OREANDA-NEWS. January 11, 2011. Nord Gold N.V. (“Nord Gold”), a subsidiary of Severstal (“Severstal”) (LSE: SVST; RT CHMF), announced today that it had acquired through a subsidiary all common shares (“Common Shares”) of Crew Gold Corporation (“Crew Gold”) that it did not already own at a price of USD 4.65 (CAD 4.62) per Common Share pursuant to a plan of arrangement under the laws of the Yukon Territory. A total of 7,077,313 Common Shares were acquired, which represent ownership and control of approximately 6.62% of the issued and outstanding Common Shares as at the date hereof.

Following this transaction Severstal will have ownership and control over 106,922,322 Common Shares, representing 100% of the issued and outstanding Common Shares as at the date hereof. The acquisition occurred under a statutory plan of arrangement which took effect as of January 7, 2011.

The additional acquisition of Common Shares was effected to complete Severstal’s acquisition of Crew Gold. Severstal controlled Crew Gold prior to this purchase and will continue to control Crew Gold.

Severstal began the acquisition of Crew Gold shares at the beginning of 2010, after Crew Gold had undertaken a restructuring in response to financial difficulties. In June 2010, Severstal became a control shareholder and, after acquiring a 43.21% stake from Endeavour Financial Corporation, Severstal became a 93.38% shareholder. Today Severstal announces its full control over Crew Gold.

Nikolai Zelenski, CEO of Nord Gold commented:

“We are very pleased to fully integrate Crew Gold into our gold segment having assumed full control of its shares. This will enable us to continue and escalate ongoing investment into this asset, with a focus on improvements to its operational and financial efficiency. Crew Gold is a very significant part of our growing gold mining business and one which I believe will deliver real value to shareholders as well as make a contribution to the development of the local territory and Guinea as a whole.”

Nord Gold (ex-Severstal Gold) includes all Severstal’s gold mining assets and is an established international, pure-gold producer focused on emerging markets with currently eight producing mines, two development projects, five advanced exploration projects and a broad portfolio of early exploration projects and licenses located across West Africa in Guinea and Burkina Faso, Kazakhstan and the Russian Federation.

Crew Gold operates the LEFA Gold Mine in Guinea with 2009 gold production of 177,623 oz and gold production of 138,081 oz in the three quarters ended September 30, 2010.

For further information, please contact:

Severstal, Investor Relations
Vladimir Zaluzhsky
T: +7 (495) 926−77−66
M: +7 (925) 006−51−80
vladimir.zaluzhsky@severstal.com

Severstal PR
Sergei Loktionov
sergei.loktionov@severstal.com
T+7 (495) 926 77 67 ext. 6446#

Hudson Sandler
Andrew Hayes / Maria Ignatova / Alex Brennan
T+44 (0)20 7796 4133

Forward Looking Statements

This news release contains statements that may be forward-looking statements regarding future events or the future financial performance of Severstal. Forward looking statements are identified by terms such as “expect,” “believe,” “anticipate,” “estimate,” “intend,” “will,” “could,” “may” or “might”, the negative of such terms, or other similar expressions. Severstal wishes to caution you that these statements are only predictions and that actual events or results may differ materially. Severstal does not intend to update these statements to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. Factors that could cause the actual results to differ materially from those contained in forward-looking statements of Severstal may include, among others, general economic conditions in the markets in which Severstal operates, the competitive environment in, and risks associated with operating in, such markets, market change in the steel and mining industries, as well as many other risks affecting Severstal and its operations.