OREANDA-NEWS. October 9, 2007. Open Joint Stock Company (“OJSC”) Mining and Metallurgical Company Norilsk Nickel (“MMC Norilsk Nickel”, or the “Company”) and its subsidiaries (the “Group”) issued consolidated interim financial statements (the “financial statements”) for the six months ended 30 June 2007 in compliance with International Financial Reporting Standards (“IFRS”).

The financial statements have been reviewed in accordance with International Standard on Review Engagements 2410 by Deloitte & Touche, who have issued a review report without any qualifications.

The individual financial statements of each subsidiary are presented in its own functional currency. It was determined that the Russian Rouble (“RUR”) is the functional currency of the Company and all foreign subsidiaries of the Group, except for Stillwater Mining Company, LionOre Mining International Limited, Norilsk Nickel Harjavalta Oy, Norilsk Nickel Finland Oy, Norilsk Nickel Cawse Proprietary Limited and MPI Nickel Proprietary Limited. Those companies use the functional currencies of the economies in which they operate - US Dollar, Australian Dollar, Botswana Pula and South African Rand.

The presentation currency of the consolidated interim financial statements is the United States of America Dollar (“USD”). Using USD as a presentation currency is common practice for global mining companies.


In addition, USD is a more relevant presentation currency for international users of the consolidated interim financial statements of the Group.

The Board of Directors of MMC Norilsk Nickel adopted a resolution to convene an Extraordinary General Meeting of shareholders on 14 December 2007 to approve the Company’s reorganization plan involving the spin-off of its non-core energy assets into a separate company, shares of which will be distributed between MMC Norilsk Nickel shareholders on a proportional basis. The strategic energy assets engaged in power supply to the Group’s production facilities in the Taimyr Peninsula will not be subject to spin-off.

The project time schedule and final list of the energy assets to be spun-off will be determined in November 2007.

Those shareholders that abstain from voting or vote against the reorganization will be entitled to present their ordinary shares to MMC Norilsk Nickel for redemption. The redemption price has been established by the Board of Directors of MMC Norilsk Nickel at RUR 5,300 per share.

A separate classification of the energy assets to be disposed will be presented in the Group’s consolidated financial statements for the year ending 31 December 2007.