MECHEL REPORTS RESULTS OF A MEETING WITH POSCO’S MANAGEMENT
Moscow, Russia –  June 21, 2011 - Mechel OAO (NYSE: MTL), one of the leading
Russian mining and metals companies, reports the results of a meeting between
the management of Mechel and Posco, which include signing of the Framework
Project Agreement and the Agreement for Construction of a Permanent Shift Worker
Settlement for Elga Coal Complex.
On June 21, during an official meeting between Mechel OAO’s management headed by
Chairman of the Board of Directors Igor Zyuzin and the management of South
Korean company Posco headed by Chief Executive Officer Chung Joon-Yang, the
parties signed two agreements — the Framework Project Agreement and the
Agreement on Construction of a Permanent Shift Worker Settlement for Elga Coal
Complex.
The Framework Project Agreement was signed by Mechel OAO’s Chairman of the Board
of Directors Igor Zyuzin and Posco’s Chief Executive Officer Chung Joon-Yang.
The Framework Project Agreement is a follow-on to the Agreement of Intent, which
was signed on November 10, 2010 during the official visit of the President of
the Russian Federation Dmitry Medvedev to the Republic of Korea.
The Framework Project Agreement declares that the two sides agreed to strengthen
and expand their cooperation to include analysis and implementation of joint
projects in the steel industry, mining and logistics by setting up work groups
and holding mutual consultations and meetings. One of the document’s points is
the construction of a permanent shift worker settlement for Elga Coal Complex,
whose implementation was also specified by a separate agreement signed today.
The Agreement on Construction of a Permanent Shift Worker Settlement for Elga
Coal Complex was signed by Mechel Mining Management Company OOO and the Posco
group’s construction division, Posco A&C. The agreement stipulates creation of
the company named Posco Russia to implement the project.
Posco A&C won the tender for design, construction, delivery and assembly of
residential, public and amenity spaces for Elga Coal Complex’s permanent shift
worker settlement. The tender was held in May 2011.
The permanent shift worker settlement will provide space for 3,000 residents and
include a public center and five residential areas. It is due to be completed in
June 2013. With a single company responsible for handling the entire
construction process, high quality is assured, while reducing financial risks
and the risk that the deadlines would not be met.
Mechel OAO has long-standing and stable partnership relations with South Korean
consumers, successfully supplying coking coal to this country. Since August 2009
Mechel’s official representative office operates in Seoul.

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Mechel OAO
Ekaterina Videman
Phone: + 7 495 221 88 88
ekaterina.videman@mechel.com
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Mechel is one of Russia’s leading companies. Its business is primarily composed
of  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.