EVRAZ

(Data as of 1 July 2010)

Most of EVRAZ’s iron ore and coal reserves have been evaluated according to international methodologies, namely under the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (“JORC Code”).

International reporting methodologies classify a deposit as either a mineral resource or a mineral reserve. The mineral resources are further divided into three categories: an inferred mineral resource (whose geological characteristics can be estimated with a low level of confidence), an indicated mineral resource (whose geological characteristics can be estimated with a reasonable level of confidence) and a measured mineral resource (whose geological characteristics can be estimated with a high level of confidence). The mineral reserves are divided into probable reserves, which is the economically mineable part of an indicated and, in some circumstances, measured mineral resource and proved reserves, which is the economically mineable part of a measured mineral resource.

EVRAZ’s reserves are based on drilling and geological data, and represent the part of the mineral resources that could be legally and economically extracted or produced at the time of the reserve estimation. Russian subsoil licences are issued for defined boundaries and for specific periods. However, under the Subsoil Law, licences are required to be extended by the relevant authorities at their scheduled termination at the initiative of the subsoil user if the extension is necessary to finish production in the field, provided that the licensee has not violated the conditions of the license. As EVRAZ currently plans to extend its licences at their scheduled termination and believes that it will be entitled to do so, its reserves are stated based on the maximum projected useful lives of the relevant fields. However, there can be no assurance that EVRAZ will be able to extend its licences, or that its licences will not be withdrawn prior to their scheduled expiration

For information on the Company’s risks please refer to the Risks section.

For Evraz’s licenses see the Licences section.

The tables below summarize EVRAZ’s iron ore and coal reserves in accordance with the JORC Code valued by an independent expert as of 1 July 2010

Iron ore reserves  

EVRAZ believes that current iron ore reserves are sufficient to fulfill management’s 20-year production plan for KGOK (taking into consideration reserves from Sobstvennoye Kachkanarskoye field), VGOK and Sukha Balka. The deficit of iron ore reserves of Evrazruda to fulfill management’s 20-year production plan amounts to 16,160 thousand tonnes. The reason for this deficit is an exclusion of reserves for Isigsky and second stage of Burluk Vostochny deposits caused by a temporary absence of the project in respect of these deposits. EVRAZ Highveld’s Mapochs Mine has proved mineral reserves provide for 10 years of mining production at a rate of 2,700 thousand tonnes per year. Vametco Alloys proved mineral reserves provide for 26 years of mining production at a rate of 1,100 thousand tonnes per year.

Coal reserves