MECHEL OAO REPORTS SIGNING AGREEMENT OF INTENT WITH POSCO

Seoul, Republic of Korea – November 10, 2010 – Mechel OAO (NYSE: MTL), one of
the leading Russian mining and metals companies, announces that it has signed an
Agreement of Intent with a South Korean company Posco.
On November 10, Mechel OAO and a South Korean company Posco, one of the largest
steel producers in the world, signed the Agreement of Intent. The Agreement was
signed within the framework of the official visit of the President of the
Russian Federation Dmitry Medvedev to the Republic of Korea.
The Agreement of Intent was signed by Mr. Igor Zyuzin, Chairman of Mechel’s
Board of Directors, and Mr. Chung Joon-yang, Chief Executive Officer of Posco.
The Agreement was signed in order to establish mutually beneficial strategic
partnership between the companies. It is noted in the document that the parties
consider it to be expedient to collaborate on a long-term and mutually
beneficial basis on the promotion of products produced by Mechel’s affiliated
companies and Posco, and implementation of potential joint projects. In
particular, the companies express their intention to examine and possibly
implement projects in steel, mining and logistics in Russia, the Republic of
Korea and third countries.
Mechel OAO has long-standing and stable partnership relations with South Korean
consumers, successfully supplying coal of various grades to this country. Since
August 2009 Mechel’s official representative office operates in Seoul.
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Mechel OAO
Ekaterina Videman
Tel: + 7 495 221 88 88
ekaterina.videman@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, steel, ferrochrome, ferrosilicon, 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.