Open Joint Stock Company Mining and Metallurgical Company Norilsk Nickel and its subsidiaries issued consolidated financial statements as at December 31st2008 and for the year then ended in compliance with International Financial Reporting Standards.

Norilsk Nickel said that revenue from nickel sales contributed 51% to total metal sale revenue and decreased by 40% in 2008 to USD 6,081 million compare to USD 10,216 million, mainly due to a significant decrease in the adjusted average selling price of nickel by 42% from USD 37,210 per tonne in 2007 to USD 21,517 per tonne in 2008.

During 2008 the physical volume of nickel sales excluding sales of metal purchased from third parties) produced in the Russian Federation decreased by 2% to 229 thousand tonnes as compared to 234 thousand in 2007, which was partially compensated by 7% increase of physical volume of nickel sales produced by Norilsk Nickel International.

In addition, the revenue from nickel sales by Stillwater Mining Company amounted to USD 9 million in 2008 compared to USD 20 million in 2007 and revenue from nickel sales purchased from third parties amounted to USD 25 million compared to USD 251 million in 2007.

Norilsk Nickel said that in 2008, revenue from metal sales totaled USD 11,799 million which represented a 26% decrease as compared to 2007. The main factor of it is substantial decrease of sales prices for nickel. In addition slight decrease of physical volumes of metals sold contributed to the fall in revenue of the Group.

It added that generally unfavorable situation in base metal prices (nickel and copper) led to the decrease of base metal sales by USD 4,190 million. At the same time generally favorable, at least in the first half of the year, situation in the prices for PGM enabled the Group to realize a revenue increase for all PGM metals by USD 80 million (or 3%).

MMC Norilsk Nickel

(In ‘000 tonnes)

Stillwater Mining Company

(In ‘000 tonnes)

Norilsk Nickel International

(In ‘000 tonnes)