EVRAZ

Evraz’s management believes that producing low-cost steel products is essential to ensure the competitiveness of its plants. In the short to medium term, Evraz intends to realise synergies from the integration of recent acquisitions by rationalising production across its plants and making selective investments in improved production technology, such as increasing the use of continuous casting in its steel production, ongoing blast furnace refurbishments and closure of open hearth furnace production facilities.

In support of these objectives, Evraz spent approximately U.S.$740 million in capital expenditures in 2007, including U.S.$499 million in respect of its steel segment and U.S.$187 million in respect of its mining segment, and has budgeted to spend an aggregate amount of U.S.$1.068 billion on capital expenditures in 2008, including U.S.$523 million in expenditures on maintenance. U.S.$633 million, U.S.$386 million, U.S.$16 million and U.S.$33 million are allocated for capital expenditures in the steel segment, mining segment, vanadium segment and logistics, respectively.

These amounts do not include planned or anticipated expenditures for businesses acquired or to be acquired. Evraz’s capital expenditure plans are subject to change depending, among other things, on acquisitions (existing and potential), the evolution of market conditions and the cost and availability of funds.

• CAPEX in 2010 expected to be around US$800m vs. US$441m in 2009
• Approximately US$450m of 2010 CAPEX to be directed to increasing productivity and development projects, key projects being: