EVRAZ

Between January and May 2010 we have seen improvements in demand in all our markets. Steel prices rose globally, hand in hand with raw material prices, primarily iron ore, coal and scrap. This trend will translate into improved results for the Company due to our high level of vertical integration. We note, however, that the growth trend has reversed recently following a correction in prices that commenced in May 2010.

The Russian market has shown encouraging signs during 2010; demand is gradually recovering and construction steel sales volumes and prices are higher than in 2009. We believe that a softening of the market in the summer of 2010, largely reflecting export trends, is unlikely to persist in the longer term.

The North American market has also demonstrated marked improvements since the start of the year and this, in turn, will allow us to increase capacity utilisation rates at our US and Canadian plants.

In the medium-term we expect global demand for long steel and structural flat products to remain volatile, although infrastructure investments, driven by an array of government initiated economic stimulus packages, should provide underlying strength.

We are confident that our vertical integration model will continue to underwrite the fundamental strength of our business.

Evraz Group’s EBITDA for the first quarter of 2010 amounted to US$424 million. Reflecting the further growth in steel prices, second quarter EBITDA is expected to be in the range of US$725-825 million.

Short-term debt as of 30 June 2010 is expected to approximate US$1.6-1.7 billion, following a series of refinancing activities during the first half of 2010.

Due to the high volatility and low visibility of the market, we cannot commit to any firm guidance regarding the second half of 2010 and full year 2010 financial results.