CSN Aços Longos S.A.

Accounting appraisal report of shareholders’ equity based on the accounting books on
December 31, 2010

Accounting appraisal report of shareholders’ equity based on the accounting books

To

Management of

CSN Aços Longos S.A. Volta Redonda – Rio de Janeiro

KPMG Auditores Independentes, a company headquartered in the city of São Paulo at Rua Dr. Renato Paes de Barros, 33, inscribed in the corporate roll of taxpayers (CNPJ/MF) under no. 57.755.217/0001-29, São Paulo State Regional Accounting Council under no. 2SP014428/O-6 and with secondary registry at the Rio de Janeiro State Regional Accounting Council under no. SP-014428/0-6 F-RJ, with Articles of Incorporation registered at the 2^nd Registry of Deeds and Documents of Legal Entities of the city and state of São Paulo under number 23.244 on June 24, 1987, and amendments registered at the 2^nd Registry of Deeds and Documents of Legal Entities of the city and state of São Paulo, with the last amendment, dated October 1, 2010, registered on microfilm under number 107.295 on December 3, 2010, herein represented by its undersigned partner, Carla Bellangero, Brazilian citizen, divorced, accountant, bearer of identification document (RG) no. 17.041.698, inscribed in the individual roll of taxpayers (CPF/MF) under no. 101.832.328-79, registered with the São Paulo State Regional Accounting Council under no. 1SP196751/O-4 and with secondary registry at the Rio de Janeiro State Regional Accounting Council under no. SP196751/O-4 S-RJ, resident and domiciled in the city and state of São Paulo, with offices at the same address as the company represented, appointed expert by CSN Aços Longos S.A. (Company) to appraise its net book value on December 31, 2010, in accordance with the accounting practices adopted in Brazil, presents the results of its work.

1- Objective of the appraisal

This report is issued with the objective of calculating, in accordance with the accounting practices adopted in Brazil, the shareholders’ equity of CSN Aços Longos S.A. on December 31, 2010, for the purpose of its merger by Companhia Siderúrgica Nacional, and should not be used for any other purpose.

2 – Scope of the work

The appraisal report of shareholders’ equity is being issued in connection with the audit of the balance sheet with the reference date of December 31, 2010, which was prepared under the responsibility of the Company’s Management.

Our audit was conducted in accordance with the Rules for the Independent Audit of Financial Statements applicable in Brazil, and included, among other procedures: (a) the planning of the work, considering the relevance of the balances, the volume of transactions and the Company’s internal accounting and control systems; (b) the confirmation, based on tests, of the evidence and records that support the values presented; and (c) the valuation of the representative accounting practices and estimates adopted by the Company’s Management.

3 – Result of the appraisal

Based on the works conducted, we conclude that the value of the goods, rights and liabilities of the Company’s shareholders’ equity on December 31, 2010, summarized in Appendix I, is two hundred and sixty-four million, three hundred and sixteen thousand, seven hundred and fifty-eight reais and seventy-nine centavos (R$ 264,316,758.79). The net book value, as indicated in Appendix I, is registered in the accounting books, in accordance with the accounting practices adopted in Brazil.

In addition, in accordance with the requirements of the Securities and Exchange Commission of Brazil, we declare that:

(a)  in accordance with the professional rules established by the Federal Accounting Council, we do not have any conflict of interest, either direct or indirect, neither are there any circumstances that represent conflicts of interest regarding the services provided by us and described above; and

(b)   We are not aware of any actions taken by the controlling shareholder or management of the Company to manipulate, limit, hinder or practice any acts that affected or could have affected the access, use or knowledge of the information, assets, documents or work methodologies that are relevant to the quality of the respective conclusions.

São Paulo, January 11, 2011

KPMG Auditores Independentes
CRC SP-014428/0-6 F-RJ

Carla Bellangero

Accountant - CRC SP-196751/0-4 S-RJ

Appendix I

Net book value of the items on the balance sheet
on December 31, 2010
(amounts in Brazilian real)

João Lauriano Bernardo

General Accounting Manager
CRC/SP - 1SP123598/0-0