MECHEL ANNOUNCES SIGNING AGREEMENT WITH SHASTEEL GROUP

Moscow, Russia — June 5, 2013 – Mechel OAO (NYSE: MTL), one of the leading
Russian mining and metals companies, announces signing a coking coal supply
agreement with China’s Shasteel Group.
According to the signed agreement, Mechel Carbon (Singapore), trading subsidiary
of Mechel OAO’s mining division, will directly supply Shasteel Group with 40,000
to 80,000 tonnes of coking coal a month from Russian Far East ports, starting
from June 2013. Coking coal prices will be determined on a monthly basis.
Before May 2013, Mechel Carbon has supplied more than 500,000 tonnes of coking
coal to Shasteel's main coke plant in Zhangjiagang, Jiangsu Province. Shasteel
Group is the largest private steel mill in China, with an annual production
capacity of up to 35 million tonnes of steel.
“Considering the current high market volatility, it is particularly important to
us to have guaranteed sales of our products to the world's major steelmakers.
Long-term contracts with giants such as Shasteel enable us to provide our
production facilities with a stable load and diversify our markets, thus
consolidating our status as a leading global coal exporter,” Mechel Mining
Management Company OOO’s Chief Executive Officer Boris Nikishichev noted.
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Mechel OAO
Elena Andreyeva
Tel: + 7 495 221 88 88
elena.andreeva01@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.