MECHEL ANNOUNCES DISPOSAL OF SEVERAL FERROALLOY ASSETS

Moscow, Russia — August 1, 2013 – Mechel OAO (NYSE: MTL), one of the leading
Russian mining and metals companies, announces signing an agreement for disposal
of several ferroalloys assets to Turkey’s Yildirim Group.
According to the agreement, Yildirim Group acquires Mechel OAO’s Voskhod Mining
Plant (Khromtau, Kazakhstan) and Tikhvin Ferroalloy Plant (Tikhvin, Leningrad
Region, Russia) for a total of 425 million US dollars.
The buyer will pay the entire sum to Mechel OAO immediately after the deal’s
closure. In order to close the deal, all required approval by Kazakh and Russian
regulatory agencies and both sides’ corporate management agencies is due to be
obtained.
Société Générale Corporate and Investment Bank, ING Bank and Dechert LLP are
advising Mechel on this transaction.
 “This agreement was signed in line with the strategy on restructuring the
group’s assets, earlier approved by our Board of Directors. The funds our
company will get from this deal will help the company to deleverage and continue
to finance its priority development projects,” Mechel OAO’s Chief Executive
Officer Evgeny Mikhel noted.

Editor’s note:
Tikhvin Ferroalloy Plant – Located in Tikhvin, Leningrad Region, it is a modern
enterprise of a capacity to produce up to 120,000 tonnes per annum of
high-carbon ferrochrome used to produce stainless steel. As raw material, the
plant uses the chrome ore concentrate produced at Voskhod mining plant.
 Voskhod Mining Plant – includes a modern chrome ore mine and a beneficiation
plant for further processing of the ore and producing chrome ore concentrate.
Voskhod’s proved and probable reserves total 20 million tonnes of ore according
to JORC standards.

Yildirim Group (www.yildirimgroup.com) — a Turkey-based private diversified
industrial group comprising enterprises from ten different industries in various
countries.

YILDIRIM Group is the owner of ETI KROM INC., Turkey’s largest producer of
chrome ore as well as high-quality high-carbon ferrochrome, and of VARGÖN ALLOYS
AB, one of the oldest ferrochrome plants in Sweden. The Group is the world’s
largest hard lumpy chrome ore producer as well as the world’s second largest
high-quality high-carbon ferrochrome producer.

YILDIRIM GROUP’s primary objective is to continue its growth trends in the
chrome ore and ferrochrome markets and to strengthen its position. With this
acquisition of the chrome ore assets and the concentration plant will improve
YILDIRIM’s production capacity to a world class level at 2.5Mtpa, with the
addition of the TFP to the Group’s existing production plants, Eti Krom in
Turkey and Vargon Alloys AB in Sweden, YILDIRIM GROUP will be one of the main
players in high carbon high quality ferrochrome production with a total
installed capacity of 520,000ktpa.

YILDIRIM GROUP is a privately held company active in mining, ferroalloys and
metallurgical smelting, fertilizer production and trade, port operation and
logistics, shipping and shipbuilding, real estate development and private equity
investment as 24% of CMA CGM, the world’s third largest container shipping
group. The company is also involved in the trading of coal, chartering and
technical management of ships, and private equity management. It is the biggest
port operator of Turkey; it owns and manages 4 ports on the Sea of Marmara in
Turkey and has 50% ownership in Malta Freeport in Malta.  YILDIRIM GROUP
operates mostly in Asia and Europe. It is headquartered in Istanbul, Turkey, and
employs globally over 7,000 employees in total, mainly in Turkey.
***
Mechel OAO
Elena Andreyeva
Tel: +7 495 221-88-88
Elena.andreeva01@mechel.com
***
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.
***
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.