MECHEL REPORTS MINING MILLION TONNES OF COAL AT ELGA DEPOSIT

Moscow, Russia – August 7, 2014 – Mechel OAO (NYSE: MTL), one of the leading
Russian mining and metals companies, reports having mined a millionth tonne of
coal since operations began at the Elginsky open pit.
The millionth tonne of coal was mined at the N16 seam by excavator operator
Sergey Klimov and shipped out by dumping truck driver Mikhail Nagibin. The
millionth tonne consisted of high-quality coking coal.
Currently work still continues on transferring Elga’s seasonal washing plant to
all-year operation mode. The works are scheduled to be completed in
October-November, which will enable the plant to reach 2.7-million-tonne annual
capacity.
“Today, Mechel is creating a powerful, high-tech industrial cluster in South
Yakutia, aimed at developing the region as a whole and trade ties with Asia
Pacific,” Russia’s Minister for Development of the Far East Alexander Galushka
stressed.
“The Elga project fully complies with the goals and tasks set by the Program for
Development of Russia’s Coal Industry till 2030 as approved by the Russian
government, in accordance with which Mechel launched new facilities in the
immense South-Yakutian coal field. Development of this field will enable
creation of a new industrial cluster in Eastern Russia and increase the
competitive value of Russian coal products on the international market due to
its favorable geographic location,” Russia’s Deputy Energy Minister Anatoly
Yanovsky said.
“Successful development of the Elga coal deposit is extremely important for the
energy industry’s functioning and creation of a competitive atmosphere on the
Far East’s coal market. Today the Far East’s leading supplier of electricity and
heat — RAO Energy System of East — is at the same time the leading consumer of
steam coal in the country, which accounts for more than 50% of the company’s
energy balance. I hope that ensuring stable supply of the Elga deposit’s coal
products will undoubtedly play its part in the further de-monopolization of the
Far East’s coal market and expand the range of coals used by power stations,”
Director General of RAO Energy System of East Sergey Tolstoguzov said.
“Since August 2014, Elga Coal Complex reached a monthly mining capacity of
200,000 tonnes of run-of-mine coal. By the end of the year, we plan to mine 1.35
million tonnes of coal, demand for which is already assured by contracts with
several Russian steelmakers and leading Asia Pacific coal consumers which will
be buying over half of the deposit’s output in the future. Production of the
millionth tonne is a milestone event for us, which proves that the Elga project
has a real and tangible future. I congratulate Elga’s 1,500 employees and wish
them more success,” Mechel OAO’s Chief Executive Officer Oleg Korzhov commented.
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Mechel OAO
Ekaterina Videman
Tel: + 7 495 221 88 88
ekaterina.videman@mechel.com

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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.
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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.