Russian Miner – Global Player

Tav MorganDeputy Chairman of the Management Board

Merrill LynchGlobal Metals, Mining & Steel Conference

May 12, 2005

2

Disclaimer

The information contained herein has been prepared using information available to MMC Norilsk Nickel at the time of preparation of the presentation. External or other factors may have impacted on the business of MMC Norilsk Nickel and the content of this presentation, since its preparation. In addition all relevant information about MMC Norilsk Nickel may not be included in this presentation. No representation or warranty, express or implied, is made as to the accuracy, completeness or reliability of the information.

Any forward looking information herein has been prepared on the basis of a number of assumptions which may prove to be incorrect. Forward looking statements, by the nature, involve risk and uncertainty and MMC Norilsk Nickel cautions that actual results may differ materially from those expressed or implied in such statements. Reference should be made to the most recent Annual Report for a description of the major risk factors.

Nothing herein should be construed as either an offer to sell or a solicitation of an offer to buy or sell securities in any jurisdiction.

3

Today’s Presentation Topics

• Norilsk Nickel’s standing amongst global miners and Russian companies

• Norilsk Nickel’s strengths, current initiatives and corporate developments

4

Playing a key role in Russia and globally

• Pillar of economy and leading exporter– Over half a percent of country’s GDP– Over 3.2% of exports

• One of Russia’s most attractive blue chips– Russia’s largest market cap resource

company outside oil & gas sector– High corporate credit rating according to

S&P and Moody’s

Strong contributor to the Russian economy

* Results have been included from the date of acquisition in the cases of CJSC “Polyus” acquired on 1 November 2002, Stillwater Mining Company on 30 June 2003, OJSC “Lenzoloto” and OJSC “Matrosov Mine” in April 2004

Source: Company financials

Sales

Operating Profit

Headline Earnings

Selected Financials*

Operating Profit Margin

1H 200420032002

3,2865,1963,094

1,1931,516809

36%29%26%

889885315Headline Earnings Margin 27%17%10%

Major player in global mining and metals

• Major vertically integrated metal producer– Largest producer of mined Ni and Pd– Top 10 producer of Pt, Cu– Russia’s largest Au producer

• Norilsk mines represent one of the world’s most economically attractive ore resources

• Strong exposure to growth in an emerging market economy

5

NorilskNickel*

AngloPlatinum

ImpalaPlatinum

Lonmin

Leading producer of base and precious metals

Largest Nickel Producers (% share of 2004 world mined production)

Largest Palladium Producers* (% share of 2004 world mined production)

Largest Platinum Producers* (% share of 2004 world mined production)

* GFMS estimates for NN, includes Stillwater’s share

Largest Copper Producers (% share of 2004 world production)

Largest Gold Producers (in millions of ounces)

NorilskNickel

Inco Falcon-bridge

BHPBilliton

WMC AngloPlatinum

ImpalaPlatinum

Lonmin NorilskNickel*

Codelc

o

Phelps

Dod

ge

BHP Bill

iton

Rio Tint

o

Grupo

Mex

ico

Nordd

eutsc

he A

ff

KGHM

Norils

k Nick

el

Newm

ont

Anglo

Gold

Kinro

ss

Gold F

ields

Placer

Dom

e

Harm

ony

Rio T

into

Norils

k Nick

el

Source: Brook Hunt, GFMS, and company data

19.2

16.3

9.2

6.5 6.4

0

5

10

15

20

25

18.9

8.2 6.1

~50

0

10

20

30

40

50

60

17.714.6

~11

36.7

0

5

10

15

20

25

30

35

40

13.0

8.7

6.65.2 4.7

3.6 3.6 3.1

0

2

4

6

8

10

12

14 6.65.9

4.84.0

3.53.2

1.8 1.6 1.5 1.5 1.4 1.1

0

1

2

3

4

5

6

7

Barric

k

Navoi

Min

as B

uen.

Freep

ort

6

Increasingly global presence

MMC KOLA Kola Peninsula

MMC KOLA Kola Peninsula

POLAR DIVISION Taimyr Peninsula

POLAR DIVISION Taimyr Peninsula

NORILSK NICKEL EUROPE

London, UK

NORILSK NICKEL EUROPE

London, UK

HEADQUARTERS Moscow

HEADQUARTERS Moscow

GOLD FIELDS Ltd (20%) South Africa

GOLD FIELDS Ltd (20%) South Africa

LENZOLOTO Irkutsk

LENZOLOTO Irkutsk

GIPRONICKEL St. Petersburg

GIPRONICKEL St. Petersburg

NORILSK NICKEL USA Pittsburgh, USA

NORILSK NICKEL USA Pittsburgh, USA

NORILSK NICKEL ASIA

Hong Kong, China

NORILSK NICKEL ASIA

Hong Kong, China

POLYUS KrasnoyarskPOLYUS

Krasnoyarsk

MATROSOV MINE Magadan

MATROSOV MINE Magadan

STILLWATER MINING COMPANY (55%)

Montana USA

STILLWATER MINING COMPANY (55%)

Montana USA

Headquarters and R&D Institute

Mines and operations

Gold Mining Companies

International Assets

Global Distribution Network

7

One of the world’s largest quoted mining companies

26.0

23.021.0

16.7

12.0 11.3 10.78.4 8.4

7.3 7.1 6.7 6.2 5.8 5.8 5.5 5.4

20.5

0

5

10

15

20

25

30

Market Capitalisation, May 2, 2005, USD bn

Source: UBS

75

30

7073.1

41.331.4 30.0

8

One of world’s largest mining companies by revenues

25.022.9

11.3

8.0 7.1 7.0 6.9 6.44.6 4.3

3.1 3.1 2.7 2.4 2.4 1.9 1.9 1.7

0

5

10

15

20

25

30

2004 Revenues, USD bn

Source: UBS

9

34

29

22

34

2528

20

37

27

19

28 28

21

17

45

30

2221

39 40 40

0

5

10

15

20

25

30

35

40

45

50

Norilsk Nickel* BHP Billiton Anglo American Rio Tinto WMC Inco Falconbridge

Leading profitability in industry

* For MMC Norilsk Nickel 2004 data represents 1H 2004Source: Company reports

200220032004

EBITDA Margin

Percent

10

Largest mining and metals blue chip in Russia

0

5

10

15

20

25

30

55

60G

azpr

om

LU

Koi

l

Sur

gutn

efte

gaz

Sib

neft

MT

S

Sbe

rban

k

Nor

ilsk

Nic

kel

UE

S

Vim

pelc

omN

LM

K

Sev

erst

al

Leb

edin

sky

GO

K

Mec

hel

Tat

neft

Sla

vnef

t

Nov

atek

Mos

ener

go

Ore

nbur

gnef

t

Bal

tika

SU

AL

Mik

hail

ovsk

y G

OK

Market Capitalization of Russian Public Companies (USD bn, April 26, 2005)

TN

K

Sid

anko

AF

K S

iste

ma

11

Russian Company Credit Ratings

S&P, Moody’s as of 1 May 2005

MMK

Sibneft

Alrosa

TNK

MTS

Lukoil

B3

B1

Ba3

Ba2

Ba1

Baa3

B2

B+ BB- BB BB+ BBB-B

Source: Moody’s and S&P

Recognized as one of Russia’s most solid investments

Standard and Poor’s

MOODY’S

Gazprom Russia Sovereign

Investment grade

Norilsk Nickel

Severstal

VimpelCom

12

Today’s Presentation Topics

• Norilsk Nickel’s standing amongst global miners and Russian companies

• Norilsk Nickel’s strengths, current initiatives and corporate developments

13

113857

293

995

1,420

439843

415328

395

0

200

400

600

800

1,000

1,200

1,400

1,600

Norilsk Nickel*

WMC Inco BHP Billiton

Falconbridge AngloAmerican

Measured and Indicated Mineral Resources Proved and Probable Ore Reserves

Ore Reserves of Leading Nickel Producers (as of 1/1/2003, million tonnes)

Mineral resource and ore reserve base strength

• Base metals reserve data for 2003 and 2004 will be available with 2004 annual report

• Expecting to publish PGM data later this year once state secrecy on these minerals is lifted

* Does not include nickel resources and reserves in Norilsk-1, Zapolyarnoe, Semiletka and Kotselvaara deposits Source: Micon International, Company reports

14Source: Brook Hunt Nickel Industry Cost Study 2004

(2 000)

0

2 000

4 000

6 000

8 000

10 000

Global Nickel Cost Curve, 2004Direct Cash Costs (US$ /ton), Cumulative Production (thousand tons)

WM

C

BH

P B

illi

ton

Inco

Fal

con

bri

dge

0 150 300 450 600 760 910 1,077

World’s lowest cost nickel producer

Norilsk Nickel

15

Integration through the value chain

Exploration Mining Concentrating Smelting Refining Marketing & Distribution

• Polar Exploration

• Kola Exploration

• Polar: Norilsk-1, Talhakhskoye, Oktyabroskoye

• Kola: Zhdanovskoya, Zapolyarnoye

• Polar: Talnakh and Norilsk Concentrators

• Kola: Pechenga Concentrator

• Polar: Nadezhda Plant, Copper Plant, Nickel Plant

• Kola: Pechenga Smelter

• Polar: Nickel Plant, Copper Plant

• Kola: Severonickel

• Global Distribution Network

Transportation Complex

Energy and Power Infrastructure

Maintenance & Construction

R&D and Project Design Institute

16

Norilsk’s current priorities

• Streamlining existing production operations in Kola and Polar divisions

– Cost and headcount reduction– Outsourcing non-core functions– Optimal configuration of operating assets– Upgrading environmental management

systems– Evaluating sulfur reduction technologies– Minimizing dependence of social

infrastructure while continuing to support community development

• Improving reporting and transparency– Further improving financial and

production reporting– Ensuring reserve data is reported to

international standards– Further disclosure of precious metal and

gold reserves

• Corporate development– Consolidation and further expansion

of gold operations– Strengthening corporate governance

and further improving reporting and transparency

– Strengthening control over and management of infrastructure support assets

– Identification and evaluation of new mine prospects

• Improving organization and processes– Further development of management

information systems– Adoption of 3 year financial

planning– Initiating streamlining of

organizational structure

17

Key production initiatives underway

• Streamlining production

– Increasing equipment utilization

– Reduce WIPs

– Evaluating asset configuration

– Reducing SO2 emission per ton of metal

• Cost reduction - countering Russian inflationary trends and historical cost growth

– Purchasing program

– Equipment maintenance initiative

– Performance based incentives focused on cost reduction

• Tactical replacement/refurbishment of assets beyond economic life

– Detailed year by year capex plan

– Standardizing and streamlining project evaluation /approval processes

• Refining ore reserve management and mine planning systems

18

Nickel

Copper

Platinum group metals (compared with previous year, %)*

Stable production volumes

* PGM produced in Russia

Source: Company data

Production volume(in ‘000 tons or as noted) 2005F

240-245

440-450

NA

2004

243

447

104%

2002

218

450

101%

2003

239

451

103%

19

30

2614

6

5

312

4

Evolution of Headcount at Key Operating Divisions, 2002-05

Cash Production CostsBreakdown by Sector (%)

Source: Company Financials (1H 2004)

Notes: Other includes Repairs & Maintenance (3%), Utilities (3%), Other (6%)

Source: Company data

Notes: Data as of January 1st of year indicated

Focus on reducing costs

Labour

Consumables and Spares

TransportScrap purchased

Other

Metals purchased

Tax on Mining

Insurance

78,5 79,1 79,2 79,3

20,8 20,9 21,5 20,7

2002 2003 2004 2005

100%= 82,56076,686 74,075 70,043

Polar Division

Kola Division

-15,2%

20

Source: Company data

Budgeted Capital Expenditures, 2005F

68%

14%

18%Polar and

Kola divisionsPolyus

Stillwater

100% = 727 m USD

NN Group, excl. Polyus and Stillwater

Polyus

Stillwater

Total for group, of which

Maintenance of property, plant, equipment

Expansion of property, plant and equipment

494

131

102

727

361

366

Budgeted capital expenditures, 2005F

USD M

21

Budgeted Capital Expenditure 2004E-2005F, Polar Division

Source: Company data

100% = 379 m USD100% = 321 m USD

1026

34

3522

Reserve base

Metallurgy

EnergyOther

Equipment substitution

15

22

6

10

1829

Reserve base

Metallurgy

Energy

Other

Equipment substitution

Concentrating

Concentrating

2004 Estimated 2005 Forecast

22

Budgeted Capital Expenditure 2004E-2005F, Kola Division

100% = 61 m USD100% = 59 m USD

Source: Company data

12

7

33

58

17

Reserve baseMetallurgy

EnergyOther

Equipment substitution

315

35

22

52 Reserve base

Metallurgy

EnergyOther

Equipment substitution

Concentrating

Concentrating

2004 Estimated 2005 Forecast

23

Polar Division production flowM

ININ

GC

on

cen

-tr

atio

nM

ET

AL

LU

RG

Y

Norilsk-1 Deposit

Medvezhy Ruchey Zapo-

lyarny

Talnakh Deposit

Komso-molsky Mayak

Oktyabrsky Deposit

Skalistaya Oktya-brsky Taimyrsky

Norilsk Concentrator Talnakh Concentrator

Nickel Cooper Nickel Pyrrhotite Cooper

Nickel Plant NadezhdaMetallurgical PlantSinter Plant

Autoclave Leaching

Smelter

Roasting Shop

Smelter

Electrolitic Shop

Chlorine and Cobalt Shop

Cooper Plant

Drying Shop

Smelter

Electrolitic Shop

Metallurgical Shop

Anode Copper

Converter Matte Kola MMCConverter Matte

Copper Cathode

Nickel Cathode

• PGM concentrates • Finished products

• Cobalt Ingots

Dissemi-nated Ore Rich, Cuprous and Disseminated Ores Rich Ore and

Cuprous Ore

• Development of Skalisty Mine

• Development of tailings pond

• Reconstruction of 2nd Flash Smelting line

• 3 new wells at Pelyatka gas field

• Replacement of rich ore mined at Oktyabrsky

• Ramp up to 3.5 Mt/a of rich ore from Skalisty by 2018

• Expansion of existing tailings pond to accommodate growth in mining and concentration

• Modernization of existing line and preparation for increase in total flash smelting capacity to 2.2 Mt/a of concentrates

• Expansion of natural gas production to meet growing demand from mine and metallurgical production

Major Projects completed/underway 2004-05

24

Kola MMC production flow

Pechenganickel Concentration Plant No. 1

MIN

ING

CO

NC

EN

-T

RA

TIO

NM

ET

AL

LU

RG

Y Pechenganickel Smelter

Converter matte From Nadezhda

Zhdanovskoye Deposit

Tsentralny Severny Gluboky

Zapo-lyarnoe Deposit

Severny Kaula-Kotselvaara

Semiletka and Kotselvaara Deposits

Briquette Line(s)

Severonickel refining

• Intermediate concentrates (PGMs, Cobalt, Copper)• End products (Nickel Cathode, Carbonyl Nickel,

Cooper Cathode)

Major Projects completed/underway 2004-2005

• Development of new Severny Gluboky mine

• Installation of briquette line

• Ongoing testing of two zone Vanyukov furnace

• Replenishment of mining base to maintain nickel production from Kola ore at ~ 40 Kt/a of Ni

• Production of 4 Mt/a of ore in 2010, and up to 6 Mt/a in 2015

• Support reduction of SO2

emissions by 135 Kt/a and increase Ni content of concentrates up to 9%

• Testing of modern concentrate smelting technology to increase SO2 processing and improve metal

extraction by eliminating matte conversion stage

• Further introduction in Pechenga smelter and Copper plant (Norilsk) to be reviewed

25

Recent company developments, 2004- 2005

GOLD

• April 2004 – Acquisition of 20% equity stake in Gold Fields Ltd from Anglo American plc for an aggregate amount of approximately $1.2 billion

• September 2004 – February 2005 – Russian gold assets consolidated under ZAO Polyus. Completed acquisitions of Panimba (Krasnoyarsk region), Chertovo Korito, Mukodek and Pervenetz (Irkutsk region) totalling around 1.0 oz reserves and estimated around 5.5 mln oz resources

• Company’s 20% interest in Gold Fields Limited to be consolidated under ZAO Polyus

• Audit of gold reserves currently being carried out by SRK. Results will be available later this year.

• April 2005 – Board of Directors approved general plan for spin off of gold assets. Detailed information memorandum to be prepared by August 2005

STRENGTHENING CONTROL OVER SUPPORT ASSETS

• August 2004 – Signed a contract with the Finnish shipbuilding company Kvaerner Masa-Yards Inc. for the construction of an arctic container ship with a capacity of 14,500 tonnes to work the Northern Sea Route

• November 2004 – Completed the reorganization of its Global Distribution Network, which now includes Nickel Asia Ltd. (Hong Kong) for the Far East and Asian markets, Norilsk Nickel Europe Ltd. (UK) for the European market, and Norilsk Nickel USA for the American markets

• March 2005 – RAO UES Russia and MMC Norilsk Nickel reached an agreement to establish Norilsk-Taimyr Energy Company (NTEC), which will bring together the existing energy assets of both companies in the Norilsk Industrial Region. Subsidiary of RAO UES will lease to new company for ten years two hydroelectric stations, Ust-Khantai and Kureiskaya, with a combined capacity of 1,041 Megawatts and MMC Norilsk Nickel - three thermal power plants with a total capacity of 1,205 Megawatts. RAO UES Russia will hold 49 per cent of shares in the new company, and MMC Norilsk Nickel will get 51 per cent.

26

CORPORATE FINANCE

• September 2004 – Completed a US$500 million Eurobond issue priced at 7.125%. The issue was more than four times over-subscribed

• August 2004 – International rating agencies Moody's Investors Service and Standard & Poor’s Ratings Services assigned credit rating to MMC Norilsk Nickel. Moody's assigned a senior implied rating of “Ba1” with a stable outlook, Standard & Poor's assigned “BB” long-term corporate credit rating and “ruAA” Russian national scale rating with a stable outlook

CORPORATE GOVERNANCE

• Independent reserves audits for base metals (as of 1/1/2004 and 1/1/2005) to be available shortly, audit of PGMs planned following formal procedures on lifting secrecy on these metals.

• From 2004 semi-annual disclosure of financial accounts in accordance with IFRS. Full year 2004 IFRS results will be released in the first half of June 2005

• November 2004 – Extraordinary general shareholder meeting approved the distribution of interim dividend for 9 months 2004 in the amount of 41.4 RUR per share

ENVIRONMENTAL POLICY

• January 2005 - Management Board has approved the environmental and quality control policies, which were adopted in accordance with the requirements of international standards ISO 9001:2000 and ISO 14001:2004

• Third place in 2005 Russian rating “Environmental responsibility of the largest industrial companies”

Recent company developments (continued)

Russian Miner – Global Player

Tav MorganDeputy Chairman of the Management Board

Merrill LynchGlobal Metals, Mining & Steel Conference

May 12, 2005