Moscow, Russia – September 2, 2008 – Mechel OAO (NYSE: MTL), one of the leading Russian mining and metals companies, announces the appointment of a new General Director at its Southern Kuzbass Power Plant OAO subsidiary.

Sergey A. Panov (40), who previously held executive positions at the Kashirskaya State Regional Power Plant, a branch of the First Power Generating Company on the Wholesale Energy Market JSC (OGK-1), was appointed General Director of Mechel’s Southern Kuzbass Power Plant OAO subsidiary, succeeding Anatoly Chernakov.

From 2005 to 2008, Mr. Panov worked at the Kashirskaya State Regional Power Plant, a branch of OGK-1, as Deputy Chief Engineer for Operations and Chief of Production and Technical Department. From 1992 to 2005, Mr. Panov worked at the Berezovskaya State Regional Power-I OAO, rising from machinist and trackman to Head of Boiler and Turbine Workshop.

Mr. Panov graduated from the Krasnoyarsk Polytechnic Institute with a degree in Heat and Electric Power Stations, and graduated from the Krasnoyarsk State Academy of Architecture and Building with a degree in Corporate Economy and Management.

“We are pleased that an experienced specialist in the heat power industry, such as Sergey Panov, has joined our team. The Southern Kuzbass Power Plant is one of the leading power generating companies in Kuzbass. This is an important asset for Mechel, which is not only a supplier of electric power to Mechel’s subsidiaries in Kuzbass but also a reliable consumer of our steam coal. I am confident that the new management of Southern Kuzbass Power Plant will continue to improve performance and profitability of the energy asset,” Mechel Management OOO Chief Executive Officer Vladimir Polin noted.