MECHEL REPORTS LAUNCH OF THE NEW LONG WALL FACE
AT OLZHERASSKAYA-NOVAYA MINE

Mezhdurechensk, Russia – October 12, 2015 – Mechel OAO (MICEX: MTLR, NYSE: MTL),
one of the leading Russian mining and metals companies, announces launching a
new long wall face at its Southern Kuzbass OAO coal mining subsidiary’s
Olzherasskaya-Novaya Mine.

New long wall face No. 21-1-9 with coal reserves of 3.4 million tonnes has been
launched at Olzherasskaya-Novaya Mine. The mine’s team is due to work on the
face for two years.

Miners at the face use a special sub-level caving method, which enables thick
seam mining in one coal layer of up to 10 meters, extracting maximum volumes of
coal in one go while decreasing the risk of breeding fire.

“The launch of the new long wall face will significantly boost
Olzherasskaya-Novaya Mine’s capacity and increase our coking coal output. In
2016 we expect the mine to produce approximately 2 million tonnes of raw coal,”
Mechel Mining Management Company OOO’s Chief Executive Officer Pavel Shtark
commented.

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

***
Mechel is an international mining and steel company which employs 67,000 people.
Its products are marketed in Europe, Asia, North and South America, Africa.
Mechel unites producers of coal, iron ore concentrate, steel, rolled products,
ferroalloys, heat and electric power. All of its enterprises work in a single
production chain, from raw materials to high value-added products.
***
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.