MECHEL SECURES RESTRUCTURING OF A 1-BILLION-DOLLAR SYNDICATED LOAN

Moscow, Russia – December 05, 2012 – Mechel OAO (NYSE: MTL), one of the leading
Russian mining and metals companies, announces signing an amendment and
restatement agreement in relation to a syndicated pre-export loan totalling 1
billion US dollars in order to further improve the liquidity of the company.
The amendment and restatement agreement on the syndicated loan was signed by a
number of major international banks, including ING Bank N.V., Societe Generale,
UniCredit, BNP Paribas SA, ABN AMRO Bank N.V., Commerzbank Aktiengesellschaft,
Raiffeisen Bank International AG, VTB, Natixis, Caterpillar Financial Services
Corporation, ICBC (London) plc. The borrowers are Mechel’s chief mining division
enterprises —Yakutugol Holding Company OAO and Southern Kuzbass Coal Company
OAO. The syndicated loan, which was in a monthly repayment phase, will now
benefit from a grace period of 12 months, followed by repayment in equal monthly
installments until August 2015.
The amendments were signed under the pre-export loans which were granted in
September 2010 to Mechel’s main operating companies Chelyabinsk Metallurgical
Plant OAO, Yakutugol Holding Company OAO, Southern Kuzbass Coal Company OAO and
Southern Urals Nickel Plant OAO.
The process was coordinated by ING Bank N.V., Societe Generale, UniCredit, Joint
Stock Commercial Bank “ROSBANK” and ABN AMRO Bank N.V.
“The old syndicate entered the amortization stage, which would require us to set
aside some 600 million dollars of liquidity in order to service it by the end of
2013. Amending this credit is a key step in cutting down short-term debt through
securing a grace period. At the same time, we managed to obtain a more
favourable security package, improve the covenant and overall structure of the
loan. This successful deal demonstrates the high level of trust and support our
banking partners lend the company, despite the volatility of the global markets.
It is also remarkable that in the current challenging environment new
international financial institutions such as ABN AMRO Bank N.V., Caterpillar
Financial Services Corporation and ICBC (London) plc. decided to join the
syndicate,” Mechel OAO’s Chief Financial Officer Stanislav Ploschenko noted.
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Mechel OAO
Pavel Taran
Tel: +7 495 221-88-88
pavel.taran@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.