Moscow, Russia – July 31, 2009 – Mechel OAO (NYSE: MTL), one of the leading Russian mining and metals companies, announces that it has competed placement of its non-convertible, interest bearing, certificated bearer bonds of 04 series for RUR 5.0 billion.

Mechel OAO completed placement of its secured non-convertible, interest bearing, certificated bearer bonds of 04 series callable at bearer's option and at the issuer’s discretion. The bond maturity date is the 2,548-th day following the date of placement (July 30, 2009). Payment of 28 quarterly coupons and three-year earlier redemption offer are stipulated.

The placement was arranged by public offering in the form of tender on the coupon rate and complied with the terms and procedure provided for in the Resolution on the securities issue and Prospectus.

The total quantity of the placed securities was 5,000,000 bonds with the nominal value of RUR 1,000.00 each. The first coupon rate was established at 19% p.a. The underwriter of the placement was Sberbank (Savings Bank of Russia).