ZAO Severstal Resources, the mining division of OAO Severstal (LSE: SVST; RTS CHMF), today announces that it has acquired approximately 282.3 million newly issued common shares of High River Gold Mines Ltd (TSX:HRG) ("High River") for US$0.1594 (CDN$0.20) per share, representing a total consideration of US$45.0 million (CDN$56.4 million).

Additionally, as a partial consideration for the purchase price Severstal Resources was issued approximately 40.7 million warrants exercisable for approximately 40.7 million common shares of High River at an exercise price of CDN$0.64 per common share.

Following the close of the transaction, expected later today, and including High River shares already owned by Severstal's affiliates, Severstal Resources will control 50.1% of High River's share capital on a fully-diluted basis.

High River is a gold mining company listed on Toronto Stock Exchange (Symbol: HRG) with a portfolio of producing mines, mines under development, and advanced exploration projects in Russia and Burkina Faso. The company's annual attributable gold production from these assets is expected to exceed 300,000 ounces (approximately 9.33 metric tonnes) in the near future.

Morgan Stanley & Company Limited and Torys LLP are acting as the financial and legal advisors to Severstal Resources on this transaction.

Notes to Editors:

Severstal Resources is a leading feedstock supplier in Russia to the iron-and-steel industry which manages the mining assets of Severstal. Severstal Resources incorporates the Karelsky Okatysh and Olcon iron ore complexes and Vorkutaugol, a coking coal mining complex.

Severstal Resources entered the gold mining business in 2007 with the acquisition of Celtic Resources Holdings, a gold mining company with Kazakhstan assets listed on LSE. Severstal Resources also purchased Neryungri Metallic and the Aprelkovo mine in the Transbaikal region of Russia, as well as exploration and follow-on gold production licenses in the Transbaikal region, Irkutsk Region and Bouryat Republic. In 2007, Severstal Resources' gold assets produced 5.3 tonnes of gold, with its resource base totaling approximately 445 tonnes.

In May, 2008 Severstal Resources reached an agreement to purchase up to a 61.5% stake in African Iron Ore Group Ltd, which owns the exploration rights for an iron ore deposit in the Putu Range area of Liberia, West Africa.

In November, 2008 Severstal Resources closed the acquisition of 100% of PBS Coals Ltd, a coal mining complex in Pennsylvania, USA.