core sector communique

Mechel Announces Pricing of Offering of Preferred Shares and referred American Depositary Shares by Certain Selling Shareholders

Moscow, Russia – May 7, 2010 – Mechel OAO (NYSE: MTL), one of the leading Russian mining and metals companies, today announced the pricing of a public offering (the "Offering") by certain selling shareholders of preferred shares and preferred American Depositary Shares, each representing an interest in one-half of one preferred share ("Preferred ADSs"). The preferred shares and Preferred ADSs are being offered by James C. Justice II, James C. Justice III, James C. Justice Companies Inc. and Jillean L. Justice (the "Selling Shareholders"). The Selling Shareholders have agreed to sell 30,500,000 Preferred ADSs (representing 15,250,000 preferred shares). The price has been set at US$7.50 per Preferred ADS. The Selling Shareholders have granted the Joint Bookrunners the right for a period of 30 days to purchase up to an additional 4,500,000 Preferred ADSs solely to cover over-allotments, if any. The Offering has been registered with the U.S. Securities and Exchange Commission ("SEC") under an automatic shelf registration statement filed by Mechel.