Open Joint Stock Company “Mining and Metallurgical Company “Norilsk Nickel” and its subsidiaries (“MMC Norilsk Nickel”, “Group”) released the Group’s audited consolidated annual financial statements for the year ended December 31, 2004 prepared in compliance with International Financial Reporting Standards (IFRS). The financial statements have been audited according to International Standards on Auditing by Deloitte & Touche, who have issued an audit opinion without any qualifications.

The Group’s consolidated annual financial statements for the year ended December 31, 2004 include financial results of OJSC “Lenzoloto” (“Lenzoloto”) and OJSC “Matrosov Mine” (“Matrosov Mine”) from 6 April 2004.

In 2004, revenues from metal sales increased by 35% compared with 2003 to a total of USD 7 033 million. Key factors that contributed to revenue growth include increase of average annual selling prices for all metals sold by the Group; consolidation of financial results of Stillwater for a full financial year and gold mining companies Lenzoloto and Matrosov Mine for 9 months from the date of acquisition, and; Stillwater’s sales of an additional 375 000 ounces of palladium from stock, that was received from MMC Norilsk Nickel as part of the purchase consideration for Stillwater Mining Company (“Stillwater”, “SWC”) shares (in total Stillwater received 877 000 ounces of palladium).

During 2004 the reduction of physical sales of nickel by 19% (58 000 tons) as compared to 2003 was offset by the growth of average export selling price of the metal by 57%. As a result nickel sales grew by 26% from USD 2 824 million in 2003 to USD 3 564 million in 2004. The reduction of the physical sales volume happened due to the sale of 60 000 tons of nickel in 2003 from the stock. Net of stock sales, sales of nickel in 2004 grew by 2 000 tons compared to 2003 data.

Similarly, the decrease of physical sales of copper by 3% was offset by the growth of copper export selling prices by 60%, which resulted in the growth of copper sales by 53% to USD 1 265 million in 2004 as compared to USD 828 million in 2003. Net of stock sales, which were 17 000 tons in 2003, sales of copper grew by 1 000 tons compared to 2003 data.

Palladium sales grew by 57% from USD 640 million in 2003 to USD 1 005 million in 2004. Palladium sales growth was due to: growth of sales in physical volume term of metal produced by the Group in Russia by 14%; increase in physical sales of palladium by Stillwater by 3.8 times more than in 2003 (due to consolidation of the full annual results of Stillwater for 2004 as compared to 6 months in 2003 and the sale of additional 375 000 ounces of palladium from stock, that was received from MMC Norilsk Nickel as part of the purchase consideration for Stillwater shares); growth of the average annual selling price of palladium.

Growth of platinum sales by 31% from USD 537 million in 2003 to USD 706 million in 2004 considering a 7% decrease in physical sales volume of metal produced by the Group in Russia, was mainly due to the consolidation of the full annual results of Stillwater for 2004 (as compared to 6 months in 2003) and the growth of average platinum selling price.

Gold sales grew by 34% and amounted to USD 493 million in 2004 as compared to USD 367 million in 2003. Growth of gold sales is mainly due to increase of gold sales in physical terms by 29% as a result of consolidation of the financial results of Lenzoloto and Matrosov Mine for the last 9 months of 2004 and the increase in the average annual selling price.

Cost of metal sales grew by 11% from USD 2 870 million in 2003 to USD 3 179 million in 2004.

MMC Norilsk Nickel for the first time in its history published the results of an independent audit of its gold reserves and resources as at 31 December 2004 in its annual report for 2004. SRK Consulting conducted audit in accordance with Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (“JORC Code”). Also in the annual report are the results of an independent audit of base metals reserves and resources as at 31 December 2004, conducted by Micon International Co. Ltd. in accordance with JORC Code. The annual report for 2004 will be available on the Company’s web site (www.nornik.ru) under Shareholders/Annual reports.

The IFRS consolidated annual financial statements of MMC Norilsk Nickel for the year ended December 31, 2004 are available on the Company’s web site (www.nornik.ru) under Shareholders/Financial Documents.