Ruukki Group Oyj - Company Announcement

RUUKKI GROUP ANNOUNCES SETTLEMENT OF THE DISPUTE REGARDING MOGALE ALLOYS

14:45 London, 16:45 Helsinki, 11 October 2012 - Ruukki Group Plc, Stock Exchange
Release

RUUKKI GROUP ANNOUNCES SETTLEMENT OF THE DISPUTE REGARDING MOGALE ALLOYS

Ruukki Group Plc ("Ruukki" or the "Company") is pleased to announce that it has
agreed to settle its dispute with the vendors (the "Vendors") of Mogale Alloys
acquired by Ruukki in May 2009. The completion of the settlement remains subject
to certain conditions.

As  outlined in  the original  acquisition agreement,  30% of the total purchase
price  (ZAR  600 million  or  approximately  EUR 51 million) was conditional and
deferred  upon certain conditions being met.  As announced on 24 September 2010
the  Vendors   commenced  legal  actions  in  South  Africa  against the Company
relating  to the remaining ZAR  600 million, along with a  claim for interest of
ZAR 88.2 million (EUR 7.7 million).

The  parties have now agreed to settle all outstanding disputes and claims by an
arrangement whereby inter alia:

-  The parties will terminate  all pending legal proceedings  in relation to the
disputes  and will undertake  not to institute  any further legal proceedings in
relation to the acquisition and related matters
- The Vendors will transfer their entire remaining shareholding in Mogale Alloys
to Ruukki, whereby Ruukki's ownership will increase from 84,9% to 90,0%
-  Ruukki will pay the Vendors an  aggregate cash amount of ZAR 175 million (EUR
15 million) and issue, in the aggregate, up to 16,000,000 new shares.
        - In maximum 3,478, 261 of the new shares will be issued as free shares.
-  The remaining part of the shares will  be issued with a subscription price of
EUR  0.50 per share to be paid by  set-off against the settlement of receivables
related to the Mogale Alloys acquisition. The share issue will be executed based
on Board's existing authorization
-  After the arrangement has  been completed the parties  will have no surviving
rights or obligations towards each other

The  arrangement is  conditional upon  the completion  of, inter alia, the above
referred  actions no later than on 19 October 2012 (save for the share issue) or
such  later  time  as  maybe  agreed  in  accordance  with the provisions of the
settlement agreement. Ruukki will publish a separate release when the conditions
are fulfilled.

The  issue of the shares to the Vendors is conditional upon the receipt of South
African  Reserve Bank approval, which is expected to take up to 90 days. If this
is  not received, Ruukki has undertaken to  procure that the shares are disposed
of  at fair  value in  accordance with  the instructions  of the Vendors and the
resultant proceeds paid to the Vendors.

Once  completed  the  arrangement  will  have  the  following impact on Ruukki's
balance sheet:

  * Debt will decrease by approximately EUR 51 million
  * Cash will decrease by approximately EUR 15 million
  * Goodwill will decrease by approximately EUR 25 million
  * Other receivables will decrease by approximately EUR 4 million
  * Equity will increase by approximately EUR 6 million

Ruukki currently has 248,432,000 shares in issue (including treasury shares). If
the  arrangement  is  completed  the  number  of  shares  will increase by up to
16,000,000 from the current level.

The  arrangement will not have a material impact on the Company's 2012 financial
result.

Thomas  Hoyer, CEO, comments: "I am delighted with our agreement with the Mogale
vendors.  Subject to the completion of this arrangement we hereby end a long and
cumbersome  legal process and can now focus all our energy on further developing
our  businesses. In  addition, as  part of  the arrangement,  we will  widen our
shareholder  base to include South African  holders. I warmly welcome Metmar and
the other new shareholders as investors in Ruukki."


RUUKKI GROUP PLC
Thomas Hoyer
CEO


About Mogale Alloys

Mogale  operates four furnaces; two submerged  arc furnaces and two DC furnaces,
with a total production capacity of 110,000 tonnes per annum. These furnaces are
capable  of producing four  key products: silico  manganese, plasma ferrochrome,
charge ferrochrome and stainless steel alloy (chromium-iron-nickel alloy).

Mogale Alloys forms a material part of Ruukki FerroAlloys segment. The segment's
revenue  for the year  ending on December  31, 2011 was EUR 75.4 million, EBITDA
was  EUR -3.9  million and  the operating  profit (EBIT)  EUR -14.0 million. The
segment's assets were EUR 219.2 million.

The  parties to the settlement agreement  are the following: Ruukki South Africa
(Proprietary)  Limited,  Mr.  Johan  Frederik  Oosthuisen,  Metmar Limited, Gujo
Investments  (Proprietary)  Limited,  Corocap  Investments Limited, The Ferguson
Family Trust, Sebeso Beneficiation (Proprietary) Limited, Leswikeng Minerals and
Energy  (Proprietary)  Limited,  PGR  Manganese  (Proprietary)  Limited, PGR 17
Investments  (Proprietary)  Limited,  Dezzo  Trading  184 (Proprietary) Limited,
Mogale Management Incentive Trust and Mogale Alloys Trust.


For additional information, please contact:

Ruukki Group Plc
Thomas Hoyer, CEO, +358 (0)10 440 7000, thomas.hoyer@ruukkigroup.com
Markus  Kivimäki,  General  Manager:  Corporate  Affairs,  +358 (0)10 440 7000,
markus.kivimaki@ruukkigroup.com

Investec Bank Plc
Stephen Cooper, +44 (0)20 7597 5104, stephen.cooper@investec.co.uk

RBC Capital Markets
Martin Eales, +44 (0)20 7653 4000, martin.eales@rbccm.com
Peter Barrett-Lennard, +44 (0)20 7653 4000, peter.barrett-lennard@rbccm.com


Ruukki  Group is  a chrome  mining and  minerals producer  focused on delivering
sustainable  growth with a  speciality alloys business  in southern Europe and a
ferro  alloys business in southern  Africa. The Company is  listed on NASDAQ OMX
Helsinki (RUG1V) and the Main Market of the London Stock Exchange (RKKI).
www.ruukkigroup.com

Distribution:
NASDAQ OMX Helsinki
London Stock Exchange
main media
www.ruukkigroup.com

[HUG#1648249]