NEWS RELEASE                                  

                                             For Immediate Release - 28 April, 2017

         Chelyabinsk Zinc Plant Announces 2016 Consolidated Financial Results      

    Chelyabinsk, Russia - April 28, 2017 - Chelyabinsk Zinc Plant (LSE, MICEX:
    CHZN), Russia's largest producer of zinc and zinc alloys, is pleased to
    announce its audited consolidated IFRS financial results for the year ended
    December 31, 2016.

    2016 HIGHLIGHTS

      * Chelyabinsk Zinc Plant's (CZP) revenue totaled RUB 30,347 mln. 
       
      * EBITDA amounted to RUB 6,964 mln or 23% of revenue.
       
      * Net profit was RUB 4,016 mln or 13% of revenue.
       
        Consolidated financial results
       
    (in millions of Russian Roubles)      2016        2015    Change, % 
                                                                        
    Revenue                              30,347      24,013      26%    
                                                                        
    Gross profit                          8,927      5,945       50%    
                                                                        
                       Gross margin, %         29%        25%           
                                                                        
    EBITDA (1)                            6,964      4,789       45%    
                                                                        
                      EBITDA margin, %         23%        20%           
                                                                        
    Profit before income tax              6,080      4,886       24%    
                                                                        
    Net profit                            4,016      3,750        7%    
                                                                        
                         Net margin, %         13%        16%           

    (1) EBITDA, for any relevant period, represents operating profit before
    interest, income tax, depreciation and amortization.

    EBITDA is not a measurement of CZP's operating performance presented in the
    financial information, prepared in accordance with IFRS, and should not be
    considered as an alternative to operating profit or any other performance
    measure derived in accordance with IFRS or other relevant financial framework.

    Revenue

    2016 consolidated revenue increased by 26% to RUB 30,347 mln as compared to
    revenue for 2015.

    Increase of LME zinc price had a major positive effect on revenue. The average
    LME zinc price in 2016 increased by 9% as compared to 2015 and amounted to
    US$ 2,095 /tonne. The average LME lead quotes increased by 5% to US$ 1,872 /
    tonne.

    Revenue structure

    In 2016, revenue of CZP increased by 31% as compared to 2015 and amounted to
    RUB 23,486 mln (2015: RUB 17,941 mln).

    The growth of revenue was due to increase of LME zinc price, growth of the
    average US dollar/Russian Rouble exchange rate (2016 - 67.0, 2015 - 61.0), as
    well as increase in the volume of zinc and zinc alloys sales on the domestic
    market and for export by 11% (2016: 132.3 thousand tons, 2015: 119.7 thousand
    tons).

    Revenue of the Brock Metal Company Limited for 2016 amounted to RUB 6,196 mln,
    15% higher than in 2015 (RUB 5,406 mln). This growth was due to the increase of
    LME zinc price, as well as zinc alloys sales growth.

    Revenue of Nova Zinc for 2016 was 665 million rubles, which is almost the same
    as revenue for 2015 (2015: RUB 666 mln). The devaluation of the Kazakhstan
    Tenge rate against the Russian Ruble by 31% (2016: 0.195 rubles/tenge, 2015:
    0.282 rubles/tenge) was offset by the growth of LME zinc and lead prices.

    Cost of Sales

    Cost of materials and consumables used primarily comprises of the cost of zinc
    concentrate, zinc raw materials, materials for alloys production and auxiliary
    materials used in the production process. The main factors that influenced the
    change in costs were a rise in raw material prices due to increase in the LME
    zinc price and exchange rates against the Russian Rouble, increase in the
    volume of purchased raw materials (due to structure changes of zinc and zinc
    alloys sales related to CZP).

    Net profit

    Net profit for 2016 totaled RUB 4,016 mln compared to RUB 3,750 mln for 2015.
    The growth of net profit was due to increase in the price of zinc on LME, the 
    growth in the average US dollar/Russian Rouble exchange rate, as well as
    increase of the volume of zinc and zinc alloys sales on the domestic market and
    for export.

    About Chelyabinsk Zinc Plant

    Chelyabinsk Zinc Plant is the leading Russian zinc producer. In 2016 the plant
    produced 174,803 tonnes of saleable SHG zinc.

    According to consolidated IFRS accounts, revenue in 2016 was RUB 30,347 mln and
    EBITDA was RUB 6,964 mln.

    CZP ordinary shares are traded on the Moscow exchange under ticker CHZN and
    Global Depository Receipts (GDR) are traded on the London Stock Exchange under
    ticker CHZN.

                                                       Investor and Media Contacts:

                                                 Natalya Vasilieva, PR, ngv@zinc.ru

    This announcement may include forward-looking statements. CZP's actual results
    may differ materially from those made in or suggested by the forward-looking
    statements contained in this announcement. By their nature, forwarding-looking
    statements involve risks and uncertainties because they relate to events and
    depend on circumstances that may or may not occur in the future.
    Forward-looking statements are not guarantees of future performance. Even if
    the actual results are consistent with the forward-looking statements contained
    in this announcement, those results may not be indicative of results or
    developments in future periods. CZP does not undertake any obligation to update
    any forward-looking statements to reflect events that occur or circumstances
    that arise after the date of this announcement.