MECHEL ANNOUNCES PLACEMENT COMPLETION OF ITS 04 SERIES BONDS

Moscow, Russia – July 31, 2009 – Mechel OAO (NYSE: MTL), one of the leading
Russian mining and metals companies, announces that it has competed placement of
its non-convertible, interest bearing, certificated bearer bonds of 04 series
for RUR 5.0 billion.
Mechel OAO completed placement of its secured non-convertible, interest bearing,
certificated bearer bonds of 04 series callable at bearer's option and at the
issuer’s discretion. The bond maturity date is the 2,548-th day following the
date of placement (July 30, 2009). Payment of 28 quarterly coupons and
three-year earlier redemption offer are stipulated.
The placement was arranged by public offering in the form of tender on the
coupon rate and complied with the terms and procedure provided for in the
Resolution on the securities issue and Prospectus.
The total quantity of the placed securities was 5,000,000 bonds with the nominal
value of RUR 1,000.00 each. The first coupon rate was established at 19% p.a.
The underwriter of the placement was Sberbank (Savings Bank of Russia).
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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, 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.