MECHEL OAO PLACED STOCK BONDS OF BO-01 SERIES AT A SUM OF 5 BILLION ROUBLES

Moscow, Russia – November 16, 2009. – Mechel OAO (NYSE: MTL), one of the leading
Russian mining and metals companies, announces about placing its stock bonds.

On the 13th of November 2009 Mechel OAO completed initial placement of its stock
secured non-convertible interest-bearing documentary bonds of BO-01 series with
an obligatory centralized care of securities (ID serial number 4B02-01-55005-E
of 05.02.2009) at MICEX Stock Exchange ZAO by providing 1st rate coupon
competition.
The number of the placed bonds makes 5,000,000 pieces (100% of the stock bonds
issue volume), the nominal value of the bonds is 1000 roubles each and the total
nominal value of the placed bonds is 5,000,000,000 roubles.
According to the results of the competition the 1st coupon rate of the stock
bonds of BO-01 series was 12.5% per year which corresponds to a sum of 62.33
roubles. According to the Prospectus of the stock bonds of B0-01 series and
Resolution on the stock bonds issue of B0-01 series, the coupon rate from the
2nd to the 4th coupon is equal to the 1st coupon rate.
Svyaz Bank AB OAO and Uglemetbank OAO were managers of the placement.
S.A.Ploshchenko, Mechel’s Chief Financial Officer commented on the event:
“Unlike the ordinary bonds whose last issue was placed at the end of October,
2009 to provide financing for Elga coal deposit development, this stock bonds
were issued only in order to optimize Mechel Group’s debt portfolio. Following
successful placing of the previous bonds series, Mechel together with its bonds
placement managers made good use of the market interest to Mechel OAO borrowings
in the open market. This will allow us to repay more expensive bank loans,
raised at the end of the last year and the beginning of the current year.”
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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.