MANAGEMENT PRESENTATION February 2015

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.

2 2

MECHEL AT A GLANCE

Mining 32%

Steel 58%

Power 10%

Mining 61%

Steel 30%

Power 9%

LEADING VERTICALLY INTEGRATED MINING & METALS COMPANY MECHEL INTEGRATED BUSINESS MODEL

OPERATING HIGHLIGHTS, SALES

Mining Segment

Source: Company data

- Share produced by third parties

0.5 0.3

9m 2013 9m 2014

Crude Steel, production Long products

Billets Flat products

12.5 11.8

4.5 4.2

3.1 2.5

9m 2013 9m 2014

Met Coal Steam Coal Iron ore concentrate

Steel Segment

‘000 t

onnes

4

Steel Mining Power

FINANCIAL HIGHLIGHTS

9m 2014 Revenue Breakdown 9m 2014 EBITDA(a)(1) Breakdown

Mining

Steel

SALES & MARKETING

LOGISTICS

3.6

2.7

0.7

3.2

2.3

0.08

‘000 t

onnes

(1) EBITDA(a) represents earnings before Depreciation, depletion and amortization, Foreign exchange gain / (loss), Loss from discontinued operations, Gain / (loss) from remeasurement of contingent liabilities at fair value, Interest

expense, Interest income, Net result on the disposal of non-current assets, Impairment of goodwill and long-lived assets, Provision for amounts due from related parties, Result of disposed companies (incl. the result from their

disposal), Amount attributable to noncontrolling interests, One-off accrual of taxes for prior periods and Income taxes.

INVESTMENT HIGHLIGHTS

5

Best-in-class global coking coal producer and exporter

with attractive growth profile

• One of the largest metallurgical coal producers globally

• One of the leading exporters on the seaborne market

• Developing one of the largest coking coal deposits globally

Superior asset quality

• One of the largest coal reserves base globally

• Core assets positioned at the lower bound of the global cost curve

• Ability to supply steel producers with a full range of metallurgical coal

• First newly built rolling mill for high-speed long rails in Russia

Strategically positioned to

supply both Asia-Pacific and Atlantic seaborne markets

• Uniquely positioned to supply metallurgical coal to attractive Asia Pacific markets

• Access to key Far Eastern and European ports

• Lower transportation cost to supply key growth markets in Asia

• Own infrastructure including ports and rolling stock, secures access to end customers and export markets

Vertically integrated steel business model

• Steel business is virtually self-sufficient in coal and iron ore

• Established distribution and sales platform in core markets

Leading steel producer • Largest specialty steel producer in Russia

• Second largest long steel producer in Russia

• Largest distribution platform in Russia

Port Temryuk

Russian Federation

Lithuania

Kazakhstan

Elga Coal Complex Yakutugol

Korshunov Mining Plant

Southern Kuzbass

Coal Company

Chelyabinsk Metallurgical Plant

Urals Stampings Plant

Beloretsk Metallurgical Plant

Izhstal

Moscow Coke

and Gas Plant

Vyartsilya Metal Products Plant

Port Posiet

Port Vanino*

Port Kambarka

Bratsk Ferroalloy Plant Southern Kuzbass

Power Plant

Moscow Mechel Coke

Ukraine

Mechel

Nemunas

BROAD GEOGRAPHIC FOOTPRINT TARGETING GROWTH MARKETS

USA Mechel Bluestone

West Virginia

REVENUE BREAKDOWN BY

MARKET (9m 2014)

Mining Segment

China 36%

Russia 29%

Europe 15%

Asia w/o China 14%

CIS 3%

Middle East 3%

Other 0%

Steel Segment

Russia 68%

Europe 16%

CIS 12%

Asia 1%

Middle East 1%

USA 0.3% Other

1.7%

Source: Company data

Mining

Steel Power

Port Head office

6

*Access to port secured by contractual agreements

Mongolia

China

TSO

%

of Total

Ordinary 416,270,745 75%

Preferred 138,756,915 25%

Preferred Publicly Trading 57,209,577 10%

Preferred held by Justice family 26,044,572 5%

Preferred Share held by Mechel as treasury

55,502,766 10%

Total 555,027,660 100%

CAPITAL STRUCTURE

CAPITALIZATION AND OWNERSHIP STRUCTURE

Preferred Shares

Ordinary Shares

Public Float

32.6%

Igor Zyuzin

(with family)

67.4%

Public Float

41%

Justice Family

19%

Mechel

40%

Source: Company data

OWNERSHIP STRUCTURE

7

NARROWED STRATEGY USING KEY COMPETITIVE ADVANTAGES FOR VALUE GROWTH

GROWTH IN SHAREHOLDER VALUE

BASED ON VERTICALLY-INTEGRATED BUSINESS

MODEL

TOP-5 global metcoal producer 1

Leader in Russia and CIS construction steel market 2

Leader in specialty steel, stainless steel and hardware production 3

Optimization of asset structure to deleverage 4

8

35.9

11.1

1.4

2.6

3.4

7.7 4.6

2.5

4.1

2.6

Production Consumption

MM

t

MM

t

MM

t

MM

t

MM

t

Production Consumption Production Consumption

Shipped through

own ports

Shipped overall

(excl. US ports)

Own rolling stock Overall

9

Production Consumption

9.6

4.5

3.3

7.8

5th largest metallurgical coal

producer globally* with ability

to supply steel producers with

a wide range of metallurgical

coal types, coke and iron

ore concentrate.

Own infrastructure

helps to establish access to

end customers.

*Ex-China Source: Company data

- Volumes shipped through Vanino port

Sea Port capacity, 9m 2014 Cargo turnover, 9m 2014 Power, 9m 2014

Coking Coal Concentrate, 9m 2014 Iron Ore Feed, 9m 2014 Coke, 9m 2014

bln

KW

h

VERTICALLY INTEGRATED MINING & STEEL BUSINESS MODEL WITH FOCUS ON COMPETITIVE ADVANTAGES

4 361

3 690

2 576

1 602

1 500

1112

1 082

826

411

350

0 1 000 2 000 3 000 4 000 5 000

BMA

Mechel

Evraz

Vale

Alpha Natural Resources

Peabody

BHP

Anglo-American

Walter Energy

Glencore Xstrata

33,8

31,2

25,6

20,1

16,4

15,9

12,1

11,8

11,6

7,9

0 10 20 30 40

BMA

Anglo-American

Teck

Alpha Natural Resources

Mechel

Peabody

Rio Tinto

Xstrata

Walter-Energy

BHP

LEADING GLOBAL METALLURGICAL COAL PRODUCER

2nd largest metallurgical coal reserve base

5th largest metallurgical coal producer globally with superior leverage to metallurgical coal

One of the largest global exporters of coking coal

Top Ten Metallurgical Coal Exporters in 2013 Ten Largest Metallurgical Coal Producers in 2013 Ten Largest Metallurgical Coal Producers by

Metallurgical Coal Reserves

MMt MMt

Source: Wood Mackenzie 2013 (1) Including 50% share of BMA (2) Including PCI and anthracite export

Source: Company Filings All production numbers shown on an attributable saleable basis unless otherwise disclosed (1) Met coal with some minor thermal coal production (2) Small part may be third-party purchased coal (3) 100% for consolidated entities and attributable for JVs and associates (4) South Walker+Poitrel. BHP/Mitsui – 80/20 (5) Coking coal concentrate+PCI+Anthracites (6) Met coal only (7) With IIIawarra project

Source: Company Filings, IMC All reserve numbers shown on a 100% run-of-mine basis unless otherwise disclosed (1) Assumes 100% of disclosed reserves are metallurgical (2) On a saleable, attributable basis (3) Reserves as of 30 June 2012 (4) Adjusted for acquisition of Raspadskaya

10

(1)

(2)

MMt (1)

(1)

(1)

65

22

22

18

17

15

14

14

13

11

0 20 40 60 80

BHP Billiton

Teck

Anglo American

Peabody

Alpha

Glencore Xstrata

Rio Tinto

Walter Energy

Mechel

Vale S.A.

(3)

(4))

(3)

(4)

(6)

(2)

(1)

(2)

(5)

(7)

(6)

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

LOW COST COKING COAL PRODUCER

Source: AME

Notes: (1) FOB excluding land freight and port costs

Source: AME

Cumulative Production (%)

Australia USA & Canada Russia Other

Cumulative Production (%)

Australia USA & Canada Russia Other

0

50

100

150

200

0

50

100

150

200

Yakutu

gol Mechel B

lended

0

50

100

150

200

0

50

100

150

200

Me

ch

el B

len

ded

U$/t

Yakutu

gol

post - Elga

About 80% of coking coal by open pit

Access to cheap labor Low production cost

Low raw material costs

ESTIMATED EXPORT COKING COAL COST CURVE (FCA(1)) ESTIMATED EXPORT COKING COAL COST CURVE (FOB)

U$/t

11

150

100

50

150

100

50

Port Posiet

Yakutugol Southern

Kuzbass

Indonesia

USA

Canada

Europe

Australia

India

Japan China

Russia

211.7 mn t (2)

ABILITY TO SUPPLY ALL METCOAL MARKETS

Major coking coal

exporting regions

Target markets for Mechel’s

coking coal supplies

Target markets for Mechel’s

steam coal supplies

Major coking coal

importing regions

Mechel’s routes

3rd parties routes

Size of respective

seaborne coking coal markets

Notes: (1) FY2013 coal production

(2) Total seaborne met coal imports (2013 est), China, India, Japan, South Korea.

Source: MCQ47

Diversification / enhancement of sales channels to the fast-growing Asian and European markets

Extensive range of metcoal grades allow for diversified product portfolio to serve a variety of customer needs

Mechel’s own ports on the Sea of Japan and Azov Sea serve as a stable gateways to export markets

Freight rates from port Posiet

(Handysize 22 000 t)

to Northern China $11 pmt

to Yangtze River $12 pmt

to Southern China $15.75 pmt

to Thailand $16.60 pmt

to Philippines $17 pmt

to Indonesia $18.50 pmt

India (West Coast / East Coast)

$33 / $30 pmt

to Japan $10.50 pmt

15.1 mn t (1)

9.9 mn t (1)

12

Freight rates from port Vanino

(45 000 t)

to Northern China $11.50 pmt

to Yangtze River $12.50 pmt

to Southern China $15 pmt

to Thailand $14.95 pmt

to Philippines $15 pmt

to Indonesia $16 pmt

India (West Coast / East Coast)

$26.25/ $23

pmt

to Japan $9 pmt

Port Vanino

Source: Company data

MECHEL SERVICE GLOBAL -- MAP OF DISTRIBUTION HUBS

95 storage sites and service centers throughout Russia,

CIS & Europe

Real time market intelligence and pricing feedback

Opportunity to address specific customer needs and sell

more high-marginal, value-added products

ADVANTAGES

PRODUCT PRODUCTION

VOLUME, 6m 2014

‘000 tonnes

RUSSIAN

PRODUCTION

SHARE

RANK

Spring

wire 1 58% 21

Wire

products 1 31% 323

Wire rod 1 32% 429

High-

tensile wire 2 37% 17

Flat

stainless

steel 1 46% 5

Rebar 3 18% 791

LEADER IN SPECIALTY, STAINLESS STEEL & HARDWARE

13

Geographies of presence of Mechel Service

Mechel Service facilities

• Logistics flexibility on the Sea of

Azov and Black Sea

• Potential to increase export of coking

coal, PCI and anthracite to Europe

• Existing port capacity – 2 mln tonnes

• Target capacity - 4 mln tonnes

• Rolling stock of more than 11,900

railcars

• Ensures uninterrupted transportation

• Reduces dependency on Russian

Railways, state-owned and

independent freighters

• Increase access to Asian coal

customers via seaborne market

• Existing port capacity – 7 million

tonnes per year

• Target capacity - 9 mn tonnes

(Panamax vessels) after 2nd stage of

modernization

MECHEL’S INFRASTRUCTURE ALLOWS SECURED ACCESS TO FINAL CUSTOMERS

• Increases logistics flexibility to Asian

coal customers via seaborne market

securing exports from Elga

• Total turnover up to 10 million tonnes

of cargo per year

• Shorter transportation distances –

lower rail and vessel freights

TEMRYUK PORT MECHEL TRANS TRANSPORTATION COMPANY

POSIET PORT VANINO PORT*

14

* Access to port secured by contractual agreements

KEY PROJECT CHARACTERISTICS

4.7 7.0

1.8

1.8

10.0

0,0

5,0

10,0

15,0

20,0

2012 2014

Posiet Temryuk Vanino

6.5

18.8

TEMRYUK POSIET VANINO

EXISTING

CAPACITY 1.8 MMt per year 7.0 MMt per year 10.0 MMt per year

TARGET

CAPACITY 4.2 MMt per year 9 MMt per year na

DEVELOPMENT

STAGE Modernization Modernization na

VESSEL TYPE River-to-sea

vessels

Panamax (post

modernization) Panamax

TIMING 2017 na na Source: Company data

Notes: * Volumes secured by contractual agreements

Elga Coal Complex Yakutugol

Southern

Kuzbass

Port Posiet

Port Vanino Port Temryuk

OWN SEAPORT FACILITIES

OWN SEAPORT ANNUAL TURNOVER CAPACITIES, MMt *

MECHEL TRANS – ACCESS TO SEABORNE MARKET

15

Access to main customers in Asia-Pacific and

Europe secured through own ports infrastructure

Port capacity aligned with expected growth in

export volumes

ALIGNING ASSETS STRUCTURE WITH STRATEGY

Mining Segment

Korshunov Mining

Plant

Iron Ore

Yakutugol

Southern Kuzbass

Coal Company

Elga Coal

Deposit

Bluestone

Coal

Coke

Mechel Coke

Moscow Coke and

Gas Plant

Steel Segment

Vyartsilya Metal Products Plant

Beloretsk Metallurgical Plant

Urals Stampings Plant

Mechel Targoviste

(Romania)

Mechel Campia Turzii

(Romania)

Chelyabinsk Metallurgical Plant

Buzau Plant

(Romania)

Otelu Rosu Plant

(Romania)

Izhstal

Donetsk Electrometallurgical Plant

Laminorul Plant

(Romania)

Mechel Nemunas (Lithuania)

Ferroalloys Segment

Ferronickel

Ferrochrome

Ferrosilicon

Southern Urals Nickel

Plant

Tikhvin Ferroalloy Plant

Voskhod Chrome

Mining Plant

(Kazakhstan)

Bratsk Ferroalloy Plant

Uvatskoye Deposit of

Quartzite

Power Segment

Toplofikatsia Rousse

Power Plant -

Southern Kuzbass

Power Plant

Kuzbass Power

Sales Company

Generation

Distribution

Distribution

Mechel Service Global *

(ex Russia)

Mechel Trading House

Mechel Carbon

Mechel-Mining Trading

House

Mechel Trading

Mechel Service OOO

(Russia)

Invicta (UK)

Group 1

Group 2

16

Improvement in financial results and cash flow

Immediate deleverage

Deal closed

Deal closed

Deal closed

Deal closed

Deal closed

Deal closed

Deal signed

Deal closed

* Divestment in progress through inventory sell down

Mothballed

Deal closed

Deal closed

KEY DEVELOPMENTS

ELGA DEPOSIT: RAMP UP SECURED BY VEB PROJECT FINANCING

CURRENT STATUS

KEY PROJECT METRICS

LOCATION

OPERATIONAL

DETAILS

COAL TYPE

RESERVES

JORC STANDARDS

• Country Russia

• Location South-East of Yakutia

• Mine Type 100% OP

• Start of operations August 2011

• High volatile hard coking coal

• Steam coal

• Middlings

• 2.2 billion tonnes as of December 31, 2012

• Elga coal deposit reserves account for 67% of total

reserves of Mechel

• Russia, Asia-Pacific countries TARGET MARKETS

LOCATION OF OPERATIONS

Mongolia

Yakutugol Elga

Port Vanino

Port Posiet China

Japan Kazakhstan

Source: Company data

18

Railroad in place

Wash plant up & running

Workers settlement under construction

Existing capacity up to 4-5 mn tonnes of coal mining,

2.7 mn tonnes of coal processing

In FY 2014 1,2 mln tonnes mined, over 700,000 tonnes processed

and about 1 mln tonnes shipped (includes coking coal concentrate ,

oxidized coal and middlings).

Expected to produce about 3,5 mln tonnes of run-of-mine coal in

2015

Seasonal washing plant to become all year operational starting

winter 2014-2015

Coal processing up to 2,7 mln tonnes starting from 2015 and till the

first module of permanent washing plant is in place and operating

(2018)

VEB project financing of 1st stage of Elga development: up to12 mn

tons of coal mined by 2018

Once 9 mn tons of coal is mined and processed at Elga, the project

should become operating cashflow positive

FURTHER EXPANSION

CAPACITY

PRODUCTS

CAPEX

TARGET

CONSUMERS

High-speed and low-temperature up to 100 meter long rails

H-beams, channel bars, angles and grooves

US$ 715 mn

Up to 1.1 mn t

Russian Railways

Off-take secured by a 20-year supply agreement

Russian Railways Strategy till 2030 provides for additional railway

construction of more than 20,000 km, including more than 12,000 km

of high-speed tracks

Construction industry

TIMING 2009 – 2013

UNIVERSAL ROLLING MILL – STRUCTURAL SHIFT IN LONG STEEL PRODUCTS PORTFOLIO

Increased Output of High Value-Added Products

Enhanced Profitability of Steel Division

Structural Shift in the Long Steel Portfolio

RAILS PRICING

KEY PROJECT CHARACTERISTICS

Source: Metal-Courier, Company data

Notes: * There was no import of 100m length rails in 2014

19

982

963

920

932

653

637

630

623

652

637

631

623

1596

1 597

1386

0

1413

1 310

1310

0

530

517

504

494

0 500 1000 1500 2000

Average 2H2012

Average 1H2013

Average 2H2013

Average 1H2014

Billets (FOB ЧМ Россия) Rails 100m length (DES Vladivostok)

Rails 100m length (DES St. Petersburg) L-bar (FOB Турция)

Channel bar (FOB Турция) Beams (DAP Казахстан)

Mill

CURREN PROJECT STATUS

The mill launched in July 2013

H-beams and rails sales to 3d parties ongoing. In 9 month 2014 period about

85,000 tonnes produced and sold.

Rails have been sent to Russian Railways for certification

FINANCIAL HIGHLIGHTS

9M 2014 HIGHLIGHTS

21

In 3Q 2014 metallurgical coal market was rather stable but prices were at their lows.

Long steel products market looked better with some price increase on domestic market compared to 2Q 2014.

Export sales amounted to 33% of total Revenue for 9M 2014 period with mining segment being the largest

contributor to export sales.

On a stable Revenue structure, share of Steel segment in Consolidated EBITDA increased from 29% in 9M 2013 to 45% in 9M 2014.

Gross margin increased from 30% in 9M 2013 to 35% in 9M 2014.

Net debt (excluding finance lease liabilities) amounted to $7.8 bln as of September 30, 2014. In 3Q 2014 Net

debt decreased by 9% due to ruble depreciation and partial redemption of bonds.

In 3Q 2014 bottom line affected by $551 mln of FX loss primarily due to loan revaluation.

But adjusted Net loss decreased 90% q-o-q.

In 3Q 2014 operating income grew to $107 mln on adjusted basis net of one-off accruals (Impairment of

goodwill and long-lived assets, provision for amounts due from related parties, loss on write-off of PPE and

additional taxes) compared with adjusted operating income of $41 mln in 2Q 2014.

148

49

-4

193

83

34

11

121

63

-3

18

79 89

77

3

171

80

138

-7

219

Mining Steel Power Consolidated

3Q13 4Q13 1Q14 2Q14 3Q14

69

5

12

51

14

9

20

95

62

6

11

17

20

9

19

53

57

1

92

9

20

0

17

00

55

1

10

27

16

6

17

44

49

2

94

8

14

8

15

88

Mining Steel Power Consolidated

3Q13 4Q13 1Q14 2Q14 3Q14

10%

32% 58%

8%

32%

60%

SEGMENTS OVERVIEW

REVENUE BY SEGMENTS

$ Mln

(1) EBITDA(a) represents earnings before Depreciation, depletion and amortization, Foreign exchange gain / (loss), Loss from discontinued operations, Gain / (loss) from remeasurement of contingent liabilities at fair

value, Interest expense, Interest income, Net result on the disposal of non-current assets, Impairment of goodwill and long-lived assets, Provision for amounts due from related parties, Result of disposed companies

(incl. the result from their disposal), Amount attributable to noncontrolling interests, One-off accrual of taxes for prior periods and Income taxes.

22

Steel Mining Power

EBITDA(a)(1) BY SEGMENTS

3%

46% 51%

9M 2014

4%

29%

67%

9M 2013

REVENUE BY SEGMENTS

$ Mln

EBITDA(a) (1) BY SEGMENTS

$ 5,032 mln $470 mln

$6,718 mln $599 mln

MINING SEGMENT

23

Stable EBITDA(a) margin of 12,5% in 3Q 2014.

Operating income $1.3 mln in 3Q 2014 vs $2 mln Operating loss in 2Q 2014

Cash costs decrease q-o-q of 11% at Southern Kuzbass, 8% at Yakutugol, 7% at Moscow Coke and Gas Plant

and 6% at Mechel Coke.

Cash cost in 3Q2014 at Elga was $26 per tonne.

Export sales on stable level of about 70%.

Bluestone operations suspension negatively influences segment`s results.

But Elga coal deposit shows first notable volumes.

By the end of 2014 over 1.2 mln tonnes of ROM coal expected with more then 250 thousand tonnes of HCC

concentrate produced.

Share of iron ore sales down to 2% q-o-q of Segment’s revenue as we switched to supplying our Steel segment and lower production volumes.

43%

23%

10%

16%

8%

9M2013 9M2014

Other

Depreciation anddepletion

Energy

Staff costs

Raw materials andpurchased goods

42%

26%

10%

16%

6%

34 32

43

35 37

51

37 32

46

35 30

55

44

31 27 26

61

Coal SKCC Coal YU Coal Elga Iron Ore KGOK

3Q13 4Q13 1Q14 2Q14 3Q14

695 626

571 551 492

110 149

151 151 144

18%

11% 9%

13% 12%

0%

20%

40%

60%

0

300

600

900

3Q13 4Q13 1Q14 2Q14 3Q14

Intersegment revenues Revenues EBITDA(a) margin

0.

MINING SEGMENT

$ Mln

CASH COSTS, US$/TONNE

24

REVENUE, EBITDA(a)(1)

(1) EBITDA(a) represents earnings before Depreciation, depletion and amortization, Foreign exchange gain / (loss), Loss from discontinued operations, Gain / (loss) from remeasurement of contingent liabilities at fair

value, Interest expense, Interest income, Net result on the disposal of non-current assets, Impairment of goodwill and long-lived assets, Provision for amounts due from related parties, Result of disposed companies

(incl. the result from their disposal), Amount attributable to noncontrolling interests, One-off accrual of taxes for prior periods and Income taxes.

* Restated to include middlings

AVERAGE SALES PRICES FCA, US$/TONNE

COS STRUCTURE

$1,417 mln

$1,124 mln

178

71

57 49

78

176

78

66

44

85

161

65 62

39

85

170

47 53

40

76

166

53 59

41

65

Coke Coking coal Anthracite andPCI

Steam coal* Iron ore

3Q13 4Q13 1Q14 2Q14 3Q14

$ Mln

Coking coal 40%

Anthracites and PCI 28%

Coke 10%

Coking products

3%

Steam coal 11%

Iron ore 6%

Other 2%

Coking coal 39%

Anthracites and PCI

25%

Coke 8%

Coking products

2%

Steam coal 8%

Iron ore 16%

Other 2%

China 39%

Russia 28%

Europe 14%

Asia w/o China 10%

CIS 2%

Middle East 3%

USA 2%

Other 2%

MINING SEGMENT

25

REVENUE BREAKDOWN BY REGION

REVENUE BREAKDOWN BY PRODUCTS

9M 2013 9M 2014

9M 2013 9M 2014

China 36%

Russia 29%

Europe 15%

Asia w/o China 14%

CIS 3%

Middle East 3%

USA 0,15%

STEEL SEGMENT

26

3Q 2014 EBITDA(a) up 79% quarter on quarter on favorable market conditions and lower costs

EBITDA(a) margin doubled from 7% in 2Q 2014 to 14% in 3Q 2014.

Adjusted Operating income grew from $39 mln in 2Q 2014 to $102 mln in 3Q 2014.

Adjusted Net income of $15 mln in 3Q 2014 after Net loss of $47 mln in 2Q 2014.

Product mix mostly stable with further decrease of semi-finished products share to 3% in 3Q 2014 from 5% in

2Q 2014.

Further downsizing of Mechel Service Global operations in Europe resulted in European sales share decline.

504 419 425

823

507

436 448

863

427 396 402

806

425 376 390

777

403 361 364

737

Billets* Wire rod Rebar Ferrosilicon**

3Q13 4Q13 1Q14 2Q14 3Q14

1251 1117

929 1027

948

50 72

72 55

46

4% 3%

0%

7% 14%

0%

10%

20%

30%

40%

0

300

600

900

1200

1500

3Q13 4Q13 1Q14 2Q14 3Q14

Intersegment revenues Revenues EBITDA(a) margin

533

504

488

516

564

607

594

530

590

616

3530

3501

3314

3545

3743

2457

2183

2398

2400

2341

835

873

783

800

814

663

676

696

714

721

1142

1110

1166

1201

1207

3Q13 4Q13 1Q14 2Q14 3Q14

Semi-finished steel products Rebar Stainless flat products

Forgings and stampings Hardware Carbon flat

Ferrosilicon**

76%

9%

10% 2%

3%

9M2013 9M2014

Other

Depreciation anddepletion

Energy

Staff costs

Raw materials andpurchased goods

70%

11%

12%

4% 3%

STEEL SEGMENT

27

CASH COSTS, US$/TONNE

REVENUE, EBITDA(a)(1)

$ Mln

(1) EBITDA(a) represents earnings before Depreciation, depletion and amortization, Foreign exchange gain / (loss), Loss from discontinued operations, Gain / (loss) from remeasurement of contingent liabilities at fair value, Interest

expense, Interest income, Net result on the disposal of non-current assets, Impairment of goodwill and long-lived assets, Provision for amounts due from related parties, Result of disposed companies (incl. the result from their

disposal), Amount attributable to noncontrolling interests, One-off accrual of taxes for prior periods and Income taxes.

* Domestic sales

** Ferroalloy segment was combined with Steel segment

AVERAGE SALES PRICES FCA, US$/TONNE

COS STRUCTURE

$3,475 mln

$2,472 mln

Semi-Finished Steel Products

5%

Rebar 29%

Stainless flat 2%

Carbon long products

19%

Forgings and stampings

9%

Hardware 16%

Carbon flat 8%

Ferrosilicon 2%

Other 10%

Semi-

Finished Steel

Products 11%

Rebar 28%

Stainless flat 3%

Carbon long

products 16%

Forgings and

stampings 8%

Hardware 15%

Carbon flat 8%

Ferrosilicon 1%

Other 10%

Russia 64%

Europe 17%

CIS 12%

Asia 3%

Middle East 3%

USA 0,2% Other

0,8%

Russia 68%

Europe 16%

CIS 12%

Asia 1%

Middle East 1%

USA 0,3%

Other 1,7%

STEEL SEGMENT

28

REVENUE BREAKDOWN BY REGION

REVENUE BREAKDOWN BY PRODUCTS

9M 2014 9M 2013

9M 2014 9M 2013

87%

4%

7%

1% 1%

9M2013 9M2014

Other

Depreciation anddepletion

Energy

Staff costs

Raw materials andpurchased goods

89%

4%

5%

1% 1%

POWER SEGMENT

29

AVERAGE ELECTRICITY SALES PRICES AND CASH COSTS (RUSSIA), US$/MWH

REVENUE, EBITDA(a)(1)

$ Mln

(1) EBITDA(a) represents earnings before Depreciation, depletion and amortization, Foreign exchange gain / (loss), Loss from discontinued operations, Gain / (loss) from remeasurement of contingent liabilities at fair

value, Interest expense, Interest income, Net result on the disposal of non-current assets, Impairment of goodwill and long-lived assets, Provision for amounts due from related parties, Result of disposed companies

(incl. the result from their disposal), Amount attributable to noncontrolling interests, One-off accrual of taxes for prior periods and Income taxes.

COS STRUCTURE

$647 mln $588mln

Seasonal decline in segment’s results.

Negative influence of ruble depreciation on Revenues.

Net loss decreased by 60%. 149

209 200 166

148

98

115 105

90 86

-2%

3% 6%

1%

-3% -10%

0%

10%

20%

30%

40%

-100

0

100

200

300

400

3Q13 4Q13 1Q14 2Q14 3Q14

Intersegment revenues Revenues EBITDA(a) margin

35

28 27

29

36

54 55

53 55 52,2

3Q13 4Q13 1Q14 2Q14 3Q14

Cash costs Sales price

CONSOLIDATED P&L

30

REVENUE, $MLN

FINANCIAL PERFORMANCE HIGHLIGHTS:

$ Mln $ Mln

(1) EBITDA(a) represents earnings before Depreciation, depletion and amortization, Foreign exchange gain / (loss), Loss from discontinued operations, Gain / (loss) from remeasurement of contingent liabilities at fair

value, Interest expense, Interest income, Net result on the disposal of non-current assets, Impairment of goodwill and long-lived assets, Provision for amounts due from related parties, Result of disposed companies

(incl. the result from their disposal), Amount attributable to noncontrolling interests, One-off accrual of taxes for prior periods and Income taxes.

Consolidated EBITDA(a) up 28% q-o-q to $219 mln on Steel segment`s strong results

Further Gross margin and EBITDA(a) margin increase

Bottom line affected by FX loss but Adjusted Net loss decreased in 3Q 2014 to just $15 mln.

2 095 1 953

1 700 1 744 1 588

31% 29%

32% 36% 38%

0%

10%

20%

30%

40%

50%

60%

70%

80%

0

500

1000

1500

2000

2500

3Q13 4Q13 1Q14 2Q14 3Q14

Revenue Gross margin, %

193

121

79

171

219

9%

6% 5%

10%

14%

0%

5%

10%

15%

20%

25%

30%

0

50

100

150

200

250

3Q13 4Q13 1Q14 2Q14 3Q14

EBITDA(a) EBITDA(a) margin

EBITDA(a)(1) , $MLN

CASH FLOW & TRADE WORKING CAPITAL

31

CASH FLOW, $MLN

Considerable payments on financing activities are met mainly by working capital decrease.

Investment cash flow amounted to $436 mln in 9M 2014 with most of it going to Elga under project financing with VEB.

TRADE WORKING CAPITAL MANAGEMENT, $MLN

275

72

699

-436

-417

0

200

400

600

800

1 000

1 200

Cash as of31.12.2013

Operatingactivities

Investmentactivities

Financingactivities

Cash as of30.09.2014

738 671

260 40

-120

Trade current assets Trade current liabilities Trade working capital

1 934 1 835 1 909 1 974 1 808

2 672 2 506

2 168 2 014

1 688

30.09.13 31.12.13 31.03.14 30.06.14 30.09.14

State banks 68%

22%

Other 10% International

banks

Total debt reduced by $2.0 bln from $9.0 bln down to $7.0

bln as of December 1, 2014, mainly as an effect from ruble

devaluation

Since mid-year we entered into restructuring negotiations

and suspended repayments of principal to financial

institutions and cut interest payments.

DEBT PROFILE

DEBT MATURITY SCHEDULE, USD BLN

CHANGES IN CREDIT PORTFOLIO AS OF DECEMBER 1, 2014, USD BLN

DEBT PROFILE AS OF DECEMBER 1, 2014

By currency By banks

32

0.54

2.07 2.17

1.26

0.93

2014 2015 2016 2017 2018 and after

* incl. debt under restructuring

Debt $6 968 mln

Note: converted at the exchange rate established by CB RF December 1, 2014 on the following date

8,95

0,29

2,01

0,32 6,97

Debt as of31.12.13

Netrepayments

FX gain Swaps Debt as of01.12.14

-0,29

-2,01

USD 53% RUR

40%

EUR 7%

Revenue 5,032 6,718 -25.1%

Cost of sales (3,272) (4,670) -29.94%

Gross margin 34.97% 30.49%

Adjusted Operating income 124 216 -42.6%

EBITDA(a) (1) 470 599 -21.5%

EBITDA(a) margin 9.3% 8.9%

Net Income / (loss) (1,223) (2,247) -45.6%

Net Income margin -24.30% -33.44%

Net Debt (excluding finance lease liabilities) 7,836 9,087 -13.8%

CapEx 421 445 -5%

Sales volumes(2), ‘000 tonnes 9m2014 9m2013 %,

Mining segment 15,021 17,889 -16%

Steel segment 3,746 5,070* -26%

FINANCIAL RESULTS OVERVIEW

(1) EBITDA(a) represents earnings before Depreciation, depletion and amortization, Foreign exchange gain / (loss), Loss from discontinued operations, Gain / (loss) from remeasurement of contingent liabilities at fair value,

Interest expense, Interest income, Net result on the disposal of non-current assets, Impairment of goodwill and long-lived assets, Provision for amounts due from related parties, Result of disposed companies (incl. the result

from their disposal), Amount attributable to noncontrolling interests, One-off accrual of taxes for prior periods and Income taxes.

(2) Includes sales to the external customers only

* Ferroalloy segment was combined with Steel segment

US$ MILLION UNLESS OTHERWISE STATED 9m2014 9m2013 CHANGE, %

33

APPENDIX

OPERATIONAL RESULTS OVERVIEW

SALES, thousand tonnes 9m 2014 9m 2013 9m 2014 vs. 9m 2013, % 3Q2014 2Q2014 3Q2014vs. 2Q2014, %

Coking coal concentrate 7,781 8,349 -7 2,427 2,743 -12

PCI 2,443 2,567 -5 820 1,033 -21

Anthracites 1,526 1,603 -5 525 519 +1

Steam Coal 4,167 4,499 -7 1,639 1,167 +40

Iron ore concentrate 2,504 3,083 -19 618 913 -32

Coke 2,321 2,291 +1 830 735 +13

Ferrosilicon (65% and 75%) 65 72 -9 23 21 +12

Flat Products 332 468 -29 105 115 -9

Long Products 2,283 2,747 -17 695 806 -14

Billets 80 651 -88 19 27 -29

Hardware 584 653 -11 200 207 -3

Forgings 41 52 -22 15 14 +5

Stampings 64 76 -16 20 21 -6

Electric power generation (thousand kWh) 2,597,421 2,890,768 -10 732,043 854,187 -14

Heat power generation (Gcal) 4,165,232 4,728,075 -12 790,268 1,071,913 -26

PRODUCTION, thousand tonnes 9m 2014 9m 2013 9m 2014 vs. 9m 2013, % 3Q2014 2Q2014 3Q2014vs. 2Q2014, %

Coal (run-of-mine) 17,008 20,430 -17 5,810 5,633 +3

Pig iron 2,910 2,908 0 1,010 964 +5

Steel 3,182 3,648 -13 1,055 1,096 -4

35

36

ELGA DEPOSIT: RAILWAY, TECHOLOGICAL BASE, OPEN-PIT, MINING WORKS

ELGA WASHING PLANT

37

CHELYABINSK UNIVERSAL ROLLING MILL

38

SHAPES PRODUCED AT UNIVERSAL ROLLING MILL

39