Mechel Reports Its Operational Results for the First Nine Months of 2008

Mechel Management OOO Chief Executive Officer Vladimir Polin commented on the operational results for the first nine month of 2008: “Mechel continues to implement its long term strategy of transitioning to the manufacturing of downstream products with high added value in its steel segment and increasing production efficiency in all of its business segments. Consolidation of Yakutugol OAO enabled us to significantly increase our coal output and coal concentrate production. Due to our acquisition of Romanian producer Ductil Steel in Spring 2008, we also increased steel product output and strengthened our positions in the promising Eastern European market. An insignificant reduction in our coke production was due to the planned overhaul of coke oven battery No. 4 at Mechel’s Chelyabinsk Metallurgical Plant. Output of pig iron was also reduced due to the planned overhauls of our blast furnaces. We also increased our output of long products and downstream products with high added value by reducing production of semi-finished products. Our production of flat steel was determined by the market demand for these products.”

Mr. Polin continued: “Mechel’s ferroalloy business has gained a new impetus for further development, driven by the integration of Oriel Resources’ assets into Mechel. The commissioning of the new mining and processing plant at the Voskhod chrome ore deposit in September 2008 will enable us to supply our Tikhvin Ferroalloy Smelting Plant with a high quality raw material. Tikhvin Ferroalloy Smelting Plant provides us with ferrochrome, which is one of the key components in producing various grades of stainless steel. Thus, we expect to achieve enhanced synergy in our steel segment.”