EVRAZ Q4 and FY 2015 PRODUCTION REPORT

19 January 2016 - EVRAZ plc (LSE: EVR) ("EVRAZ" or the "Company") today releases its operational results for the fourth quarter and full year of 2015.

Q4 2015 vs Q3 2015 HIGHLIGHTS:

FY 2015 vs FY 2014 HIGHLIGHTS:

STEEL*

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

* 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

**   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.

*** Consolidated production volumes of semi-finished products are preliminary as Q4 2015 intra-group re-rolling volumes are yet to be finalised.

RUSSIA and KAZAKHSTAN

In Q4 2015, production of crude steel and steel products was marginally unchanged compared to Q3 2015: The 18% decrease in production of finished products, and particularly the 22% reduction in production of construction products, due to beginning of the low construction season in Russia and Kazakhstan, was balanced out with the 30% increase in the output of semi-finished goods, directed mostly to export destinations.

Quarterly production of railway products was marginally lower. The Company used the quarter to master the production of new types of rails for export markets, with a strengthened order book already in Q1 2016.

In 2015, pig iron production was flat vs. 2014. Volumes of saleable pig iron went up 61% as pig iron sales were more marginal than slabs in the export markets. Crude steel output declined by 3% accordingly.

Volumes of finished steel products sold predominantly in the Russian domestic market declined by 9% and those of semi-finished goods, mostly for export, grew by 4%, as a result of economic slowdown and softer demand.

On the whole, prices in 2015 were lower following global benchmarks. Prices in Q4 2015 were also negatively affected by the traditional seasonal factors.

Average selling prices

NORTH AMERICA

* Q4 2015 and FY 2015 production volumes are preliminary

When comparing Q4 2015 with the previous quarter sequentially, crude steel production increased 6% as a result of EVRAZ Pueblo steel making availability returning to normal levels following the planned maintenance activities carried out during Q3 2015.

Taken together, the absence of any material planned or unplanned outages in the rail mill and a return of rail purchases to a more normalised level resulted in a 43% increase in railway products when compared to the previous quarter.

Production of flat-rolled products decreased 16% compared to Q3 2015 as market conditions in this segment deteriorated and resulted in lower orders for plate and coil.

Production of tubular products increased 3% QoQ as a result of higher production at the Portland large diameter mill partially offset by a reduction in output in Regina to accommodate work related to the installation of the new large diameter mill.

When comparing the full year of 2015 with 2014, crude steel and steel products declined by 9% and 12% respectively. Key drivers for these declines were significant reductions at EVRAZ North America's seamless and OCTG facilities, subdued flat products demand, and selective reduction in rod & bar volumes to eliminate low margin products. During the year significant maintenance projects were also carried out as described in the preceding paragraphs in this report and in previous quarters operating reports.

Railway products declined 4% making 2015 the second highest year on record for rail production at EVRAZ North America.

Tubular goods output declined 22% as higher utilisation of the large diameter pipe mills was offset by a significant reduction in OCTG and small diameter line pipe production resulting from the sharp decline in oil prices.

Despite a very challenging market, third party sales of flat-rolled products increased as volumes previously consumed by EVRAZ North America's OCTG and hollow structural shapes mills were successfully directed to third party sales.

Prices for most steel products continued to decline during Q4 2015 reflecting prevailing scrap and other inputs declines as well as continued pressure from imports.

Average selling prices

UKRAINE

In Q4 2015, production of crude steel and steel products increased by 14% and 31% respectively vs. Q3 2015 lower figures on the back of scheduled maintenance works at blast furnace 3 and rolling mills.

Growth in production of semi-finished products (billets) was driven by tepid demand for finished, particularly construction products both in Ukraine and other markets, in particular Russia, where Ukrainian imports of finished steel have been forced out from the market due to the Russian rouble devaluation.

In 2015, production of crude steel and steel products rose by 2% against 2014 when DMZ, the Company's steel mill, experienced electricity and gas availability constraints resulting in reduced production.

Production of semi-finished products for export to non-CIS countries surged by 20% YoY driven by weak domestic demand for finished steel goods due to an economic recession in Ukraine.

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

In Q4 and FY 2015, production of iron ore products (sinter plus pellets) in Russia was mostly flat. The 3% reduction in the sinter production was due to inventory optimisation to meet lower requirement of EVRAZ NTMK steel mill.

In Ukraine, production of lumpy ore at EVRAZ Sukha Balka was 4% lower than in Q3 2015, due to maintenance works and replacement of parts of mining equipment in Q4 2015. Comparing to 2014, production in 2015 decreased by 3% mostly due to reorientation of external sales from ore containing Fe 56%, to ore with Fe 60%.

In 2015, prices for iron ore products in general followed global benchmarks. The slight increase of prices of the iron ore products in Q4 2015 compared to Q3 2015 was due to a decrease of low margin sales to certain export destinations (Turkey, China) and higher demand, resulting in higher prices, from a Russian steel producer.

Average selling prices

COAL

In Q4 2015, EVRAZ mined 12% more coking coal than in Q3 2015 mostly due to a better performance of Yuzhkuzbassugol, which increased mining volumes by 34% following completion in Q3 2015 of longwall moves at Yerunakovskaya VIII, Alardinskaya and Osinnikovskaya mines.

Output of coking coal by the Raspadskaya coal company declined by 6%, mostly as a result of longwall moves at the Raspadskaya mine following completion of mining at its 5a-7-28 face in November. Other factors that affected production volumes were suspension of mining works at MUK-96 mine due to high cost of production and at Raspadskaya-Koksovaya mine's fileld 1 due to an endogenous fire hazard.

The lower volume of raw coal mined by the Raspadskaya coal company as well as higher consumption of own coal by some Russian steel producers, account for the 6% QoQ reduction in production of coking coal concentrate by EVRAZ' coal wasking plants, in particular by the Raspadskaya coal washing plant.

When comparing the full year 2015 to 2014, the 3% decrease in mining volumes was driven mostly by lower output by Yuzhkuzbassugol mines in accordance with the annual schedule of longwall moves. At the same time, the Raspadskaya coal company increased production despite suspension of MUK-96 and Raspadskaya-Koksovaya's field 1 as described above.

Pricing in the Russian market is set quarterly. In Q4 2015, the weighted average price of coking coal concentrate in Russian rouble terms remained unchanged compared to Q3 2015. Rouble prices increased in the Russian market and did not change in the export markets due to the rouble weakening.

In 2015 to 2014 comparison, prices in rouble terms increased due to higher prices domestically as well as a shift in shipments in favour of more expensive grades. However, due to to sharp Russian rouble depreciation, when re-calculated in US dollars, the prices in 2015 were lower than in 2014.

Average selling prices

VANADIUM

^* Calculated in pure vanadium equivalent

In Q4 2015, Vanadium slag production was marginally unchanged. The 19% decrease in 2015 compared to 2014 is attributable to EVRAZ Highveld's deconsolidation since April 2015. Without Highveld, vanadium slag production increased by 7% YoY due to improved extraction yields at EVRAZ NTMK.

Production of final vanadium products was stable QoQ and rose by 6% YoY despite deconsolidation of EVRAZ Highveld's subsidiary Hochvanadium. The increase came from higher oxide and chemical production at Stratcor, USA, as a result of improvements made to the plant during the year, as well as higher ferrovanadium production at Nikom in the Czech Republic due to better oxide availability.

Average Q4 2015 Metall Bulletin FeV80 index $13.45/kgV declined by 24.81% vs. $17.9/kgV in Q3. Meanwhile Ryan's Notes index used in North America averaged $15.01/kgV in Q4 2015, a 23.53% fall against $19.63/kgV in the previous quarter. 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.

###

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.