NEWS RELEASE For Immediate Release - June 15, 2012 Chelyabinsk Zinc Plant Announces IFRS Results For the Three Months Ended March 31, 2012

Chelyabinsk, Russia - June 15, 2012 - Chelyabinsk Zinc Plant , Russia's largest producer of zinc and zinc alloys, is pleased to announce its IFRS financial results for the three months ended March 31, 2012 (unaudited results).

Q1 2012 HIGHLIGHTS

* Chelyabinsk Zinc Plant's (CZP) revenue for Q1 2012 totaled RUB 3,256 mln compared to RUB 3,091 mln for Q1 2011. * Q1 2012 EBITDA amounted to RUB 531 mln or 16% of revenue compared to Q1 2011 EBITDA of RUB 773 mln or 25% of revenue. * Net profit for Q1 2012 was RUB 271 mln compared to RUB 471 mln for Q1 2011.

Consolidated interim financial results for three months ended March 31

(in millions of Russian Roubles) 2012 2011 Change, %

Revenue 3,256 3,091 5% Gross profit 627 863 (27%) Gross margin, % 19% 28% EBITDA (1) 531 773 (31%) EBITDA margin, % 16% 25% Profit before income tax 347 578 (40%) Net profit 271 471 (42%) Net margin, % 8% 15%

(1) EBITDA, for any relevant period, represents operating profit before interest, tax, depreciation and amortization.

EBITDA is not a measurement of CZP's operating performance under IFRS and should not be considered as an alternative to operating profit or any other performance measure derived in accordance with IFRS.

Revenue

Consolidated revenue for Q1 2012 increased by 5% to RUB 3,256 mln as compared to Q1 2011.

The average LME zinc price in Q1 2012 decreased by 15% as compared to the relevant period of the previous year and amounted to US$ 2,025/tonne. The average LME lead quotes decreased by 20% to US$ 2,093/tonne. The negative effect of the LME prices falldown was slightly compensated by the 3.4% growth of Russian Rouble/US Dollar average exchange rate.

Revenue structure for the three months ended March 31

(in millions of Russian Roubles) 2012 2011 Change, %

Zinc and zinc alloys 2,212 2,171 2% CZP 1,645 1,642 0% Brock Metal 567 529 7% Zinc tolling 411 478 (14%) Lead concentrate 216 86 151% CZP 42 86 (51%) Nova Zinc 174 - - Other products 417 356 17% Total revenue 3,256 3,091 5%

In Q1 2012, CZP's revenue from sale of zinc and zinc alloys stayed at the level of Q1 2011 and amounted to RUB 1,645 mln. The increase of sales on the domestic market by 16.5% was offset by 15% decrease of LME zinc prices.

Revenue of The Brock Metal Company Limited for Q1 2012 amounted to RUB 567 mln, 7% higher than in Q1 2011. This increase was driven by 19% increase of zinc alloys sales.

CZP received revenue of RUB 411 mln under tolling agreement in Q1 2012, which is 14% lower compared to Q1 2011. The decrease of tolling's volume (Q1 2012: 15.2 thousand tonnes; Q1 2011: 17.7 thousand tonnes) was due to growth of zinc and zinc alloys demand on the domestic market. Fixed processing fee amounted RUB 27,000/tonne.

Revenue from lead concentrate sales for Q1 2012 amounted to RUB 216 mln (Q1 2011: RUB 86 mln). Nova Zinc's shipments amounted to 3 thousand tonnes of lead concentrate (Q1 2011: 0 tonnes). Decline of CZP's revenue in Q1 2012 was due to the cutdown of lead concentrate production and also to the significant decrease of LME lead price.

In Q1 2012, revenue from CZP's other products increased by 17% to RUB 417 mln as compared to Q1 2011. It was mainly due to the increase of volume of sales and prices of indium, cadmium and precious metals in clinker.

Cost of Sales for the three months ended March 31

(in millions of Russian Roubles) 2012 2011

Raw materials and consumables used 1,434 1,363 in production

Utilities and fuel 507 519 Depreciation and amortization 227 193 Staff cost 192 171 Repairs and maintenance 147 125 Change in finished goods 56 (98) Mineral extraction tax 45 43 Cost of goods and material for 44 18 resale Production overheads 24 23 Inventory provision (2) (1) Precious metal revaluation (4) (1) Stock-take results adjustment - (8) Change in work-in-progress (42) (121) Cost of sales 2,628 2,228

Cost of materials and consumables used primarily comprises of the cost of zinc concentrate, zinc containing raw materials, materials for alloys production and auxiliary materials used in the production process. The increase by 5% was due to the growth of usage of purchase zinc concentrate instead of tolling's, recommencement of purchasing more expensive import concentrates.

In Q1 2012, costs of utilities and fuel decreased by 2% to RUB 507 mln. This decrease was due to the slight decrease of electricity tariffs (Q1 2012: RUB 1.93 per kWh; Q1 2011: RUB 1.98 per kWh) and other prices on energy resources for CZP.

Staff costs increased by 13% as compared to the relevant period of the previous year, to RUB 192 mln. The increase was due to the growth of average salaries and to the increase of unused vacation accrual.

Net profit

Net profit for Q1 2012 totalled RUB 271 mln compared to RUB 471 mln for Q1 2011.

About Chelyabinsk Zinc Plant

Chelyabinsk Zinc Plant is the leading Russian zinc producer. In 2011 the plant produced 160,001 tonnes of salable SHG zinc.

According to consolidated IFRS accounts, revenue in 2011 was RUB 12,772 mln and EBITDA was RUB 2,194 mln.

Ordinary shares of CZP are traded on the MICEX-RTS exchange under ticker CHZN and Global Depository Receipts (GDR) are traded on the London Stock Exchange under ticker CHZN. Investor and Media Contacts: Natalya Vasilieva, PR, ngv@zinc.ru Tel: +7 (351) 799-01-52 Evgeny Ponomarev, IR, eyp@zinc.ru Tel: +7 963 998-55-58

This announcement may include forward-looking statements. CZP's actual results may differ materially from those made in or suggested by the forward-looking statements contained in this announcement. By their nature, forwarding-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Forward-looking statements are not guarantees of future performance. Even if the actual results are consistent with the forward-looking statements contained in this announcement, those results may not be indicative of results or developments in future periods. CZP does not undertake any obligation to update any forward-looking statements to reflect events that occur or circumstances that arise after the date of this announcement.

JSC CHELYABINSK ZINC PLANT

Consolidated Condensed Interim Statement of Financial Position (unaudited)

In thousands of Russian Roubles 31 March 2011 31 December 2011 ASSETS Non-current assets Property, plant and equipment 5,298,670 5,426,146 Advances for capital construction 88,519 87,706 Intangible assets 54,470 58,585 Other non-current assets 1,161 2,267 Total non-current assets 5,442,820 5,574,704 Current assets Inventories 1,481,755 1,603,217 Trade and other receivables 2,465,576 1,934,939 Current income tax prepayments 62,400 84,130 Loans issued 1,006,384 985,311 Short-term financial assets 3,992 - Bank deposits 798,671 481,000 Restricted cash 3,301 3,174 Cash and cash equivalents 276,356 539,897 Total current assets 6,098,435 5,631,668 TOTAL ASSETS 11,541,255 11,206,372 EQUITY Share capital 127,635 127,635 Share premium 1,375,231 1,375,231 Legal reserve 3,011 3,011 Hedging reserve 3,992 - Cumulative currency translation reserve (200,769) (40,506) Retained earnings 8,807,957 8,536,846 TOTAL EQUITY 10,117,057 10,002,217 LIABILITIES Non-current liabilities Provision for asset retirement obligations 86,491 96,288 Deferred income tax liability 185,388 196,886 Other non-current liabilities 47,834 49,418 Total non-current liabilities 319,713 342,592 Current liabilities Short-term financial liabilities - 11,015 Accounts payable, accrued expenses and 739,328 605,861 advances from customers Current income tax payable 66,255 68,499 Other taxes payable 298,902 176,188 Total current liabilities 1,104,485 861,563 TOTAL LIABILITIES 1,424,198 1,204,155 TOTAL LIABILITIES AND EQUITY 11,541,255 11,206,372 JSC CHELYABINSK ZINC PLANT

Consolidated Condensed Interim Statement of Income (unaudited)

In thousands of Russian Roubles Three months Three months ended ended 31 March 2012 31 March 2011 Revenue 3,255,744 3,090,521 Cost of sales (2,628,454) (2,227,781) Gross profit 627,290 862,740 Distribution costs (128,933) (117,064) General and administrative expenses (180,741) (156,378) Taxes other than on income (30,015) (26,671) Other operating income and (expenses), net 3,104 (211) Operating profit 290,705 562,416 Finance income 36,609 17,425 Finance costs (2,882) (2,749) Foreign exchange gains 42,430 43,204 Foreign exchange losses (19,830) (41,946) Profit before income tax 347,032 578,350 Income tax expense (75,921) (107,516) Profit for the period 271,111 470,834 Profit attributable to: Shareholders of the Company 271,111 470,834 Profit for the period 271,111 470,834 Earnings per share - basic and diluted (in RUB) 5 9

JSC CHELYABINSK ZINC PLANT

Consolidated Condensed Interim Statement of Comprehensive Income (unaudited)

In thousands of Russian Roubles Three months Three months ended ended 31 March 2012 31 March 2011 Profit for the period 271,111 470,834 Other comprehensive (loss)/ income after tax

Effect of translation to presentation currency (160,263) (129,055)

Cash flow hedges, net of tax 3,992 6,111 Total other comprehensive (loss)/ income (156,271) (122,944) Total comprehensive income for the period 114,840 347,890 after tax Total comprehensive income attributable to: 114,840 347,890 Shareholders of the Company JSC CHELYABINSK ZINC PLANT

Consolidated Condensed Interim Statement of Cash Flows (unaudited)

In thousands of Russian Roubles Three months Three months ended ended 31 March 2012 31 March 2011 Cash flows from operating activities Profit before income tax 347,032 578,350 Adjustments for: Depreciation and amortization 240,526 210,314 Net loss on disposal of property, plant and (8,809) (9,937) equipment Impairment of loans issued and trade and other 328 258 receivables (Reversal)/write down of inventory write down to (1,887) 1,365 net realisable value Finance (costs)/income, net (33,728) (14,676) Physical inventory count adjustment - (8,264) Precious metals revaluation (3,867) (1,005) Foreign exchange (gain)/ loss, net (46,436) 14,693

Other non-monetary operating (income)/expenses (618) 27,290

Operating cash flows before changes in working 492,541 798,388 capital

Increase in trade and other receivables (518,947) (466,297) Decrease/(increase) in inventory 117,965 (53,268) Increase in trade payables 158,775 196,982 Increase in taxes payable 123,552 30,697 (Increase)/decrease in restricted cash balance (127) 35 Cash generated from operations 373,759 506,537 Interest paid (264) (234) Income taxes paid (68,771) (136,992)

Net cash generated from operating activities 304,724 369,311

Cash flows from investing activities

Purchase of property, plant and equipment and (255,400) (303,639) intangible assets

Proceeds from sale of property, plant and 508 - equipment Loans issued (253) (1,005,237) Proceeds from repayment of loans 1,056 157 Interest income received 8,051 34,918

(Increase)/Decrease in short-term bank deposits (317,671) 609,740

Decrease in long-term bank deposits - 100,000 Net cash used in investing activities (563,709) (564,061) Cash flows from financing activities Finance lease payments - (52,205) Net cash used in financing activities - (52,205)

Effect of currency translation and exchange rate (4,556) (89,865) fluctuations on cash and cash equivalents

Net (decrease) in cash and cash equivalents (263,541) (336,820)

Cash and cash equivalents at the beginning of 539,897 748,718 the period

Cash and cash equivalents at the end of the 276,356 411,898 period JSC CHELYABINSK ZINC PLANT

Consolidated Condensed Interim Statement of Changes in Equity (unaudited)

In thousands of Share Share Legal Hedging Cumulative Retained Total Russian Roubles capital premium reserve reserve currency earnings equity translation reserve Balance at 127,635 1,375,231 3,011 - (142,828) 7,498,556 8,861,605 1 January 2011 Comprehensive income Net profit for the - - - - - 470,834 480,834 period Other comprehensive income Effect of - - - - (129,055) - (129,055) translation to presentation currency Cash flow hedges, - - - 6,111 - - 6,111 net of tax Total other - - - 6,111 (129,055) - (122,944) comprehensive income/(expense) Total comprehensive - - - 6,111 (129,055) 470,834 347,890 income Balance at 31 March 127,635 1,375,231 3,011 6,111 (271,883) 7,969,390 9,209,495 2011 Balance at 127,635 1,375,231 3,011 - (40,506) 8,536,846 10,002,217 1 January 2012 Comprehensive income Net profit for the - - - - - 271,111 271,111 period Other comprehensive income Effect of - - - - (160,263) - (160,263) translation to presentation currency Cash flow hedges, - - - 3,992 - - 3,992 net of tax Total other - - - 3,992 (160,263) - (156,271) comprehensive income/(expense) Total comprehensive - - - 3,992 (160,263) 271,111 114,840 income

Balance at 31 March 127,635 1,375,231 3,011 3,992 (200,769) 8,807,957 10,117,057 2012