MECHEL SIGNS AGREEMENT WITH VNESHECONOMBANK FOR FIRST TRANCHE OF FINANCING FOR
ELGA COAL COMPLEX

Komsomolsk-on-Amur, Russia – October 24, 2013 – Mechel OAO (NYSE: MTL), one of
the leading Russian mining and metals companies, announces that an agreement
between Vnesheconombank and Mechel on allocating the first tranche of the
project financing for Elga Coal Complex’s first stage totalling 2.5 billion US
dollars, was signed in the presence of the Russian Federation’s Prime Minister
Dmitry Medvedev.
The agreement for the 150-million-dollar tranche was signed by Vnesheconombank’s
Chairman Vladimir Dmitriyev and Chairman of Mechel OAO’s Board of Directors Igor
Zyuzin on the sidelines of the session of the government committee on the Far
East’s social and economic development, in the presence of Russian Prime
Minister Dmitry Medvedev.
“Currently development of the rich Elga deposit is a priority for Mechel. We are
grateful to our country’s leaders for their attention and support for such an
important project. Vnesheconombank’s financing will give a powerful stimulus not
only to our efforts on completing construction of Elga Coal Complex’s first
stage, but also to the social and economic development of the Republic of Sakha
(Yakutia) and the Far East as a whole. The project’s implementation will create
over 5,000 jobs. I am sure that thanks to the state’s support, we will
successfully continue our work on creating a new industrial cluster in this
region,” Chairman of Mechel OAO’s Board of Directors Igor Zyuzin noted.
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.The first stage 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:
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.

***
Mechel OAO
Ekaterina Videman
Tel: +7 495 221-88-88
Ekaterina.videman@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.