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PBS - SEVERSTAL RESOURCES

PBS COALS

• 46 years of operating history

• 4th largest coal producer in Pennsylvania, the USA

• 48,000 acres of land in Somerset County, South Pennsylvania

• 147 million tons of in-place reserves

• 251 million tons of measured and indicated resources

• 12 operating mines with 8 new mines currently permitted

• 2 cleaning/load out plants

• Access to 2 major rail lines

• Experienced and available local workforce

2007 2008 2009 2010F 2011F Share'11, %Jim Walter 3 800 4 400 5 700 6 400 6 000 21%Cliffs 3 700 4 200 4 500 5 000 4 500 16%Consol 2 500 3 500 5 100 6 000 4 500 16%PBS 2 500 2 700 3 500 4 000 4 000 14%Alpha 3 150 3 200 3 450 3 700 3 300 12%Bluestone 1 350 1 200 1 700 1 700 1 700 6%ArcelorMittal 800 1 000 1 250 1 500 1 500 5%United 1 000 1 200 1 500 2 100 1 200 4%Other 1 420 -85 740 1 160 1 050 4%ICG 50 600 1 000 1 200 600 2%Total 20 270 21 915 28 440 32 760 28 350 100%

PBS HAS 14% OF LV PRODUCTION IN THE USA

PBS is alternative to “big three suppliers” source of low volatile hard coking coal-Sufficient reserve base-Permits in place-Pier space in Newport News and Norfolk, starting from June’2011 – also in Baltimore-Commitments from railroads-Controlled costs

PBS IN THE MARKET PLACE

UNDERGROUND MINING

• 6 drift access room and pillar mines; 11 continuous mining units

• Raw production of 2,1 million tons in 2008 with potential to increase to 3,4 million tons in two years

• Good infrastructure

• New mines:

• Kimberly Run drift mine

• Horning D drift mine

• Roytown 2nd unit added

Agustus Deep Mine

HorningQuecreek Deep Mine

Kimberly Run Deep Mine

SURFACE MINING

• 6 mines operating, 5 additional mines permitted, 5 mines in permitting process

• 1 dragline site – 44 cubic yard capacity

• 5 shovel / truck sites – 14 to 33 cubic yard capacity

• Raw production of 1,2 million tons in 2008

• 135 company employees and 20 contractor employees

Buffalo Surface Mine

7820 Dragline operating at Buffalo Surface Mine

Shade Creek Plant

• 600 raw tons per hour

• 4,5 million raw tons per annum (3,4 million clean tons)

• 10’000 ton train load-out on Norfolk Southern (100 tons per rail car)

PROCESSING FACILITIESShade Creek Plant

Cambria

• Rebuilt and upgraded to 400 raw tons per hour

• 2,7 million raw tons per annum (2,0 million clean tons)

• 7’200 ton train load-out on CSX rail line (90 tons per car)

PROCESSING FACILITIESCambria Plant

Cambria Rail Load Out

Cambria under construction

Construction just completed

SUPERIOR MARKET ACCESS

10-14 days to Europe

15 days to

Brazil

• Well-developed infrastructure

• Railroad flexibility

• Access to port piers in Baltimore and Norfolk

• Proximity to major seaborne markets

25 days to India30 days to China

KEY CLIENTS OF PBS COALS

PBS Coals

Yevgeny Shmakov

Senior Sales Manager

Severstal Resources

Klary Tsetkin Str. 2/3

Moscow, 127299

Russia

Office:  +7 (495) 981 09 10, ext. 6728

Fax:     +7 (495) 981 09 18

Mobile: +7 (917) 501 1612

E-Mail: eshmakov@pbscoals.com

E-Mail:  ev.shmakov@severstalresurs.ru

PBS COAL INC. / SEVERSTAL RESOURCES CONTACTS

For additional information please contact:

Agents in INDIA

NARESH SHARMAM/s  Manali Engineering India5,6,7,8 3rd floor ,Old Jail RoadCivil Lines, Gurgaon

Email:- naresh@manaligroup.comwebsite:- www.manaliengineering.comph 0091-124-4072478,3202478Mobile:- 09999724168