Issue of an Optional Redemption Notice in relation to U.S. $250,000,000 Zero Coupon Convertible Bonds due 2022 (the "Bonds") issued by Abigrove Limited (the "Issuer") and guaranteed by PAO Severstal (the "Company")

24 March 2021 

The Issuer announces today an Optional Redemption Notice to exercise the Redemption at the option of the Issuer in relation to U.S. $250,000,000 Zero Coupon Convertible Bonds due 2022 in accordance with article 9(B)(i) of Terms & Conditions of the Bonds.  

28th April 2021 is set as Early Redemption Date, on which the Issuer will redeem the Bonds then outstanding at 100% of their Principal Amount.  

The Optional Redemption Notice  is provided given that the Aggregate Value of the GDRs to which a Bondholder would be entitled, upon exercise of the Conversion Right attaching to a Bond in the principal amount of U.S.$200,000 on respective dealing day, has been exceeding U.S.$260,000 during not less than 20 dealing days in the period of 30 consecutive dealing days ending seven days prior to the date of the Optional Redemption Notice. 

Bondholders will have the right, subject to a cash settlement option at the discretion of the Issuer, to convert their bonds into GDRs.

The Company does not expect the optional redemption to materially affect its credit profile and dividend payments. 

This announcement contains inside information for the purposes of the UK version of the Market Abuse Regulation (EU) No.596/2014.

For further information, please contact:

Investor Relations

Vladimir Zaluzhsky

T: +7 (495) 926-77-66

vladimir.zaluzhsky@severstal.com

Public Relations

Anastasia Mishanina

T: +7 (495) 926-77-66

anastasia.mishanina@severstal.com

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PАО Severstal is one of the world's leading vertically integrated steel and steel related mining companies, with assets in Russia, Latvia and Poland. Severstal is listed on MOEX and the company's GDRs are traded on the LSE. Severstal reported revenue of $6,870 million and EBITDA of $2,422 million in 2020. Severstal's crude steel production in 2020 reached 11.3 million tonnes. www.severstal.com