NOT FOR DISTRIBUTION IN OR INTO OR TO ANY PERSON LOCATED OR RESIDENT IN ANY JURISDICTION WHERE IT IS UNLAWFUL TO DISTRIBUTE THIS DOCUMENT.

THIS ANNOUNCEMENT IS IMPORTANT AND REQUIRES THE IMMEDIATE ATTENTION OF HOLDERS. IF HOLDERS ARE IN ANY DOUBT AS TO THE ACTION THEY SHOULD TAKE, THEY SHOULD IMMEDIATELY CONSULT THEIR OWN INDEPENDENT PROFESSIONAL ADVISERS.

THIS ANNOUNCEMENT CONTAINS IMPORTANT INFORMATION THAT IS OF INTEREST TO THE REGISTERED AND BENEFICIAL OWNERS OF THE NOTES. IF APPLICABLE, ALL DEPOSITORIES, CUSTODIANS AND OTHER INTERMEDIARIES RECEIVING THIS ANNOUNCEMENT ARE REQUIRED TO EXPEDITE TRANSMISSION HEREOF TO BENEFICIAL OWNERS OF THE NOTES IN A TIMELY MANNER. IF HOLDERS OR BENEFICIAL OWNERS OF THE NOTES ARE IN ANY DOUBT AS TO THE MATTERS REFERRED TO IN THIS ANNOUNCEMENT, THEY SHOULD CONSULT THEIR STOCKBROKER, LAWYER, ACCOUNTANT OR OTHER PROFESSIONAL ADVISER WITHOUT DELAY.

24 August 2022

ANNOUNCEMENT ON DIRECT PAYMENT APPLICATIONS ACCEPTANCE

Programme for the Issuance of Loan Participation Notes issued by Steel Capital S.A. (the "Issuer") for the purpose of funding loans to Severstal (the "Programme")

U.S.$750,000,000 in aggregate principal amount of 5.90 per cent. Series 3 Loan Participation Notes due 2022 issued by the Issuer pursuant to the Programme on 15 October 2012 for the purpose of funding a U.S.$750,000,000 loan to Severstal

of which U.S.$ 634,051,000 is currently outstanding

ISINs: XS0841671000; US85805RAB42 (the "Notes")

Reference is made to the launch announcement dated 13 July 2022 (the "Launch Announcement") and the announcement of the results dated 11 August 2022 (the "Results Announcement") relating to the Notes and published by Severstal. Terms defined in the Launch Announcement and the Results Announcement shall have the same meaning herein.

Severstal hereby announces that, to allow the Noteholders holding the Notes as of 27 July 2022 through foreign nominee holders (the "Eligible Noteholders") who have not delivered, by 18 August 2022, to Severstal signed direct payment applications (the "Direct Payment Applications") to receive direct payments from Severstal in Roubles and to ensure that their rights are not prejudiced, Severstal is willing to continue accepting the Direct Payment Applications from the Eligible Noteholders, subject to the conditions specified herein, until 17 November 2022.

Severstal reminds that each Direct Payment Application shall be accompanied by the Proof of Holding as of 27 July 2022, the identification documents and the documents for tax purposes (all in Agreed Form), as set out in the Written Resolution (the "Payment CPs"). The Direct Payment Application shall also contain one of the following: the details of an existing Rouble account with a Russian credit institution ("RUB Account"), an undertaking to provide the details of the RUB Account within 90 calendar days from the Early Redemption Date or authority granted to Severstal to open a Rouble account on the Noteholder(s) behalf or to the benefit of the Noteholder(s), subject to the requirements of the Russian laws.

Direct payments will be made to a Noteholder within 7 Russian business days following the date when the relevant Noteholder delivers the Direct Payment Application accompanied by Payment CPs to Severstal.

Please contact Severstal at or +7(495)9610195 (ext. 21521) with any questions or requests for clarifications with regard to the payments or the required documents.

The distribution of this announcement in certain jurisdictions may be restricted by law. Persons into whose possession this announcement comes are required by Severstal, the Issuer, the Trustee, the Principal Paying, Transfer Agent and Lecap to inform themselves about, and to observe, any such restrictions.

This announcement must be read in conjunction with the Written Resolution. This announcement and the Written Resolution contain important information which should be read carefully. If any Noteholder is in any doubt as to the action it should take or is unsure of the impact of the adoption of the Written Resolution, it is recommended to seek its own financial advice, including in respect of any tax consequences, immediately from its stockbroker, bank manager, solicitor, accountant or other independent financial or legal adviser.

None of Severstal, the Issuer, the Trustee, the Principal Paying and Transfer Agent and Lecap or any director, officer, employee, agent or affiliate of any such person, is acting for any Noteholder, or will be responsible to any Noteholder for providing any protections which would be afforded to its clients or for providing advice in relation to the Proposals and/or the Written Resolution. For the avoidance of doubt, this announcement is to facilitate payments to the Eligible Noteholders and to ensure that their rights are not prejudiced and nothing contained herein shall be treated as an amendment or modification of the terms of the Written Resolution or affect the validity thereof.