OREANDA-NEWS. On November 24, 2008 As part of an overall reassessment of its international nickel operations and the current market dynamics, Norilsk Nickel Australia, a subsidiary of OJSC MMC Norilsk Nickel (MMC “Norilsk Nickel” or “the Company”), has decided to put its Waterloo and Silver Swan underground operations in Western Australia’s eastern goldfields region into care and maintenance, reported the press-centre of Norilsk Nickel.

These mines have been operating under increasing cost pressures for some time and a significant increase in the cost of inputs coupled with a steep decline in nickel prices lead to the decision to curtail operations.

Waterloo, which is located 40 kilometres south of Leinster, has been underground mining since 2006 with ore being trucked and processed at BHP Billiton’s Leinster Nickel Operation.

Silver Swan is the underground operation at Norilsk’s Black Swan nickel project is located 53 kilometres north east of Kalgoorlie and has been underground mining since 1996.

Collectively, these two mines produced approximately 10,000 tons of nickel contained in product over the last 12 months. This decision will not affect the Company’s open cut operations at Black Swan nor the Lake Johnston operation, which continue to perform in line with expectations.

The Company is considering a range of options for its employees at these operations.