Seoul, Republic of Korea – November 10, 2010 – Mechel OAO (NYSE: MTL), one of the leading Russian mining and metals companies, announces that it has signed an Agreement of Intent with a South Korean company Posco.

On November 10, Mechel OAO and a South Korean company Posco, one of the largest steel producers in the world, signed the Agreement of Intent. The Agreement was signed within the framework of the official visit of the President of the Russian Federation Dmitry Medvedev to the Republic of Korea.

The Agreement of Intent was signed by Mr. Igor Zyuzin, Chairman of Mechel’s Board of Directors, and Mr. Chung Joon-yang, Chief Executive Officer of Posco.

The Agreement was signed in order to establish mutually beneficial strategic partnership between the companies. It is noted in the document that the parties consider it to be expedient to collaborate on a long-term and mutually beneficial basis on the promotion of products produced by Mechel’s affiliated companies and Posco, and implementation of potential joint projects. In particular, the companies express their intention to examine and possibly implement projects in steel, mining and logistics in Russia, the Republic of Korea and third countries.

Mechel OAO has long-standing and stable partnership relations with South Korean consumers, successfully supplying coal of various grades to this country. Since August 2009 Mechel’s official representative office operates in Seoul.