Evraz completes acquisition of 73% stake in Strategic Minerals Corporation

August 24, 2006

Following the receipt of the necessary approvals by the Commission of the European Communities and the South African anti-monopoly authorities, Evraz Group S. A. (LSE: EVR) announces the completion of the acquisition of approximately 73 percent of Strategic Minerals Corporation, for about US$110 million.

Strategic Minerals Corporation, headquartered in Danbury, Connecticut, USA, is one of the world’s leading producers of vanadium alloys and chemicals for the steel, chemical, and titanium industries.

Evraz Group S.A. is one of the largest vertically-integrated steel and mining businesses with operations mainly in Russia. In 2005, Evraz Group produced 13.9 million tonnes of crude steel. Evraz Group’s principal assets include three of the leading steel plants in Russia: Nizhny Tagil (NTMK) in the Urals region and West Siberian (ZapSib) and Novokuznetsk (NKMK) in Siberia, as well as Palini e Bertoli in Italy and Vitkovice Steel in the Czech Republic. Its fast-growing mining businesses comprise Evrazruda, the Kachkanarsky (KGOK) and Vysokogorsky (VGOK) iron ore mining complexes and Neryungriugol coal company and equity interests in the Raspadskaya and Yuzhkuzbassugol coal mines. The mining assets enable Evraz Group to be a vertically-integrated steel producer. Evraz Group also owns and operates the Nakhodka commercial sea port, in the Far East of Russia, which facilitates its access to Asian export markets.

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