MECHEL SIGNS SERVICE AGREEMENT WITH SINARA TRANSPORT MACHINES

Moscow, Russia — April 21, 2015 – Mechel OAO (MICEX: MTLR, NYSE: MTL), one of
the leading Russian mining and metals companies, reports signing a four-year
contract on locomotive maintenance works between Mecheltrans-East OOO and Sinara
Transport Machines OAO (STM).
The contract was signed on the sidelines of the 20th International Exhibition
for Transport and Logistics Services and Technologies “TransRussia” and is valid
until December 31, 2018.
According to the agreement, STM’s subsidiary STM-Service will fully service and
repair TE8 locomotives manufactured at STM’s Lyudinovsky Locomotive Plant to
Mecheltrans’s order. Currently Mecheltrans-East’s locomotive park includes 15
TE8 locomotives and 3 TEM18DM shunting diesel locomotives. The machines were
produced to specifications requisite for exploitation in difficult climatic
conditions and mountainous areas.
All service and repair works will be made in the repair depot at Verkhny Ulak
station located on the Mechel-constructed Ulak-Elga railway which links the Elga
coal deposit with the Baikal-Amur Mainline. Also, starting in the second half of
2015, STM-Service will ensure the readiness of Mecheltrans-East’s locomotives
for use on general-type railways. According to the contract, servicing will cost
120 million rubles annually.
“In 2014, we completed the contract on designing, producing and supplying 15
innovative TE8 locomotives with the 2,206-kW (3,000-hp) SuperSkid power unit
produced by the US-based GE Transportation Parts LLC. The locomotive proved its
efficiency in long hauls in mountainous areas, in difficult climatic conditions.
This new service contract is another step in our mutually profitable long-term
partnership. STM accepted obligations of setting up a specialized service
center, training personnel, creating a stockpile of spare parts and consumables,
which will help the efficiency of our business in this remote area,” STM’s Chief
Executive Officer Evgeny Gritsenko noted.
“Mechel’s transport division and Sinara Group are linked by long-term business
ties. I am grateful to our partners for helping us in developing the Elga coal
deposit, one of the world’s most large-scale industrial projects. Today it is
highly important for us to conduct prompt maintenance and quality repairs of our
locomotive park at our production facilities. This will help our company to save
transport costs, have a high rate of our locomotives’ technical readiness and,
as a result, a reliable resource in meeting our cargo traffic plans,”
Mecheltrans Management Company’s Chief Executive Officer Alexey Lebedev
commented.

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Mechel OAO
Ekaterina Videman
Tel: + 7 495 221 88 88
ekaterina.videman@mechel.com

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Mechel is an international mining and steel company which employs over 70,000
people. 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.