core sector communique

Mechel OAO Announces the Start of Coal Supplies from USA

Moscow, Russia – July 05, 2010 – Mechel OAO (NYSE: MTL), one of the leading Russian mining and metals companies, announces measures it has undertaken to supply Russian coke plants with coking coal of scarce grades. As the result of insufficient supplies of fat coking coal concentrate in Russia, Mechel OAO started supplies of coal from USA. The first 73.5 thousand tonnes of coal have already arrived to the Port Mechel Temryuk. Mechel intends to arrange regular coal supplies from USA to Russia both for the internal usage and sales to the market. Thus on July, 1 the second Panamax ship was loaded at the port of Norfolk with coal produced by Mechel Bluestone. The estimated time of arrival of the vessel is second half of July. By now Mechel Bluestone has adjusted its production plan to increase output of coal grades substituting high volatile grades for the Russian market. 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, steel, ferrochrome, ferrosilicon, rolled products, hardware, heat and electric power. Mechel products are marketed domestically and internationally.