Chelyabinskiy tsinkovyi zavod : Chelyabinsk Zinc Plant reports about the arrived mandatory offer on acquisition of its securities

NEWS RELEASE

Chelyabinsk, December 22, 2016

Chelyabinsk Zinc Plant reports about the arrived mandatory offer on acquisition of its securities

Chelyabinsk Zinc Plant (LSE, MICEX: CHZN), the largest Russian producer of high-quality zinc and alloys on its basis, reports that on December 22, 2016 the mandatory offer of JSC Ural Mining and Metallurgical Company on acquisition of common registered uncertificated shares of PJSC Chelyabinsk Zinc Plant in the number of 2 458 876 (Two million four hundred fifty eight thousand eight hundred seventy six) pieces has been received by the Company (hereinafter - the mandatory offer). The state registration number of a share issue 1-01-45040-D, date of registration - November 11, 2003.

The share of the stocks of PJSC CZP belonging to JSC UMMC and its affiliates is 95,57%.

The price offered for the acquired securities is 681 rubles of the Russian Federation for one ordinary share.

The deadline for accepting the mandatory offer when the application for sale of securities has to be received by the registrar of CZP - JSC Vedeniye reestrov kompany (Dobrolyubov St., 16, 5 floor, Yekaterinburg, 620014, the Russian Federation) is 75 (seventy five) days from the moment of receiving the mandatory offer by PJSC CZP.

Guarantor providing a bank guarantee annexed to the mandatory offer is "Gazprombank" (Joint Stock Company).

According to the Federal law "About Joint-stock Companies", shareholders of PJSC Chelyabinsk Zinc Plant to whom the mandatory offer is addressed have the right to accept it by the filing an application for sale of the securities belonging to them.

Owners of GDR can take part in the mandatory offer after cancelation of GDR belonging to them, receiving shares instead of GDR and the filing an application for sale of shares on the basis of the mandatory offer under the terms and conditions of mandatory offer.

Within 15 days from the date of receipt of the mandatory offer PJSC CZP will send this offer together with recommendations of the Board of directors of PJSC CZP to all owners of securities to whom it is addressed, according to the procedure specified by the Federal law dated 12/26/1995 No. 208-FZ "About joint-stock companies" and the Charter of the issuer for the direction of the message on holding general shareholder meeting and also will post on the website PJSC CZP on the Internet in the section to "Shareholders/Investors", to subsection "Mandatory Offer".

The text of the mandatory offer is published on the Internet at the following address: http://www.e-disclosure.ru/portal/company.aspx?id=191.

About Chelyabinsk Zinc Plant

Chelyabinsk Zinc Plant is the leading Russian zinc and zinc alloys producer. In 2015 the plant produced 171,002 tonnes of salable 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 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]: [phone]