core sector communique

Mechel Announces Offering of Preferred Shares by Certain Selling Shareholders

Moscow, Russia – April 13, 2011 - Mechel OAO (NYSE: MTL), one of the leading Russian mining and metals companies, announces the launch of a public offering (the “Offering”) by certain selling shareholders of the preferred shares of Mechel OAO. The preferred shares 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 propose to offer up to 26,000,000 preferred shares to Russian and international investors. The Offering has been registered with the U.S. Securities and Exchange Commission (the “SEC”) under an automatic shelf registration statement filed by Mechel. Mechel has applied for admission of the preferred shares to trading (without listing) on the Open Joint Stock Company “Russian Trading System” Stock Exchange (the “RTS”) and on the Closed Joint Stock Company “MICEX Stock Exchange” (the “MICEX”). We expect the preferred shares to be admitted to trading prior to settlement of the preferred shares sold in the Offering, under the symbol “MTLRP”. Morgan Stanley & Co. Incorporated and Renaissance Securities (Cyprus) Limited will be acting as Joint Global Coordinators and Joint Bookrunners for the Offering. VTB Capital will be acting as a Joint Bookrunner for the Offering. VTB Capital is not registered as a broker-dealer with the SEC, therefore any offers and sales of the preferred shares by VTB Capital in the United States will be made through one or more SEC-registered broker-dealers, which may be affiliates of VTB Capital, to the extent required by applicable U.S. securities laws and regulations. Coalmetbank will be marketing the preferred shares to the general public in the Russian Federation. Coalmetbank will not underwrite any of the preferred shares sold in the offering. 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. ***