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Mechel Reports 9M 2012 Operational Results



Mechel Reports 9M 2012 Operational Results

MOSCOW, Oct. 29, 2012 (GLOBE NEWSWIRE) -- Mechel OAO (NYSE:MTL), one of the
leading Russian mining and metals companies, announces 9M 2012 operational
results.

Production and sales for 9M 2012                                           
Production:                                                                
Product name       9M 2012, thousand 9M 2011, thousand 9M 2012 vs. 9M
                   tonnes            tonnes            2011, %
Coal (run-of-mine) 20,794            19,813            +5
Pig iron           3,107             2,672             +16
Steel              5,101             4,501             +13

                                                                              
Product sales:                                                                
                                         9M 2012,  9M 2011,  9M 2012 vs.
Product name                             thousand  thousand  9M
                                         tonnes    tonnes    2011, %
Coking coal concentrate                  9,029     9,305     -3
Including coking coal concentrate        1,950     2,271     -14
supplied to Mechel enterprises
PCI                                      1,703     1,202     +42
Anthracites                              1,937     1,693     +14
Including anthracites supplied to Mechel 246       235       +5
enterprises
Steam coal                               4,490     5,036     -11
Including steam coal supplied to Mechel  1,120     1,139     -2
enterprises
Iron ore concentrate                     3,219     3,294     -2
Including iron ore concentrate supplied  268       1,327     -80
to Mechel enterprises
Coke                                     2,707     2,563     +6
Including coke supplied to Mechel        1,903     1,704     +12
enterprises
Nickel                                   11        12.5      -15
Including nickel supplied to Mechel      2         4.6       -65
enterprises
Ferrosilicon                             57        65.8      -14
Including ferrosilicon supplied to       22        22.2      -1
Mechel enterprises
Chrome                                   53        43.3      +23
Including chrome supplied to Mechel      6         12.9      -50
enterprises
Flat products                            534       512       +4
Including those produced by third        303       308       -2
parties
Long products                            3,107     2,925     +6
Including those produced by third        666       614       +9
parties
Billets                                  1,950     1,723     +13
Including those produced by third        751       1,208     -38
parties
Hardware and welded mesh                 737       722       +2
Including those produced by third        39        39        0
parties
Forgings                                 39        45        -13
Stampings                                83        88        -6
Electric power generation (thousand kWh) 3,097,211 2,830,884 +9
Heat power generation (Gcal)             5,409,167 4,804,525 +13

Mechel OAO's Chief Executive Officer Evgeny Mikhel commented on the company's
9M 2012 operational results:

"The Group's production results demonstrated stability in our key business
areas. Consistent with our previously- announced  plans, Mechel continues to
increase coal mining volumes, growing them by 5% in this year's first nine
months as compared to the same period last year. This is largely due to
increased mining at Yakutugol Holding Company's Neryungrinsky Open Pit.
Mechel's sales of PCI increased by 42% and anthracites by 14%, due to the
strategy of increasing the share of metallurgical coals in the mining
division's overall sales. As a part of the company's steam coal was processed
into PCI, steam coal sales decreased by 11%. Iron ore concentrate supplied to
the Group's enterprises decreased by 80% due to a change in Korshunov Mining
Plant's sales structure, as most of the plant's products are currently sold to
China.

"In the steel division, production of steel increased by 13% and pig iron by
16% as compared to last year's figures, when production volumes were reduced
due to major repairs of the blast furnace #5 at Chelyabinsk Metallurgical
Plant and simultaneous replacement of converter #2. Within nine months of
2012, production volumes returned to their earlier level.

"Our sales network Mechel Service Global also demonstrated a positive product
sales dynamics compared to the same period last year. This was achieved due to
the program of optimizing inventories in order to release additional cash.
Sales of flat rolls increased by 4%, longs — by 6%, and hardware — by 2%.  The
Russian markets' stable demand for steel products for the construction sector
helped improve those results. At the same time, complications on the European
markets as well as decreased consumption of quality rolls in the Russian
engineering and machine-building industry had a negative impact on our sales
of stampings and forgings — sales of forgings and stampings decreased by 13%
and 6%, respectively.

"In the ferroalloys division, active inventory sales led to a significant
increase of ferrochrome sales, which were up by 23% compared to the same
period last year. The 15-percent decrease in nickel sales was due to lower
production volumes following a weaker market. Ferrosilicon sales are steadily
growing as the modernized furnace #4 at Bratsk Ferroalloy Plant is nearing its
planned capacity.

"As a result of these nine months, the Group's power division enterprises
increased generation and sales volumes of heat and electricity. Production of
heat grew by 13% due to expansion of the company's activities in the regions
of its presence, as well as new markets. Electricity production remains as
planned, with a 9-percent increase due to higher demand for Southern Kuzbass
Power Plant's output."

Mechel is one of the leading Russian companies. Its business includes four
segments: mining, steel, ferroalloy and power. Mechel unites producers of
coal, iron ore concentrate, nickel, ferrochrome, ferrosilicon, steel, rolled
products, hardware, heat and electric power. Mechel products are marketed
domestically and internationally.

The Mechel OAO logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=8181

All production and sales figures are preliminary and may be adjusted. 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.

CONTACT: Mechel OAO
         Pavel Taran
         Tel: + 7 495 221 88 88
         pavel.taran@mechel.com

Mechel OAO Logo
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