MECHEL REPORTS DECISIONS OF GENERAL MEETING OF 16 SERIES BOND HOLDERS

Moscow, Russia – August 4, 2016 – Mechel PAO (MICEX: MTLR, NYSE: MTL), one of
Russia's leading mining and steel companies, reports decisions made at the
general meeting of 16 series of Mechel's bondholders.
The majority of bondholders have by correspondence approved of electing Legal
Capital Investor Services as representative of 16-series bondholders (state
registration number 4-16-55005-E, dated 10.08.2010).
The majority of bondholders have by correspondence agreed to enable the
16-series bondholders’ representative to conclude the deed of release by
novation, as well as approved the conditions set for this deed.

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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.