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Mitsui and Evraz terminate their joint venture to develop the Denisovskoye coal field

Apr. 26, 2007


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April 26, 2007 - Mitsui & Co., Ltd. ("Mitsui") and Evraz Group S.A. ("Evraz") announce the termination of joint venture agreement to develop the Denisovskoye coal field in Yakutia.

Development of this greenfield project was challenged by its remote location with limited available infrastructure. The project, which include building of an underground mine and construction of a coal beneficiation plant, was adversely impacted by difficult geotechnical conditions such as permafrost areas and excessive water ingress, not identified during the preliminary geological exploration stage. Although some of the challenges had been successfully overcome, the actual development turned out to be more complicated than originally estimated.

In view of these new circumstances, Mitsui and Evraz reassessed the project and concluded to terminate the joint venture agreement at this early stage and pursue an exit option to avoid additional risk and investment.

Mitsui and Evraz have built a strong business relationship through the course of the Denisovskoye joint venture and will continue to discuss joint collaboration, mainly in the field of mineral resources and steel products, making full use of their respective competencies, including management, financing, and product marketing.

The termination of the joint venture was followed by a sale of Evraz's interests in the project to a local "Yakutia Coal - New Technology" company.

Notice:
This press release includes forward-looking statements about Mitsui. These forward-looking statements are based on the current assumptions and beliefs of Mitsui in light of the information currently available to it, and involve known and unknown risks, uncertainties and other factors. Such risks, uncertainties and other factors may cause Mitsui's actual results, performance, achievements or financial position to be materially different from any future results, performance, achievements or financial position expressed or implied by these forward-looking statements. The risks, uncertainties and other factors referred to above include, but are not limited to, those contained in Mitsui's latest annual report on Form 20-F, which has been filed with the U.S. Securities and Exchange Commission.
This press release is published in order to publicly announce specific facts stated above, and does not constitute a solicitation of investments or any similar act inside or outside of Japan, regarding the shares, bonds or other securities issued by us.

Information

For inquiries on this matter, please contact

Mitsui & Co., Ltd.
Corporate Communications Division
Tatsunari Asada
Telephone: +81-3-3285-7596
Facsimile: +81-3-3285-9819
Evraz Group
Corporate Affairs and Investor Relations
Irina Kibina
Telephone: +7-495-232-1370
IR@evraz.com
www.evraz.com