EVRAZ

CAPEX in 2011 is expected to be around US$1.2 billion, key projects being:

Project	Total CAPEX	Cum CAPEX by 31.12.10	2011 CAPEX	Project Targets
Reconstruction of rail mill at NKMK	US$485m	US$225m	US$130m	Capacity of 950k tonnes of high-speed rails, including 450k tonnes of 100 metre rails On-stream by 2013
Pulverised coal injection (PCI) at NTMK and ZSMK	US$320m	US$40m	US$175m	Lower coke consumption from 420 to 320 kg/tonne No need for gas consumption On-stream by 2013
Construction of Yuzhny and Kostanay rolling mills	US$260m	US$0m	US$80m	Capacity: 450 ktpa of construction products each mill On-stream by 2013
Expansion of Kachkanar mine	US$80m	US$0m	US$50m	Iron ore production to be increased to 55 mtpa On-stream by 2012
Reconstruction of rail mill at NTMK	US$60m	US$40m	US$20m	Production of higher-quality rails 550k tonnes capacity On-stream by 2012
Reconstruction of mechanical area at NTMK wheel & tyre mill	US$40m	US$8m	US$25m	Production of higher-quality wheels On-stream by 2011
Development of Mezhegey and Eastern field coal deposits (Tyva, Russia)	TBD	US$70m¹	US$27m	Maintaining self-sufficiency in high-quality hard coking coal after depletion of existing deposits On-stream by 2015 and 2021 respectively

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(1) Acquisition of Mezhegey and Mezhegey East Licences