OJSC Magnitogorsk Iron and Steel Works ("MMK" or "the Company”) announces that the Board of Directors has ratified the new edition of MMK’s dividend policy. The policy provides for (1) payment in the form of dividends, as a rule, of no less than 30% of free cash flow, calculated on the basis of MMK’s consolidated annual financial statements in accordance with IFRS; and (2) payment, as a rule, of interim (half-year) and full-year dividends.

The Board of Directors also called an Extraordinary General Meeting of shareholders (EGM) with absentee voting, and approved the agenda for the EGM as follows:

• Payment of dividends on issued shares of the Company for the first half of the 2016 accounting year

The Board of Directors recommended that the EGM approve a dividend for the first half of 2016 on MMK’s issued ordinary registered shares of RUB 0.72 (before taxes) per share (in total approximately USD 123 million based on exchange rates as of the date of publication), and proposed a dividend record date of close of trading on 11 October 2016.

To determine the total amount of dividends to be distributed to shareholders, the Board of Directors additional proposes to include in free cash flow the portion of profit received from the sale of shares in Fortescue Metals Group that was not used to make pre-term payments against MMK Group’s debt.

The Board of Directors set:

• The cut-off date for receipt of voting forms – 30 September 2016;
• Postal address to which completed voting forms should be sent – Status Registrar Agency, Magnitogorsk branch, 9 Zavenyagin street, 455049 Magnitogorsk;
• Record date for shareholders to participate in the EGM – close of business on 5 September 2016.

The list of information (materials) to be provided to shareholders eligible to participate in the EGM was also approved.

Shareholders can view the materials after 9 September 2016 on the Company’s website at: https://mmk.ru/corporate_governance/disclosure_of_information/materials_to_the_shareholders_meeting/and also at the following addresses: Status Registrar Agency, Magnitogorsk branch, 9 Zavenyagin street, 455049 Magnitogorsk; and MMK shareholder relations group, office 421, 6 Pushkin avenue, Magnitogorsk; on weekdays from 9:30am to 5:30pm (Fridays from 9:00am to 4:15pm), with a break from midday to 1:00pm local time.

Notes for editors:
MMK is one of the world's largest steel producers and a leading Russian metals company. The company's operations in Russia include a large steel-producing complex encompassing the entire production chain, from the preparation of iron ore to downstream processing of rolled steel. MMK turns out a broad range of steel products with a predominant share of high-value-added products. In 2015, the company produced 12.2 million tonnes of crude steel and 11.2 million tonnes of commercial steel products. MMK Group had sales in 2015 of USD 5,839 million and EBITDA of USD 1,668 million.

Investor Relations Department:
Andrey Serov, Head of IR
tel.: +7 (3519) 24-52-97
E-mail: serov.ae@mmk.ru

Communications Department:
Sergei Vykhukholev
tel.: +7 (499) 238-26-13
E-mail: vykhukholev.sv@mmk.ru
Dmitry Kuchumov
tel.: +7 (499) 238-26-13
E-mail: kuchumov.do@mmk.ru