Severstal' : Corporate Event Notice “Information submitted outside the Russian Federation for its disclosure to foreign investors due to placement and circulation of the Issuer’s securities outside the Russian Federation”

Type and content of information (type and name of documents) submitted or presented by the Issuer to an appropriate authority (organization) of a foreign state, foreign stock exchange and (or) other organization under the Foreign Law for its disclosure or submission to foreign investors: press release: 'Severstal announces sale of Mini-Mill Balakovo'.

May 6, 2019, Moscow - PAO Severstal one of the world's leading vertically integrated steel and steel-related mining companies, announces that it has entered into a definitive agreement with Abinsk Electric Steel Works LTD for the sale of Mini-Mill Balakovo. The consideration of the transaction will be $215 million.

The transaction is expected to complete in first half of 2019 following the receipt of approvals and other standard conditions.

Alexander Shevelev, CEO of Severstal, commented:

'Following the sale of Mini-Mill Balakovo, we plan to focus on developing steel production at our main asset, the Cherepovets Steel Mill. We are confident that this will enable us to streamline our internal processes to execute our updated strategic priorities successfully. We are committed to providing our customers with integrated solutions and increasing our production of high value-added products. At the same time Severstal will continue to supply long products via our long product facilities at CherMK. Mini-Mill Balakovo was the first producer of long products in the Volga Federal District and has become known as a trusted supplier of high-quality products. We believe that the Mini-Mill still has a lot of potential and will benefit from the new shareholder's focus on long product production'.

Vitaly Babenko, General Director of the Abinsk electrometallurgical plant, noted:

'Mini-Mill Balakovo is a new-generation facility, which produces demanded products for the construction industry. Modern facilities of the plant combine the production of high-grade steel and the production of long products on a high-speed rolling mill. The acquisition of the company is fully consistent with the strategy of our company and will allow us to strengthen our position in the market. We welcome the professional team of the plant and are confident that Mini-Mill Balakovo will continue its successful development within the structure of our company'.

Mini-Mill Balakovo has an annual capacity of 1 million tonnes of profiled iron for building materials (reinforcement, angle, channel). It produces a range of 40 different products. The mill has produced over three and a half million tonnes of products since it was first launched.

Citigroup acted as financial advisor to PAO Severstal.

Date of information submission or presentation by the Issuer to an appropriate authority (organization) of a foreign state, foreign stock exchange and (or) other organization under the Foreign Law for its disclosure or submission to foreign investors: May 06, 2019.

Web-site address used for publication of the document containing information submitted or presented by the Issuer to an appropriate authority (organization) of a foreign state, foreign stock exchange and (or) other organization under the Foreign Law for its disclosure or submission to foreign investors due to placement and circulation of the Issuer's securities outside the Russian Federation: http://www.severstal.com

Identification features of the Issuer's securities due to which placement and circulation outside the Russian Federation the said information shall be submitted or presented: ordinary registered non-documentary shares (state registration number of the securities issue 1-02-00143-А, dated of state registration 30.11.2004; International Securities Identification Code (Number) (ISIN): RU0009046510), global depository receipts (ISIN: US8181503025).

Date of publication of document containing information submitted or presented by the Issuer to an appropriate authority (organization) of a foreign state, foreign stock exchange and (or) other organization under the Foreign Law for its disclosure or submission to foreign investors due to placement and circulation of the Issuer's securities outside the Russian Federation: May 06, 2019.