OREANDA-NEWS. May 20, 2011. The Annual General Shareholder Meeting of OJSC Magnitogorsk Iron and Steel Works (OJSC MMK, the Company) was held in Magnitogorsk today. The meeting approved MMK’s Annual Report and annual financial statements for 2010. The meeting approved payment of the dividend based on the results of 2010 in the amount of 33 kopeck (0.33 ruble) per common share. The shareholders also approved a decision to terminate the authority of the MMK Managing Company, LLC, as sole executive body of OJSC MMK and delegated those functions to the Company CEO. The shareholders elected Boris Dubrovsky CEO of OJSC MMK.

The meeting approved a revised Charter of OJSC MMK and elected its Board of Directors. The newly elected directors are:

Victor Rashnikov, President, MMK Managing Company, LLC;

Vitaly Bakhmetyev, Vice President on Commerce, MMK Managing Company, LLC;

Boris Dubrovsky, CEO, OJCS MMK;

Nikolay Lyadov, Vice President on Sales, MMK Managing Company, LLC

Oleg Fedonin, Vice President on Finance and Economics, MMK Managing Company, LLC.

The meeting also elected five independent members of the Board of Directors who meet independence criteria established by the U.K. corporate governance code. The newly elected independent directors are:

Sir David Logan, Chairman, Council of Management, British Institute at Ankara (BIAA);

Zumrud Rustamova, Deputy General Director, OJSC Polymetal Managing Company;

Bernard Sucher, Member of the Board, Aton Group;

Peter Charow, Vice President for Russia, BP Plc.;

David Herman, Chairman of the Board, SOLLERS, OJSC

The meeting approved the revised Provisions on the Board of Directors and the Clauses on the sole executive body (CEO). The shareholders also approved amendments and addenda to the Provisions on the Board of Audit and elected OJSC MMK Board of Audit increasing the number of its members fr om three to twelve people. Pursuant to the principle of rotation, OJSC MMK approved ZAO KPMG as the company auditor.

The shareholders approved the amount of remuneration and compensation to be paid to the members of the Board of Directors and Board of Audit for the period of their duty in 2011 to 2012. The total payments to the Board of Directors will amount to 65 mln rubles and to the Board of Audit – 39 mln rubles. The meeting also approved the transactions the Company was interested to close.

Pursuant to the revised Charter approved by the meeting, the Company shall pay the dividend to all the shareholders on a non-recurring basis within 60 days period following a corresponding decision.

Following the meeting the new Board of Directors had its first gathering where Victor Rashnikov, President of the MMK Managing Company, LLC, was elected Chairman of the Board of the OJSC MMK.

Victor Rashnikov said: “OJSC MMK has once again demonstrated its adherence to the up-to-date corporate governance standards. The newly elected Board of Directors, along with amendments made to the internal documentation of the Company and other approved resolutions are consonant with the shareholders’ interests. The decisions approved by the shareholders today provide enough evidence that the Company has entered a new phase of its development as a major diversified holding. This new phase requires relevant adjustment of the MMK Group management system. To this end, the functions and authorities of MMK Managing Company, LLC have been modified and it will focus on the strategic management of the MMK Group.”

Boris Alexandrovich Dubrovsky,

CEO, OJSC Magnitogorsk Iron and Steel Works,

Business Profile:

Boris Dubrovsky, 53, brings to OJSC MMK a wealth of expertise as a top-manager who at his previous posts oversaw production, technology and marketing at major production and scientific organizations, including MMK. He has thorough knowledge of the MMK production process right from the shop level wh ere he started his job record in 1976 as a monitor apprentice and further worked as mechanic, master of rolling crew and chief millman.

Prior to his appointment as MMK CEO, Mr. Dubrovsky for two years served as first deputy general manager at OJSC Scientific and Industrial Corporation Uralvagonzavod. In 2003-2008 he was in charge of MMK domestic and global distribution as sales director. Earlier, in 2002-2003, Boris Dubrovsky served as general manager of OJSC Magnitogorsk Hardware and Sizing Plant (MMK-METIZ) at the same time holding the job of chief works manager at MMK. In 2000, Mr. Dubrovsky was put in charge of MMK’s equipment department as deputy sales manager.

Mr. Dubrovsky graduated cum laude from Magnitogorsk Mining and Steel Academy in 1990 and holds a diploma from the Russian Presidential Academy of National Economy and Public Administration (2001).