MECHEL RECEIVES FIRST TRANCHE OF FINANCING FOR DEVELOPMENT OF ELGA COAL COMPLEX
FROM VNESHECONOMBANK

Moscow, Russia – November 28, 2013 – Mechel OAO (NYSE: MTL), one of the leading
Russian mining and metals companies, announces that Elgaugol OOO project company
has received the 150-million-dollar first tranche of the project financing for
Elga Coal Complex’s first stage totalling 2.5 billion US dollars from
Vnesheconombank.
Currently development of the rich Elga deposit is a key investment project for
Mechel. Receiving these funds enables the company to continue working on this
project regardless of market volatility and attain planned results as scheduled.
“The quality of Elga’s coals and Elga’s geographic location make this project
one of the most efficient in the world,” Chairman of Mechel OAO’s Board of
Directors Igor Zyuzin said.
“It is through financing such important projects that the economy of Far East
and Eastern Siberia should develop. This project is a key one for the region in
the sense of economic effect,” Vnesheconombank’s First Deputy Chairman and
member of the Board Andrey Sapelin said.
The deal granting Mechel OAO project financing totaling 2.5 billion US dollars
for the development of Elga Coal Complex’s first stage was approved by
Vnesheconombank’s Supervisory Board in September 2013. The loan has a tenor of
13.5 years with a grace period until 2017. According to the transaction’s
conditions, Vnesheconombank’s funds will be used to complete construction of
Elga Coal Complex’s first stage. It includes construction of a railroad and a
mining and washing complex with an annual capacity of 11.7 million tonnes of
run-of-mine coal by 2017.
Editorial note:
State Corporation “Bank for Development and Foreign Economic Affairs
(Vnesheconombank)” was established in 2007 through a transformation of Bank for
Foreign Economic Affairs of the USSR. Vnesheconombank operates in conformity
with Federal Law dated May 17, 2007 “On Bank for Development”. The Memorandum on
Financial Policies approved by Resolution of the Government of the Russian
Federation dated July 27, 2007 sets forth major business lines and indicators of
the Bank’s performance. Vnesheconombank is one of the key instruments for
implementing the state economic policy aimed at removing infrastructure
restrictions that impede economic growth, enhancing efficient utilization of
natural resources, developing high-tech industries, unleashing innovative and
industrial potential of small- and medium-sized enterprises (SMEs) and ensuring
support for exports of industrial goods and services.
The Elga coal deposit is Russia’s largest and one of the world’s largest
deposits of high-quality coking coal, and is located in Southern Yakutia. Its
reserves total some 2.2 billion tonnes according to JORC standards.

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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. Its business includes four
segments: mining, steel, ferroalloy and power. Mechel unites producers of coal,
iron ore concentrate, nickel, ferrochrome, ferrosilicon, steel, 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.