Severstal Resources acquires a controlling stake in High River Gold

    MOSCOW, Nov. 20 /CNW/ - ZAO Severstal Resources, the mining division of
OAO Severstal (LSE:   SVST; RTS CHMF), today announces that it has acquired
approximately 282.3 million newly issued common shares of High River Gold
Mines Ltd (TSX:HRG) ("High River") for US$0.1594 (CDN$0.20) per share,
representing a total consideration of US$45.0 million (CDN$56.4 million).
Additionally, as a partial consideration for the purchase price Severstal
Resources was issued approximately 40.7 million warrants exercisable for
approximately 40.7 million common shares of High River at an exercise price of
CDN$0.64 per common share.
    Following the close of the transaction, expected later today, and
including High River shares already owned by Severstal's affiliates, Severstal
Resources will control 50.1% of High River's share capital on a fully-diluted
    High River is a gold mining company listed on Toronto Stock Exchange
(Symbol: HRG) with a portfolio of producing mines, mines under development,
and advanced exploration projects in Russia and Burkina Faso. The company's
annual attributable gold production from these assets is expected to exceed
300,000 ounces (approximately 9.33 metric tonnes) in the near future.
    Morgan Stanley & Company Limited and Torys LLP are acting as the
financial and legal advisors to Severstal Resources on this transaction.

    Notes to Editors:

    Severstal Resources is a leading feedstock supplier in Russia to the
iron-and-steel industry which manages the mining assets of Severstal.
Severstal Resources incorporates the Karelsky Okatysh and Olcon iron ore
complexes and Vorkutaugol, a coking coal mining complex.
    Severstal Resources entered the gold mining business in 2007 with the
acquisition of Celtic Resources Holdings, a gold mining company with
Kazakhstan assets listed on LSE. Severstal Resources also purchased Neryungri
Metallic and the Aprelkovo mine in the Transbaikal region of Russia, as well
as exploration and follow-on gold production licenses in the Transbaikal
region, Irkutsk Region and Bouryat Republic. In 2007, Severstal Resources'
gold assets produced 5.3 tonnes of gold, with its resource base totaling
approximately 445 tonnes.
    In May, 2008 Severstal Resources reached an agreement to purchase up to a
61.5% stake in African Iron Ore Group Ltd, which owns the exploration rights
for an iron ore deposit in the Putu Range area of Liberia, West Africa.
    In November, 2008 Severstal Resources closed the acquisition of 100% of
PBS Coals Ltd, a coal mining complex in Pennsylvania, USA.

    Forward Looking Statements:

    This communication may contain projections and other forward-looking
statements regarding future events or the future financial performance of OAO
Severstal (Severstal). Forward looking statements are identified by terms such
as "expect," "believe," "anticipate," "estimate," "intend," "will," "could,"
"may" or "might", the negative of such terms, or other similar expressions.
Severstal wishes to caution you that these statements are only predictions and
that actual events or results may differ materially. Severstal does not intend
to update these statements to reflect events and circumstances occurring after
the date hereof or to reflect the occurrence of unanticipated events. Factors
that could cause the actual results to differ materially from those contained
in projections or forward-looking statements of Severstal may include, among
others, general economic conditions in the markets in which Severstal
operates, the competitive environment in, and risks associated with operating
in, such markets, market change in the steel and mining industries, as well as
many other risks affecting Severstal and its operations.

For further information:

For further information: Ekaterina Kapralova, Director of
Communications, Severstal Resources, +7 495 9810910 ext 6833; +7 985 7620027,; Peter Bacchus, Managing Director and
International Head, Mining & Metals, Morgan Stanley International, plc, +44 20
7425-4669,; Vladimir Samarin, Vice President,
Morgan Stanley International, plc, +44 20 7425-4361,; Dominic Fry, Tom Murray, Tulchan
Communications for Severstal, +44 207 353 4200

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