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OAO Severstal (SVST)

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Thursday 14 February, 2008

OAO Severstal

Acquisition

OAO Severstal
14 February 2008


SEVERSTAL COMPLETES ACQUISITION OF 100% SHARE CAPITAL OF CELTIC RESOURCES 
HOLDINGS PLC

Severstal, an international mining and steel company, announces that Centroferve
Limited, a wholly owned subsidiary of Severstal, has completed the acquisition
of gold miner Celtic Resources Holdings plc ('Celtic'). As at 30 January 2008,
when its Offer for Celtic closed, and upon completion of the compulsory
acquisition procedure Centroferve had acquired 100% of the issued share capital
of Celtic. Celtic's shares were delisted from AIM on 22 January 2008.

The revised offer of Severstal of 290 pence per share valued Celtic at 173
million pounds. As a result of earlier acquisitions of Celtic shares at lower
price levels, the total acquisition price paid by Severstal was 162 million
pounds.


Notes to editors:

Severstal is an international steel producer and miner with a listing on the
Russian Trading System and the London Stock Exchange. The company focuses on
high value-added and unique niche products and has a successful track record of
acquiring and integrating high-quality assets in North America and Europe. In
2007 Severstal produced 17.5 million tonnes of steel.

Severstal owns mining assets in Russia, thus securing its supplies of raw
materials. There are four high-quality mining complexes in northwest Russia and
in Western Siberia producing iron ore and coking coal. Severstal Resurs (manages
all Severstal's mining assets) is the second largest producer of pellets and
coking coal in Russia. The scrap business of Severstal Resurs consists of a
number of scrap metal yards in the Northwestern, Central and Southern parts of
Russia.

Severstal Resurs assets in the gold sector include two gold mining companies -
OOO Neryungiri Metallic, located in Sakha-Yakutia, and ZAO Rudnik Aprilkovo
located in Chita region - and licenses for geological survey and gold mining at
the following fields - Vitikamsky and Sagan Golsky located in Buryatia region
and Uryakhsky ore field located in Irkutsk region. It also now includes two
Celtic's gold mines - Suzdal and Zherek - and controls Shorskoye molybdenum mine
(eastern Kazakhstan).


Enquiries:

Severstal

Dmitry Druzhinin, Investor Relations
Olga Antonova, Public Relations
Tel: +7 495 540 77 66

Centroferve 

Roman Deniskin
Nikolai Zelenski
Tel: +7 495 9810910 ext.6633


Morgan Stanley & Co. Limited 

Peter Bacchus
Arash Mahdaviani
Tel: +44 20 7425 8000

FD London 

Jon Simmons
Ben Brewerton
Tel: +44 20 7831 3113


Morgan Stanley is acting exclusively for Centroferve and Severstal Resurs and no
one else in connection with the Offer  and Morgan Stanley will not regard any
other person as a client in relation to the Offer and will not be responsible to
anyone other than Centroferve and Severstal Resurs for providing the protections
afforded exclusively to its clients or  for providing advice in relation to the
Offer, the contents of this announcement or any transaction or arrangement 
referred to herein.



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