MECHEL ANNOUNCES OBTAINING 500-MILLION-DOLLAR CREDIT

Moscow, Russia — May 02, 2012 – Mechel OAO (NYSE: MTL), one of the leading
Russian mining and metals companies, announces the signing of long-term loan
facilities with Gazprombank on providing credit lines to Yakutugol Holding
Company OAO and Southern Kuzbass Coal Company OAO in the aggregate amount of 500
million US dollars.
Gazprombank provided Mechel Mining OAO’s enterprises with credit lines totaling
500 million US dollars. The new loan facilities include a five-year tenor with a
three-year grace period.
 “The signing of these credit agreements is another successful milestone of our
strategic partnership with Gazprombank and vivid proof of a major bank’s trust
in our company. The loans will be used to finance operational activities, which
will enable us to use our operating cash flow to re-finance a significant part
of the Group’s short-term debt and thus dramatically improve the structure of
our credit portfolio.  This is in line with our policy of lengthening the
duration of our debt instruments and gradual deleveraging,” 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.