MECHEL REPORTS DISPOSAL OF MECHEL BLUESTONE

Moscow, Russia — February 18, 2015 – Mechel OAO (MICEX: MTLR, NYSE: MTL), one of
the leading Russian mining and metals companies, has closed a deal on the
disposal of Mechel Bluestone, Inc. (Delaware, USA), including its mining
operations, to a company owned by the Justice family.
The deal includes:
-	an immediate cash payment of $5 million
-	royalty payments on coal mined and sold in an amount of $3.00 per ton
-	portion of any future sale of the company and/or its assets of 12.5% of the
sale price if within five years of transaction close or 10% of the sale price
after year five, but before year ten.
In addition, as part of the transaction, the parties agreed to terminate all
claims against each   other, including their unresolved dispute related to the
calculation of a contingent payment obligation arising out of the 2009
transaction in which Mechel obtained the Bluestone assets from Justice.
“As part of the revised development strategy we continue disposing of non-core
and non-strategic assets. With the market situation being what it is, mining at
Mechel Bluestone’s mines and open pits is not profitable. The company’s average
annual net loss since 2012 was around $60 million. Selling Mechel Bluestone will
not only enable us to avoid these losses, but also takes some $140 million of
liabilities off the Group’s balance sheet and allows us to avoid over $160
million worth of legal risks. The sale will allow us to focus the freed cash
flows on servicing the company’s debt,” Mechel OAO’s Chief Executive Officer
Oleg Korzhov commented.
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Mechel OAO
Ekaterina Videman
Tel: + 7 495 221-88-88
ekaterina.videman@mechel.com

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Mechel is an international mining and steel company which employs over 70,000
people. Its products are marketed in Europe, Asia, North and South America,
Africa. Mechel unites producers of coal, iron ore concentrate, steel, rolled
products, ferroalloys, heat and electric power. All of its enterprises work in a
single production chain, from raw materials to high value-added products.
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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 and litigation, including claims not yet asserted.