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ChelyabinskZincPlant (CHZN)

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Monday 10 December, 2007

ChelyabinskZincPlant

Setting up a Subsidiary

JSC Chelyabinsk Zinc Plant
10 December 2007



     Chelyabinsk Zinc Plant OJSC Sets Up a Subsidiary to Develop Amur Field



Chelyabinsk, Russia - December 10, 2007 - Chelyabinsk Zinc Plant (CZP) (LSE:
CHZN, RTS: CHZN), the leading Russian producer of SHG zinc and zinc alloys,
became founder of Amur GOK OJSC. On Friday, December 7, 2007, Inspection of the
Federal Tax Service of Kurchatovsky district of Chelyabinsk registered the new
legal entity.

Resolution on setting up the enterprise was adopted by the CZP Board of
Directors at their meeting held on November 27, 2007.

In accordance with All-Russian Classifier of Types of Economic Activities, the
newly established Amur GOK OJSC is entitled to be engaged in minerals extraction
by means of open-cut and underground mining, as well as ore dressing resulting
in production of metal concentrates, and their sale. Currently, a Directorate of
the new enterprise is being formed.

It should be mentioned again that license agreement for a twenty five years'
period for prospecting and development of Amur Zinc Field in Bredinsk District
of Chelyabinsk region was signed by Russia's Federal Agency for Subsoil Use
(Rosnedra) and CZP on January 12, 2007. In 2007, basic geological works were
carried out at the field. By the end of the year, 100% of development wells
would be drilled.

'The performed works allow us to make optimistic conclusions. Ore body thickness
at the field reaches 23.4 m, while zinc content reaches 16.4%. One can say with
high extent of certainty that the field deposits are two-three times larger than
it was expected according to the results of Soviet studies conducted in 1970-ies
', stated Vsevolod Geikhman, CZP General Director.

The Company expects to get the final results of estimation and prospecting works
at the field in 2H2008, upon approval of the figures by the State Commission for
Mineral Reserves. In 2H2008, CZP also plans to carry out auditing of mineral
resources and ore reserves at Amur field according to the international
standards (JORC Code).

On Thursday, December 20, 2007 CZP will present its IFRS consolidated interim
financial statements for the 9 months ended 30 September 2007 (unaudited). At
the same day at 6pm Moscow time (3pm London time, 10am New York time) CZP will
host an Investor Conference Call to discuss its financial results and comment on
current operations. Media are invited to attend on a listen-only basis.

To participate in the conference call dial one of the dial-in numbers as
follows:

  • If dialing from Russia: (495) 981-0871
  • If dialing from UK: 0800 678 1160 (toll free)
  • If dialing from the USA: 1 866 297 7327 (toll free)

If dialing from countries other than specified please refer to http://
www.conferencing.bt.com/bt/50/eng/automated/bridge.jsp.

Once connected, the participant should enter the passcode: 450 536#

To join the web conference, paste the following link into the address bar of
your web browser: https://www.livemeeting.com/cc/btconferencing_eventsssl3, then
enter your Meeting ID/Meeting number: K2139169 and Password: 450536A.

The recording of the conference call and the presentation will be available on
CZP's web-site (www.zinc.ru) in the Investor Relations section.



About Chelyabinsk Zinc Plant



Chelyabinsk Zinc Plant OJSC is a leading Russian zinc producer. It is
responsible for approximately 60% of Russian zinc production volume. In 2006 the
plant produced 148,384 tons of SHG zinc. According to consolidated IFRS
accounts, revenues in 2006 were RUB 14.985 billion, and net profit was RUB
2,871.7 million.

NF Holdings B.V. (The Netherlands) controls 54.7% of shares of CZP. 50% shares
of NF Holdings B.V. belong to Arkley Capital S.a r.l., Luxemburg.

Ordinary shares of CZP are traded on the RTS exchange, under ticker CHZN, and
Global Depository Receipts (GDR) are traded on the London Stock Exchange under
ticker CHZN.

This announcement may include forward-looking statements. CZP's actual results
may differ materially from those made in or suggested by the forward-looking
statements contained in this announcement. By their nature, forwarding-looking
statements involve risks and uncertainties because they relate to events and
depend on circumstances that may or may not occur in the future. Forward-looking
statements are not guarantees of future performance. Even if the actual results
are consistent with the forward-looking statements contained in this
announcement, those results may not be indicative of results or developments in
future periods. CZP does not undertake any obligation to update any
forward-looking statements to reflect events that occur or circumstances that
arise after the date of this announcement.



                                                    Investor and Media Contacts:
                       Anna Levitanskaya, PR Director, Anna.Levitanskaya@zinc.ru
                            Tatyana Krasnousova, IR, Tatyana.Krasnousova@zinc.ru
                                                            Tel: +7 495 933 2780




                      This information is provided by RNS
            The company news service from the London Stock Exchange