MECHEL ANNOUNCES CLOSURE OF DEAL ON DISPOSAL
OF TOPLOFIKATSIA ROUSSE EAD

Moscow, Russia — July 8, 2013 – Mechel OAO (NYSE: MTL), one of the leading
Russian mining and metals companies, announces the closure of the deal on
disposal of 100% of the shares of Toplofikatsia Rousse EAD (TPP Rousse,
Bulgaria).
According to the sale&purchase agreement, signed in December 2012, 100% of
Toplofikatsia Rousse EAD’s shares were sold to Toplofikatsia Pleven, a
privately-held Bulgarian power company. The disposal is valued at approximately
29 million euro based on the asset’s equity value. The agreement also stipulates
that Toplofikatsia Rousse EAD’s debt to Mechel Carbon for historical coal
deliveries in amount of 18.8 million US dollars will be repaid.
VTB Capital and UniCredit Bank acted as financial advisors and CMS as legal
advisor to Mechel OAO in this transaction.
In 2012 TPP Rousse generated 364 GWh of electricity and 235 Gcal of heat power,
which resulted in 56.8 million lev in revenues and -3.1 million lev in EBITDA.
As of 31 December 2012 TPP Rousse had some 300 employees.
Commenting on the event, Stanislav Ploschenko, Mechel OAO’s Chief Financial
Officer, noted: “The disposal of TPP Rousse is the second deal for disposal of
the Group’s non-core assets that has been completed this year. Apart from
financial gain from this asset’s disposal, this deal will enable our management
to focus on its business priorities — consolidating the group’s leading position
as a metallurgical coal producer, strengthening its positions in steel products
for construction and increasing its share on the markets for high value-added
steel products. The transaction was made in line with the program for
restructuring the group’s assets as earlier approved by Mechel OAO’s Board of
Directors. The funds from this sale will be used to repay the Group’s debts.”
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Mechel OAO
Elena Andreyeva
Tel: +7 495 221-88-88
Elena.andreeva01@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, ferrochrome, ferrosilicon, steel, 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.