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Leading Producer of Base and Precious Metals Russian Economic Forum London April 2004

Leading Producer of Base and Precious Metals Russian Economic Forum London April 2004. Norilsk Nickel Overview. MATROSOV MINE. HEADQUARTERS. KOLA DIVISION. ZAO POLYUS. GIPRONIKEL. POLAR DIVISION. LENZOLOTO. STILLWATER MINING COMPANY. 13%. 20%. 3%. ~4 0%. Montana USA. 12%. 1 .3 %.

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Leading Producer of Base and Precious Metals Russian Economic Forum London April 2004

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  1. Leading Producer of Base and Precious MetalsRussian Economic ForumLondonApril 2004

  2. Norilsk Nickel Overview MATROSOV MINE HEADQUARTERS KOLA DIVISION ZAO POLYUS GIPRONIKEL POLAR DIVISION LENZOLOTO STILLWATER MINING COMPANY 13% 20% 3% ~40% Montana USA 12% 1.3% Metal Market Share London Murmansk Magadan Saint Petersburg Norilsk • Distribution Network • London, UK • Zug, Switzerland • Hong Kong, China • Pittsburgh, USA Moscow Krasnoyarsk Irkutsk

  3. 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 Leading Market Positions in 2003 Largest Palladium Producers* (% share of world production) Largest Nickel Producers (% share of world production) Largest Platinum Producers* (% share of world production) ~ ~ Largest Gold Producers (% share of world production, proforma for NN) Largest Copper Producers (% share of world production) Note: (*) Analysts’ estimate for Norilsk Nickel Source: Company reports

  4. Industry Leading Profitability Note: (*) The previously reported figures for 2001 have been restated to account for changes in the purchasing power of the Rouble (the measurement currency) and are stated in terms of the measurement unit current at the date of the balance sheet. For comparison purposes 2001 financial statements were restated to reflect asset revaluation, new accounting policies, and the introduction of some best practices in financial disclosure. Net profit was adjusted to exclude the non-cash-flow changes in fair value of an embedded derivative of USD 269 million (2001 - USD 824 millions) Key Financials* (USD in millions) EBITDA Margin (%) Source: Company reports

  5. Europe America Asia Russia Nickel Copper Platinum Palladium Gold Breakdown of Revenues (2002 - 100% = USD 3 094 million; 2003 - management estimates) 2003E 2002 By metal By geography

  6. Average Metal Prices in 2003 Nickel (USD per ton) Palladium (USD per ounce) 18 000 300 Note: (*) Realized price of 60 tons pledged against the loan has been excluded from calculations 250 14 000 ARP (2003E) = 197 200 ARP (2003E) = 9 619 10 000 * 150 6 000 01.01.03 30.06.03 27.12.03 01.01.03 30.06.03 27.12.03 Platinum (USD per ounce) Copper (USD per ton) ARP (2003E) = 1 791 ARP (2003E) = 693 Source: Bloomberg

  7. PGM Markets Palladium • Auto manufacturers started switching back from platinum to palladium in autocatalyst production boosting demand • Automakers continue to destock palladium • The palladium market is currently in a material surplus • The platinum market is in deficit for the fourth consecutive year, and is expected to move into balance in 2005 as South Africa increases production Platinum Platinum & Palladium Price (LPPM)(in USD per ounce) Platinum/Palladium Price Ratio 3-year average Source: Bloomberg

  8. Stillwater Acquisition • Stillwater Mining Company • In 2002 Stillwater produced 476,000 ounces of palladium and 141,000 ounces of platinum • Transaction • Norilsk Nickel acquired 55.5% of Stillwater’s common stock • Consideration consisted of two parts: • USD 132 MM in cash • approximately 877,000 ounces of palladium • Creating Value • Provides a solid distribution platform for PGMs in the US, improving access to the key end-users • Increased reliability and supply in the palladium market preempting the substitution effect and promoting the use of palladium • Geographical diversification of the mineral resource base/reduction of country risk Exchange Ratio (Ounces per share) Stillwater Adjusted Share Performance 3-year average Source: Bloomberg

  9. Palladium Sales in 2003 • Contracts signed for 100% of annual production plan • 95% of the sales contracts are for 1-year or longer • 75% of the contracts are with end-users • Signed up many consumers from the dentistry industry in Europe • Plan active promotion campaign to increase palladium usage • Sales of PGMs in the US increased in the 2nd half of 2003 after closing of Stillwater transaction Sales Palladium Sales in North America (USD in millions) Platinum Sales in North America (USD in millions) 7.5x 8.5x

  10. Nickel Market Overview - 2003 • Record year for nickel producers • Stainless steel demand growth of 6% in 2003 • Growing nickel consumption in China • Stainless steel production reached approximately 1 million tons • Reduction in production (-25 thousand tons) as a result of Inco strike • Market price reached 14-year high • Tight nickel market in the next 2-3 years • No major expansion projects until 2006 (Voisey’s Bay) • Low volumes of available scrap Nickel Price( LME, in USD per ton) Source: Bloomberg

  11. Norimet and Exports Sales in Russia 2004 Sales/Production Forecast Nickel Sales • Production rose to 238,800 tons in 2003, up 19,000 from 2002 level • 70,000* tons delivered to the market from inventory • Sales to Asia rose to 25% of overall export sales volume from 12% in 2002 • May release additional 15,000 tons out of inventory** Nickel Sales (In thousand tons) 350 280 15** 210 * 297 140 230 231 245 70 9 11 12 0 2001 2002 2003E 2004F Note: (*) Including 60 tons pledged against the loan; (**) forecast .

  12. The Leading Gold Producer 2003E Production • 100% stake acquired in Russia’s largest gold producer in October 2002 for USD 226 million • One of the largest gold deposits in Russia - Olimpiadinskoye ZAO Polyus 830 000 • A controlling stake of 50.7% acquired in August 2003 for RUR 1,033 million (~USD 34 million) • Natalkinskoye deposit with proven reserves of 250 tons • Feasibility Study underway OAO Matrosov Mine 32 000 OAO Lenzoloto • 44.9% (58.6% voting) acquired in September 2003 for RUR 4,665 million (~USD 153 million) • Reserves of 200 tons and resources of 100 tons • “Key” to Sukhoi Log deposit 320 000 Norilsk • Gold production as a by-product in the process of Nickel production in Taimyr Peninsula 130 000 With current annual production of 1.3 MM ounces, Norilsk Nickel is one the world’s 10 largest gold producers

  13. Acquisition of 20% stake in Gold Fields Ltd • Gold Fields • The 4-th largest gold producer • Over 4.3 million ounces of attributable annual gold production • 84 million ounces of mineral reserves • Primarily operations in South Africa, Ghana and Australia • Transaction • Norilsk Nickel acquired approximately 98.5 million ordinary shares (20% stake) of Gold Fields from Anglo American Plc • Total consideration USD 1,160 MM in cash • USD 400 MM – own cash • USD 800 MM – 6 months unsecured financing provided by Citigroup Global Markets at Libor plus 1.5% • Creating Value • Consistent with the strategy to increase Norilsk Nickel position in the gold mining industry • Exploratory discussions on a broader alliance between Norilsk Nickel and Gold Fields • Geographical diversification • Attractive valuation – acquired at 7% discount to market price

  14. 134 129 1 600 2001 2002 2003* Polyus 1 200 Polar Division 800 830 400 128 130 0 Gold Market • Gold has rallied steadily since the beginning of 2001, settling at the current level of above $400/tr.oz. • Dollar weakening and risk aversion among investors and speculators are the key drivers • Mine gold supply is likely to fall in the near term due to declining grades • Liberalization of the Chinese gold sector is likely to result in long-term demand growth from this potentially important consuming nation Gold Price & NN Group Production (USD per ounce(lhs); in millions of ounces(rhs)) Note: (*) Excluding Lenzoloto and Matrosov Mine Source: Bloomberg

  15. 10 8.9 7 8 6.7 6.4 6 4.6 3.6 3.5 4 1.3 2 0 Barrick Rio Tinto AngloGold Newmont Gold Fields Placer Dome Norilsk Nickel Harmony Gold Further Development of Gold Business Largest Gold Producers (in millions of ounces, proforma for NN) • Acquisition of the mining rights for the Sukhoy Log deposit (reserves of 33MM ounces) would increase annual production by a further 0.9MM • In December 2003 Polyus won the rights for geological survey and development of the Titimukhta gold field (reserves of 0.6MM ounces) • Continuing geological exploration in existing mining areas • Exploratory discussions with Gold Fields on a broader alliance Source: Company reports

  16. Corporate Governance Achievements • Payout of interim dividends • Russian Parliament and President signed amendments to the law lifting the secrecy regime from PGM production and reserves data • Election of further independent directors to the Board • Awards and Recognitions • Standard & Poor’s: improvement to 5th position in 2003 from 13th in 2002 in the Russian transparency and disclosure survey of Russia’s 45 largest companies • Survey based on three blocks of criteria: • Ownership structure and investor relations • Financial and operational information • Board and management structure and processes • RTS and “Securities Market” magazine: Winner of the nomination for best annual report and #1 in “best information disclosure” in the sixth annual reports and websites contest featuring 85 Russian leading companies (December 2003) • Investors Protection Association of Russia: most significant improvement in corporate governance (2002) • Euromoney: Norilsk Nickel named “a leading company in Russia for corporate governance” in 2002

  17. 2004 Objectives • Transparency • Publish base metal reserves audit in accordance with international standards (Q1, 2004) • Publish PGMs production and complete PGMs reserves audit (Q4, 2004) • Distribution • Further increase long-term contracts and share of direct sales to end-users • Enter into long-term agreements with major car producers • Improve financial management • Continue reducing labor costs by reducing number of employees • Cut social costs

  18. 2004 Objectives (continued) • Optimize production • Implement development strategy released in 1Q 2003 • Finalize renovation of flash smelters at Nadezhda to increase efficiency and capacity (to increase recovery rate and cut costs of production) • Research collective flotation and high-grade matte leach refining technologies • Put Pelyatka natural gas field into operation as a major step towards implementing the long-term energy strategy • Corporate Development • Evaluate domestic opportunities in gold and titanium • Consolidate gold assets into one company • Exploit opportunities in the restructuring of Russia’s power sector • Evaluate further opportunities

  19. The Leading Mining Company • Norilsk Nickel shares are traded on: • RTS (GMKN$ RU) and MICEX (GMKN4(5) RM) in Moscow • ADRs in New York (NILSY US), London (MNOD LI) and Berlin (NNIA GR) Norilsk Nickel Share Price Performance vs. Mining Indexes (in US dollars for NN; indexes adjusted to NN share price) Source: Bloomberg

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