MECHEL REPORTS CONSOLIDATION OF GROUP’S SHIPPING WITHIN MECHELTRANS OOO

Moscow, Russia — June 17, 2014 – Mechel OAO (NYSE: MTL), one of the leading
Russian mining and metals companies, reports consolidating shipments of the
Group’s products within its subsidiary Mecheltrans. This will enable the company
to cut overall transport costs, improve the logistics of shipments both by its
own and outsourced wagons. This will create additional opportunities for
increasing revenue from product sales for the Group’s enterprises.
Mecheltrans will oversee rail shipments of all of the Group’s products
(including by open cars, covered wagons, containers, tank cars, flat wagons,
hopper wagons, specialized vehicle stock) with further transshipment in ports
and delivery to end customers by internal river routes in Russia and Europe, by
sea and by truck. Before, several of Mechel’s enterprises made separate
contracts with third-party transport companies to ship their products.
Consolidating the company’s freight traffic enabled Mechel to cut transport
costs by 3-10% depending on freight type. In 2013, Mecheltrans expedited some 42
million tonnes of cargo, including 16 million tonnes of exports.
“Consolidating all of Mechel’s freight traffic in a transport operator that is
part of the Group’s structure is a timely and logical measure which will help
improve management of our logistical supply chains. Making the Group’s products
more competitive — particularly the products of our steel segment — is another
task that we solve by consolidating our shipments,” Mecheltrans Management
Company OOO’s Chief Executive Officer Alexey Lebedev commented.
***
Mechel OAO
Ekaterina Videman
Tel: + 7 495 221 88 88
ekaterina.videman@mechel.com

***
Mechel is an international mining and steel company which employs over 70,000
people. Its products are marketed in Europe, Asia, North and South America,
Africa. Mechel unites producers of coal, iron ore concentrate, steel, rolled
products, ferroalloys, heat and electric power. All of its enterprises work in a
single production chain, from raw materials to high value-added products.
***
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.