OREANDA-NEWS. November 02, 2010.  The deed, among other things, grants a call option to Severstal’s subsidiary to acquire shares in an Australian listed company (the “Company”). The Company has entered into various contracts that will allow it to indirectly exploit a uranium project in Spain once the permit and authorisation procedures are completed. In summary, the call option would become exercisable only if Severstal’s subsidiary (or a related body corporate) announces a takeover bid for the Company on or before 10 December 2010. Under the deed, Severstal’s subsidiary has no obligation to make any investment in the Company (other than the subscription for the shares if it exercises the call option). Neither Severstal, its subsidiary nor any related body corporate would proceed with a takeover bid unless it had completed and was satisfied with the results of financial, technical and legal due diligence and had entered into a satisfactory transaction implementation agreement with the Company.

For further details, please click on the attached link to view a copy of the announcement today:

http://www.londonstockexchange.com/exchange/news/market-news/market-news-detail.html?announcementId=10700756

IT SHOULD BE NOTED THAT THIS DOES NOT CONSTITUTE AN ANNOUNCEMENT OR PUBLIC PROPOSAL BY SEVERSTAL (OR ITS SUBSIDIARY) THAT SEVERSTAL (OR ITS SUBSIDIARY) WILL BE MAKING OR PROPOSING A TAKEOVER BID FOR THE COMPANY AND THERE IS NO GUARANTEE THAT A TAKEOVER BID OR ANY OTHER PROPOSAL WILL BE MADE OR PROPOSED.