MECHEL INCREASES COAL SUPPLIES TO CHINA’S BAOSTEEL CORPORATION TO REACH 1.44 MLN
TONNES

Moscow, Russia – January 14, 2015 – Mechel OAO (NYSE: MTL), one of the leading
Russian mining and metals companies, announces signing a memorandum of
understanding with China’s steelmaking major Baosteel Resources corporation,
which provides for an increase of coal supplies to 1.4 million tonnes of coking
coal a year.
According to the memorandum, Mechel will supply Baosteel Resources with up to
1.4 million tonnes of coking coal. The agreement will be valid from April 2015
through March 2016, with a possibility of further prolongation. Prices will be
determined on a monthly basis.
The memorandum also provides for a possibility of supplying Baosteel with other
Mechel products, such as PCI and steam coal, as well as cooperation in other
areas, including the possibility of collaboration with the economic development
institutes in Russia and China.
Mechel is fully meeting its obligations according to the earlier contract, which
provides for supplies of 1.2 million tonnes of coking coal a year. Since April
2014 through December, over 1 million tonnes of coking coal was shipped to
Baosteel enterprises in China’s eastern and southern provinces, which accounts
for 10% of Mechel’s coal exports to Asia Pacific.
“Long-term export contracts are particularly important for us in the period of
FX volatility as they provide Mechel with stable foreign currency revenue. We
are currently exporting over 70% of our mining division’s products,” 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.