Berkeley Resources Ltd Extension Granted to Oao Severstal

Berkeley Resources Ltd advises that OAO Severstal requested that the Company sign an amendment to the existing Subscription Rights Deed, which was due to expire on 10 December 2010. The Berkeley Resources Board has considered Severstal’s request and has agreed to an extension of the exclusivity period to 29 December 2010. 

Severstal requested this extension to give it additional time to conduct its due diligence. In addition, Severstal’s right to subscribe for shares in Berkeley will now expire on 14 January 2011, unless it has announced an intention to proceed with a takeover bid on or before that date.

OAO Severstal is one of the world’s leading integrated steel and mining companies. The Company’s shares are traded on the Russian Trading System (CHMF), MICEX (CHMF, RTS) and the LSE (SVST).  The company operates assets in Russia, Ukraine, Kazakhstan, Italy, France, the USA and Africa. In 2009, Severstal produced 16.7 million tonnes of steel, its revenues were $13.0 billion and its EBITDA was $844 million.