MECHEL ANNOUNCES COMMISSIONING A NEW ELECTRIC STEELMAKING COMPLEX BY THE RUSSIAN
PRIME MINISTER VLADIMIR PUTIN AT IZHSTAL OAO
Izhevsk, Russia – September 7, 2010 – Mechel OAO (NYSE: MTL), a leading Russian
mining and steel company, announces that the Russian Prime Minister Vladimir
Putin commissioned a new electric steelmaking complex at Izhstal OAO. The new
facility comprises an electric arc furnace and a continuous slab caster.
During commissioning ceremony of the new facility, the Russian Prime Minister
was accompanied by Grigory Rapota, the Plenipotentiary Representative of the
President of the Russian Federation in Volga Federal Region; Alexander Volkov,
the President of Udmurtia Republic; Denis Manturov, Deputy Minister of Industry
and Trade of the Russian Federation; Igor Zyuzin, the Chairman of the Board of
Directors of Mechel OAO; Valery Moiseyev, Managing Director of Izhstal OAO.
Valery Moiseyev, Managing Director of Izhstal OAO, informed the Prime Minister
Vladimir Putin about ongoing modernization of the plant, its current capacity
utilization and the  prospects for enterprise’s development.
Then Vladimir Putin launched the new electric steelmaking complex that consists
of electric arc furnace with a capacity of 40 tonnes and continuous slab caster.
The facility will have an annual slab production capability of more than 300,000
tonnes. In addition to the electric arc furnace and continuous slab caster, a
ladle metallurgy facility will be commissioned as part of the same process
chain. Commissioning of the new facility will mark complete transition of
Izhstal OAO to electric furnace steelmaking. This is one of the key stages for
the plant’s large-scale technical upgrade program, which provides for renovation
of steelmaking complex and modernization of steel rolling facilities of Izhstal
OAO.
Project investments have totaled 5.8bn rubles ($195.6m).
Igor Zyuzin, Chairman of the Board of Directors of Mechel OAO, commented,
“Technical modernization of the plant will result in more effective production,
reduced costs, compliance with global quality standards and will allow us to
satisfy the demand for specialty steel grades by the automobile, aircraft,
aerospace and construction industries. Of no less importance for us is the
social dimension of this project: technical upgrade of the plant will eventually
mean more taxes paid to the budgets of all levels, new jobs creation, compliance
with the latest safety requirements, and significant reduction of air emissions
in the city of Izhevsk”.

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Mechel OAO
Ekaterina Videman
Phone: + 7 495 221 8888
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, steel, rolled products, ferroalloys, 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.