EVRAZ Q3 2015 PRODUCTION REPORT

16 October 2015 - EVRAZ plc (LSE: EVR) today releases its operational results for the third quarter of 2015.

Q3 2015 vs Q2 2015 HIGHLIGHTS:

STEEL

Note. Numbers in this table and the tables below may not add to totals due to rounding.

*     Gross volume of steel products in the tables includes those re-rolled at other EVRAZ's mills. However, such volumes are eliminated as intercompany sales for purposes of EVRAZ's consolidated operating results.

** Includes production volumes of EVRAZ Vitkovice Steel disposed of in April 2014 and of EVRAZ Highveld Steel and Vanadium (EHSV) which are not consolidated starting from April 2015 due to business rescue proceedings

*** Consolidated production volumes of semi-finished products are preliminary as Q3 2015 intra-group re-rolling volumes are yet to be finalised.

RUSSIA and KAZAKHSTAN

In Q3 2015, production of pig iron and crude steel grew by 7% and 5% respectively, as in Q2 2015 production was affected by capital repair works at EVRAZ ZSMK's blast furnace 3 and EVRAZ NTMK's blast furnace 6.

Quarterly production of steel products increased mostly due to higher volumes of construction products (+11%) reflecting stronger demand during peak domestic construction season. Output of construction products in the nine months of 2015 vs. the same period of 2014 declined only by 2.5%.

Production of semi-finished steel products was largely unchanged in Q3 2015 over Q2 2015. When comparing the first nine months of this year to the same period last year, semi-finished goods demonstrated growth due to reallocation of part of the production volumes to export markets.

Production of railway products in Q3 2015, in particular rails, was down by 17% over Q2 2015 as a result of the scheduled capital repair of the EVRAZ ZSMK electric arc furnace and rail mill in Q3 2015. The 9M 2015 to 9M 2014 decrease in railway product output is attributable to lower consumption in the CIS countries caused by a decrease in new construction and overhaul of railway infrastructure.

Lower prices are in line with global benchmarks.

In Q4 2015, steel production is expected to remain at the level of Q3 2015 and production of semi-finished products for exports may increase due to low season in Russia.

Average selling prices

NORTH AMERICA

* Q3 2015 and 9m 2015 production volumes are preliminary

In Q3 2015, crude steel production remained unchanged compared to Q2 2015 as an increase in steel production for construction products was partially offset by a decline in rail production.

Railway products declined 32% in Q3 2015 when compared to the previous quarter due to the combined effect of approximately three weeks of maintenance outages at the EVRAZ Pueblo rail mill and a seasonal slowdown in rail purchases.

Production of flat-rolled products increased 13% over Q2 2015 as plate demand returned to more normal levels. Additionally, Q3 production benefited from no maintenance outages in comparison with a 17-day maintenance outage in Portland and eight days of planned outages mostly related to maintenance activities at EVRAZ Regina during Q2 2015.

Production of tubular products increased 30% QoQ on the back of higher linepipe volumes to fulfill increased demand from oil and natural gas transmission companies. Additionally, EVRAZ OCTG mills in Red Deer and Calgary and the seamless pipe facility in Pueblo which resumed production at the end of Q2 2015 continued operating at low levels throughout the quarter.

When comparing the first nine months of 2015 with the same period in the previous year, crude steel and steel products declined by 9% and 10% respectively. Key drivers for these declines were the idling of seamless and OCTG facilities, subdued flat products demand, and selective reduction in rod & bar volumes to eliminate low margin products. During the first nine months of 2015 we also carried out significant maintenance projects as described in the preceeding paragraphs in this report and in the first quarter and second quarter operating reports.

Third party sales of flat-rolled products increased as volumes previously consumed by EVRAZ North America's OCTG and hollow structural shapes mills were directed to third party sales.

Tubular goods output in the first nine months of 2015 declined as low oil and natural gas prices resulted in reduced exploration and production activity which in turn dampened OCTG consumption. This decline was partially offset by increased output of large diameter linepipe, a segment where we expect to continue seeing volume growth.

Prices for most steel products continued to decline during Q3 2015 reflecting prevailing scrap and other inputs declines.

During Q4 2015 we expect a return of rail production to normalised levels. During Q4 2015 we are also planning to reduce utilisation of the large diameter mill in Regina to approximately 70% of its capacity during October and November to accommodate work related to the new large diameter mill project announced previously.

Average selling prices

UKRAINE

The 30% reduction in saleable coke volumes in Q2 2015 vs. Q3 2014 and in the nine months of 2015 vs. the nine months of 2014 was caused by decreased orders from other Ukrainian steel producers.

Production of crude steel and steel products, in particular semi-finished goods, fell as a result of scheduled maintenance works at blast furnace 3 and rolling mills in Q3 2015.

Production of construction products, meanwhile, grew by 48% in Q3 2015 vs. Q2 2015 and declined by 2% only in the nine months this year vs. 2014 due to better seasonal demand and larger shipments to the Ukrainian, Russian and European markets in 2015.

In Q4 2015, production of crude steel and steel products is expected to increase compared to Q3 2015 as no maintenance works are planned.

Average selling prices

SOUTH AFRICA

Results of EVRAZ Highveld Steel and Vanadium have been deconsolidated following introduction of business rescue proceedings at EVRAZ Highveld and Vanadium in April 2015.

IRON ORE

On completion of scheduled maintenance works at EVRAZ ZSMK's sintering machine in Q2 2015, production of iron ore products (sinter plus pellets) in Russia rose by 7% QoQ and remained flat when comparing the first nine months of 2015 with the same period in the previous year.

Production is expected to be stable in Q4 2015.

In Ukraine, production of lumpy ore has been stable, and maintenance works, replacement of parts of mining equipment scheduled for Q4 2015 are not expected to significantly impact production volumes.

In Q3 2015, prices for iron ore products followed global benchmarks.

Average selling prices

COAL

Coking coal

In Q3 2015, production of coking coal concentrate was 17% up on the back of increased raw coking coal production (+36% QoQ).

Following scheduled longwall moves at its Yerunakovskaya VIII, Osinnikovskaya and Yesaulskaya mines, Yuzhkuzbassugol expanded coal production by 61% compared with Q2 2015. The Raspadskaya coal company mined 20% more coal having completed the longwal move at the Raspadskaya underground mine and resuming full-scale operations at the Razrez Raspadksy open pit which were curtailed in Q2 2015 in response to excessive supply of GZh and GZhO grades in the market.

Pricing in the Russian market is set quarterly. In Q3 2015, the weighted average price of coking coal concentrate in Russian rouble terms remained unchanged compared to Q2 2015. However, due to to unexpected sharp Russian rouble depreciation, when re-calculated in US dollars, the prices are lower than in the previous quarter.

In Q4 2015, Yuzhkuzbassugol and Raspadskaya mines will continue to work on existing longwalls.

Average selling prices

VANADIUM

^* Calculated in pure vanadium equivalent

In Q3 2015, Vanadium slag production grew by 8% QoQ as a result of higher pig iron output at EVRAZ NTMK. The 14% decrease in the first nine months of 2015 compared to the same period of 2014 is attributable to EVRAZ Highveld's deconsolidation since April 2015.

Production of final vanadium products decreased QoQ affected by lower availability of feedstock for production of ferrovanadium as a result of EVRAZ Highveld's production stoppage in South Africa and due to lower production of oxides, vanadium aluminum and chemicals at EVRAZ Stratcor in the USA due to a one-month idling of the plant in April 2015 driven by lack of feedstock. The 17% decline in production of final vanadium products in the first nine months of 2015 vs. the same period last year was also a result of deconsolidation of EVRAZ Highveld's subsidiary Hochvanadium.

Average Q3 2015 Metal Bulletin FeV80 index of $17.90/kgV showed a decline of 15.7% vs. $21.24/kgV of the previous quarter. In the meantime Ryan's Notes index used in North America averaged $19.63/kgV in Q3 2015, declining by 8.9% from $21.54/kgV achieved in Q2 2015. The EVRAZ selling quotation followed suit.

Average FeV indices

Notes:

Semi-finished products include slabs, billets, pipe blanks and other semi-finished products.

Construction products include beams, channels, angles, rebars, wire rods, wire, and other construction products.

Railway products include rails, wheels, tyres and other railway products.

Flat-rolled products include commodity plate, specialty plate and other flat products.

Tubular products include large diameter line pipes, ERW pipes and casings, seamless pipes and other tubular products.

Other steel products include rounds, grinding balls, mine uprights, strips etc. For Ukraine they also include railway products.

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For further information:

EVRAZ is a vertically integrated steel, mining and vanadium business with operations in the Russian Federation, Ukraine, Kazakhstan, USA, Canada, Czech Republic, and South Africa. EVRAZ is among the top steel producers in the world based on crude steel production of 15.5 million tonnes in 2014. A significant portion of the company's internal consumption of iron ore and coking coal is covered by its mining operations. The company's consolidated revenues for the year ended 31 December 2014 were US$13,061 million, and consolidated EBITDA amounted to US$2,325 million.