MECHEL COMPLETED PLACEMENT OF ITS 05 SERIES BONDS

Moscow, Russia – October 21, 2009 – Mechel OAO (NYSE: MTL), one of the leading
Russian mining and metals companies, announces that it has completed placement
of non-convertible interest-bearing documentary bonds of 05 series with total
value of 5 billion rubles.
Mechel completed placement of its secured non-convertible interest-bearing
documentary bonds payable on demand, an opportunity for early redemption at
holders’ request and issuer’s discretion provided. Maturity falls 3 276 days
after placement date, id est on October 9, 2018. Payment of 36 quarterly coupons
and three-year offer for early redemption of bonds provided for.
Placement was performed by public subscription under the terms and conditions of
Securities Prospectus and Decision on Securities Issuance through collection of
purchasers’ applications for fixed-price purchase of bonds with coupon rate for
the first coupon period.
Securities offered in the amount of 5 million, nominal value of each bond being
1 000 rubles. Coupon rate for the first coupon period set at 12.5% per annum.
VTB Capital, Gazprombank and Sberbank acted as arrangers for the placement,
Uglemetbank being its lead co-arranger.
Stanislav Ploschenko, Mechel’s CFO commented: “We are satisfied with placement
results. High demand for our bonds and trends for reduction of borrowing cost
provide Russian companies with further opportunities to overcome the downturn
manifestations for a transition to investment-driven growth stage. Russian
capital market potential allowed for cost-efficient fundraising for Elga coal
mine development. We hope as well financial institutions will regard the outcome
as a price guidepost in respect of long-term unsecured debt of the company”.

***
Mechel OAO
Ilya Zhitomirsky
Phone: + 7 495 221 88 88
ilya.zhitomirsky@mechel.com

***
Mechel is one of the leading Russian companies. Its business includes four
segments: mining, steel, ferroalloy, and power. Mechel unites producers of coal,
iron ore concentrate, nickel, steel, rolled products, ferroalloys, hardware,
heat and electric power. Mechel products are marketed domestically and
internationally.
***
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.