Chelyabinskiy tsinkovyi zavod : Chelyabinsk Zinc Plant announces the decisions made by the Board of Directors at the correspondence meeting on December 23, 2016.

NEWS RELEASE

For Immediate Release - December 23, 2016

Chelyabinsk Zinc Plant's Board Meeting Decisions Chelyabinsk, Russia - December 23, 2016 - Chelyabinsk Zinc Plant (LSE, MICEX: CHZN), Russia's largest producer of zinc and zinc alloys, announces the decisions made by the Board of Directors at the correspondence meeting on December 23, 2016.

As it was disclosed earlier, on December 22, 2016 the Company has received Mandatory offer after the term of its consideration by the Bank of Russia provided by the Law. The Ural Mining and Metallurgical Company OJSC jointly with its affiliates owns 95,57% of ordinary CZP shares. The mandatory offer concerns purchasing of 2 402 507 (Two million four hundred two thousand five hundred seven) ordinary shares of the Company belonging to other shareholders at the price of 681 rubles per one ordinary share ("The offered purchase price"), the Board of CZP PJSC directors adopted recommendations for this mandatory offer and recommended to CZP shareholders to accept it.

CZP Board of Directors has made the decision on the direction to owners of securities of CZP PJSC of the Mandatory offer and CZP Board of Directors' recommendations till January 06, 2017.

According to the Federal Law "On Joint-stock Companies", CZP PJSC shareholders to whom the Mandatory offer is addressed have the right to accept it by the direction of Security Sale Application.

Global Depository Receipts (GDR) owners can take part in the Mandatory offer after settlement of these GDR, obtaining shares in return and the direction of the Application based on the Mandatory offer in order, on conditions and terms provided by the Mandatory offer.

If a shareholder make the decision on sale of CZP PJSC shares on the basis of the Mandatory offer, it is necessary to address or to provide personally to the Company's registrar - JSC Vedeniye reestrov kompanii (620014, Yekaterinburg, Dobrolyubov St., the 16, 6 floor) the Application on security sale.

The application form, the text of the Mandatory offer, the recommendation of the Board of directors and the information message about an order of acceptance of the Mandatory offer are available on the Company website http://www.zinc.ru on the "Investors" page, the "Mandatory Offer" subsection

About Chelyabinsk Zinc Plant

Chelyabinsk Zinc Plant is the leading Russian zinc producer. In 2015 the plant produced 171,002 tonnes of saleable SHG zinc.

According to consolidated IFRS accounts, revenue in 2015 was RUB 24,013 mln and EBITDA was RUB 4,789 mln.

Ordinary shares of CZP are traded on the Moscow exchange MICEX-RTS under ticker CHZN and Global Depository Receipts (GDR) are traded on the London Stock Exchange under ticker CHZN.

Investor and Media Contacts:

Natalya Vasilieva, PR, [e-mail] Tel: [phone]