MECHEL ANNOUNCES ACCIDENT ON NERUNGRINSKAYA WASHING PLANT

Nerungri, Russia – December 27, 2010 – Mechel OAO announces the collapse of
three thickeners at the Nerungrinskaya washing plant of the Yakutugol OAO, the
subsidiary of Mechel Mining OAO.
On December 26 at 20:20 local time three thickeners out of 30 collapsed in the
washing shop of the Nerungrinskaya washing plant. There were no casualties or
injured.
A special commission was set up to determine the reasons and consequences of the
accident.
Works were launched at the site to restore heat and energy supply. Operation at
the coking coal wash shop at the Nerungrinskaya plant was halted. However, the
technological line processing steam coal is operating as scheduled and
accordingly, there will be no delays in supply to the energy enterprises.
In order to load the plant’s steam coal processing lines more efficiently, the
overburden and extraction plans for the Nerungrinsky open pit are being
re-considered. The group plans to step up extraction, processing and shipping of
the SS-grade steam coal, which is in steady demand.
***
Mechel OAO
Ekaterina Videman
Phone: + 7 495 221-88-88
ekaterina.videman@mechel.com
***
Mechel is one of the leading Russian companies operating in four segments:
mining, steel, ferroalloys and power. Mechel's operations produce coal, iron ore
concentrate, crude steel, rolled steel, ferroalloys, value-added downstream
metal products as well as electric and heat power. Mechel markets its products
both domestically and internationally.
***
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.