MECHEL CARBON PRODUCTS for steel, lime, soda and other industrial applications

June 2010

Disclaimer
This presentation does not constitute or form part of and should not be construed as, an offer to sell or issue or the solicitation of an offer to buy or acquire securities of Mechel OAO (Mechel) or any of its subsidiaries in any jurisdiction or an inducement to enter into investment activity. No part of this presentation, nor the fact of its distribution, should form the basis of, or be relied on in connection with, any contract or commitment or investment decision whatsoever. Any purchase of securities should be made solely on the basis of information Mechel files from time to time with the U.S. Securities and Exchange Commission. No representation, warranty or undertaking, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or the opinions contained herein. None of the Mechel or any of its affiliates, advisors or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection with the presentation. This presentation 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. The information and opinions contained in this document are provided as at the date of this presentation and are subject to change without notice.

Mechel at a Glance
Mechel Business Highlights

Largest coking coal producer in Russia & TOP-5 largest producer globally Largest and highest quality coking coal reserves base in Russia One of the lowest-cost coking coal producers worldwide Strategically positioned to expand coal exports to fast growing Asian market Leading long steel producer positioned to supply fast growing Russian market High self-sufficiency of steel business in key raw materials Own infrastructure allows to establish secured access to final customer Successful track record of acquisitions Experienced management team & best in class corporate governance among Russian companies Assets in Russia, USA, Romania, Lithuania, Bulgaria, Kazakhstan Shares are listed on New York Stock Exchange, MICEX, RTS

Mechel Business Model

Mining

Steel

Ferroalloys

Power

Financial Performance
Logistics
US$ mln Sales EBITDA EBITDA margin, % Net Income 2006 4,398 1,068 24.3% 603 2007 6,684 1,659 24.8% 913 2008 9,951 2,047 20.6 % 1,141 2009 5,754 998 17.3 % 74

Sales and Marketing

Source: Company Information, audited consolidated US GAAP financial statements

M&A Significant Factor in Achieved Growth

7 mining operations in South Kuzbass

Beloretsk Metallurgical Plant Vyartsilya Metal Products Plant

Izhstal Port Posiet

Moscow Coke and Gas Plant

Ductil Steel Oriel Resources Laminorul Plant HBL Holding

Mechel Targoviste

Yakutugol (25%+1)
Port Kambarka

1990

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

Southern Urals Nickel Plant Chelyabinsk Metallurgical Plant

Korshunov Mining Plant

Yakutugol (75%-1) and Elgaugol (69%) Bratsk Ferroalloy Plant

Bluestone

Urals Stampings Plant Mechel Campia Turzii Mechel Nemunas Southern Kuzbass Power Plant Kuzbass Power Sales Company Toplofikatsia Rousse (49%)

Port Temryuk Mining Iron Ore

Mining - Coal

Steel

Ferroalloys

Power

Logistics

Notes: Only acquisitions of controlling stakes are shown unless otherwise indicated

Broad Geographic Production

Mechel is a Russian vertically integrated mining, steel, ferroalloys and power group. The company's mining business consists of coal and iron ore mines in Russia and United States.

United States

Mechel Bluestone West Virginia

Mechel Nemunas Lithuania Mechel Campia Turzii Vyartsilya Metal Products Plant Tikhvin Smelting Plant

Moscow Moscow Coke and Gas Plant Izhstal Port Kambarka Chelyabinsk Metallurgical Plant Urals Stampings Plant Beloretsk Metallurgical Plant Bratsk Ferroalloys Plant Southern Urals Nickel Plant Shevchenko Nickel Deposit Voskhod Chrome Mining Plant Southern Kuzbass Coal Company Southern Kuzbass Power Plant Port Posiet Elga Coal Deposit Yakutugol Port Vanino (project)

Otelu Rosu Plant

Romania Buzau Plant Mechel Targoviste Bulgaria Toplofikatsia Rousse Port Temryuk

Russian Federation

Korshunov Miming Plant

Kazakhstan

Mechel operates coal mines located in the Kuznetskiy basin in the southwestern Siberia, in the Sakha Republic in eastern Siberia, and in the Appalachian coking coal basin, West Virginia.

Mining Steel

Ferroalloys Power

Port Head office

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Grades of Coal
Most of Mechels coal exports out of Russia and East Coast US consist of low and mid volatile coking coals, low volatile coals, low and high volatile PCI coals, and fine and sized anthracite coals. End-users are mainly coke plants and steel mills located all over the world.
KRASNOGORSKY AMSSH 0-25 mm (WASHED) (SOUTHERN KUZBASS, RUSSIA) 9-11, 13 max TM (ar), % ASH (d), % VM (d), % S (d), % CV (NAR), Kcal/kg HGI Phosphorus, % Nitrogen (d), % SiO2, % Alkaline, % Sizing 0-0.5 mm, % 0.5 - 1.0 mm, % 11-13, 14 max 3-4, 4.5 max 0.2-0.3, 0.4 max 6200, 6000 min 40 0.020 1.2-1.5 60 3.3 0-25 mm 10 15 KRASNOGORSKY TPKO 25-200 mm (SOUTHERN KUZBASS, RUSSIA) TM (ar), % ASH (d), % VM (d), % S (d), % CV (NAR), Kcal/kg 5-7, 8 max 9-11, 13 max 6 min - 9 max 0.3, 0.5 max 7000, 6500 min KRASNOGORSKY MED VOL 0-25 mm (SOUTHERN KUZBASS, RUSSIA) 8, 9 max TM (ar), % ASH (d), % VM (d), % S (d), % CV (NAR), Kcal/kg HGI Phosphorus, % Nitrogen (d), % SiO2, % Alkaline, % Sizing 10-13, 14 max 6-8, 9 max 0.3-0.35, 0.4 max 6600, 6400 min 40 0.040, 0.045 max 1.8 60 3.3 0-25 mm

HGI
Phosphorus, % Nitrogen (d), % SiO2, % Alkaline, % Sizing 0-20 mm

40
0.040 1.8 55 2.9 25-200 mm 20% max

KRASNOGORSKY AO/AK 20-90 mm (WASHED) (SOUTHERN KUZBASS, RUSSIA) TM (ar), % ASH (d), % VM (d), % S (d), % GCV (d), Kcal/kg HGI Phosphorus, % Nitrogen (d), % SiO2, % Alkaline, % Sizing 0-20 mm 9-10, 12 max 9-11, 12 max 3-4, 4.5 max 0.3, 0.5 max 7000, 6700 min 40 0.020 1.2-1.5 60 3.3 20-90 mm 15% max

SIBIRGINSKY PCI 0-25 mm (WASHED) (SOUTHERN KUZBASS, RUSSIA) TM (ar), % ASH (d), % VM (d), % S (d), % CV (NAR), Kcal/kg HGI Phosphorus, % Nitrogen (d), % SiO2, % Alkaline, % 8, 9 max 9, 10 max 12-14, 10 min - 15 max 0.3-0.4, 0.5 max 7100, 6800 min 70 0.025, 0.035 max 2 50 3.3

OLZHERASSKY PCI 0-25 mm (WASHED) (SOUTHERN KUZBASS, RUSSIA) TM (ar), %: ASH (d), %: VM (d), %: S (d), %: CV (NAR), Kcal/kg: HGI Phosphorus, % Nitrogen (d), % SiO2, %: Alkaline, %: Sizing 8-9, 10 max 8-9, 10 max 32-34, 30 min 0.2-0.3, 0.4 max 6500, 6400 min 60 0.020, 0.025 max 1.9 45 1.8 0-25 mm
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Sizing

0-25 mm

Grades of Coal
REDFOX COKING COAL (MECHEL BLUESTONE, USA) TM (ar), %: 6-7.5, max 8.5 ASH (d), %: 7.5, max 8.0 VM (d), %: 24.5, min 23 %, max 26 S (d), %: 1.25 typ, max 1.4 FSI: 8.5 Oxidation: 98 +92 Reflectance: 1.25 Fluidity: min 500 DDPM Size: 0-50 mm KEYSTONE COKING COAL (MECHEL BLUESTONE, USA) TM (ar), %: 6-7.5, max 8.5 ASH (d), %: 5.5-6, max 6.5 VM (d), %: 19, min 17 - max 21 S (d), %: 0.80, max 1 FSI: 8.0 Oxidation: 98, +92 Reflectance: 1.5 Fluidity: min 50 DDPM Size: 0-50 mm CLEAR CREEK COKING COAL (MECHEL BLUESTONE, USA) TM (ar), %: 6-7, max 8.5 ASH (d), %: 6-6.5, max 7.0 VM (d), %: 26-27, min 25 - max 28 S (d), %: 0.9, max 1 FSI: 8.5 8.5 Oxidation: 94, +90 Reflectance: 1.21 Fluidity: min 200 DDPM Size: 0-50 mm MECHEL CREEK COKING COAL (MECHEL BLUESTONE, USA) TM (ar), %: 6-7, max 8.5 ASH (d), %: 6-6.5, max 7.0 VM (d), %: 28, min 26 - max 30 S (d), %: 0.9, max 1.0 FSI: 8.5 8.5 Oxidation: 97, +92 Reflectance: 1.2 1.2 Fluidity: min 2000 DDPM Size: 0-50 mm K9 COKING COAL (YAKUTUGOL, RUSSIA) TM (ar), %: 7.50 typ, 8.00 max ASH (ad), %: 9.50 - 10.50, 11.5 max VM (ad), %: 16.0-21.0, 22 max S (ad): 0.23-0.30, 0.35 max Phosphorus (ad), %: 0.025 typ, 0.05 max Plastometer index "Y": over 8 FSI: 7-9 Size: 0-30 mm OS/KS COKING COAL (SOUTHERN KUZBASS, RUSSIA) TM (ar), %: 9.0, 10.0 max ASH (d), %: 9.5, 10.5 max VM (d), %: 24 max S (d), %: 0.5, 0.6 max Plastometer index "Y": 10 min NCV, Kcal/kg: 6900 min Size: 0-100 mm OLZHERASSKY GZHO SOFT COKING COAL (SOUTHERN KUZBASS, RUSSIA) TM (ar), %: 10.0 max ASH (d), %: 10.0 max VM (d), %: 38 max S (d), %: 0.5 max Plastometer index "Y": 10 min NCV, Kcal/kg: 6400 min Size: 0-25/50 mm

TM (ar), %

COKE BREEZE 0-10 mm 18-19, 20 max 12-13, 14 max

ASH (d), %

Balast (TM+ASH,ar),%: 32% max 1.5-1.7, 1.8 max VM (d), %: S (d), %: GCV (d), Kcal/kg Phosphorus, % Nitrogen (d), % SiO2, % Alkaline, % Sizing: 0-1 mm, % 0-0.5 mm, % 0.5-1.0 mm, % 1-5 mm, % 5-10 mm, % 0.3-0.4, 0.6 max 6800, 6700 min 0.030, 0.045 max 1.55 50 3.3 0-10 mm 38 max 16-18% 10-15% 50-60% 10-15%

Logistics including 3rd parties

Murmansk Murmansk

Loadports in: - Russia - Ukraine - Latvia

Arkhangelsk

Moscow

Arkhangelsk

Disports in: - Belgium - Poland - Germany - Netherlands - France - Spain - Turkey - Italy - UK

Posiet

Ventspils Riga

Russian Federation
Moscow

UK

Netherlands
Gdansk Amsterdam Rotterdam Antwerpen

Latvia
Liepaja

Immingham

Swinoujscie

Swansea

Ghent

Poland Ukraine
Mariupol Yuzhny Azov Temruyk

Belgium
Dunkerque

Duisburg

France
Gijon Bilbao

Marghera

Fos Savona Ravenna

Italy Spain
Eregli Turkey Izmir Iskenderun

Port

Head office

Mining
Overview Coal Yakutugol

Largest coking coal producer in Russia & one of the largest producers globally Largest and highest quality coking coal reserves base in Russia

Located in Yakutiya close to Neryungri 2 open-pit mines

and 1 underground mine

Mechel Mining
Coal Yakutugol

Elga Coal Deposit

Southern Kuzbass Coal Company Elga Coal Deposit Located in Siberia close to Kemerovo Southern Kuzbass Coal Company Mechel Bluestone Iron Ore Korshunov Mining Plant
Production:

4 open pit mines and 3 underground mines

Iron Ore Korshunov Mining Plant

2010E 000t 26,543 15,907 1,948 1,159

Production:

2007 000t

2008 000t 26,393 15,148

2009 000t 17,782 10,243

Located in Zheleznogorsk-Ilimsky close to Irkutsk, central Siberia

3 open pit iron ore mines

Coal Coking Coal Anthracite PCI Steam Coal Iron ore concentrate

21,195 10,419

10,775 4,963

11,244 4,700

7,539 4,208

7,529 5,000

Bluestone
Diversification and improving of quality of coking coal reserves grades

Establishment of global coal platform Overview of Bluestone Coal Group

5 open pit and 5 underground mines

Access to the Atlantic seaborne market

Situated in Low Volatility Coal Deposit Area (West Virginia)

High quality, only coal cleaning is necessary Low ash content - 3.0-6.5 (vs. Yakutugol K9 concentrate 10.1, Southern Kuzbass OS concentrate 11.2) JORC reserves and resources: 462.03 mln tonnes (1) Proved Reserves: 218.14 mln tonnes (1) Inferred Resources: 243.89 mln tonnes (1) Reserves may be increased up to 860 mln tonnes as a result of a drilling program Key markets post acquisition: United States, Europe, Asia-Pacific and South America All CAPEX necessary to grow up the production have been made till 2009. 5-year plan is $130 mln

Ohio

Pennsylvania

West frontage of coal deposit available for exploitation

Kentucky

Source: West Virginia Geological and Economic Survey

Low debt level ($135 mln out of which $40 mln is working capital loans) Located near Norfolk port which accepts Capesize vessels Plans to increase production up to 7 mln tonnes per a year

Coal Reserves Structure

High volatility 12% Low and mid volatility coal enjoys a price premium of 10-15%

Bluestone production history and forecast

4.0 mln tonnes 2.4 2.5 2.6 2.5 raw coal production Low volatility 82% Mid volatility 6%

2006 2007 2008 2009 2010E

Notes:
(1) As

of January 1, 2010

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Elga Deposit Project Expanding Coal Presence

Elga Coal Deposit

Enlarged market positions & enhanced margins

Quality shift in production volumes & product mix

Coal reserves: 2.2 bt: Coal type: premium hard coking coal, semi soft and steam coal Expected full annual capacity: up to 30 mt of raw coal Recovery ratio up to 60%

Production forecast in 2010-2021

Currently: Construction of 310 km railway link to BAM

Development of one of the largest untapped high quality coal deposits globally

Identified CAPEX on railroad construction and deposit development in 2010-2012: US$1.9 bn First coal output target: 4Q2010 Seaborne sales through new Mechels port Vanino terminal operations to be constructed
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Largest Coking Coal Producer in Russia and One of the Largest Producers Globally

Russian Raw Coking Coal Aggregate Production in 2007-2009(1)

World Major Coking Coal Concentrate Production (excl. China) in 2008

BMA
(1)

Mechel

36

55

Teck Coal Raspadskaya

33

23

Anglo Am. Sibuglemet

25

15

Mt

Evraz

25

Mt

Mechel

11

Bluestone

Xstrata Severstal
24 Alpha NR

12

12

KRU

12

Massey Energy

10

SUEK

Peabody

10

10

20

30

40

50

60

10

20

30

40

50

60

Source: Central Dispatching Department of the Fuel and Energy Complex Notes:
(1)Yakutugol

Source: Company analysis of financial report of comparable companies Notes: (1) Including PCI coal 12

and Southern Kuzbass production volumes are included into Mechels numbers

Largest Coking Coal Reserves Base in Russia and Diversified Coal Grade Portfolio of the Highest Quality

Coking Coal Reserves of Key Russian Producers

Coal Reserves Structure

Southern Kuzbass Yakutugol Bluestone

Total = 1,772 mln tonnes

Total = 2,519.7 mln tonnes

Total = 462.03 mln tonnes

Reserve base

- Coking coal

- Steam coal

The Company has a highly diversified portfolio of coal grades for both coking and steam coals which allows to efficiently serve all customer needs

1st

2nd

3rd

4th

5th

Coking coal grades Steam coal grades

From semi-soft to high quality hard

Wide range including metallurgical coal

According to the Russian resource estimation methodology, Mechel controls the largest coking coal reserve base among Russian producers which is more than 3x times bigger in size than the one of the closest peer
Source: Rosinformugol, Company Information

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Strategically Positioned to Expand Coal Exports to Growing Asia-Pacific and Atlantic Seaborne Markets

Murmansk

Pechorskiy coal basin

Russia Canada

St. Petersburg

South Kuzbass

South-Yakutian coal basin Yakutugol Port Posiet

Kuznetskiy Yuzhnyi

USA

Mechel Bluestone

China

Japan

Mechel Bluestone

Taiwan India Brasil Indonesia

Australia

Major coking coal producing countries

Major steam coal producing countries

Target markets for Mechels coking coal supplies

Target markets for Mechels steam coal supplies

Major coking coal producing countries

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Own Infrastructure Allows to Establish Secured Access to Final Customer

Lithuania

Moscow Romania

Russia

Port Kambarka
Bulgaria
Azov Sea

Port Temryuk

Kama River

Elga Deposit
Korshunov Mining Plant Vanino
- Up to 25.0 mt -Loads up to Capesize vessels - Project stage

China Kazakhstan
Legend
ports
BAM railway planned railway to Elga Deposit

Mongolia
Mechel Trans

Vladivostok Port Posiet

- Up to 9.0 mln tonnes in 2011 - Currently loads Handysize vessels - Panamax loadings are planned

Ca. 3,900 railcars

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Operational Results Overview

Products 2009, thousand tonnes 2008, thousand tonnes

Coal
Coking coal Steam coal Iron Ore Concentrate Chromite Ore Concentrate Nickel Ferrosilicon (65% and 75%) Ferrochrome (65%) Hardware Rolled Products Flat Products

17,782
10,243 7,539 4,208 211 16 86 83 627 5,357 345

26,393
15,148 11,244 4,700 16 84 58 719 5,392 357

Long Products
Billets Steel Coke (6%)

3,099
1,913 5,496 3,233

3,348
1,687 5,909 3,326
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Vertically Integrated Mining and Metals Platform

Mining
Coal/Coke Southern Kuzbass: 4 open pit and 3 underground mines, 4 washing plants, 1 coke plant Yakutugol and Elgaugol operations: 1 washing and 1 coke plant Bluestone Coal: 8 open pit and 5 underground mines Controls 26% of coal washing capacity in Russia Holds 16% in Mezhdurechye Iron ore Korshunov GOK, Irkutsk region 3 open-pit iron ore mines Limestone Pugachev limestone quarry, Urals

Steel
Domestic assets Chelyabinsk Metallurgical Plant (ChMP) Izhstal Beloretsk Metallurgical Plant Vyartsilya Metal Products Plant Urals Stampings Plant Moscow Coke and Gas Plant International assets Mechel Targoviste (Romania) Mechel Campia Turzii (Romania) Otelu Rosu plant (Romania) Buzau plant (Romania) Mechel Nemunas (Lithuania)

Ferroalloys
Ferrochrome Tikhvin Smelter, near St. Petersburg Chrome ore Voskhod Chrome mine in Kazakhstan Ferrosilicon Bratsk Ferroalloys Plant Ferronickel Southern Urals Nickel Plant Nickel ore 1 open-pit mine in Chelyabinsk region 1 open-pit mine in Orenburg region Shevchenko nickel deposit in Kazakhstan

Transportation/Logistics
Mining
Domestic sales Mechel Trading House International sales Mechel Trading AG Mechel Carbon AG Coal and iron ore Railway and by ship Nickel Rail to ChMP or to St. Petersburg/ Kaliningrad for export Mecheltrans Own 4,150 railcars 25.8 mt of Mechels cargo transported in 2007 Port Posiet Capacity of 3.5 mt of cargo per year, mostly coal Used primarily for shipments to Japan and South Korea Port Temryuk Capacity of 2.5 mt of cargo per year

Power
Total Power Generating Capacity of 1,200 MW (1)
Assets Southern Kuzbass Power Plant 554 MW Urals Stampings Plant 3.5 MW Toplofikatsia Rousse 400 MW (1) Chelyabinsk Metallurgical Plant 230 MW Moscow Coke and Gas Plant 30 MW

Steel
Domestic Mechel Trading House International Mechel Trading AG Mechel Service Global Transportation Mostly railway Port Kambarka Capacity of 1 mt of cargo per year

Integrated power business with its own raw material resources, power generating facilities and extensive client base

Source: Company Information Notes:

(1)

Based on installed generating capacity of Toplofikatsia Rousse

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Contacts

Contact for Sales: Mechel Trading Ltd Oberdorfstrasse 11 CH-6340 Baar Switzerland Tel.: + 41 41 768 45 00 Fax: + 41 41 768 45 01 info@mechelgroup.com

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