Moscow, Russia – January 13, 2009 – Mechel OAO (NYSE: MTL), one of the leading Russian mining and metals companies, announces it has entered into an agreement with Gazprombank OAO to arrange for the financing of a universal rolling mill installation project at its Chelyabinsk Metallurgical Plant OAO (CMP OAO) subsidiary.

In December 2008, Mechel Group-incorporated CMP OAO and Gazprombank OAO signed the agreement for arranging financing of the universal rail and structural steel mill construction under the contract between CMP OAO and Minmetals Engineering Co. Ltd, China.

Pursuant to the agreement, Gazprombank OAO provides fundraising services amounting up to US$255 million. Financing will be provided in the form of credits.

Implementation of the CMP OAO investment project for construction of universal rail and structural steel mill includes the contract between RZD OAO and CMP OAO for rail products supply from 2010-2030 that was signed in November 2008. Annual capacity of the mill is over one million tons of rails and structural shapes. The total investment in the project will amount to more than US$500 million. The commissioning of the mill is expected at the end of 2010. Danieli Company is the supplier of the main equipment.