MECHEL REPORTS TECHNICAL REVAMPING OF MINING FACILITIES

Moscow, Russia – August 13, 2014 – Mechel OAO (NYSE: MTL), one of the leading
Russian mining and metals companies, reports acquiring new equipment in line
with its technical revamping program for Mechel Mining OAO’s facilities. The
company plans to invest a total of 2.9 billion rubles into maintenance of the
mining division’s production facilities in 2014 (excepting investment into Elga
Coal Complex).
As part of this program, equipment worth a total of 1.2 billion rubles has
already arrived at Southern Kuzbass Coal Company OAO and Korshunov Mining Plant
OAO’s facilities.
An ESH-20/90 walking excavator is being assembled at the Krasnogorsky Pit. The
dragline worth some 1 billion rubles was produced by Uralmashplant OAO to a
special order by Southern Kuzbass Coal Company. The dragline, whose boom length
is 90 meters, will be used for overburden mining. Its assembly, commissioning
and start-up and launch are due to be completed by the end of this year.
A tunneling machine produced by Korum Rus OOO arrived at Southern Kuzbass Coal
Company OAO’s Lenina mine. It enables the company to mine and transport raw coal
from horizontal and slanting mine openings depending on a mine’s geological
specifics. The machine will be launched in August.
Besides that, assembly of a new Scharf ZL 200-130-900D diesel locomotive is due
to be completed this month at Southern Kuzbass Coal Company OAO’s New-Olzherassk
mine. The locomotive, which was acquired as part of the facility’s second line
construction, will be used to transport personnel and cargo to mine openings.
The locomotive is equipped with a transport platform, can transport up to 48
tonnes of cargo and work on surfaces slanting up to 30 degrees.
Assembly of a Liebherr R9250 mine excavator with a monthly capacity of over
200,000 cubic meters of rock mass is due to begin shortly at Korshunov Mining
Plant’s Rudnogorsky mine. Its chief components have already been delivered, and
the new excavator is due to begin operations by mid-September.
“Over the past few years we have been paying particular attention to modernizing
our mining segment’s production facilities and launching equipment that would
enable us to cut expenses and, accordingly, production costs. Even now when our
financial situation is not entirely unclouded, the technical revamping program
is being implemented in full, as mining is meant to become our company’s chief
growth point according to Mechel’s strategy,” 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.