core sector communique

Mechel Announces 9m 2010 Operational Results

Moscow, Russia – October 18, 2010 – Mechel OAO (NYSE: MTL), one of the leading Russian mining and metals companies, announces 9M 2010 operational results. Product 9 months 2010, thousand tonnes 9 months 2010 vs 9 months 2009, % Coking coal concentrate 8,296 +66 Various types of coal for steel production* 1,712 +262 Steam coal 6,403 -9 Iron ore concentrate 3,145 -1 Chromite ore concentrate   171 +23 Nickel  13 +10 Ferrosilicon (65% and 75%) 67 +2 Ferrochrome (65%) 62 +18 Coke (6%) 2,899 +29 Pig iron 3,075 +13 Steel 4,496 +13 Rolled products 4,560 +18    Flat products 317 +34    Long products 2,608 +5    Billets 1,635 +43 Hardware  633 +32 Forgings 55 +58 Stampings 70 +64 Electric power generation (thousand kWh) 2,920,593 +28 Heat power generation (GCcal) 4,619,417 +6 * Including anthracite and PCI. Yevgeny Mikhel, Mechel’s CEO, commented on the company’s 9M 2010 operational results: “We started out this year with rapid production growth, and so far have managed to maintain this pace. Beginning from the second quarter of 2010 our coal production has steadily exceeded pre-crisis levels. Overall, our coking coal concentrate production increased by 66% compared to the same period of 2009. Output of coal for steel production has grown by 262%. The company’s steel division has performed well increasing output of raw steel, rolled steel and high value added products. Compared to the same period of the previous year, raw steel production has grown by 13%, rolled steel – by 18% and hardware output increased by more than one-third. Our ferroalloys production is growing gradually. The market conditions are still favorable, and we do our best to meet the existing demand. We have done a substantial amount of work to renovate and modernize our production facilities and feel optimistic about achieving production growth targets in the core sectors of our business.”