1. FINANCING OILS, GAS & METALS IN THE RUSSIAN FEDERATION 25-26 MARCH 2003, MOSCOW

2. Overview 3The world’s largest producer of nickel and palladium as well as a significant producer of copper, cobalt, PGMs and gold 3Commodities produced by Norilsk Nickel are deliverable on international exchanges: LME, LPPM, LBME, etc. 3Exports from Russia represent over 90% of Norilsk Nickel’s revenues annually and remain a significant influence on the supply/demand balance in Western markets Source: Company reports except for Norilsk Nickel Ni Pd Pt

3. Production & Sales 2002 (preliminary)

4. Distribution 2002

5. Credit Environment Needs of the company: short-term financing of working capital medium-term financing for capital investments long-term financing for investment / acquisition projects Security: required in form of future export proceeds assignment minimum appetite yet for unsecured credits in the bank loan market Available markets: bank loans bonds equity and equity linked products Limitations of the export contracts: short or medium term substantial volumes of spot sales governmental regulation of PGMs’ sales

6. Working Capital Finance Issues bulky and complicated documentation extensive preparation period considerable legal expense Solutions long for big-ticket deals extend tenors from short-term to medium-term change structure from term loans to revolving facilities

7. Capital Investment and Project Finance restrictive Russian legislation strategy/investment programme is under consideration off-shore security secured deals require export collateral matching in tenors to the loan repayment and pay-back period of investments Issues Solutions corporate (unsecured) finance project finance (secured by incremental cash flow generated by the project) high financing costs «Escrow accounts» structured deals (bank market + capital market) ECAs

8. Trade Finance Bank guarantee Tender Selection of a supplier Advance payment 20% Letter of credit (confirmed) 80% Shipment from Dudinka Norimet Ltd., London Bills of Lading Warehouse Receipts Off-taker Short-term banking commodity finance 14 days Payment method agreed upon $ $ IMPORT EXPORT

9. 1998 1997 Cross-Border Credit History $ 75’000’000 syndicated loan for PGM sale financing (4 months) $ 110’000’000 loan for pre-export financing of copper sales (1 year) $ 13’000’000 loan for equipment leasing financing guaranteed by Swedish export credit agency (EKN) (3 years) $ 17’000’000 loan for equipment leasing financing (3 years) $ 25’000’000 loan for pre-export financing of copper sales (6 months) 1999

10. 2003 2002 Cross-Border Credit History (continued) $ 200’000’000 syndicated loan secured by nickel inventory (3 years) $ 250’000’000 syndicated loan for pre-export financing of nickel sales (3 years) $ 75’000’000 syndicated loan for pre-export financing of copper sales (1 year) $ 30’000’000 loan for pre-export financing of copper sales (1 year) $ 30’000’000 loan for pre-export financing of nickel sales (8 months) no international loans 20002001 $ 30’000’000 NIB loan (plus $ 30 million Norwegian government grant) for modernisation of Pechenganickel facilities (7 years)

11. 3syndicated among a number of large foreign banks 3low cost of borrowing (3.5% over LIBOR) 3the first and the only deal after privatization secured by sales of PGMs Loan Details Loan Details $ 75’000’000 syndicated loan for PGM sale financing (4 months): 1997

12. $ 110’000’000 loan for pre-export financing of copper sales (1 year): 3low cost of borrowing (4% over LIBOR) 36 months grace period 3survived the 1998 default crisis without disruption of disbursement schedule $ 13’000’000 loan for equipment leasing financing (3 years): 3the first leasing deal financed by a foreign bank 3the only deal of Norilsk Nickel since 1997 guaranteed by export credit agency (EKN, Sweden) $ 17’000’000 loan for equipment leasing financing (3 years): 3«Euromoney» named this deal «Deal of the year 1998» 3no government guaranties which proved the evidence of acknowledgement of Norilsk Nickel as a sound borrower Loan Details (continued) Loan Details (continued)1998

13. 3«Trade Finance» named this deal «The best deal of 1999» 3the first foreign loan after the crisis of 1998 3a sign for foreign banks to resume lending activities in Russia $ 25’000’000 loan for pre-export financing of copper sales (6 months: Loan Details (continued) Loan Details (continued)1999

14. High metal prices ensured robust cash flows 20002001

15. 2002 - Norilsk Nickel resumes borrowing from foreign banks * 3total funds raised$ 335’000’000 3margin over LIBOR2 - 3.8 % 3tenors1 - 3 years 3secured borrowings100% Loan Details (continued) Loan Details (continued) 3ING Barings 3Natexis 3Societe Generale 3Standard Bank Creditor banks: 3Citibank 3Commerzbank 3CSFB 3Deutsche Bank * Norilsk Nickel also enjoyed short-term borrowing from Russian banks

16. 2002 Loan Details 2002 Loan Details 3part of $ 93’500’000 modernisation project also financed by Norwegian government grant ($ 30’000’000) and own funds of Norilsk Nickel ($ 33’000’000) 3anticipated substantial improvement in ecology conditions (reduction by 95% of sulfur dioxide) in the Russian-Norwegian border area, as well as other Scandinavian countries by 2006 $ 30’000’000 NIB loan for modernisation of Pechenganickel facilities: 3margin2.75% over LIBOR 3tenor7 years NIB Ecological Project

17. 2002 Loan Details (continued) 2002 Loan Details (continued) US$ 200 Million Secured 3 year Loan Facility 3tenor3 year (amortising from 18th month on a quarter basis) 3margin2% over LIBOR Nickel Inventory Finance 3scuritypledge of nickel located in international warehouses, stock is freed up by repayments United Financial Group, Russia Morning Comment, 5 April 2002 Killing two… first, it [Norilsk Nickel] replenishes its cash reserve birds with one… secondly, this [the deal] lifts the pressure off the nickel stone…againmarket, which is well aware of Norilsk’s nickel stockpile

18. 2002 Loan Details (continued) 2002 Loan Details (continued) Long-term Loan Facility Secured by PGM 3secrecyterms and conditions were subject to state secrecy laws 3creditorMinistry of Finance of Russian Federation Repayment of Government PGM Loan… 3purposefinancing of “Northern deliveries” 3repaymentin metals in August 2002 ahead of schedule …provided for improved transparency 3disbursement1994 3since then no more loan agreements subject to state secrecy

19. 2003 Debt Programme 2003 Debt Programme US$ 250 Million Structured Pre-Export Finance Facility 3structured as a combination of a revolving credit line for USD 100 mln margin3% over LIBOR tenorcommitted for 1 year + 2 extension options a term loan of USD 150 mln margin3.25 over LIBOR tenor3 year 3deal oversubscribed to USD 320 mln 3first revolving credit facility for a Russian corporate to be syndicated in the international markets 3grace 18 months First Ever Revolver Syndicated In International Markets

20. Credit Policy Credit Policy 3promote Norilsk Nickel to a diverse pool of international investors and build up international investor confidence 3 penetrate the high-quality, international financial investor base 3 minimise debt servicing costs on new funds raising 3 diversify funding base beyond the bank loan market 3 selection of arrangers on the competitive basis 3 further co-operation with relationship banks

21. Further Steps Further Steps 3Intention to diversify credit portfolio of Norilsk Nickel increase tenors provide for the optimal balance of secured and unsecured loans step in the international bond market 3Improvement of the image of Norilsk Nickel as an international borrower access to the international capital markets improve disclosure / transparency enhance Norilsk’s credit profile get credit rating

22. Credit Rating Credit Rating As the world’s leading producer of base and precious metals, Norilsk Nickel has the ability to be rated at par with leading Russian corporates. The following should facilitate the company’s potential rating: 3binging financial accounts and reporting in line with IAS. Audited financial statements for 2002 will be announced in June-July 2003. 3improvement of corporate governance 3increase transparency 3develop long-term strategy 3pursue efficient M&A policy

23. Recent Corporate Developments Recent Corporate Developments 3announced dividend policy 3disclosed base metals production, sales and reserves 3started prepation of a base metal reserves audit at two largest orebodies 3initiated program for reduction of sulfur emissions to international standards better access to international capital markets in 2003 and 2004 Acquisition of ZAO «Polyus» Acquisition of 51% interest in Stillwater Mining Company Russia’s most profitable gold company with a net profit margin of 40% or $54 million from 2001 revenues of $135 million - approved by the boards of both companies - requires Stillwater shareholder approval and US antitrust clearance

24. Funding Needs For 2003 Funding Needs For 2003 current market prices ensure sufficient cash flows for working capital and capital investments needs strategic development plan in elaboration

25. Nataly Loginova Debt Finance Department phone: fax: e-mail: +7 095 787 76 45 +7 095 787 04 62 loginova@rao.nornik.ru