MECHEL OAO ANNOUNCES SIGNING CONTRACTS
TO RECONSTRUCT BRATSK FERROALLOY PLANT

Bratsk, Irkutsk region, Russia – October 25, 2010 – Mechel OAO (NYSE: MTL), one
of the leading Russian mining and metals companies, announces that Bratsk
Ferroalloy Plant OOO, which is a part of Mechel group, has signed contracts to
purchase four ferroalloy electric furnaces.
Bratsk Ferroalloy Plant OOO and Siberian Plant of Electrothermal Equipment
(Sibelectrotherm JSC, Novosibirsk) have signed contracts to supply four
ferroalloy electric furnaces with the capacity of 33 MVA each to replace the
existing furnaces. In addition Sibelectrotherm undertakes to supervise
installation and commissioning works. The reconstruction will take place during
2011-2012. After the project’s completion Bratsk Ferroalloy Plant’s production
capacity will increase by 30% and its power consumption will be reduced by
10-13%.
The contracts’ total value exceeds 1.9 billion roubles. The project allows
keeping the entire existing infrastructure resulting in substantial cost cutting
and time saving.
Bratsk Ferroalloy Plant produces ferrosilicon – a ferroalloy used in quality
steel production. At the present moment the plant’s annual capacity is 91
thousand tonnes of ferrosilicon.
Sibelectrotherm is one of the largest Russia’s enterprises specializing in
production of electrothermal equipment for ferroalloy, steel and titanium
manufacturing.
The project will be financed via credit facility provided by Sberbank.
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Mechel OAO
Ekaterina Videman
Tel: + 7 495 221 88 88
ekaterina.videman@mechel.com
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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.
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Some of the information in this press release may contain projections or other
forward-looking statements regarding future events or the future financial
performance of Mechel, as defined in the safe harbor provisions of the U.S.
Private Securities Litigation Reform Act of 1995. We wish to caution you that
these statements are only predictions and that actual events or results may
differ materially. We do not intend to update these statements. We refer you to
the documents Mechel files from time to time with the U.S. Securities and
Exchange Commission, including our Form 20-F. These documents contain and
identify important factors, including those contained in the section captioned
“Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements” in our
Form 20-F, that could cause the actual results to differ materially from those
contained in our projections or forward-looking statements, including, among
others, the achievement of anticipated levels of profitability, growth, cost and
synergy of our recent acquisitions, the impact of competitive pricing, the
ability to obtain necessary regulatory approvals and licenses, the impact of
developments in the Russian economic, political and legal environment,
volatility in stock markets or in the price of our shares or ADRs, financial
risk management and the impact of general business and global economic
conditions.