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Mechel Reports 1Q2013 Operational Results



Mechel Reports 1Q2013 Operational Results

MOSCOW, May 13, 2013 (GLOBE NEWSWIRE) -- Mechel OAO (NYSE:MTL), one of the
leading Russian mining and metals companies, announces 1Q2013 operational
results.

Production and sales for 1Q2013

Production:

                                                                   
                   1Q2013,  4Q2012,  1Q2013 vs. 1Q2013,  1Q2012,  1Q2013 vs.
Product name       thousand thousand 4Q2012, %  thousand thousand 1Q2012, %
                   tonnes   tonnes              tonnes   tonnes
Coal (run-of-mine) 6,406    6,970    -8         6,406    6,413    0
Pig iron           972      1,054    -8         972      1,023    -5
Steel              1,300    1,430    -9         1,300    1,655    -21

Sales:

                                                                      
                   1Q2013,   4Q2012,   1Q2013    1Q2013,   1Q2012,   1Q2013
Product name       thousand  thousand  vs.       thousand  thousand  vs.
                   tonnes    tonnes    4Q2012, % tonnes    tonnes    1Q2012, %
Coking coal        2,843     2,513     +13       2,843     3,181     -11
concentrate 
Including coking
coal concentrate   613       640       -4        613       628       -2
supplied to Mechel
enterprises
PCI                817       725       +13       817       503       +62
Anthracites        541       453       +19       541       614       -12
Including
anthracites        4         25        -86       4         58        -94
supplied to Mechel
enterprises
Steam coal         1,551     1,420     +9        1,551     1,504     +3
Including steam
coal supplied to   427       419       +2        427       355       +20
Mechel enterprises
Iron ore           1,039     1,171     -11       1,039     1,118     -7
concentrate
Including iron ore
concentrate        5         12        -53       5         150       -96
supplied to Mechel
enterprises
Coke               796       854       -7        796       889       -10
Including coke
supplied to Mechel 519       546       -5        519       669       -22
enterprises
Nickel             0         0.5       0         0         4.2       0
Including nickel
supplied to Mechel 0         0         0         0         0.6       0
enterprises
Ferrosilicon       22.8      22        +6        22.8      18.0      +27
Including
ferrosilicon       8.4       7.6       +10       8.4       7.2       +16
supplied to Mechel
enterprises
Chrome             10.1      17        -40       10.1      17.2      -41
Including chrome
supplied to Mechel 1.4       2         -1        1.4       2.5       -43
enterprises
Flat products      185       184       +1        185       214       -14
Including those
produced by third  94        94        0         94        141       -34
parties
Long products      841       966       -13       841       937       -10
Including those
produced by third  233       242       -4        233       196       +19
parties
Billets            355       652       -46       355       540       -34
Including those
produced by third  88        130       -33       88        268       -67
parties
Hardware and       204       239       -15       204       213       -5
welded mesh
Including those
produced by third  12        17        -28       12        11        +18
parties
Forgings           19        18        +3        19        18        +5
Stampings          25        28        -10       25        28        -10
Electric power
generation         1,194,337 1,175,399 +2        1,194,337 1,213,029 -2
(thousand kWh)
Heat power         2,723,119 2,536,507 +7        2,723,119 3,202,981 -15
generation (Gcal)

Mechel OAO's Chief Executive Officer Evgeny Mikhel commented on the company's
1Q2013 results:

"In 1Q2013, we have had an expected decrease in coal production compared to
4Q2012 due to less favorable conditions of open pit mining in cold winter
months. At the same time, a certain improvement in the metallurgical coal
market, which we could see since the beginning of this year, and our company's
efforts aimed at expanding its client base enabled us to significantly boost
our sales of coking coal, anthracites and PCI both internationally, primarily
to Asia Pacific, and domestically, including supplies from Mechel Bluestone,
which resumed operations early this year, to North America's market. As a
whole, coking coal sales in 1Q2013 increased by 13% compared to 4Q2012,
anthracite sales increased by 19% and PCI sales by 13%. Steam coal sales also
went up by 9% compared to the previous quarter, which is primarily due to
increased supplies to the Group's power enterprises, especially Southern
Kuzbass Power Plant, which increased electricity generation due to seasonal
factors.

"In the steel division, in 1Q2013 there was a decrease of sales on several
counts, which was due to the measures taken to optimize production in view of
steel product markets' seasonal weakness, primarily the long rolls market, as
well as disposal of Mechel's steelmaking plants in Romania. Lower billet sales
were due to the halting of Donetsk Electrometallurgical Plant.

"Ferrosilicon sales went up compared to 4Q2012 figures. Positive dynamics were
due to repairs and launching of a furnace at Bratsk Ferroalloy Plant. A
decrease in chrome sales was due to a planned production decrease at Tikhvin
Ferroalloy Plant caused by a weaker market. Throughout the first quarter, the
plant operated two furnaces out of four. Nickel was not produced due to the
halting of Southern Urals Nickel Plant in late 2012 caused by unfavorable
market conditions.

"The power division's enterprises maintained their production results in
1Q2013 on the level of last year's figures. A small decrease in results as
compared to 1Q2012 was due to Mechel-Energo disposing of some power assets,
primarily Toplofikatsia Rousse EAD. Also climate conditions were milder in
this period compared to the same period last year, which have had their
effect."

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.

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
         Anton Lapin
         Tel: + 7 495 221 88 88
         antonlapin@mechel.ru

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