OREANDA-NEWS. December 24, 2012. Modernization and upgrade of existing facilities

• The Company continued a major modernization programme of its foundries across its Russian aluminium smelters in order to increase the production of value added products (VAP). The share of VAP reached 40% of total aluminium production in the third quarter of this year. By 2016, the Company intends to increase the share of VAP to 55% of total aluminium production.

• The Volkhov and Ural aluminium smelters have been fully switched to the production of VAP. The Nadvoitsy smelter has been revamped in order to reach an 80% share of VAP in total aluminium production.

• In the first half of 2013 RUSAL plans to complete the modernization of the Volgograd and Kandalaksha aluminium smelters.

• Smelters within the Company’s East Aluminium Division are also being modernized in order to increase alloy production by up to 70%, or 1,930,000 tonnes per year.

Construction of new production facilities

• The Company has continued to build new production facilities, underpinning RUSAL’s long-term leadership in the industry, as the demand for the metal will continue to increase. In October 2012, the first two turbines of the Boguchanskaya (BEMO) HPP were put into operation. The HPP is to reach its full capacity of 3,000 MW in 2013. This is also when the first metal at the Boguchansky (BEMO) smelter will be produced, with the smelter becoming a major consumer of power generated by the BEMO HPP. The development of energy and metals’ joint ventures is the most efficient way for organising aluminium production.

• It is expected that the BEMO smelter, with an annual production capacity of 600,000 tonnes of aluminium per year, will be fully completed by the end of 2016 and will consume 9.8 billion kWh per year. The smelter’s capacities will include a potroom, a casthouse and an anode plant, as well as power- generating units and relevant infrastructure. Upon completion, the smelter will create 3,500 new jobs. Currently the construction is ongoing at 67 primary and auxiliary facilities, the pot rooms construction is 58% complete, cast house is 75% complete. The facility will be equipped with energy efficient RA-300 cells, designed by RUSAL.

• In spite of the postponement of the launch of the Taishet aluminium smelter, as a result of the unfavourable market situation, works continued at the construction site in 2012. The technological equipment, that had been agreed under previously signed contracts, has nearly been fully supplied. It includes modern gas treatments, transformers, tending assembly, bath processing and anode rodding facilities. Also, construction of two residential buildings (out of the four planned) for the plant’s employees continued, with 60 and 80 flats respectively, with roofing work currently being completed. Both residential buildings will be completed in 2013. In 2012 the Company invested into the project USD70 million out of its own funds.

• These new projects are aimed at replacing the Company’s inefficient and outdated production facilities, which are located in the European part of Russia.

Increased international presence

• In 2012 RUSAL entered into several important international agreements to expand its production and sales activities in strategically important markets. The Company signed a Memorandum of Understanding with Canada-based Orbite Aluminae, the owner of the unique technology for the

extraction of metallurgical alumina and rare-earth elements from aluminous clay. The Memorandum foresees the possibility of the creation of a joint venture to develop the aluminous clay deposit located in Grande-Vallee, near Murdochville town in the Province of Quebec in Canada, as well as the construction of an alumina refinery.

• The Company continues to strengthen its presence in one of the most promising markets, China. In April 2012, North United Aluminium, a joint venture of RUSAL and China North Industries Corporation (NORINCO) began operations. The venture has 15 years of experience of selling aluminium, alloys and other non-ferrous metals to the Chinese market. RUSAL’s share in this joint venture is 33%.

• In addition, RUSAL and the Export-Import Bank of China signed a cooperation agreement for up to USD850 million for RUSAL’s greenfield project in Eastern Siberia.

• In the past year, the Company has become a member of the China Nonferrous Metals Industry Association (CNIA), which is the most influential national non-profit organisation in the PRC, which represents the interests of non-ferrous industry players.

• Also RUSAL signed a Memorandum of Understanding with Shandong Xinfa Group Co., one of the largest private aluminium companies in China, detailing the study of future possible cooperation areas, including joint ventures in the aluminium industry.

Strengthening of financial sustainability

• This year the Company has undertaken various measures to strengthen its financial stability, enhance the confidence of its lenders and investors, and create a solid foundation for the long-term growth of its market capitalisation. Above all, RUSAL has repaid over USD1 billion of its debt obligations to Russian and international lenders, including the early repayment of USD406 million. The Company has met all of its current debt obligations.

• The settlement of conflicts, namely the settlement of a claim by M. Cherney to O. Deripaska concerning shares in RUSAL and the signing of an agreement between RUSAL, Interros and Millhouse regarding MMC Norilsk Nickel, will not only help increase the attractiveness of investment in RUSAL as one of the most efficient aluminium companies, but creates a solid foundation for strengthening the Company’s global leadership position.