H1 2013 INTERIM REPORT with lines for website

During the period, approximately 69% and 68% of EVRAZ’s respective iron ore and coking consumption was satisfied by the Group’s own operations compared with 71% and 48%

(including coal from Raspadskaya) in H1 2012.

Third party sales by the Mining segment to customers in Russia in H1 2013 increased to approximately 40% compared to 38% in the corresponding period last year. The increase is primarily attributable to the consolidation of Raspadskaya in H1 2013. Approximately 60% of sales of Raspadskaya in H1 2013 were to customers in Russia.

Operational update – Mining segment

Mining: Iron Ore

In H1 2013, the output of iron ore products totalled 10.5 million tonnes with the 2.5% decline in Russian output being more than offset by the 10% increase in production at Ukrainian and South African assets.

Cost savings and operational improvement programmes remained the focus of the iron ore division. These included actions aimed at the optimisation of land tax payments and the enhancement of railway transportation terms, which along with other measures contributed US$23 million of savings in the reporting period.

In February 2013, the Company finalised the project documentation and received the relevant state approvals for the development of the Sobstvenno-Kachkanarskoye deposit. Following a thorough review of the options for the deposit, management redesigned the development plans in order to mitigate short term pressures while preserving its long term investment case. As a result, the project’s development timeline has been extended, with commencement of production postponed from 2015 to 2017 and the estimated total investment budget to bring the mine to production reduced from US$240 million to US$150 million.

On 1 July 2013 the Company permanently shut down the high cost Irba mine at Evrazruda. This initiative is part of a wider strategic plan targeting the closure and/or disposal of less efficient operations while focussing on the development of more efficient mines at Evrazruda to improve productivity and sustainably achieve economies of scale at a reasonably low cost. EVRAZ expects that the loss of production from closed mines will be largely offset by additional volumes from modernised operations such as the Sheregesh mine, where output is expected to increase by 2.5 times by 2018 to 4.8 million tonnes per annum. These measures should result in lowering the Company’s cash cost position and support long run economically efficient vertical integration.

In April 2013, EVRAZ acquired a 51% stake in the joint venture, Timir, which holds licences to four iron ore deposits in Southern Yakutia with total reserves under the Russian geological categories of A+B+C1 of 3.5 billion tonnes of iron ore. Among these deposits, the Tayozhnoye deposit is considered to be the most attractive with 341 million tonnes of fully explored reserves for open pit mining, ore grades of 38-40% Fe and close proximity to existing rail and power infrastructure. In H1 2013, the scoping study for the project was finalised, with current estimates indicating a mining capacity at the Tayozhnoye open pit of 15 million tonnes of iron ore per annum. The Company expects that active construction works at the deposit will not commence until, at the earliest, 2015.

Mining: Coal

In H1 2013, EVRAZ’s raw coking coal output totalled 9.1 million tonnes which was 5.1 million tonnes higher than in H1 2012. The primary non-organic driver of the growth of raw coking coal output was the consolidation of Raspadskaya coal mining company in January 2013.

Yuzhkuzbassugol mined 5.1 million tonnes of coking coal in H1 2013, a 28% increase compared to 4.0 million tonnes in H1 2012, following the launch and ramp-up of the Yerunakovskaya VIII mine, which was commissioned ahead of schedule and below budget. Additionally, the Alardinskaya mine has operated at an increased capacity since the beginning of the year and the

21

Uskovskaya mine demonstrated solid performance while it was closed for longwall repositioning during part of H1 2012. The growth of output in H1 2013 fully offset the loss of production from the Ossinikovskaya mine where a flood in March 2013 tragically killed 4 people and led to a month long suspension. The Alardinsklaya mine also briefly halted production for a period in March and April as a result of a fire.

The Company remains on track to meet its target of mining 1 million tonnes of raw coal at the Yerunakovkaya VIII mine in 2013 and fully ramping-up the mine by the beginning of 2014. In H1 2013, Yuzhkuzbassugol received a new set of longwall equipment and its installation is scheduled to be completed in Q4 2013.

In July 2013 a trial of a SAP ERP management system started at Yuzhkuzbassugol. The system allows for the automation of most of the basic functions of the mine relating to finance and accounting, logistics, supply and material requirements planning and the cost of repairs. The project is planned to be completed in Q4 2013 and if successful, may allow a single SAP template be applied to all EVRAZ mining operations, providing the Company with more accurate information and enhancing existing systems.

In H1 2013, raw coking coal output from Raspadskaya amounted to 4 million tonnes, 15% higher than in H1 2012, including 1.1 million tonnes of raw coal mined at the Raspadskaya mine. However, these increases were below targets, due to weak seaborne market demand and the suspension of operations at the Raspadskaya underground mine in May-June 2013 due to excessive carbon monoxide levels in certain areas of the mine. Having completed the necessary actions to rectify the situation, Raspadskaya resumed the mining operations at the underground mine on 5 July 2013.

In the reporting period EVRAZ continued to focus on efficiency improvement programmes at all of its mines. These include a shortened longwall repositioning schedule at the Uskovskaya mine, more efficient gas draining drilling and cutting down operating and capital expenses at Yuzhkuzbassugol.

EVRAZ continued the development of the Mezhegey Phase I project during the period. In H1 2013, the Company finalised design and engineering project plans, which have been submitted for approval to the relevant state agencies. The construction works of key industrial facilities and power infrastructure, which started in 2012, are scheduled to be completed by the end of Q3 2013. First coal is expected to be mined in October 2013. The bulk of production from the mine will be consumed by EVRAZ ZSMK.

The Company reiterates its forecast over 10 million tonnes of raw coking coal production at the Yuzhkuzbassugol mines, while reducing guidance for Raspadskaya to 8 million tonnes of raw coal from 9.3 million tonnes.

In H1 2013, production from our steam coal mines were heavily affected by the suspension of the Gramoteinskaya mine in Q4 2012 and longwall repositioning at the Kusheyakovskaya mine in Q1 2013.

VANADIUM

Markets performance in H1 2013

Vanadium is a key element in the steel making process, with the majority of globally produced vanadium used as an alloying agent to increase steel strength. As a result, demand for vanadium is closely linked to steel production levels, in particular high strength steels.

Ferrovanadium (FeV) prices demonstrated a strong performance in Q1 2013, fuelled in part by a rally in China, and approached ca. US$33/kg, only to decrease to US$27/kg in May 2013 and then stabilise at this level leading into the summer months. FeV spot price stood at US$27.2/t at the end of June, representing a 3% decline year to date.

22

FeV prices are expected to show moderate growth in H2 2013 as producers’ inventories are reduced and traders lack the required quantities of material.

Sales review

Vanadium Segment Revenues

(US$ million)

Vanadium segment revenues increased by 1.9% to US$268 million in H1 2013 compared to US$263 million in H1 2012 reflecting increase in sales prices of vanadium products, which more than offset the decrease in sales volumes. Sales volumes of the Vanadium segment decreased by 10% as a result of lower sales of vanadium slag by EVRAZ NTMK to China, while waiting for an export license, and proportionally lower purchases of vanadium pentoxide for further processing into FeV at third party facilities in China and the USA.

Operational update – Vanadium segment

In H1 2013, the vanadium facilities of the Company demonstrated strong operational results, producing 10,836 tonnes of vanadium in slag and 8,730 tonnes of final vanadium products.

23

The key highlights of the reporting period include the implementation of the project at EVRAZ

Vanady Tula’s pulp filtration plant to improve working conditions, increase mechanisation, cut operational losses and increase pentoxide production volumes, which nears completion.

The project to enable the processing of vanadium slag supplied from EVRAZ NTMK at EVRAZ Stratcor, to alleviate feed shortages, is progressing on schedule with construction works expected to be completed by the end of 2013.

OTHER BUSINESSES

EVRAZ’s other operations include trading, logistics, port services, electricity and heat generation and other auxiliary activities.

Sales review

Revenues from other operations decreased by 14.0% to US$465 million in H1 2013 as compared to US$541 million in H1 2012, principally driven by the disposal of the Evraztrans business in 2012. Revenue of other operations segment includes the following (sales figures shown below include sales within the same segment):

Evraztrans (until its disposal by EVRAZ on 12 December 2012) acted as a railway transport provider for EVRAZ’s Steel segment. Sales of EvrazTrans (including Russian and Ukrainian operations) amounted to US$85 million in H1 2012. EvrazTrans derived the majority of its revenue from inter-segment sales, which accounted for 88% of its revenue in H1 2012. Following the sale, EVRAZ retained a smaller part of the business related to the transportation of pellets from EVRAZ KGOK to EVRAZ NTMK. In H1 2013 EVRAZ mostly used third party providers for transportation of its goods.

Sales of EVRAZ Nakhodka Trade Sea Port, which provides various sea port services to the Company, totaled US$45 million both in H1 2013 and in H1 2012. Intersegment sales accounted for 44% of the revenue in H1 2012, while in H1 2013 all port services related to handling of EVRAZ’s export products were rendered under the contract with the Russian Railways, which resulted in the higher third party sales of other operations in H1 2013.

Metallenergofinance (“MEF”) supplies electricity to EVRAZ’s steel and mining segments as well as third parties. MEF’s sales amounted to US$219 million in H1 2013 compared to US$204 million in H1 2012. Intersegment sales accounted for 78% and 79% of MEF’s revenue in H1 2013 and H1 2012 respectively.

Sinano Ship Management (“Sinano”) provides sea freight services to EVRAZ’s steel segment. Sinano’s sales totaled US$61 million in H1 2013 and US$64 million in H1 2012, with intersegment sales accounting for almost 93% in H1 2013 and 98% in H1 2012 of its revenue.

ZapSib Power Plant (including Central Power Plant) is an energy-generating branch of EVRAZ ZSMK which supplies electricity and heat to EVRAZ ZSMK and third party customers. Its revenue amounted to US$96 million in H1 2013 compared with US$94 million in H1 2012. Intersegment sales accounted for 84% and 76% of ZapSib Power Plant revenue in H1 2013 and H1 2012 respectively.

24

Operational update – Other businesses

In H1 2013, EVRAZ Metall Inprom, a retail trading arm of EVRAZ, retained one of the leading positions in the warehousing and distribution of ferrous metals in Russia with a share of 11.5%. The company sold about ca. 970,000 tonnes of rolled products in the reporting period, which is by 6.2% higher compared to the same period of the last year.

In the reporting period, EVRAZ continued to expand the number of rolled steel product deliveries which used trucks, helping our clients to save on transportation costs, shortening delivery times and increasing flexibility in terms of volumes ordered. The customer focused strategy of the company led to growth of the total number of active clients by 3% in H1 2013 compared to H1 2012.

In H1 2013 EVRAZ continued with operational improvements at key power generating facilities. The ZapSib Power Plant, at EVRAZ ZSMK, upgrade is on track to be completed by 2016 and will increase power generation by 48% to 3.6 billion kw/h per annum from the current capacity of 2.4 billion kw/h. The 2013 design for power generation amounts to 3.2 billion kw/h.

Cargo turnover at the EVRAZ Nakhodka Trade Sea Port (NMTP) increased by 85,000 tonnes (+2%) in H1 2013 The Group remains on track to increase the annual coal loading capacity of the port to 5 million tonnes by 2015.

25

COST OF REVENUE AND GROSS PROFIT

EVRAZ’s consolidated cost of revenue amounted to US$5,877 million, representing 79.8% of the

Company’s consolidated revenues, in the first six months of 2013 compared to US$6,020 million, or 79.0% of consolidated revenues, in the first six months of 2012. The decrease in the gross profit margin in the six months ended 30 June 2013 compared to the six months ended 30 June 2013 was primarily due to lower average prices of steel products.

26

*Includes repairs and maintenance, industrial services, auxiliary materials, goods for resale, taxes in cost of revenue, and effect of changes in work-in-progress and finished goods inventories.

EVRAZ’s steel segment cost of revenue decreased to US$5,245 million or 81.7% of steel segment revenue in the first six months of 2013, compared to US$5,742 million or 81.8% of steel segment revenue in the first six months of 2012.

The principal factors affecting the change in the steel segment cost of revenue, in absolute terms, in the six months ended 30 June 2013 compared to the six months ended 30 June 2012 were as follows:

•Raw material costs decreased by 15.2% due to a decline in prices for all main raw materials (particularly iron ore, coking coal, scrap) accompanied by decrease in production volumes of crude steel by 3%. Other factors influencing this decrease included a higher proportion of own coking coal consumption, as a result of higher production volumes at YuKU, and additional volumes from the consolidation of Raspadskaya and disposal of DKHZ (consumption of coal in H1 2012 of US$72 million).

•Costs of semi-finished products decreased by 3.6% due to lower average prices, which was partially compensated for by higher volumes purchased from third parties.

• Transportation costs decreased by 4.1% due to a change in contract terms between TC Evrazholding and the Russian Railways resulting in all transportation costs relating to sales of rails reported as selling expenses in H1 2013, while in H1 2012 some costs related to rent of third party wagons were reported in cost of revenues (US$7 million). This decrease was accompanied by lower intercompany sales and related transportation costs between Russian steel operations (US$4 million).

•Staff costs increased by 6.4% largely due to higher wages and salaries of production staff which rose, in accordance with the trade union agreements.

•Depreciation and depletion costs increased by 1.8% primarily due to capitalisation of expenses following the completion of major investment projects at EVRAZ ZSMK and EVRAZ NTMK.

•Energy costs decreased by 4.3%, which was primarily attributable to reduced consumption volume of natural gas at ZSMK (-US$23 million) due to classification of the results of Central Heat and Power Plant in Other operations segment in H1 2013 and NTMK (-US$11 million) as

27

a result of PCI implementation. This decrease was partially offset by higher electricity and natural gas prices.

•Other costs decreased by 1.2% due to an increase in stock of goods in ports in H1 2013, while there was a destocking in H1 2012.

Steel segment gross profit decreased by 8.3% to US$1,171 million in the first six months of 2013 from US$1,277 million in the first six months of 2012. Gross profit margin amounted to 18.3% of steel segment revenue in the six months ended 30 June 2013 compared with 18.2% in the corresponding period last year, reflecting the decline in steel segment revenues by 8.6%, while cost of revenues decrease by 8.7%.

* Includes primarily contractor services and materials for maintenance and repairs and certain taxes

The mining segment cost of revenue increased to US$1,321 million or 81.4% of mining segment revenue in the six months ended 30 June 2013 compared with US$1,175 million or 85.0% of mining segment revenue in the six months ended 30 June 2012.

The principal factors affecting the change in mining segment cost of revenue, in absolute terms, in the six months ended 30 June 2013 compared to the six months ended 30 June 2012 were:

Raw material costs decreased by 46.0% primarily due to switch to a tolling scheme of sinter production by EVRAZ VGOK instead of purchasing the raw material from EVRAZ NTMK (-US$24 million), and decrease of third party coal purchases for production of concentrate by Yuzhkuzbassugol (-US$9 million).

Transportation costs increased by 73.5% due to the consolidation of Raspadskaya (+US$39 million), increased export sales of iron ore and coal (+US$17 million), change in contract terms from FCA to CPT for supply of iron ore between EVRAZ ZSMK and Evrazruda (+US$11 million) and EVRAZ VGOK (+US$10 million) and an increase in Russian railway tariffs.

Staff costs increased by 37.1%. The increase was largely attributable to consolidation of Raspadskaya (US$61 million) and the increase in wages and salaries in accordance with trade union agreements.

Depreciation and depletion costs decreased by 31.7% mainly due to a lower depreciation and depletion expense at Yuzhkuzbassugol caused by a revaluation of reserves in June 2012 and January 2013 (net effect of US$154 million) and a significant reduction in depreciaton at Evrazruda due to impairment of assets (net effect of US$23 million) This decrease was partially offset by an increase of depreciation due to consolidation of Raspadskaya (US$66 million).

28

Energy costs increased by 20% primarily due to higher electricity and natural gas prices, the consolidation of Raspadskaya (+US$7 million) and higher production volumes at Yuzhkuzbassugol and EVRAZ KGOK.

Other costs increased by 40.4%, primarily due to the consolidation of Raspadskaya (+US$79 million) and higher processed volumes of concentrate at third party facilities by Yuzhkuzbassugol (+US$24 million).

The Mining segment’s gross profit increased to US$301 million in the six months ended 30 June 2013 from US$208 million in the six months ended 30 June 2012. The increase in the gross profit margin in the first six months of 2013 compared to the first six months of 2012 was primarily attributable to lower depreciation and depletion at Yuzhkuzbassugol and additional profit from consolidation of Raspadskaya (US$24 million).

The vanadium segment cost of revenue decreased by 15.3% to US$205 million, or 76.5% of vanadium segment revenue, in the six months ended 30 June 2013 from US$242 million, or 92.0% of vanadium segment revenue, in the six months ended 30 June 2012. The decrease in

EVRAZ’s vanadium segment’s cost of revenue in the first six months of 2013 as compared to the first six months of 2012, in absolute terms, was attributable to a decrease in sales volumes as discussed in the Vanadium segment revenues above.

In H1 2013, gross profit of EVRAZ’s vanadium segment increased to US$63 million compared with US$21 million in H1 2012 primarily due to higher prices for vanadium products.

Other operations segment cost of revenue and gross profit

The other operations segment’s cost of revenue amounted to 81.7% of other operations revenue, or US$380 million, in the first six months of 2013 compared to 74.1%, or US$401 million, in the first six months of 2012.

The major components of cost of revenue at EVRAZ Nakhodka Trade Sea Port are staff and inventory costs. The major components of EvrazTrans’ cost of revenue in H1 2012 were rental and maintenance of railway cars. The major component of MEF’s cost of revenue is the purchase of electricity from power generating companies. The major components of ZapSib Power Plant’s cost of revenue are steam coal for power generation, depreciation and staff costs; while the major component of Sinano’s cost of revenue is ship hire fees.

29

PRINCIPAL RISKS AND UNCERTAINTIES

The principal risks and uncertainties affecting EVRAZ were set out in detail under the heading Principal Risks and Uncertainties on pages 28 to 31 of the Annual Report 2012. The majority of principal risks of the Company are unchanged from those identified in the Annual Report but we provide the following update on those risks which impacted the Company during the Period and which we expect to be most significant for the rest of the year:

Global economic factors, industry conditions and cost effectiveness

EVRAZ Steel, Mining and Vanadium operations are highly dependent and sensitive to the global macroeconomic environment, with economic conditions in China and Europe being of particular importance. The risk to EVRAZ’s operations can be different dependent on the regions of activity and on EVRAZ’s products; finished, semi-finished or commodities. The global supply and demand balance for steel and particularly for iron ore and metallurgical coal has the potential to significantly affect both product prices and volumes across all markets. Fluctuations in RUR/USD exchange rates and other foreign currencies can negatively impact performance and liquidity. As

EVRAZ’s operations have a high level of fixed costs, global economic and industry conditions have significant impact on the Company’s operational performance and liquidity. EVRAZ has a focused investment policy aimed at

reducing and managing fixed costs and reducing direct costs by expanding the Company’s selfcoverage of key raw material inputs with the objective of being among the sector’s lowest cost producers.

Health, safety and environmental (HSE) issues

Safety risks are inherent to the Company’s principal business activities of steelmaking and mining. Further, EVRAZ operations are subject to a wide range of HSE laws, regulations and standards, the breach of any of which may result in fines, penalties or other sanctions. Such actions could have a material adverse effect on the Company’s business, financial condition and business prospects. HSE is a functional area where new laws, regulations and sanctions are continuously introduced. Regulatory activity could result in elements of EVRAZ’s operations becoming uneconomic. Given that HSE risks can be critical, HSE issues have direct oversight at Board level and HSE procedures and material issues are given top priority at all internal management level meetings. EVRAZ has instigated a programme to improve the management of safety risks across all business units with the objective of embedding a new safety, harm-free culture at all management and operational levels. Management KPIs include a material factor for safety performance. Safety training has been reviewed with the aim of providing strong and professional safety leadership. For all new projects an operational safety assessment is undertaken as a first step to the engineering design and project approval.

Dependency on certain key markets

EVRAZ revenues are substantially derived from customers in Russia, around 43% and North America, around 22%, and as a result, EVRAZ commercial success is closely aligned to the operating and economic environment in these two regions. The strategic risks and opportunities within these regions are regularly reviewed. The review includes consideration of the quality and nature of the Company’s product portfolio, relative cost effectiveness and the sustainability of industry sector market positioning together with effective in-house (EVRAZ Metal Inprom) and external distribution networks.

Capital projects and expenditure

Steel production and mining are both capital intensive operational activities requiring both continuing maintenance and development capital expenditure, in addition to capital expenditure focused on improving the Company’s cost effectiveness and increasing self-coverage of the Company’s primary raw material inputs. These intended and planned investments are aligned to the Company’s and external market expectations for each particular project and to maximise levels of investment returns. The risks that events or economic issues outside those factored into the Company’s forward business plans, may negatively impact the Company’s anticipated Free

Cash Flow could cause certain elements of the planned capital expenditure to be re-phased, deferred or abandoned with consequential impact on the Company’s planned future performance. The Company has developed various stressed business scenarios to assess the Company’s ability to meet or flex capital expenditure requirements both for maintaining current operations as

30