1. 1 PBS - SEVERSTAL RESOURCES

2. PBS COALS 46 years of operating history 4 th largest coal producer in Pennsylvania, the USA 48,000 acres of land in Somerset County, South Pennsylvania 147 million tons of in-place reserves 251 million tons of measured and indicated resources 12 operating mines with 8 new mines currently permitted 2 cleaning/load out plants Access to 2 major rail lines Experienced and available local workforce

3. PBS HAS 14% OF LV PRODUCTION IN THE USA PBS is alternative to “big three suppliers” source of low volatile hard coking coal -Sufficient reserve base -Permits in place -Pier space in Newport News and Norfolk, starting from June’2011 – also in Baltimore -Commitments from railroads -Controlled costs PBS IN THE MARKET PLACE

4. UNDERGROUND MINING 6 drift access room and pillar mines; 11 continuous mining units Raw production of 2,1 million tons in 2008 with potential to increase to 3,4 million tons in two years Good infrastructure New mines: Kimberly Run drift mine Horning D drift mine Roytown 2 nd unit added Agustus Deep Mine Horning Quecreek Deep Mine Kimberly Run Deep Mine

5. SURFACE MINING 6 mines operating, 5 additional mines permitted, 5 mines in permitting process 1 dragline site – 44 cubic yard capacity 5 shovel / truck sites – 14 to 33 cubic yard capacity Raw production of 1,2 million tons in 2008 135 company employees and 20 contractor employees Buffalo Surface Mine 7820 Dragline operating at Buffalo Surface Mine

6. Shade Creek Plant 600 raw tons per hour 4,5 million raw tons per annum (3,4 million clean tons) 10’000 ton train load-out on Norfolk Southern (100 tons per rail car) PROCESSING FACILITIES Shade Creek Plant

7. Cambria Rebuilt and upgraded to 400 raw tons per hour 2,7 million raw tons per annum (2,0 million clean tons) 7’200 ton train load-out on CSX rail line (90 tons per car) PROCESSING FACILITIES Cambria Plant Cambria Rail Load Out Cambria under construction Construction just completed

8. SUPERIOR MARKET ACCESS 10-14 days to Europe 15 days to Brazil Well-developed infrastructure Railroad flexibility Access to port piers in Baltimore and Norfolk Proximity to major seaborne markets 25 days to India 30 days to China

9. KEY CLIENTS OF PBS COALS PBS Coals

10. Yevgeny Shmakov Senior Sales Manager Severstal Resources Klary Tsetkin Str. 2/3 Moscow, 127299 Russia Office: +7 (495) 981 09 10, ext. 6728 Fax: +7 (495) 981 09 18 Mobile: +7 (917) 501 1612 E-Mail: eshmakov@pbscoals.com E-Mail: ev.shmakov@severstalresurs.ruev.shmakov@severstalresurs.ru PBS COAL INC. / SEVERSTAL RESOURCES CONTACTS For additional information please contact: