Moscow, Russia – November 19, 2004 – Mechel, a Russian metals and mining company, announced today that the Federal Service for the Financial Markets of the Russian Federation has registered its report on the results of an additional issue of securities. The additional shares underlie American Depositary Shares, placed on the New York Stock Exchange in the form of 3rd Level American Depositary Receipts on October 29, 2004.

The report on the results of the additional issue of securities was registered in accordance with the Federal Law on the Securities Market. Registration of the report is the final stage in the issuance of the securities and effectively allows the circulation of the issued securities.

Placement of ordinary non-documentary shares (federal issue registration number – 1-01-55005-?-001D dated April 29, 2004) was by closed subscription. The number of placed ordinary shares was 33,301,659 at 6.6325 USD per share.

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Mechel Steel Group OAO
Irina Ostryakova
Director of Communications
Phone: 7-095-258-18-28
Fax: 7-095-258-18-38
irina.ostryakova@mechel.com

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Mechel Steel Group is a Russian metals and mining company, uniting producers of steel, rolled products, hardware, coal, iron ore concentrate, and nickel. Mechel Steel Group products are marketed domestically and internationally.

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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 Steel Group, 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 Steel Group files from time to time with the U.S. Securities and Exchange Commission, including our Form F-1. 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 F-1, 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.