MECHEL ANNOUNCES LAUNCH OF UNIVERSAL ROLLING MILL’S FIRST LINE AT CHELYABINSK
METALLURGICAL PLANT

Chelyabinsk, Russia — December 19, 2011 – Mechel OAO (NYSE: MTL), one of the
leading Russian mining and metals companies, announces the launch of the
universal rolling mill’s first line — the blooming concaster #5 at Chelyabinsk
Metallurgical Plant’s oxygen converter shop.
The blooming concaster #5 with an annual capacity of one million tonnes is due
to supply the universal rolling mill with top-quality continuously-cast billets.
The new concaster can produce 200 mm x 200 mm and 300 mm x 360 mm billets from
various types of steel, including carbon, structural and alloyed steels, further
consolidating Chelyabinsk Metallurgical Plant’s status as Russia’s top producer
of specialty steels and alloys.
The concaster #5 is part of a complex which produces rail steel and rail
billets.  The complex also includes a two-position ladle furnace #4 with an
annual capacity of 1.2 million tonnes and a two-chamber vacuum degasser with an
annual capacity of 650 thousand tonnes, which are necessary to produce metal of
requisite specifications. The out-of-furnace steel processing equipment is due
to be commissioned by the end of December 2011. The complex’s construction plans
also include environmental protection measures. The complex’s facilities are
equipped with a modern circuit water-supply cycle and dust-gas filtering
systems.
The estimated funding for the complex, including the blooming concaster #5, the
ladle furnace # 4 and the vacuum degasser, totals some 189 million dollars. The
equipment was supplied by the Italian-based company Danieli.
“The blooming concaster #5’s production capacity will meet the universal rolling
mill’s need for top-quality continuously cast billets. Commissioning the
concaster’s facilities ahead of the universal mill’s launch gives us time not
only to perfect the technology of producing rail metal and billets, but also to
process steel into rails thanks to our cooperation with other producers. These
steps aim to prepare us for the main complex’s launch and to speed up
Chelyabinsk Metallurgical Plant’s mastering of a new technology,” Mechel-Steel
Management Company’s Chief Executive Officer Andrey Deineko explained.

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Mechel OAO
Ekaterina Videman
Tel: + 7 495 221 88 88
ekaterina.videman@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.