Norilsk Nickel Offer for LionOre Receives Australian Foreign Investment Review Board Approval

Moscow, Russian Federation, and Toronto, Ontario, Canada (June 4, 2007):

OJSC MMC Norilsk Nickel (“Norilsk Nickel” or the “Company”) today announced that it has received notice that Norilsk Nickel’s proposed acquisition of control of LionOre Mining International Ltd. (“LionOre”) (Toronto Stock Exchange and Australian Securities Exchange symbol:  “LIM”; London Stock Exchange symbol:  “LOR”; Botswana Stock Exchange symbol: “LIONORE”) has been approved by the Australian Federal Treasurer under the Foreign Acquisitions and Takeovers Act 1975 (the “Act”). The Federal Treasurer as the body responsible for the foreign investment review in Australia concluded that Norilsk Nickel’s all-cash offer to the shareholders of LionOre was not contrary to the national interest and, therefore, Norilsk Nickel’s offer is not subject to further review under the Act.

On May 23, 2007, Norilsk Nickel announced its increased all-cash offer to acquire all of the outstanding common shares of LionOre for aggregate cash consideration of approximately Cdn$6.8 billion.  The offer is open for acceptances until 8:00 p.m. (Toronto time) on Monday, June 18, 2007, unless extended or withdrawn.

Full particulars of the offer are set out in the offer and offering circular filed by Norilsk Nickel.  These documents are available on the Canadian Securities Administrator’s web site at www.sedar.com under LionOre’s company profile, and on the Company’s web site at www.nornik.ru/en.

About Norilsk Nickel 

Norilsk Nickel, a corporation incorporated under the laws of the Russian Federation, is the largest mining and metals company in Russia and is the world’s largest producer of nickel and palladium and one of the world’s largest producers of platinum and copper.  In addition to this, Norilsk Nickel produces a large number of by-products, including cobalt, rhodium, silver, tellurium, selenium, iridium and ruthenium.  The Norilsk Nickel group is involved in prospecting, exploration, extraction, beneficiation and metallurgical processing of minerals; and in production, marketing and sales of base and precious metals.  The Company is headquartered in Moscow, Russia, with sales and distribution activities managed through its Moscow headquarters and international sales network.  Norilsk Nickel’s Russian operations include the operations of the Polar Division on the Taimyr Peninsula in the Krasnoyarsk region and the Kola Mining and Metallurgical Company (“KMMC”) located on the Kola Peninsula in the Murmansk region. Norilsk Nickel's international operations include Norilsk Nickel Harjavalta Oy, a nickel refinery in Finland, Norilsk Nickel Cawse Pty. Ltd., a mine and high pressure acid leaching (“HPAL”) plant in Australia, as well as a 20% shareholding in MPI Nickel Pty. Ltd., which operates the Black/Silver Swan mines and owns the Honeymoon Well project in Australia.  The remaining 80% of MPI Nickel Pty. Ltd. is held by a wholly-owned subsidiary of LionOre.  Norilsk Nickel also operates a research and development institute, LLC “Gipronickel”, located in St Petersburg with branches at the Polar Division and KMMC.  Norilsk Nickel is the majority shareholder in Stillwater Mining Company, the largest producer of platinum group metals in North America, whose shares are traded on the New York Stock Exchange. 

Norilsk Nickel’s shares are listed in Russia on both the Russian Trading System Stock Exchange (GMKN RU) and the Moscow Interbank Currency Exchange (GMKN RM). In 2001 the Company launched a Level-1 ADR program.  These ADRs are traded over the counter in the United States (NILSY US); on the International Order Book section of the London Stock Exchange (under the symbol “MNOD LI”) and on Freiverkehr, Berlin-Bremen Stock Exchange (under the symbol “NNIA GR”).

INVESTORS AND SHAREHOLDERS ARE URGED TO READ THE OFFER DOCUMENTS AND ANY OTHER RELEVANT DOCUMENTS FILED OR THAT WILL BE FILED WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE OFFER FOR LIONORE COMMON SHARES. These documents will be available without charge under LionOre’s profile on the SEDAR web site at www.sedar.com. Free copies of the documents can also be obtained by directing a request to Georgeson Shareholder Communications Canada Inc., 100 University Avenue, 11th Floor, South Tower, Toronto, ON, Canada, M5J 2Y1, by telephone to 1-866-682-6148 (North American Toll Free) or 1-212-440-9800 - call collect (Overseas), or by email to:  inquiries@georgeson.com.

Forward Looking Statements

This press release includes “forward-looking statements” that are subject to a number of risks and uncertainties, many of which are beyond Norilsk Nickel’s control, that could cause actual results to differ materially from those set forth in, or implied by such forward-looking statements.  All statements other than statements of historical facts included in this press release are forward-looking statements.  Although Norilsk Nickel believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct.  All forward-looking statements speak only as of the date of this press release and  Norilsk Nickel undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.  There can be no assurance that any transaction between Norilsk Nickel and LionOre will occur, or will occur on the timetable contemplated hereby.

For a discussion of risks and uncertainties regarding Norilsk Nickel’s business, which could cause actual results to differ form those contained in the forward-looking statements contained herein, please refer to the section entitled “Risk Factors” contained in Norilsk Nickel’s Annual Report for the fiscal year ended December 31, 2005.
Web site: http://www.nornik.ru/en/

FOR FURTHER INFORMATION, PLEASE CONTACT:

Dmitry Usanov
Head of Investor Relations
Tel: +7 (495) 786 8320
E-mail: usanovda@nornik.ru

For media outside Russia:

Toronto
Lisa Merrithew
Tel: +1 416 645-8204

New York
Sean Healy
Tel: +1 212 453-2438

United Kingdom
David Hart
Tel:  +44 (0)20 7395 7131
Mobile: +44 (0) 7951 574 137

South Africa
Elian Wiener
Tel: +27 (0) 21 421 6783
Mobile: +27 (0)82 460 8755

Australia
Belinda Yeats
Tel: +612 8905-6316