MECHEL OAO CLOSED BOOKS ON PLACEMENT OF COMMERCIAL PAPERS OF THE 17 AND 18
SERIES AT A SUM OF 10 BILLION RUBLES
Moscow, Russia – June 8, 2011. – Mechel OAO (NYSE: MTL), one of the leading
Russian mining and metals companies, announces successful closure of the books
for the placements of its commercial papers of the 17 and 18 series.
On June 7, 2011 Mechel OAO closed the books for the two placements of its
interest-bearing commercial papers of the 17 and 18 series with an obligatory
centralized custody (ID serial number 4-17-55005-E of 10.08.2010 - 17 series,
4-18-55005-E of 10.08.2010 - 18 series). The papers’ maturity is 10 years, with
the put option in five years.
The number of the commercial papers to be placed makes 10,000,000 pieces (100%
of the issue volume), the nominal value of the papers is 1,000 rubles each and
the total nominal value of the placed bonds is 10,000,000,000 rubles (nearly 360
million US dollars*).
The coupon rate of the commercial papers of the 17 and 18 series for the period
until the put option date is 8.40% per year which corresponds to a sum of 41.88
rubles.
The demand for these commercial papers topped 22 billion rubles, with investors
making over 80 bids into the book.
The papers of the 17 and 18 series will be placed on the MICEX Stock Exchange
ZAO on June 9, 2011, with Coalmetbank OAO acting as the issuer’s agent for the
placement.
VTB Capital ZAO, Sberbank OAO and Coalmetbank OAO acted as a managers of the
placement.
Commercial papers of 17 and 18 series are included in MICEX’s quotation list A1.
 “Good conditions on the Russian bond market allowed Mechel to successfully
place papers with the five-year put option at the lower boundary of the price
range with the book oversubscribed over 2 times. Considering the investors’
interest and high liquidity we decided to increase the volume of commercial
papers to be placed. We plan to make an additional placement of the 19 series
with the total nominal value of 5 billion rubles with a five-year  put option.
The books will be closing at the end of business on June 9, 2011. The funds will
be used to re-finance our current short-term debt. Mechel’s total debt will not
increase,” Mechel OAO’s Chief Financial Officer Stanislav Ploschenko commented.
* According to the Russian Central Bank exchange rate of 27.7814 RUR/$ as of
June 8, 2011.

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Mechel OAO
Ekaterina Videman
Phone: + 7 495 221 88 88
ekaterina.videman@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, ferrochrome, ferrosilicon, rolled products,
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.