MECHEL ANNOUNCES CLOSING THE DEAL FOR REFINANCING OF ITS SHORT-TERM CREDIT
FACILITIES

Мoscow, Russia – July 20, 2009 – Mechel OAO (NYSE: MTL), one of the leading
Russian mining and metals companies, announces successful closing of the deal
for refinancing its short-term credit facilities totaling 2.6 billion US dollars
raised to purchase assets in Yakutia and Oriel Resources Ltd.
As was announced earlier, negotiations with syndicates of banks that provided
Mechel with credit facilities for acquisition of Yakutugol Holding Company OAO
and Elgaugol OAO in October, 2007 and Oriel Resources Ltd. (Great Britain) in
April, 2008, resulted in signing the agreement on refinancing of these
facilities in the period of up to 3.5 year on July 10, 2009.
On Friday, July 17, 2009 Mechel signed all its refinancing operations
documentation. Currently the bridge loan which was taken for Oriel Resources
acquisition is fully repaid.
27 banks were participants of the deal. Mechel’s legal adviser on the deal was
Gide Loyrette Nouel company.
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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.