core sector communique

Mechel Announces Closing of Over-Allotment Option in the Offering of Preferred Shares and Preferred American Depositary Shares by Certain Selling Shareholders

Moscow, Russia – June 10, 2010 – Mechel OAO (NYSE: MTL), one of the leading Russian mining and metals companies, today announced the closing of an over-allotment option in the 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 were offered by James C. Justice II, James C. Justice III, James C. Justice Companies Inc. and Jillean L. Justice (the "Selling Shareholders"). As a result of the exercise of the over-allotment option granted to the Joint Bookrunners in the Offering, the Selling Shareholders have sold an additional 2,974,400 Preferred ADSs (representing 1,487,200 preferred shares), resulting in the sale of an aggregate of 33,474,400 Preferred ADSs (representing 16,737,200 preferred shares) in the Offering. The Offering has been registered with the U.S. Securities and Exchange Commission ("SEC") under an automatic shelf registration statement filed by Mechel.