MECHEL ANNOUNCES MECHEL TRADING AG OBTAINING LOAN FOR RE-FINANCING GROUP’S
CURRENT DEBT

Moscow, Russia — October 24, 2011 – Mechel OAO (NYSE: MTL), one of the leading
Russian mining and metals companies, announces that ING Bank N.V., UniCredit
Bank AG, Barclays Capital Inc. and ZAO UnicreditBank have provided a syndicated
loan to Mechel Trading AG.
The banks have granted a credit facility totaling 180 million US dollars.  The
facility may be increased to  350 million US dollars by other banks as well.  It
carries a three-year tenor with an 18-month grace period. The facility will be
used to re-finance a portion of  Mechel Group’s short-term loans.
Mechel OAO and Chelyabinsk Metallurgical Plant OAO act as guarantors of the
facility. The credit is also supported by an assignment of  Mechel Trading AG’s
offtake contracts.
“Receiving a long-term loan on competitive terms given the state of  global
financial markets demonstrates the trust the international banking community
puts in us as a high-quality borrower. It also demonstrates our ability to make
good deals in any market conditions. We value very highly our partnership with
the lending banks in this deal, and we believe that it is cooperation in a
difficult market situation that lays the most solid platform for long-term
relationships.
“The growth of Mechel Group’s exports of steel products as well as distribution
of third-party products requires long-term financial resources for the Group’s
trading business. The new facility covers our financial requirements and
replaces our current short-term credit lines, while improving the maturity
profile of our debt portfolio and reducing the cost of financing,” Mechel OAO’s
Chief Financial Officer Stanislav Ploschenko said.

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Mechel OAO
Ekaterina Videman
Tel: + 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, ferrochrome, ferrosilicon, steel, 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.