core sector communique

EVRAZ Announces Financial Results for 2010

31 March 2011 - EVRAZ Group S.A. (LSE: EVR) today announces its audited financial results for the year ended 31 December 2010.

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⁽¹⁾ 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

(1) Net income numbers do not correspond to the 2009 financial statements due to the changes in the accounting policies (Note 2 to Financial Statements)