Potential demerger of coal assets

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THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION

FOR IMMEDIATE RELEASE

26.01.2021

EVRAZ plc ("EVRAZ" or the "Company") announces the potential demerger of its coal assets.

The Board of EVRAZ regularly reviews the Company's strategic options to maximise long-term value for EVRAZ shareholders. Today the Board has given approval for the Company to consider the strategic merits of and possible structures for a potential demerger of its coal business (the "Potential Demerger").

The Potential Demerger may allow EVRAZ to focus on developing its steel business and establish the coal business, currently consolidated under PAO Raspadskaya, as an independent leading regional producer of high quality metallurgical coal.

The Board continues to evaluate various strategic options for the Company and there can be no assurances that the Potential Demerger will be undertaken. If undertaken, the Potential Demerger would be subject to regulatory, shareholder and other third-party approvals. The Board will keep shareholders updated as appropriate with further announcements.

The Board has engaged J.P. Morgan Securities plc (which conducts its UK investment banking activities as J.P. Morgan Cazenove) and Citigroup Global Markets Limited as financial advisors and Linklaters LLP as a legal advisor to assist with the ongoing review of, and preparation for, the Potential Demerger.

About the Company

EVRAZ is a vertically integrated steel, mining and vanadium business with operations in the Russian Federation, the USA, Canada, the Czech Republic and Kazakhstan. EVRAZ is among the top steel producers in the world. A significant portion of the Сompany's internal consumption of iron ore and coking coal is covered by its mining operations. EVRAZ is listed on the London Stock Exchange and is a constituent of the FTSE 100 index.

About Raspadskaya

Following consolidation of the Company's coal businesses, which the Company announced on 13 November 2020 and completed on 30 December 2020, PAO Raspadskaya comprises essentially all material assets of EVRAZ's Coal segment, including eight underground mines, two open-pit operations and three processing facilities located in the Kemerovo region and Tyva Republic of Russia. In the six months ending 30 June 2020, the EVRAZ Coal segment contributed US$218 million, or approximately 20%, to the Company's total EBITDA of US$1,073 million.

PAO Raspadskaya is listed on the Moscow Exchange, with a current market capitalisation of c.RUB107bn (c.US$1.5bn).

For further information:

Media Relations:

Moscow: +7 495 937 6871

[email protected]

Investor Relations:

Moscow: +7 495 232 1370

[email protected]

Important information

Each of J.P. Morgan Securities plc (which conducts its UK investment banking activities as J.P. Morgan Cazenove) and Citigroup Global Markets Limited (together, the "Financial Advisors"), is authorised by the Prudential Regulation Authority and regulated in the United Kingdom by both the Prudential Regulation Authority and the Financial Conduct Authority, is acting exclusively for the Company and no one else in connection with the Potential Demerger. They will not regard any other person as a client in relation to the Potential Demerger and will not be responsible to anyone other than the Company for providing the protections afforded to their respective clients or for giving advice in relation to the Potential Demerger or the contents of this announcement or any transaction, arrangement or other matter referred to herein.