Mechel announces JORC summary of ore reserves and resources

Mechel OAO, one of the leading Russian mining and metals companies, announces a JORC summary of its ore reserves and mineral resources as of May 1, 2011.

Based on the review prepared by IMC Group Consulting Ltd., the total JORC Equivalent Coal Ore Reserves and Resources as of May 1, 2011 were 3,271 million tonnes and 4,373 million tonnes, respectively, while total JORC Equivalent Iron Ore Reserves and Resources as of May 1, 2011 were 267 million tonnes and 427 million tonnes, respectively.

Commenting on the announcement, Igor Zyuzin, Chairman of Mechel OAO’s Board of Directors and CEO of Mechel Mining OAO, said:

“We are delighted to announce the substantial JORC reserves and resources for the Company, demonstrating the quality of our mining asset base and positioning us as one of the largest metallurgical coal producers globally by reserves and resources. Our resource base is sufficient to ensure a dramatic increase in production of metallurgical coals and help consolidate Mechel Mining OAO’s position as one of the world’s largest coal producers and suppliers. We continue to focus on growing our mining business through development of our reserves including at Elga, where production will begin in August 2011 and is expected to reach 9 million tonnes a year by 2015 and 27 million tonnes a year by 2021. We will also look for opportunities to enhance our resource base beyond the existing portfolio, as well as adding more reserves through exploration and targeted acquisitions. In line with our stated strategy, we continue to evaluate the possibility of a public listing of the mining division of the Company, which we believe will enable Mechel Mining to have better access to capital, crystallize value for our shareholders and provide access to additional growth opportunities.”

The detailed reserves and resources summary is presented below:

Mechel Total JORC Equivalent Coal and Iron Ore Reserves and Resources as of May 1, 2011

Company Mineral Resources Ore Reserves   Category Thousand tonnes Category Thousand tonnes   Measured 1 104 323 Proved 573 853 Southern Kuzbass Indicated 503 950 Probable 109 447   Total 1 608 273 Total 683 300   Measured 2 014 686 Proved 1 947 520 Yakutugol Indicated 483 553 Probable 491 818   Total 2 498 239 Total 2 439 338   Measured 119 988 Proved 76 050 Mechel Bluestone Indicated 147 462 Probable 72 409   Total 267 450 Total 148 459   Measured 3 238 997 Proved 2 597 423 Mechel Coal Total Indicated 1 134 965 Probable 673 674   Total 4 373 962 Total 3 271 097   Measured 239 990 Proved 161 281 Korshunov Mining Plant (iron ore) Indicated 187 262 Probable 105 382   Total 427 252 Total 266 663

Note Reserves include adjustments for loss and dilution modifying factors.

Mechel JORC Equivalent Coal Resources by Type as of May 1, 2011 (thousand tonnes)

Company Category Coking Thermal Anthracite Brown Total   Measured 383 345 579 664 141 314   1 104 323 Southern Kuzbass Indicated 174 937 264 526 64 488   503 950   Total 558 282 844 190 205 801   1 608 273   Measured 1 835 665 91 660   87 361 2 014 686 Yakutugol Indicated 482 238 1 315   0 483 553   Total 2 317 903 92 975   87 361 2 498 239   Measured 119 988       119 988 Mechel Bluestone Indicated 147 462       147 462   Total 267 450       267 450   Measured 2 338 998 671 324 141 314 87 361 3 238 997 Mechel Coal Total Indicated 804 637 265 841 64 488 0 1 134 965   Total 3 143 635 937 165 205 801 87 361 4 373 962

Mechel Mining JORC Equivalent Coal Reserves by Type as of May 1, 2011(thousand tonnes)

Company Category Coking Thermal Anthracite Brown Total   Proved 198 875 300 723 73 312   572 910 Southern Kuzbass Probable 37 992 57 449 14 005   109 447   Total 236 867 358 172 87 317   682 357   Proved 1 848 435 15 221   83 864 1 947 520 Yakutugol Probable 491 278 540   0 491 818   Total 2 339 713 15 761   83 864 2 439 338   Proved 76 050       76 050 Mechel Bluestone Probable 72 409       72 409   Total 148 459       148 459   Proved 2 123 360 315 944 73 312 83 864 2 596 480 Mechel Coal Total Probable 601 680 57 989 14 005 0 673 674   Total 2 725 040 373 933 87 317 83 864 3 270 154