MECHEL ANNOUNCES LAUNCH OF BIOCHEMICAL WASTE WATER
CLEANSING EQUIPMENT AT MECHEL-COKE
COKE AND CHEMICALS PRODUCER

Chelyabinsk, Russia — October 27, 2011 – Mechel OAO (NYSE: MTL), one of the
leading Russian mining and metals companies, announces the launch of a
biochemical cleaning facility to treat phenolic waste water from Mechel-Coke
OOO’s coke and chemicals production process.
Andrei Dementyev, Deputy Industry and Natural Resources Minister, Viktor
Semyonov, Director of the Basic Industry Department of the Industry & Natural
Resources Ministry, Konstantin Tsibko, Russian Federation Council Member for
Chelyabinsk Region, Chelyabinsk Region’s First Deputy Governor Sergei Komyakov
and other regional administration officials attended the launch ceremony for the
biochemical facility. Mechel Group was represented by Chairman of Mechel’s Board
of Directors Igor Zyuzin, Mechel-Steel Management Company OOO’s Chief Executive
Officer Andrei Deineko, Chelyabinsk Metallurgical Plant OAO’s Managing Director
Rashid Nugumanov and Mechel-Coke OOO’s Managing Director Pavel Shtark.
The new biochemical facility’s launch is part of Chelyabinsk Metallurgical
Plant’s long-term environment protection program*. It enables the company to
deeply cleanse all of the waste water produced by Mechel-Coke, which is used for
slaking coke, and decrease waste emissions by half.
The new facility was designed by Eastern Coal and Chemical Research Institute in
Yekaterinburg and employs the method of neutralizing waste water by applying
special complexes of phenol-destroying microorganisms, which break waste into
water and carbon dioxide. This technology allows the company to thoroughly
cleanse its emissions of phenols, thiocyanates and ammonium nitrogen and ensures
higher neutralization efficiency.
Investment in constructing the biochemical facility totaled some 900 million
rubles (27.5 million US dollars**).
“The launch of Mechel-Coke OOO’s biochemical waste water cleansing facility is
part of the ecological program Mechel is implementing at Chelyabinsk
Metallurgical Plant’s industrial area, which is subject to a sweeping
modernization of its technical facilities. Every one of Chelyabinsk
Metallurgical Plant’s investment projects provides funds for environmental
protection measures and introducing new equipment that will decrease or
neutralize industrial waste, which helps to dramatically reduce the impact on
the environment,” Mechel-Steel Management Company OOO’s Chief Executive Officer
Andrei Deineko noted.

*Mechel-Coke OOO is part of Mechel Group’s mining division, but operates on
Chelyabinsk Metallurgical Plant’s industrial base.
** According to the Russian Central Bank exchange rate of 30.5732 RUR/$ as of
October 27, 2011.
***
Mechel OAO
Ekaterina Videman
Tel: + 7 495 221 88 88
ekaterina.videman@mechel.com

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Mechel is one of the leading Russian companies. Its business includes four
segments: mining, steel, ferroalloy and power. Mechel unites producers of coal,
iron ore concentrate, nickel, ferrochrome, ferrosilicon, steel, rolled products,
hardware, heat and electric power. Mechel products are marketed domestically and
internationally.
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Some of the information in this press release may contain projections or other
forward-looking statements regarding future events or the future financial
performance of Mechel, as defined in the safe harbor provisions of the U.S.
Private Securities Litigation Reform Act of 1995. We wish to caution you that
these statements are only predictions and that actual events or results may
differ materially. We do not intend to update these statements. We refer you to
the documents Mechel files from time to time with the U.S. Securities and
Exchange Commission, including our Form 20-F. These documents contain and
identify important factors, including those contained in the section captioned
“Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements” in our
Form 20-F, that could cause the actual results to differ materially from those
contained in our projections or forward-looking statements, including, among
others, the achievement of anticipated levels of profitability, growth, cost and
synergy of our recent acquisitions, the impact of competitive pricing, the
ability to obtain necessary regulatory approvals and licenses, the impact of
developments in the Russian economic, political and legal environment,
volatility in stock markets or in the price of our shares or ADRs, financial
risk management and the impact of general business and global economic
conditions.