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Mechel Announces the Implementation of the Best Available Technologies in the Port of Posiet

Press Releases
November 16, 2020

Mechel announces the implementation of the best available technologies in Posiet port

Pos. Posiet, Russia - November 16, 2020 - Mechel PAO (MOEX: MTLR, NYSE: MTL), a leading Russian mining and metallurgical company, announces the interim results of the implementation of the five-sided agreement on environmental safety signed between Trade Port Posiet ", The Administration of Primorsky Krai, FSUE" Rosmorport ", Rosprirodnadzor and the Ministry of Transport of the Russian Federation. To date, the port has implemented seven of the best available dust suppression technologies.

As part of the agreement, the stevedoring company has undertaken to use the technologies and methods provided by the ITS information and technical guide 46-2019 for the best available technologies (BAT) for coal terminals. By the end of 2020, seven out of nine BATs have been fully implemented in the port. These include dust suppression of storage sites through the formation of artificial snow cover and the formation of water fog, mechanical and vacuum cleaning of dust at the production site, aspiration of organized dust sources in the building of car dumpers and at transfer stations, arrangement of local wind protection structures (covered building of car dumper, covered gallery between defrosting device and the building of car dumpers, protective covers for dust-free transportation of coal along conveyor lines). The port employees continued planting greenery in the sanitary protection zone, planting several hundred tree seedlings.

Ensuring constant environmental control is another BAT that Posiet Commercial Port adheres to in the course of production and economic activities. An independent accredited laboratory was involved in the study of water, atmospheric air and noise level measurements. No excess of maximum permissible concentrations was recorded in 2020.

In the next year, it is planned to introduce two more BATs in the port: the installation of dust and wind protection screens with a height of 15-20 meters along the perimeter of the production area and the use of foam dust suppression on conveyor lines. In November 2020, the second stage of the sprinkler system for irrigation of coal warehouses will be introduced.

“In addition to the active use of BAT, in 2022 we plan to launch an automated shiploader manufactured by the world leader in the organization of bulk cargo handling - the ThyssenKrupp corporation. A complete set of equipment has already been purchased and delivered to the port. This will allow us to move to a dust-free transfer technology. The stevedoring company operates in compliance with the requirements and standards of the current legislation of the Russian Federation in the field of environmental protection. Investments in environmental projects in the next year and a half will amount to about 1 billion rubles ", - said Alexey Lebedev, General Director of Mechel-Trans Management Company LLC.

The Posiet commercial port is one of five specialized coal terminals in Russia and one of the two - in the Primorsky Territory. Thanks to the technical re-equipment project, the main production operations were transferred to a dust-proof mode. The port is equipped with modern equipment for high-tech coal transshipment. For 9 months of 2020, cargo turnover amounted to 4.3 million tons of products.

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Mechel PAO Ekaterina Videman Tel .: (495) 221 -88-88ekaterina.videman@mechel.com

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Mechel - a global mining and metals company ... The company's products are supplied to Europe, Asia, North and South America, Africa. Mechel unites producers of coal, iron ore, steel, rolled products, ferroalloys, heat and electricity. All enterprises operate in a single production chain: from raw materials to products with high added value.

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Some statements This press release may contain assumptions or projections regarding forthcoming events or future financial performance of Mechel PAO in accordance with the provisions of the 1995 US Securities Litigation Reform Act. We would like to warn you that these statements are only assumptions, and the actual course of events or results may differ materially from those stated. We do not intend to revise or update these statements. We refer you to the documents that Mechel periodically submits to the US Securities and Exchange Commission, including the Annual Report on Form 20-F. These documents contain and describe important factors, including those identified in the "Risk Factors" section and "Note on the forecasts contained in this document" in Form 20-F. These factors could cause material differences between actual results and our assumptions and forecasts regarding future events, including but not limited to achieving the anticipated level of profitability, growth, cost and effectiveness of our recent acquisitions, impacting competitive

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