core sector communique

Mechel Announces Pricing of Offering of Preferred Shares by Certain Selling Shareholders

Moscow, Russia – April 20, 2011 – Mechel OAO (NYSE: MTL), one of the leading Russian mining and steel companies, announces the pricing of a public offering (the "Offering") by certain selling shareholders of preferred shares of Mechel OAO. The preferred shares are being offered by James C. Justice II, James C. Justice III, James C. Justice Companies Inc. and Jillean L. Justice (the “Selling Shareholders”). The Selling Shareholders have agreed to sell 32,000,000 preferred shares. The price has been set at US$16.50 per preferred share. The Offering has been registered with the U.S. Securities and Exchange Commission (the “SEC”) under an automatic shelf registration statement filed by Mechel. Morgan Stanley & Co. Incorporated and Renaissance Securities (Cyprus) Limited have acted as Joint Global Coordinators and Joint Bookrunners for the Offering. VTB Capital has acted as a Joint Bookrunner for the Offering. VTB Capital is not registered as a broker-dealer with the SEC, therefore any offers and sales of the preferred shares by VTB Capital in the United States are made through one or more SEC-registered broker-dealers, which may be affiliates of VTB Capital, to the extent required by applicable U.S. securities laws and regulations. Coalmetbank has marketed the preferred shares to the general public in the Russian Federation. Coalmetbank does not underwrite any of the preferred shares sold in the Offering.