Neryungri, Russia – October 10, 2008 – Mechel OAO (NYSE: MTL), one of the leading Russian mining and metals companies, announces that a working meeting was held at its Yakutugol OAO coal mining subsidiary on October 8, 2008. Participants in the meeting were the Republic of Sakha (Yakutia) President, Vyacheslav Shtyrov, as well as representatives of Mechel’s subsidiaries, Mechel Mining and Yakutugol OAO, and Transstroy Engineering Corporation. The purpose of the meeting was to discuss matters related to construction of the railway spur track to the Elga coal deposit.

At the meeting the Yakutia Branch Director of Transstroy Engineering Corporation, Mr. Alexander Dudnikov, made a detailed report on the progress of the access road and the railroad bed construction.

Mechel Mining ÎŔÎ Chief Executive Officer Igor Khafizov also provided information on the progress of the Elga project, noting that all the tasks in constructing the access road to the Elga deposit set for 2008 were completed. Mechel, together with the general contractor, is currently considering the plans for 2009.

Commencement of trial coal mining on the deposit plot is planned for 2009 and large-scale engineering and exploration is ongoing at the future open pit mine. The design process also includes utilization of the Yakutian experts’ scientific experience. In the presentation Igor Khafizov highlighted that environmental matters would be given priority in the deposit development.

“Next year will be the most complex and important stage of the project. We are pleased that such a large-scale project as construction of the Elga complex has received the attention of the state. Our meeting with Mr. Shtyrov indicates that the President of Yakutia is interested in successful implementation of the project, which is important for the social and economic development of the region,” said Igor Khafizov.