstal and Nord 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
    Nord 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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