Moscow, Russia – January 16, 2007 – Mechel OAO (NYSE: MTL), one of the leading vertically-integrated mining and metals companies, announced today its operational results for 2006.

Product	2006, thousand tonnes	2006 as compared to 2005, %
Coal	17,013	+ 9
Coking Coal	9,697	+ 13
Steam Coal	7,316	+ 4
Iron Ore Concentrate	4,976	+ 10
Nickel	14.4	+ 14
Coke	2,570	- 1
Pig Iron	3,631	+ 8
Steel	5,950	+ 1
Rolled Products	4,714	+ 2
Flat Products	400	+ 28
Long Products	2,529	+ 1
Semi-Finished Products	1,785	0
Stamping	101	- 3
Hardware	611	+ 10

Alexey Ivanushkin, Mechel’s Chief Operating Officer, commented on operational results for 2006: “Last year was extremely successful for our company's operational activity as we increased output of all core products. Total coal output increased significantly, mainly due to expensive coking coal. Such growth of production volumes was supported by successful implementation of our programs for technical modernization and commissioning of the Olzherasskaya Mine which utilizes unique Russian technology. The year was also successful for our iron ore facilities and the Korshunov Mining Plant showed record results. More than 15 years ago, three times the number of employees would have been needed to reach that production capacity compared to today. Favorable environment for non-ferrous metals allowed us to considerably increase output of nickel, a division our company plans to develop in the future. In the metallurgical segment, we also achieved positive results. Having approximated last year production volumes of steel and rolled products, we managed to increase the output of more expensive products including flat products and hardware. This growth was supported by the commissioning of new spring wire production equipment at Beloretsk Metallurgical Plant. Urals Stampings Plant increased specialty steel products output due to reducing production volumes of its normal products, which resulted in slight decrease of stampings output.”