MECHEL REPORTS SUCCESSFUL LAB TESTS OF ITS RAILS AT RAILWAY RESEARCH INSTITUTE

Chelyabinsk, Russia – August 28, 2014 – Mechel OAO (NYSE: MTL), one of the
leading Russian mining and metals companies, reports that independent lab tests
of rails produced at Chelyabinsk Metallurgical Plant confirmed their high
quality and compliance with the most exacting international standards.
A batch of rails, of type R65 category DT350, produced at Chelyabinsk
Metallurgical Plant for certification, successfully passed lab tests in Russian
Railway Research Institute OAO.
The rails passed lab tests on all counts and are fully compliant with Russian
Railways OAO’s requirements. Lab tests confirmed the high quality of Chelyabinsk
Metallurgical Plant’s rails, including the rail steel’s high level of purity on
non-metallic inclusions. Bench tests of the rails for fatigue and crack
resistance demonstrated that Chelyabinsk Metallurgical Plant’s products are up
to the finest international standard and excel over Russian analogues.
For the next stage of testing after lab tests, the rails were laid onto the
experimental railroad ring that is used to test rails in real-life conditions
over the next 6-7 months.
“A lot of preliminary work was done ahead of laying Chelyabinsk Metallurgical
Plant’s rails onto Railway Research Institute’s experimental ring-road. Russian
Railways OAO’s commission examined the entire technological operation chain and
confirmed that Chelyabinsk Metallurgical Plant has created a rail production
facility that is up to state-of-the-art requirements for world-class products,”
Mechel OAO’s Chief Executive Officer Oleg Korzhov noted.
Currently, Chelyabinsk Metallurgical Plant’s universal rolling mill has mastered
production of two types of rails — R50 and R65. Chelyabinsk Metallurgical Plant
has already signed several contracts with major Russian companies for rail
supplies.
Chelyabinsk Metallurgical Plant’s universal rolling mill, whose annual capacity
is 1.1 million tonnes of end product, is a complex universal facility for
production of high-quality structural shapes and rails of 12.5-100 meters in
length. The project’s implementation created a single production chain at
Chelyabinsk Metallurgical Plant, from steelmaking to rolling and thermal
treatment. This is the first such complex to be built in Russia. The project’s
cost topped 900 million US dollars.
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Mechel OAO
Ekaterina Videman
Tel: + 7 495 221 88 88
ekaterina.videman@mechel.com

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Mechel is an international mining and steel company which employs over 70,000
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.
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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.