MECHEL REPORTS RESTRUCTURING DEBT WITH VNESHECONOMBANK

Moscow, Russia – September 28, 2017– Mechel PAO (MOEX: MTLR; NYSE: MTL), a
leading Russian mining and metals company, reports signing agreement with
Vnesheconombank on a loan to Elgaugol OOO for a total of up to 190 million US
dollars in order to refinance its obligations to Vnesheconombank.
Vnesheconombank and Elgaugol OOO which is part of Mechel Group’s mining
division, signed a loan agreement on financing for a sum of up to 190 million
dollars. These funds will be used to repay the company’s current debt to the
bank, which will extend the debt’s maturity until the second quarter of 2022.
About two thirds of the loan will be repaid by the borrower according to an
agreed schedule and one third — depending on Elgaugol OOO’s financial results
during or at the end of the loan agreement period. The loan’s security as set
forth in earlier loan agreements remains unchanged.
Vnesheconombank’s First Deputy Chairman – Member of the Board Dmitry Kurdyukov
noted: “Regarding the Elga project, and taking into account its importance for
the industry’s development, as well as to ensure the return of funds loaned
earlier, the bank decided to restructure the debt and extended the maturity of
debt obligations.”
“By signing this agreement with Vnesheconombank, Mechel Group has completed the
process of restructuring its debt with Russian banks. Vnesheconombank used a
balanced approach in evaluating the results so far achieved in developing this
project and made the decision to restructure our current debt and extend the
maturity of loan obligations, which is important to us. Development of the Elga
deposit is our key investment project which we will continue to work on together
with Gazprombank, and our agreement with Vnesheconombank is an important step
that enables us to move forward,” Mechel PAO’s Chief Executive Officer Oleg
Korzhov commented.

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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. 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.