MECHEL ANNOUNCES LAUNCH OF MODERNIZED STEELMAKING COMPLEX AT OTELU ROSU

Moscow, Russia – June 7, 2011 – Mechel OAO (NYSE: MTL), one of the leading
Russian mining and metals companies, announces the launch of an modernized
steelmaking complex at its Romanian-based subsidiary Ductil Steel Otelu Rosu.
The complex’s launch was attended by Prefect of Caras-Severin Octavian Tunea,
Fuchs Technology AG’s President Gerhard Fuchs, Mechel OAO’s Chairman of the
Board of Directors Igor Zyuzin, Mechel OAO’s Senior Vice-President Victor
Trigubko, Chief Executive Officer of Mechel-Steel Management OOO Andrey Deineko
and General Director of Mechel’s management company in Romania Yuri Gushchin.
Octavian Tunea, Gerhard Fuchs and Igor Zyuzin pressed the launch button for the
reconstructed steelmaking complex, which includes a new electric arc furnace
with the COSS system, an upgraded continuous billets caster, and a modern scrap
metal preparation section.
The reconstruction’s key aggregate is the electric arc furnace with the COSS
system developed by the German-based company Fuchs Technology. The new machine
operates on the basis of an innovative technique — using heat from waste gases
for preheating scrap metal, enabling the plant to significantly cut expenses (on
raw materials and power) and improve the quality of steel. COSS equipment in
Otelu Rosu will be the third such to be implemented in the world and the first
such in Europe. The COSS-equipped furnace has the production capacity of some
810,000 tonnes of steel a year.
Investment in the plant’s modernization program amounted to 48.7 million
dollars.
“Completion of the investment project at the Otelu Rosu plant will enable us to
fully provide Mechel’s Romanian enterprises with raw materials, which will
dramatically cut costs and improve the efficiency of their work. Without doubt,
this project is symbolic not only for the company’s development. Launch of
innovative and high-technology projects in Romania is a positive signal for its
economy and confirmation that joint efforts by the government and business to
overcome the crisis’s consequences are effective,” Mechel OAO’s Chairman of the
Board of Directors Igor Zyuzin noted.

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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, steel, ferrochrome, ferrosilicon, 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.