Based on the materials from the company’s official web-site.

Open Joint Stock Company “Mining and Metallurgical Company “Norilsk Nickel” and its subsidiaries issued consolidated interim financial statements for the six months ended 30 June 2006 in compliance with International Financial Reporting Standards (“IFRS”). The financial statements have been reviewed in accordance with International Standard on Review Engagements 2410 by Deloitte & Touche, who have issued a review report without any qualifications.

At EGM on 30 September 2005 the qualified majority of the total voting shareholders of MMC Norilsk Nickel voted in favor of the spin-off of CJSC Gold Mining Company Polus and its subsidiaries (the “Polus Group”). As a result of the spin-off, Polyus Gold, a new Russian open joint stock company, was incorporated on 17 March 2006. It received from MMC Norilsk Nickel 100% of the shares in CJSC Polus and a cash contribution of approximately USD 360 million (RUR 10 billion).

Due to the spin-off of the gold mining assets the financial results, assets and liabilities of the Polus Group intended for spin-off are presented separately in the respective sections of the financial statements.

Reflection of Polus Group financials in MMC Norilsk Nickel financial statements

In accordance with IFRS Polus Group financials are presented in MMC Norilsk Nickel financial statements in the following way:

• Consolidated Income Statement

Income statement numbers are presented net of Polus numbers. Polus net profit is shown separately in the line Profit for the period from discontinued operations. 1H 2006 number represents Polus net profit from the beginning of 2006 till March 17, 2006 (spin-off completion).

• Consolidated Balance Sheet

- Balance sheet numbers as of June 30, 2006 are presented net of Polus numbers;

- Balance sheet numbers as of June 30, 2005 include Polus numbers;

- Balance sheet numbers as of December 31, 2005 are presented net of Polus numbers. However Polus numbers are disclosed in the lines Assets of the disposal group and Liabilities of the disposal group. •

Consolidated Statement of Cash Flows

Cash flow statement numbers include Polus numbers. Polus data are presented for the period from the beginning of 2006 till March 17, 2006.

The revenue from metal sales in 1H2006 increased by 28% compared to 1H2005 to a total of USD 4,191 million. The main reason for the growth of revenue in the period was the significant increase of the selling prices for base and precious metals.

Revenue increased for all metals by USD 918 million, of which USD 652 million (71%) was for base metals, and USD 266 million (29%) for platinum group metals (“PGM”) and gold.

In the reporting period Europe remained the main destination area for all metals produced by the Company, the European market accounted for 61% of the revenue.

Nickel

Revenue from nickel sales increased by 10% in 1H2006 compared to 1H2005 to USD 2,026 million. The increase of revenue was due to increase of the nickel selling price by 12% while the physical volume of nickel sold by the Group decreased by 2,000 tonnes.

Copper

Revenue from copper sales in 1H2006 increased by 75% compared to 1H2005 and amounted to USD 1,095 million. This was due to higher copper prices (by 77%), although the actual volume of metal sold by the Group was 3,000 tonnes lower.

Palladium

Palladium sales rose by 37% - from USD 407 million in 1H2005 to USD 559 million in 1H2006. Revenue increased mainly due to higher palladium selling price (by 71%), while the actual volume of metal sold by the Company decreased by 21,000 troy ounces.

The value of palladium sold by Stillwater Mining Company in 1H2006 was 29% less compared to the corresponding period of 2005, and amounted to 332,000 troy ounces. This can be explained by the fact that in 1Q2006 Stillwater Mining Company sold the last quantity of the metal received from MMC Norilsk Nickel in 2003 as part payment for the acquired shares of Stillwater Mining Company.

Platinum

Platinum sales revenue increased by 26% - from USD 377 million in 1H2005 to USD 474 million in 1H2006. The reasons were that platinum selling price was 24% higher, and actual amount of metal sold by the Company increased by 9,000 troy ounces.

In 1H2006 the volume of platinum sold by Stillwater Mining Company decreased by 5% compared to the corresponding period of 2005, reaching 105,000 troy ounces.

In 1H2006 the cost of nickel production in the Taimyr Peninsula increased by 9% to USD 4,753 per tonne, and by 1% to USD 5,488 per tonne in the Kola Peninsula. The main reason for the increase in the cost of nickel production was growth of operating costs due to inflation, and change in metals costs allocation base towards to copper because copper prices grew much higher compared to the other metals.

In 1H2006 the cost of copper production in the Taimyr Peninsula increased by 23% to USD 1,170 per tonne, and increased by approximately two and a half times to USD 2,374 per tonne in the Kola Peninsula. The increase in the cost of copper production was caused by higher actual costs (including reallocation of expenditures on acquisition of copper scrap from Taimyr to Kola Peninsula), as well as change in metals costs allocation base towards copper as copper prices grew much higher compared to the other metals.

In 1H2006 the cost of palladium production in the Taimyr Peninsula remained the same and amounted to USD 90 per troy ounce, and decreased by 4% to USD 97 per troy ounce in the Kola Peninsula. The decrease of the cost of palladium production became possible mainly due to the change in metals costs allocation base.

In the reporting period the cost of platinum production in the Taimyr Peninsula amounted to USD 384 per troy ounce, which is 12% higher than the metal cost in 1H2005. The cost of platinum production in the Kola Peninsula demonstrated a 5% growth compared to the corresponding period of 2005 and amounted to USD 409 per troy ounce. The increase of the cost of palladium production became possible due to inflation growth of cost and the change in metals costs allocation base.

In 1H2006 current income tax increased by 41% - to USD 602 million against USD 426 million in 1H2005. Such increase was caused by the growth of the Group’s profit before taxation mainly due to higher metal prices.

In 1H2006 the effective income tax rate decreased to 25.8% against 29.0% in 2005 as a result of higher deferred tax income, which was the result of the provision decrease by USD 39 million.

Profit for the period from continuing operations grew from USD 959 million in 1H2005 to USD 1,374 million in the reporting period as a result of higher prices for metals and control over expenses.

The main reason for the increase in the profit for the period from discontinued operations was sale of all shares of Gold Fields Limited by Polus Group. As a result of this transaction Polus Group received profit in the amount of USD 973 million. Full version of the consolidated interim financial statements of MMC Norilsk Nickel for the 6 months ended 30 June 2006 prepared in accordance with IFRS is available on the Company’s web-site (www.nornik.ru/en) in section Investor Relations/Reports/Financial Documents.