POLAR DIVISION - TAIMYR PENINSULA

The Polar and Kola Divisions in Russia produced 58 thousand metric tonnes of saleable nickel from July to September 2008 in line with production plans.

Partners MMC Norilsk Nickel and JSC announced the approval of new technical terms for producing refined platinum group metals, silver and gold from precious metals concentrates originating from Norilsk Nickel’s operations at the Polar Division and Kola MMC. In line with these new terms, in 2008 JSC “Krastsvetmet” will produce an additional 19,500 ounces (over 600 kilograms) of refined platinum group metals from concentrates due to increased recovery rates and reduced production time for metals refining. Taking into account the new concentrate processing terms, Norilsk Nickel increases its 2008 palladium production guidance from the previously announced 3.00 to 3.05 million ounces (93-95 metric tonnes) to 3.02-3.07 million ounces (94-96 metric tonnes). In 2007/08, Norilsk was conducting drilling operations on the Maslovsky site to determine its potential economic viability. The Group expects that this deposit may have resources of up to 1.5 million tonnes of nickel and up to 1.6 thousand tonnes of platinoids. More precise information on reserves and resources of the Maslovsky site may be provided only after registration by the State Reserve Committee, which the Group plans to achieve by the end of 2008. In 2007, combined Polar and Kola Divisions full year production was 234,454 t Ni, 404,465 t Cu, 3,049,000 oz Pd, 727,000 oz Pt. Various ore production facilities were completed and commissioned on the Taimyr Peninsula: • Oktyabrsky mine – cuprous ore production capacity increased; • Taimyrsky mine – a startup facility at the Taimyrsky mine with a capacity of 1 million tonnes of rich ore per year (stripping of -1,400 m and - 1,300 m horizons) and another start up facility with a capacity of 400,000 tonnes of rich ore per year commissioned; • Komsomolsky mine – works to modernize skip winding facilities completed; at the Skalisty mine – a startup facility with an annual capacity of 250,000 tonnes of rich ore was prepared and commissioned; • Zapolyarny mine – feasibility study, design and construction works were continued in strategic areas.

Awarded a contract worth 381 million Euros to Thyssen Schachtbau GmbH for turnkey construction of mine infrastructure and the VS-10 shaft. The VS-10 shaft will be used to lift people and ore from the 980, 1070, 1650 and 1750 meters levels. The shaft will also provide ventilation in the mine to support mining operations. The major element of the shaft project involves construction of the head frame and hoisting units to be used for the entire term of shaft sinking and subsequent mining operations. Design work is being carried out in conformance with Russian regulations and construction will begin in June of 2008. The project will be commissioned in December 2015. After the main vents and hoists for personnel are put into operation in 2014, the mine will begin to produce up to an additional 650,000 tons of rich ore for treatment in addition to Skalisty’s mine production of 1.1 million tons of rich and copper ore.