Mechel announces closing of over-allotment option in the offering of preferred shares and preferred American Depositary Shares by certain selling shareholders

Mechel OAO (NYSE: MTL), one of the leading Russian mining and metals companies, announced the closing of an over-allotment option in the public offering (the "Offering") by certain selling shareholders of preferred shares and preferred American Depositary Shares, each representing an interest in one-half of one preferred share ("Preferred ADSs").

The preferred shares and Preferred ADSs were offered by James C. Justice II, James C. Justice III, James C. Justice Companies Inc. and Jillean L. Justice (the "Selling Shareholders"). As a result of the exercise of the over-allotment option granted to the Joint Bookrunners in the Offering, the Selling Shareholders have sold an additional 2,974,400 Preferred ADSs (representing 1,487,200 preferred shares), resulting in the sale of an aggregate of 33,474,400 Preferred ADSs (representing 16,737,200 preferred shares) in the Offering.

The Offering has been registered with the U.S. Securities and Exchange Commission ("SEC") under an automatic shelf registration statement filed by Mechel.

Morgan Stanley and Renaissance Securities (Cyprus) Limited have acted as Joint Global Coordinators and Joint Bookrunners for the Offering. A copy of the prospectus relating to the Offering can be obtained on the EDGAR website operated by the SEC or by contacting the underwriters for the Offering through Morgan Stanley & Co. Incorporated, 1585 Broadway, New York, NY 10036, United States of America, tel: +1 (866) 718 1649 (attention of Prospectus Department, 180 Varick Street, New York, NY 10014, e-mail: prospectus@morganstanley.com); or, for requests from the United States, through RenCap Securities, Inc., 780 3rd Avenue, 20th Floor, New York, NY 10017, USA, tel: +1 (212) 824 1099 (attention of David Kuzmanich and John Duffy) and, for requests outside the United States, Renaissance Capital Limited, One Angel Court, Copthall Avenue, London, EC2R 7HJ, United Kingdom, tel: + 44 (20) 7367 7777 (attention of Brien McMahon and Robert Hagon).