MECHEL ANNOUNCES OBTAINING 24-BILLION-RUBLE LOAN

Moscow, Russia  –  October 15, 2012 – Mechel OAO (NYSE: MTL), one of the leading
Russian mining and metals companies, reports signing long-term agreements with
Sberbank of Russia OAO on opening several credit lines to Southern Kuzbass Coal
Company OAO for a total of 24 billion rubles.
Sberbank of Russia OAO opened four credit lines for Southern Kuzbass Coal
Company OAO for a total of 24 billion rubles for a period of five years with a
three-year grace period. For two of these credit lines, funds are provided in
the form of a bi-currency agreement with a built-in derivative instrument, which
enables us to bring down the interest rate on the loan. Yakutugol Holding
Company OAO, Mechel Mining OAO and Mechel OAO act as guarantors of the facility.
“We greatly value our ties with Russia’s largest state bank, our longstanding
and reliable partner, and are glad that we managed to reach a mutually
profitable agreement on attractive terms despite the current volatility of
global financial markets. The loaned funds will be used exclusively for
refinancing the Group’s short-term debt, thus becoming an important step in
implementing our strategy of extending the maturity of our debt portfolio. We
also consider the loan granted at a relatively difficult time for the mining
industry as additional proof of our partner’s trust in Mechel and the strategy
we are realizing,” 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.