MECHEL REPORTS COMPLETION OF FIRST STAGE OF RECONSTRUCTION OF OXYGEN CONVERTER
SHOP IN CHELYABINSK METALLURGICAL PLANT

Chelyabinsk, Russia – August 23, 2011 – Mechel OAO (NYSE: MTL), one of the
leading Russian mining and metals companies, announces the launch of the new
converter # 2 in Chelyabinsk Metallurgical Plant’s oxygen-converter shop.
Replacement of the converter #2 is the first stage in the complex reconstruction
program for Chelyabinsk Metallurgical Plant’s oxygen converter shop. The
program, which is due to be completed by 2013, includes full replacement of the
shop’s three converters, dedusting tracts and their infrastructure equipment.
Once the program is completed, the shop’s steel annual output will go up by
950,000 tonnes to a total of 4,550,000 tonnes. Its total cost is estimated at
173.8 million US dollars (5.1 billion rubles*).

The new converter #2’s launch will enable the company to increase cast weight
from 140 to 152 tonnes and cut down on the time required for cast treatment. The
converter was produced by Austrian-based Siemens VAI, with the cooler, the
dedusting system and the stack module manufactured by the Ukrainian-based
technological and scientific center Energostal.

The converter #2 is also equipped with a modern dedusting system which ensures
maximum filtering and allows the plant to reduce emission of waste gases into
the atmosphere.

Reconstruction of the converter # 2 cost a total of 1.289 billion rubles (44.1
million US dollars*).
Today the oxygen-converter shop includes three converters and two high-capacity
concasters (CCMs). The plant’s complex technical re-equipment program also
includes construction of a ladle furnace, a vacuum degasser and the concaster
#5, which will produce billets for Chelyabinsk Metallurgical Plant’s major
investment project — the universal rolling mill.
* According to the Russian Central Bank exchange rate of 29.2555 RUR/$ as of
August 23, 2011.

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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 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.