Moscow, Russia – July 13, 2009 – Mechel OAO (NYSE: MTL), one of the leading Russian mining and metals companies, announces signing of the agreements to refinance its short-term credit facilities totaling 2.6 billion US dollars raised to purchase assets in Yakutia and Oriel Resources Ltd. (Great Britain).

As a result of 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, the loan agreements for refinancing of these facilities by means of long-term instruments have been signed.

Specifically, the sum refinanced under the credit facility for acquisition of coal assets in Yakutia amounted to 1.6 billion US dollars at LIBOR rate +6%, the total facility amount being 2 billion US dollars. Maturity period provides for monthly equal installments from September, 2009 to December, 2012. The remainder of the credit facility of 400 million US dollars was repaid earlier with the company’s own funds according to the agreed schedule.

Credit facility for Oriel Resources Ltd. acquisition of 1.5 billion US dollars has been refinanced in the amount of 1 billion US dollars at LIBOR rate +7%. Maturity period provides for monthly equal installments from July, 2010 to December, 2012. The remainder of the credit facility of 500 million US dollars was repaid from funds raised from Gazprombank three-year loan, according to the agreement which was signed by the company in February, 2009.

Mechel OAO CFO Stanislav Ploschenko commented: “Mechel has become the first Russian company which managed to refinance its significant credit facilities with foreign banks by means of long-term instruments and, moreover, it was done on acceptable and favorable terms in current market environment. Financial covenants were also adapted to the company’s current situation. I would like to emphasize that as a result of these credits refinancing the short-term debt of the company of 2.6 billion US dollars will be again reclassified as long-term debt in corporate financial reporting making performance of financial and operational activities much easier. Moreover the refinancing structure has been modeled assuming that even if current level pricing for Mechel’s products, that are not the highest ones, remains, the company will face no difficulties to meet its financial obligations. I consider this refinancing as an important sign that confirms Russian borrowers’ ability to carry on successful and constructive dialogue with international financial organizations in the current difficult situation”.