MECHEL ANNOUNCES COMMISSIONING OF SEASONAL WASHING PLANT AT THE ELGA COAL
DEPOSIT

Neryungri, Russia — October 1, 2012 — Mechel OAO (NYSE: MTL), one of the leading
Russian mining and metals companies announces the commissioning of a seasonal
washing plant and production of the first volumes of concentrate of coking coal
mined at the Elga deposit.
After the commissioning of the full processing cycle at the washing plant first
volumes of the coking coal concentrate were produced. The launch of the washing
plant at Elga became possible due to hard work which required a number of
complex solutions aimed at dealing with logistical and construction challenges.
The newly built washing plant fully complies with best international standards –
technological process is fully computerized and is managed out of the central
console, allowing for control of all processing systems in a real-time mode. The
plant’s processing capacity is up to 3 million tonnes per annum. The CAPEX is
approx. 2 billion rubles (about $ 64.7 mn*).
"The launch of seasonal washing plant has become an important milestone in the
implementation of the project of unique significance – the development of the
Elga coal deposit, one of the largest coking coal deposits in the world.
Following the completion of railway connecting the deposit with Baikal-Amur
Mainline the launch of washing facilities allows to mine and process coal at
Elga open-pit on production scale and start receiving benefits from vast
investment in the project development.”, said Igor Zyuzin, Chairman of the Board
of Directors of Mechel OAO.
* Based upon the Russian Central Bank exchange rate of 30.92 RUR/$ as of
September 29, 2012.

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Mechel OAO
Pavel Taran
Phone: +7 495 221-88-88
Е-mail: pavel.taran@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.