MECHEL EXPANDS MINING MACHINERY FLEET AT SOUTHERN YAKUTIA INDUSTRIAL FACILITIES

Moscow, Russia – December 26, 2017 – Mechel PAO (MOEX: MTLR; NYSE: MTL), one of
the leading Russian mining and metals companies, reports leasing 18 BelAZ mining
trucks as part of an agreement with State Transport Leasing Company for a total
of 2.8 billion rubles.

In November and December, Mechel Group’s mining division facilities have signed
several agreements with State Transport Leasing Company for financing supplies
of 18 BelAZ trucks with a total of 2.8 billion rubles. The financing term is
five years. All trucks are already operating.

This acquisition of heavy-load trucks was made in the framework of the program
on preferential financing of export industrial products made in Belarus.

The new BelAZ trucks became yet another acquisition that is part of the
technical revamping program of Mechel’s mining division. Over 30 mining machines
were supplied to Elgaugol OOO and Yakutugol Holding Company AO in 2017.

“We are grateful to State Transport Leasing Company for the superior
professionalism and constructive approach they demonstrated as we worked on this
deal, and we hope for more mutually profitable cooperation in the future.
Expanding our mining and transport fleet in Southern Yakutia will enable us to
increase the volumes of coal that is being prepared for mining and, as a result,
increase production in 2018,” Mechel Mining Management OOO’s Chief Executive
Officer Pavel Shtark 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.