December 2, 2019

Karelsky Okatysh, the leading plant for the extraction and processing of
iron ore in Russia (part of PAO Severstal), has been commended by one of its
largest customers – voestalpine AG, which it supplies with fluxed iron ore
pellets.

In a letter from voestalpine’s headquarters in Linz, Austria, the leading
global technology company said it had evaluated Severstal in accordance with
the Quality Management System based on the results of the 2018/2019 financial
year. As a supplier, the quality of Severstal’s product received the highest
grade “A” rating on a scale from A to D.

In correspondence, representatives from the client specified that Severstal
was one of voestalpine’s most valued suppliers. In comparison to the previous
assessment, pellets from Kostomuksha further improved in product quality and
investment in quality improvement.

Maxim Vorobyev, Director of the branch of Severstal Management in
Kostomuksha, CEO of Karelsky Okatysh and Olcon, commented:

“We are very grateful to our client for assessing our work on a global
level. This recognition is highly important to the team at Karelsky Okatysh, as
it proves that all our efforts to improve our product quality and service are
appreciated by our clients. The achieved result is very good, although there is
always an area for improvement, and we will strive for maximum excellency.”

Reference:

In its business segments, voestalpine is a globally leading technology group
with a unique combination of materials and processing expertise. voestalpine,
which operates globally, has around 500 Group companies and locations in more
than 50 countries on all five continents. It has been listed on the Vienna
Stock Exchange since 1995. With its top-quality products and system solutions
using steel and other metals, it is a leading partner of the automotive and
consumer goods industries as well as of the aerospace and oil & gas
industries. voestalpine is also the world market leader in complete railway
systems as well as in tool steel and special sections. In the business year
2018/19, the Group generated revenue of EUR 13.6 billion, with an operating
result (EBITDA) of EUR 1.6 billion; it had just under 52,000 employees
worldwide.