Mechel Reports Suspension of Work at V.I. Lenina Underground Mine

Moscow, Russia — July 5, 2012 – Mechel OAO (NYSE: MTL), one of the leading Russian mining and metals companies, reports that work was temporarily halted at V.I. Lenina Underground mine.

Following an inspection conducted by the Mezhdurechensk territorial branch of the Southern Siberian department of the Federal Agency for Ecological, Technological and Nuclear Monitoring, mining at V.I. Lenina Underground mine was suspended by order of the Mezhdurechensk city court.

At present most of the monitoring agency’s requirements have been met and practically all violations have been eliminated. Mining at all of V.I. Lenina Underground mine’s facilities is planned to be resumed shortly.

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, ferrochrome, ferrosilicon, steel, rolled products, hardware, heat and electric power. Mechel products are marketed domestically and internationally.