MECHEL ANNOUNCES KEY ACCOMPLISHMENTS AT YAKUTUGOL AND ITS SUBSIDIARY ELGA COAL
COMPLEX

Neryungri, Sakha Republic (Yakutia), Russia – August 29, 2011 – Mechel OAO
(NYSE: MTL), one of the leading Russian mining and metals companies, announces
reaching full production capacity at the Nerungrinskaya  processing plant of
Yakutugol Holding Company OAO and gives an update on the construction of Elga
Coal Complex.
In July, Yakutugol Holding Company OAO’s Nerungrinskaya washing plant processed
783,000 tonnes of coking coal and produced 536,000 tonnes of concentrate and
197,000 tonnes of middlings. This is the highest monthly result the plant
achieved in its 26-year history. These results were made possible by the
well-coordinated work of the plant’s team, as well as the plant reaching its
full production capacity.
The Company achieved more success in construction of Elga Coal Complex, a
subsidiary of Yakutugol Holding Company OAO. Sakha Republic’s Agency for Use of
Mineral Resources gave permission to launch the first stage of the open pit
development at the Elga deposit. Separately, construction of the Ulak-Elga
railway link was completed up to the 209 km point ahead of schedule. A coal
reloading facility at this site will allow the company to ensure shipments of
Elga coal by trucks until the railway is completed. This represents another
critical milestone toward development of the coal deposit which is Mechel’s
largest project for producing coking coal.
As previously announced, annual production capacity at Elga Coal Complex will
reach 27 million tonnes by 2021 according to the subsoil license’s conditions.
With that production volume, the saleable production at Elga is expected to be
over 8 million tonnes of high-quality coking coal concentrate, some 5 million
tonnes of steam coal concentrate which is produced from oxidized coal, and some
6 million tonnes of middlings, which are a by-product of the coking coal washing
process and are used for the power industry’s needs.
According to the IMC-reviewed mine plan, by 2030 and beyond, when deeper seams
are mined at the Elga open pit, the same annual run-of-mine production volume is
expected to yield over 11.5 million tonnes of  coking coal concentrate. The
larger amount of coking coal concentrate from the same run-of-mine production
will be achieved due to the natural decrease in the share of oxidized coal which
lies closer to the surface.

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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 operating in four segments:
mining, steel, ferroalloys and power. Mechel's operations produce coal, iron ore
concentrate, crude steel, rolled steel, ferroalloys, value-added downstream
metal products as well as electric and heat power. Mechel markets its products
both 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.