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The Company in 2003

The Company in 2003 Anton Berlin Head of Market Analysis & Development Norilsk Nickel Group One of the global leaders in metals mining sector Employs over 80,000 Revenue over US$5 billion in 2003 Core activities: prospecting, mining, smelting and refining base and precious metals

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The Company in 2003

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  1. The Company in 2003 Anton Berlin Head of Market Analysis & Development

  2. Norilsk Nickel Group • One of the global leaders in metals mining sector • Employs over 80,000 • Revenue over US$5 billion in 2003 • Core activities: prospecting, mining, smelting and refining base and precious metals • Core products: Nickel, Copper, Palladium, Platinum, Gold • By-products: Cobalt, Silver, Rhodium, Ruthenium, Iridium, Selenium,Tellurium

  3. Global Presence Norilsk Nickel Europe London KOLA DIVISION, Murmansk Norimet Ltd. London HEADQUARTERS Moscow Norilsk Nickel USAPittsburg MATROSOV MINE, Magadan GIPRONIKEL, St-Petersburg LENZOLOTO, Irkutsk STILLWATER MINING COMPANY, Montana USA Market Share ZAO POLYUSKrasnoyarsk POLAR DIVISION, Norilsk GOLDFIELDS, South Africa Norilsk NickelAsia

  4. A Global Leader In Metals Market Share 13% 18% 3% Metal >40% 14% 1.5%

  5. Market Position in 2003 10 8.9 12 10 10 7 8 6.7 6.4 8 6.5 6 4.6 5.2 5.1 4.7 6 3.6 3.5 4 3.2 3 2.9 4 1.3 2 2 0 0 KGHM Codelco Barrick Rio Tinto Rio Tinto AngloGold Newmont Gold Fields BHP Billiton Norilsk Nickel Grupo Mexico Placer Dome Phelps Dodge Norilsk Nickel Harmony Gold Norddeutsche Aff Largest Nickel Producers (% share of world production) Largest Palladium Producers (% share of world production) Largest Platinum Producers (% share of world production) Largest Gold Producers (in millions of ounces, proforma for NN) Largest Copper Producers (% share of world production) (*) Based upon estimates by \HSBC

  6. Marketing policy • Consumer-oriented sales policy • Wide range of services to each and every client • Priority to long-term relationships • Flexibility in commercial terms

  7. Norilsk-Stillwater Deal • On June 23, 2003, Norilsk Nickel completed the investment in the Stillwater Mining Company of Montana • Norilsk Nickel paid Stillwater US$132 million in cash and 877 thousand ounces of palladium metal for those shares

  8. Norilsk Winnings • Demonstration to the world market that we believe the misfortunes of palladium to be a temporary event • Restore confidence in the palladium market • A high-grade asset

  9. Stillwater Winnings • Financial debt resolved • Additional metals to supply to US consumers • Independent directors on behalf of Norilsk • Norilsk Nickel and Stillwater remain independent producers and world competitors in the mining and marketing of metals

  10. Stillwater Winnings Norilsk Nickel completes the investment in Stillwater Mining

  11. Palladium Supply Fundamentals • Primary supply • South African expansions • Developments elsewhere • Secondary supply • Recoveries from converters installed in early 90s will peak in 2007

  12. Palladium Demand Fundamentals • Automotive sector • Stockpile depletion • Diesel technology developments • Jewellery • White gold • Palladium jewellery • Electronics • Stockpile depletion • Hydrogen Economy

  13. Palladium Market Development • On November 10, 2003 Norilsk Nickel signed an agreement on hydrogen economy development with the Russian Academy of Science - a National body for fundamental and application research uniting hundreds of institutes and research centers. • The program is set to continue for at least 3 years with financing up to US$40 million per annum

  14. Hydrogen Economy Development

  15. The Markets in 2003 Denis Lepetukha Managing Director

  16. Demand in 2003 • Automotive/Electronics demand matches usage • Jewellery increased • Dental/Chemical stable

  17. Supply in 2003 • More coming out of SA • Increased recoveries from secondary material

  18. PGM Prices Platinum & Palladium Price (LPPM)(in USD per ounce) Platinum/Palladium Price Ratio 3-year average

  19. Palladium Sales in 2003 America Europe Palladium Production Palladium Sales Asia • In 2003 we sold all the metal produced • Achieved sales price without discount to the annual average

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