MECHEL ANNOUNCES SIGNING OF CONTRACTS FOR COKING AND STEAM COAL SUPPLIES

Moscow, Russia – June 25, 2009 – Mechel OAO (NYSE: MTL), one of the leading
Russian mining and metals companies, announces signing of contracts for coking
and steam coal supplies to Chinese, Japanese, and South Korean companies for
2009.
Mechel continues its activities to enlarge the geography of coal sales. Having
an established successful experience of coal supplies to Japan and South Korea,
in 2009 the company also entered the Chinese coal market having signed a number
of new large contracts with local customers.
The Company have already commenced supplies of coking coal concentrate produced
at Yakutugol and steam coal of various grades to China. Currently total volume
of supplies for 2009 fiscal year under Mechel’s contracts with Chinese,
Japanese, and South Korean companies amounts to approximately 2 million tons of
coking coal concentrate produced at Yakutugol and 2.3 million tons of steam coal
of various grades produced at Yakutugol and Southern Kuzbass.
Starting from 2007, Mechel also performs successful sales of iron ore
concentrate produced at its Korshunov Mining Plant to China.
“China is a very promising market for us. Its steel industry continues to
develop fast resulting in stable high demand for our commodities: iron ore
concentrate, coking coal concentrate, and ferroalloys. Moreover, signing of the
new contracts provided us with the opportunity of deeper understanding of the
Chinese market and we continue the activities to enter into new agreements. It
is important that supplies to China are performed by both water transport and
along railways, thus the flexibility of supply chains makes additional
competitive advantage for us. I would like to emphasize that entering into new
large contracts with Chinese companies allows us to increase the load of our
coal mining facilities that is of particular importance in the current
challenging business environment”, Mechel OAO Senior Vice-President Vladimir
Polin commented.
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Mechel OAO
Ilya Zhitomirsky
Phone: + 7 495 221 88 88
ilya.zhitomirsky@mechel.com

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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.
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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.