PAGE NUMBER � MARCH 20��

• impairmentofR230 millionforthechannel

inductionfurnace;

• substantialincreasein energycosts;

• additionalmaintenancecosts;and

• anincreaseinprovisions.

3. Operations

Castedsteeloutputwaslessthanplannedmainlyasaresultofdisruptionsinthegassupplyandoperationalshutdowns.

4. Markets

Domesticsteelsalesvolumesincreasedby8%.Exportsalesvolumesofbothstructuralsandflat-rolledproductsincreasedsignificantly.However,importsintoSAcontinuetoincrease.

5. Granting of new order mining rights

TheDepartmentofMineralResources(DMR)grantedtheCompany’sapplicationfortheconversionofoldorderminingrightson28January2011,whichwillbringaboutthefinalisationoftheempowermenttransactionwithUmnothoweSizwe.

6. Outlook

Thereareindicationsofmarketimprovementasdemandandpricespickup.Astrongstrategyisrequiredtocapitaliseonthiswhichisbeingfinalised.

Keyfinancialindicatorswere:

2010 2009

EBITDA loss of R263 million Positive EBITDA of R477 million

Headline loss of R383 million Earnings of R167 million

Operating loss of R823 million Operating profit of R192 million

IntheirpresentationtoanalystsandmediainJohannesburgandlaterinCapeTown,theCEOScottMacDonaldandFDBerniedeBeerfocusedonsixkeyareasintheirreviewof2010:

1. Health and Safety

SafetyhasbeenidentifiedasthetoppriorityoftheCompany.Stringentactionplanshavebeenputinplacetoreducethenumberofincidents.

2. Key financials

ThemaincontributorstotheR823millionoperatinglosswere:

• the13%strengtheningof theRand;

Picture: Scott MacDonald, Evraz Highveld CEO

– Strong strategy going forward to improve productivity and efficiency

EvrazHighveld’sannualfinancialresultswereannouncedon17March2011-detailing2010asaverychallengingyear.

A TWO-STAGE STRATEGIC APPROACH

CEOScottMacDonaldisleadingEvrazHighveld’stwo-stagestrategicapproachtoimproveEvrazHighveld’sperformance.“Whilstwewillalwaysbeatthemercyofmarketconditions,thereareactionswecantaketoensurethatourproductivityandefficienciesarevastlyimproved,”saysMacDonald.

“Stage1focusesontheimplementationofarobust

2010 FINANCIAL RESULTS ANNOUNCED

Evraz Highveld News

commercialplanlinkedtoaquantumleapinproductivityandefficiencydrivenbyhighlevelsofcustomerservicewith95%ontimedelivery.Stage2seestheimplementationofsignificantCAPEXplansfocusingonmanufacturingtofurtherenhancetheachievementsofStage1.

“Ourstrategyistofocusonsafetyandhealthandoverallbusinessimprovement,”

MacDonaldconcludes.

PAGE NUMBER 2 MARCH 20��

ThefirsteverpresentationoftheEvrazHighveldBusinessOverviewProgrammetookplaceon15and16February2011atTheCentralTrain-ingUnit.Thistwodaytailor-madeprogrammeisaninitiativeaimedatintegratingrecentlyappointedSeniorManagersintoEvrazHighveldandEvrazGroupandtosharetheCompany’sstrategyandobjectives.

EvrazHighveldalsohasseveralInduc-tionProgrammesthatareofferedtoon-boardingincumbentstoensuretheeffectiveintegrationofemployeesintooracrosstheorganisationforthebenefitofboththeindividualandtheorganisation.Itisduringthistypeofinductionthatemployeesgettoknoweachotherandabouttheorganisa-tion’scultureandvalues,physicalworkenvironment,employeerightsandresponsibilitiesalongwithkeybusinessprocesses.

Thelaunchofthisprogrammewasasuccessandwillinfutureberolledouttoincludeothermanagementlevelsandshopstewards.

Fromlefttoright(standing):Malcom Simpson (General Manager Projects), Mandla Mabele (Shift Manager), Khethani Mphaphuli (Manager Continuous Cast-ing), Jerry Molefe (General Manager HR), Peter Suchanek (Steel Technologist), Mandla Ndlozi (Manager Health & Safety), Sipho Sibeko (Project Manager), Mylin Pather (Senior Metallurgist), Xolani Hlakanyana (Section Manager Reporting).

Fromlefttoright(sitting):Natasha Thomas (Unit Manager Legal Services), Sindi Nsele (Unit Manager Investor Relations), Kefilwe Mothupi (Manager Procurement & Stores), Thabisile Mchunu (Manager Transformation), Farhana Rahaman (Unit Manager Treasury), Marelie Greyling (Head Remuneration).

NEW BUSINESS OVERVIEW PROGRAMME TO ASSIST NEWCOMERS

Inthisinteractiveprogramme,departmentalheadsaregiventheopportunitytosharetheirdivisions’vision,strategy,struc-tureandgoalswiththedelegates.

EvrazHighveldiscommittedtocreat-ingatrainingenvironmentinwhichstudentsofabilityandapplicationcandeveloprewardingcareersatalllevelsintheengineeringandrelatedfields.Overthepast35-40yearsEvrazHighveldhasconsistentlygivenbursariestostudentsstudyingintheEngineeringfields.

OfthebursarsthatcompletedtheirdegreeswithEvrazHighveld,thema-joritywereappointedasEngineers-in-training(EITs).WehaveanumberofbursarsthatwiththeirexquisiteperformanceandhardworkwentonfurthertobeappointedasTechnicalAssistantsorJuniorEngineersand

CREATING A POSITIVE TRAINING ENVIRONMENT

wentontomaketheirwayupthecorporateladder.

CurrentlyEvrazHighveldhas19Bursarsand10EITsacrossthemetal-lurgical,mechanicalandelectricalengineeringfields,anditisourgoaltoincreasethebursaryopportunitiesformorestudentsthatwouldliketopursuetheircareersinEngineering.

AtarecentfunctionPavelTatyanin,SeniorVicePresidentandHeadofInternationalBusiness,andMsNata-liaIonova,VicePresidentforHumanCapital,encouragedthebursarsandEITstoachievethebestoftheirabilityduringtheirstudiesandtraining.

PAGE NUMBER � MARCH 20��

NEWS FROM MAPOCHSGloballeaderinindependenttestingandassessmentservices,TÜVRheinland,hasreawardedMapochsMineitsOHSAS18001certificatefollowinganauditon17and18January2011.

Itisimperativethateventhoughthecertificatewasretained,wecontinuallylookatwaysofimprovingthesystem.Identifyinggapsandfocussingonthemwillassistusinreducingincidentsandaccidents,aswellasminimisingoccupationaldiseasesofemployeesattheMine.ThisisparticularlyimportantinlightofthefivenonconformitiesrecordedagainsttheMine.

Wemustcontinuetostriveforasafeandhealthyworkplacethatwecanallbeproudtocometoeveryday.

Letuscontinueinthespiritof“Remmogo”onoccupationalhealthandsafetymattersaswell!

TheDepartmentofMineralResources(DMR)grantedEvrazHighveld’sapplicationfortheconversionofitsoldorderminingrightson28January2011.Theformalprocessofnotarialexecutionandregistrationisexpectedtobecompletedwithinthefirsthalfofthisyear.ThiswillbringaboutthefinalisationoftheempowermenttransactionwithUmnothoweSizwefortheMapochsMine.

MININGRIGHTSCONVERSIONAPPLICATONGRANTED

MAPOCHSRETAINSOHSAS18001CERTIFICATE

On7December2010,EvrazHighveldrepresentativesmetwithkeyleadersandofficialsoftheRoossenekalcom-munity,andon14December,withabout200peoplefromthebroaderRoossenekalcommunity,tobringamessageofgoodnews.

Thesemeetings,andthemeetingwithemployeeunionleadersofMapochsMineon15December,weretodiscusstheCompany’scommitment

NEWHOPEANDGROWTHFORROOSSENEKAL

totheimplementationofLocalEco-nomicDevelopment(LED)projectsintheRoossenkalcommunity.ThefirstoftheseprojectsistheRoossenekalAgriculturalandHydroponicsCom-munityDevelopmentProjectwhichwillfocusonjobcreationandenter-prisecreationthroughtheestablish-mentofanAgricultural-Hydroponicsdevelopmenthub.ThesecondprojectisProjectRestorewhichwillseetheestablishmentofanindigenousnurseryforrehabilitationofMapochsMineandothermines.

Bothprojectswillestablishotherdownstreamcommunitybasedeconomicindustries,whichwillfurthercreatejobsandincomestreamsforthecommunity.

MoregoodnewsisthattheRoos-senekalcommunitywillbenefitfromtheestablishmentoftheMapochsMineCommunityTrust,whereby3%ofthemine’sequitywillbegiventotheRoossenkalCommunity.TheTrustwilladministerdividendsreceivedfromtheMapochsMinethroughtheexecutionofpovertyalleviationandsocialupliftmentproj-ectsforthebenefitofthecommunity.Notonlywillthecommunityreceivesubstantialbenefitsfromtheimple-mentationoftheMapochsMineLEDprojects,butalsofromtheMapochsMineCommunityTrust.

DuringthemeetingsthecommunityleadersexpressedtheirsinceregratitudetoEvrazHighveldforbringingsuchnewfoundhopetoanimpoverishedcommunity.

PAGE NUMBER � MARCH 20��

AninitiativebyMsMarinaColledge,SHEQCoordinatoratProductionServices,sawthreeemployeeswin-ningthemselvessomelovelyprizes.

AsafetycompetitionwasrunwithinthedivisionwhereSHErelatedquestionsweresenttoemployees.Writtenanswershadtobesubmittedandthewinnerdrawnfromthosesubmissions.Three

SHEQ

Ms M Colledge, SHEQ Coordinator at Production Services, has a big heart for the wellbeing of all employees within the division

Mr. Rashokene, a Master Electrician at Production Services, celebrating after receiving his prize

Mr. Lesese, a team member at Production Services, receiving his prize

Mr. Dlamini, a Boilermaker at Production Service, receiving his prize

MAKESADIFFERENCE

EarthHourstartedin2007inSydney,Australiawhen2.2millionindividu-alsandmorethan2,000businessesturnedtheirlightsoffforonehourtotakeastandagainstclimatechange.Threeyearslater,onSaturday27March,EarthHour2010becamethebiggestEarthHourever.Arecord128countriesandterritoriesjoinedtheglobaldisplayofclimateaction.

E A R T HH O U R

IconicbuildingsandlandmarksfromAsiaPacifictoEuropeandAfricatotheAmericasswitchedoff.Peopleacrosstheworldfromallwalksoflifeturnedofftheirlights.

EarthHour2011willtakeplaceonSaturday26Marchat8.30PM.Ontheofficialwebsite,theorganisersarestatingthat“ThisEarthHourwewantyoutogobeyondthehour,soafterthelightsgobackonthinkaboutwhatelseyoucandotomakeadifference.Togetherouractionsaddup.”’http://www.earthhour.org/About.aspx

ThisyearisespeciallyimportantforSouthAfricaaswewillhostthecrucialCOP17climatechangeconfer-enceinDurbaninDecemberandwillonceagainbeintheglobalspotlight.Thisannualconferenceiswhereworldleadersmeettoassessprogressindealingwithclimatechangeandnegotiateobligationsforreducinggreenhousegasemissions.

Thisyear,EarthHourisaskingevery-oneto“gobeyondthehour”andcommittoanon-goingpersonalac-tiontobenefittheenvironment.WithCOP17onthehorizon,itisespeciallyimportantforpeopleinSouthAfricatomaketheirvoicesheardandtogobeyondthehour.

http://www.wwf.org.za/earth_hour_2011/

Howwillyou“gobeyondthehour”?

employeessubmittedthecorrectanswersandthejudgesdecidedtoawardeachofthemwithaprize.

Itishopedthatthenextroundofthecompetitionwillseemoreemployeessendingintheirentriesandatthesametimecreatingmoresafety,healthandenvironmentalawarenessamongsttheircolleagues.

PAGE NUMBER � MARCH 20��

Weallexpectqualityproductsandservicefromshops,restaurantsandotherretailoutlets.Wedemandsafehousesandneighbourhoodsandworkingenvironments.Weallwanttoliveinacleanandhealthyenvironment.Ifwewon’tacceptanythingless,whyisitthatwhenweareonthesupplyendofthechain,weforgetthatourcustomersexpectthesame?SHEQstandsforSafety,

Health,EnvironmentandQuality.Forustobeabletoremaininbusinessandoperateinasafeandhealthyenvironment,andproducequalityproductstosustainusintothefuture,weneedtohaveasysteminplacetohelpusdoexactlythat.

Threeinternationalguidelinesareusedtoassistusinimplementingandmaintainingsuchamanagementsystem:

• For quality: ISO 900�;• For environment: ISO ��00�; and• For Occupational Health and Safety: OHSAS �800�

TheseguidelineshavebeenintegratedforEvrazHighveldandtheyarethecoreofourSHEQpolicy,whichoutlineshowwewillcomplywiththerequirementsofthisinte-gratedsystem’srequirements.

Eachoneofushasakeyroletoplay.Itisneithertopmanagement’sresponsibilityalonenoronlythatofemployeesontheshopfloor,butacombinationofeveryone’seffortsthatmakesitwork.

TheQualityguideline,ISO9001,tellsushowtoensurethattheproductsweproduceareinternationallyacceptable,aswellashowtheserviceswerendercanbeenhancedtoensurethatourcustom-ersarehappy.WithoutanISO9001certificateitisdifficulttodobusinessinlocalorexportmarkets.AnISO9001certifi-catereassuresourcustomersthatwhatweproduceisindeedthebestinthemarketasitisendorsedbyanexternalauditingbody.

QUALITYStacked material at the Structural Mill Finishing End

Plates ready for dispatch after final inspection

Beams ready for dispatch after final inspection

Finished coil ready for dispatch

–DON’TACCEPTANYTHINGLESS

What is SHEQ and what does it mean to us?

PAGE NUMBER � MARCH 20��

thegiftisakickbackorbribe.Kick-backsmightbeofferedinexchangeforsteeringbusinesstoaparticularcompany.Anemployeethatacceptskickbacksformakingsureapreferredvendorgetstheworkisalsoguilty.Attheveryleast,thesekindsofactionscompromisebusinessethicsandim-properlyinfluencedecisions.

Are gifts acceptable?AtEvrazHighveldyouareonlyal-lowedtoacceptgiftsifthesegiftsweredeclaredtotheCompanySecretaryforapproval,andsuchapprovalwasgranted.

InSouthAfrica,PriceWaterhouseCoopers(PWC)estimatesthat72%ofcompanieshavefallenpreytoeconomiccrime.ItisthoughtthatintheUnitedStates,theaveragecompanyloses6%ofitstotalannualrevenuetointernalfraudandabuse.AtEvrazHighveldananonymoustip-offlineisavailabletoprotecttheCompanyanditsemployeesfromdis-honest,unethicalandillegalactivitiesintheworkplace.

What should be reported?Any wrongdoing•Theft,fraud,crimesyndicate activities

Not obeying the company policies and procedures•Overridingofcontrols

•SharingofuserIDsoraccess badges

Theft of time•Playingcomputergamesduring companytime

•Incorrectinformationon manualclockingslips

•Extendedlunches

•ProlongedpersonalcallsHighly sensitive issues•Sexualharassment,nepotism, racism

DISHONESTYINTHEWORKPLACEOneofthemostseriousissuesfacingbusinesstoday

Abuse of company property and equipment

•Makingexcessivepersonalcalls

•Useofinternet,faxmachine andcompanyequipmenttorun yourownbusiness

Bribery and corruption

•Asupplieroffersakickbackto anemployeetogainatender

Not obeying the law

•Alcohol/drugabuse

•Non-roadworthyvehicles

•Collusionwithexternaland internalparties

•Paying/receivingbribesto/from externalparties

About Gifts

It’snotunusualforcompaniestosendclientssmalltokensofappreciationafterclosingimportantbusinessdeals,ortoinvitethemtotheoccasionallunch.Aslongasthesegesturesdon’tcomewithstringsattached,they’regenerallyconsideredgifts.Ifsomeoneexpectssomethinginreturnforagift,

WestartedtheMaintenanceOptimisationProjectinOctober2010.Duringthepastfivemonthswehavebeenworkinghardtodesignanewmaintenancesystemthatallowsusto:

•implementacomparable maintenancesystemacrossthe Evrazgroup;

MESSAGEFROMEKATERINABELYKHONMAINTENANCE•getabetterunderstandingofequipmentcriticalityandtechnicalstatustoinformmanagementdecisions;and

•implementaneffective maintenanceplanning andbudgetingprocesses.

Alltheprocessmapshavebeendesignedandnewmaintenance

2� hours a day�� days a year

Absolute anonymity0800 2�� ��2

trust@tip-offs.com

guidelineshavebeendeveloped.MarchseesthestartoftheimplementationoftheidentifiedinitiativesandthemodificationoftheEvrazHighveldmaintenancesystem.

EkaterinaBelykhhassincetakenupanotherpostinMoscowandisnolongerwithEvrazHighveld.

PAGE NUMBER � MARCH 20��

InanefforttoreducethepollutionitwasdecidedtoreinstalltheKilnrawgasstackcaps.TheIronPlantpilotedtheprojectatKiln9,withabrandnewdesignbyHatch.

ThestackcapwasfabricatedbyEngineeringservicesworkshopsandinstalledbyServices’RiggersandthencommissionedandadoptedbyIronPlantpersonnel.

Mostofthematerialusedwassourcedfrominsidetheworks.Thecapdiameteris2,5metresandweighsintheregionof8tons.Itispoweredbytwoprocessormanuallycontrolledpneumaticcylindersat6-8bar.Thecapwasdesignedtobefail-safesothatintheeventofapowerdiporprocessfaultthecapwouldopentoensurethatallpressurewouldbereleasedandnotcontainedwithinthetower.

TheexhaustgasthatcomesoutofthekilncontainsPulverizedFuel(PF)aswellasothermetallurgicaldustandgasseswhichcancauseenvironmentalproblems,includingvisualpollution.Thestackcapprojectwillnotonlyreducethepollutionbutitwillalsotheoreticallyimprovethecombustioninsidethekilnshellandthegastowersthuspossiblyenhancingthekilnoutput.AftersuccessfulsigningoffofthispilotprojectitwillberolledouttootherkilnsstartingwithKiln10.

ThestackcapprojectisjustoneoftheprojectsIronMakingisbusywithtoreduceenvironmentalimpact.

Hatsofftoalltheindividualsanddepartmentsthatpulledtogethertomakethisprojectasuccess!

STACK CAP PROJECT REDUCES IMPACT ON ENVIRONMENT

PAGE NUMBER 8 MARCH 20��

TheEvrazHighveldclinicoffersafreeconfidentialHIV/Aidstesting,counsellingandtreatmentserviceforemployeesandfamilymembers.

This service aims to prevent the spread of infection and to care for those infected or af-fected by HIV/Aids.

ItisvitalthatweallknowourHIV/Aidsstatus.Forthosewhotest

negative,weneedtoensurethatwemaintainahealthylifestyletomain-tainournegativestatus.Forthosewhotestpositive,itisimportantthatweimmediatelystarttreatmentandlifestylechangestoensurethatwecopewiththediseaseinthebestwaypossibletominimisetheimpactonthequalityofourlives,andthatofourfamiliesandfriends.

ThebestwaydothisisthroughvoluntarytestingandknowingyourHIV/Aidsstatus.MembersoftheEvrazHighveldmanagementteamrecentlyfoundouttheirstatusesbyparticipatingintheEvrazHighveldSteelVoluntaryCounsellingandTesting(VCT)programme.

SisterMaggiesays:“HIV/AIDSisanindiscriminatekillerdiseasethataffectsyoungandold,poorandrich.Weallneedtofightitwithpassionbytestingregularlyasrequestedoradvised.ItisbesttotestearlyratherthantowaituntilyouaresickwithrelatedHIVillnesses.Iensuretotalconfidentiality,whethertheresultsarepositiveornegative.ThetreatmentisprovidedbytheAurumInstitute,forfreeattheclinicanditalsocatersforyourimmediatefamilymembers.Thissavesyoutimeandmoneybecauseyouwillreceive

SAFE, SECRET, AND POTENTIALLY LIFE-SAVING

Evraz Highveld managers who participated in the VCT programme.

yourtreatmentattheclinicatyourworkplaceandforfree.

Currently,thepercentageofemployeestakingpartintheVCTprogrammeisunsatisfactory.Everyoneshouldencouragetheircolleaguestogettested,now!”.

WehopeyouenjoyedreadingtheQ12011editionoftheEvrazHighveldNews.Don’tforgetthatyoucancontributetotheEvrazHighveldNewsandmakeitsomethingYOUwanttoread.We’dlovetohearaboutpersonalachievements,departmentalsuccesses,sportingprowessandcommunityhappenings.

Sendyournews,articlesandphoto-graphstothealy@evrazhighveld.co.zaforeditorialconsideration.

MAKETHEEVRAZHIGHVELDNEWSYOURS