OREANDA-NEWS. Chelyabinsk Zinc Plant (LSE: CHZN, RTS: CHZN), the leading Russian producer of SHG zinc and zinc alloys, announces that on September 25, 2007, its additional share issue to the number of 48 775 869 ordinary shares, with a par value of 1.00 ruble each, was approved by Federal Service for Financial Markets of the Russian Federation (FSFM). In addition, FSFM approved the placement and circulation of OJSC CZP's ordinary shares amounting to 12,193,965  outside the Russian Federation.

Additional shares will be distributed to each holder of the Company's common shares in proportion to the number of the Company's shares held by each such shareholder as of the relevant date of record. Thus, each shareholder will receive 9 additional common shares for every common share of the Company. The increase in the Company's charter capital will be effected using the additional capital of the Company. The Company will not raise any additional funds in the course of this capital restructuring.

On the date of proposed distribution of additional shares, in connection with the additional share issue, The Bank of New York will make corresponding amendments to the global depositary receipt program that was established under the Deposit Agreement between OJSC CZP and The Bank of New York. As a result of this amendment, the ratio of GDRs to common registered shares of the Company will change and amount to 1:1 (currently 10 GDRs represent one common share).