MECHEL REPORTS SUCCESSFULLY COMPLETING TALKS ON RESTRUCTURING 1-BILLION-DOLLAR
SYNDICATED LOAN

Moscow, Russia – December 29, 2017 – Mechel PAO (MOEX: MTLR; NYSE: MTL), one of
the leading Russian mining and metals companies, reports successful completion
of talks on restructuring the 1-billion-dollar syndicated pre-export facility in
a bid to further improve the company’s financial state.

Mechel has obtained the agreement of over 75% by value and the majority in
number of the PXF facilities participants to implement the restructuring of such
facilities. The restructuring conditions include extending the loan’s final
maturity to the first quarter of 2022 and bringing interest rate down to the
level of LIBOR + 3.5% annual interest (with the possibility of bringing it
further down to LIBOR + 3% annual interest). The parties plan to sign
restructuring documents in the first quarter of 2018.

Yakutugol Holding Company AO and Southern Kuzbass Coal Company PAO act as
borrowers under the PXF facilities.

“We are deeply grateful to the syndicate of international banks that a mutually
acceptable decision on restructuring this loan was found after several years of
intensive negotiations. This level of support — over 75% — is sufficient for the
legal restructuring procedure. However, we will continue our talks in the hope
that soon the restructuring plan will win the approval of all creditors,” Mechel
PAO’s Chief Executive Officer Oleg Korzhov noted.

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Mechel PAO

Ekaterina Videman

Tel: + 7 495 221 88 88 ekaterina.videman@mechel.com

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Mechel is an international mining and steel company. 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.