Severstal Resources extends offer for shares of PBS Coals Limited

Severstal Resources extends offer for shares of PBS Coals Limited

OAO Severstal, one of the world’s leading metals and mining companies, announced that 7027940 Canada Limited, an affiliate of Severstal, has extended the expiration date for its offer to purchase all outstanding shares of PBS Coals Limited (formerly, Penfold Capital Acquisition Corporation), at an offer price of C$8.30 cash per share, to 11:59 p.m. (Toronto time) on October 20, 2008.

The Offer has been extended to allow for the receipt of confirmation from the Committee on Foreign Investment in the United States under the Exon-Florio Amendment to the Defense Production Act of 1950, as amended, that no second-stage investigation will be initiated in respect of the joint application submitted by Severstal and PBS Coals Corporation.

Shares representing approximately 94% of the outstanding shares of PBS Coals Limited have been tendered and not withdrawn pursuant to the offer.

The Offeror will file its Notice of Extension with Canadian regulatory authorities and mail copies to all shareholders of PBS Coals Limited shortly.

Severstal Resources has retained RBC Capital Markets as financial advisor and Torys LLP in New York and Toronto as legal counsel.

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