Severstal Exercises Warrants in High River Gold Mines

AMSTERDAM, THE NETHERLANDS -- (Marketwire) -- 08/16/10 -- Severstal Gold N.V. ("Severstal Gold"), a subsidiary of OAO Severstal ("Severstal") (LSE: SVST)(RT: CHMF), announced today that it acquired 40,674,540 common shares ("Common Shares") of High River Gold Mines Ltd. ("High River") at a price of CAD$0.64 per share on August 16, 2010 upon exercise of warrants held by Severstal Gold (the "Warrants"). The Warrants were transferred to Severstal Gold in November 2009 from another Severstal subsidiary (no change in beneficial ownership occurred as a result). The securities acquired represent ownership and control of approximately 4.84% of the issued and outstanding Common Shares as at the date hereof.

Following this transaction, Severstal will have beneficial ownership and control over 591,362,172 Common Shares, representing approximately 70.38% of the issued and outstanding Common Shares as at the date hereof.

The additional acquisition of Common Shares was effected to increase Severstal's ownership position. Severstal controlled High River prior to the exercise of the Warrants 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 [phone] ext. 6446#, [e-mail]

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 business was established in 2007 and now includes a number of gold mining assets and gold exploration fields in Russia, Kazakhstan and Burkina Faso. In 2009 the production was 534 kOz of gold.

The addresses of Severstal and Severstal Gold are:

OAO Severstal
    2/3 Klara Tsetkin street, RU-127299
    Moscow, Russia
    Phone: [phone]
    Fax: [phone]


    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.

Contacts:
OAO Severstal
Sergey Loktionov
Public Relations
[phone] ext. 6446#
[e-mail]