Mechel announces offering of preferred shares by certain selling shareholders

Mechel, one of the leading Russian mining and metals companies, today announced the launch of a 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 are being offered by James C. Justice II, James C. Justice III, James C. Justice Companies Inc. and Jillean L. Justice (the "Selling Shareholders"). The Selling Shareholders propose to offer up to 49,952,488 preferred ADSs, representing 24,976,244 preferred shares, outside the Russian Federation, in addition to an offering of preferred shares to Russian and international investors. The price range has been set at between US$21.00 and US$27.60 per preferred share and US$10.50 and US$13.80 per preferred ADS.

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