core sector communique

Mechel Announces New Appointments in Izhstal OAO

Moscow, Russia – February 1, 2011 - Mechel OAO (NYSE: MTL), one of the leading Russian mining and metals companies, announces the appointment of a new Managing Director of Izhstal OAO (Izhstal), part of Mechel Group. Konstantin Kretov, 48, was appointed Managing Director of Izhstal effective February 1, 2011. He succeeds Valery Moiseyev, who managed the plant since 1992 and who will continue to oversee the plant’s operations as Chairman of Izhstal’s board of directors. Mechel-Steel Managing Company OOO’s General Director Andrei Deineko noted that “Valery Moiseyev has been working at Izhstal for nearly 40 years, including 18 years managing it. With him at the helm, the plant overcame the difficult years of economic reforms in the 1990s, having preserved its potential in production and personnel, as well as its status as a specialty and stainless steel rolled products manufacturer. In recent years, the plant invested much effort in boosting the production of high value-added products. Based upon 2010 operational results, Izhstal’s production topped pre-crisis levels. Also, under Valery Moiseyev’s leadership the company successfully implemented a full-scale project for reconstruction of steel-making lines and continued to upgrade its rolling mills. These measures raised the company to a new level of technological sophistication. Regarding Mr. Moiseyev’s new role, Mr. Deineko commented, “As Chairman of Izhstal OAO’s board of directors, Valery Moiseyev will now concentrate on dealing with strategic issues – that is the task we have today for this talented manager. With respect to Mr. Kretov’s assumption of the position of Managing Director, Mr. Deineko said, “Valery Moiseyev has set a very high standard in administrating the plant. I am sure that Konstantin Kretov will successfully continue this work. He has a great deal of practical experience in steel production, and proved to be a skillful specialist and an experienced manager.” Prior to this appointment Mr. Kretov began his professional career in Izhstal in 1985 as a supervisor and worked his way up to a calibrating and rolling mill chief in 2007-2010. He was appointed chief of Izhstal’s planning, economic analysis and pricing department in April 2010, acting as deputy managing director for economics and finance. Mr. Kretov graduated from Moscow Bauman Higher Technical School with a specialty in automated steelmaking machinery. 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.