MTL Mechel PAO

MECHEL REPORTS RECEIPT OF NOTICE FOR INTRODUCTION OF TEMPORARY ADMINISTRATION AT
DONETSK ELECTROMETALLURGICAL PLANT

Moscow, Russia – July 21, 2016 – Mechel PAO (MICEX: MTLR, NYSE: MTL), one of the
leading Russian mining and metals companies, reports receipt of the notice for
introduction of a temporary state administration at the integral property
complex of the Private Joint-Stock Company “Donetsk Electrometallurgical Plant”
which is part of Mechel Group.
The Decree #12 dated June 25, 2016 and signed by A.V. Zakharchenko, chairman of
the Council of Ministers of the self-proclaimed Donetsk People’s Republic,
announces institution of a temporary state administration at the integral
property complex of the Private Joint-Stock Company “Donetsk
Electrometallurgical Plant” (DEMZ) as well as creation of a state-owned entity
“Yuzovsky Metallurgical Plant” on its base with all of DEMZ’s property to be
transferred for the newly created enterprise’s use.
The company’s preliminary view is that Mechel runs the risk of losing control
over any future production and commercial activity of DEMZ for an indefinite
period.
Mechel is currently examining the situation from legal perspective and will, if
necessary, take all measures to protect the company’s rights and interests
through the due process of law.
These events will not materially affect the company’s financial results, since
production at DEMZ has been suspended in 2012 and the company created full
provision for impairment of DEMZ as a result of 2013-2014.
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Mechel PAO
Ekaterina Videman
Tel: + 7 495 221 88 88
ekaterina.videman@mechel.com

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Mechel is an international mining and steel company which employs 66,000 people.
Its products are marketed in Europe, Asia, North and South America, Africa.
Mechel unites producers of coal, iron ore concentrate, steel, rolled products,
ferroalloys, heat and electric power. All of its enterprises work in a single
production chain, from raw materials to high value-added products.
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Some of the information in this press release 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.