Moscow, Russia – March 22, 2010. – Mechel OAO (NYSE: MTL), one of the leading Russian mining and metals companies, announces financial lease contract signing between its Mecheltrans OOO subsidiary and Gazprombank Leasing CJSC.

Mecheltrans OOO and Gazprombank Leasing CJSC signed financial lease contract to lease out railcars to Mecheltrans. The contract’s total value is 1.26 billion rubles (approximately US$ 43.1 million)*. According to the contract Gazprombank Leasing ZAO, an authorized company that implements Gazprombank’s leasing projects, plans to lease out about 450 railcars manufactured by Novokuznetsk Railcars Construction Plant during the first and second quarters of 2010.

Mecheltrans OOO is Mechel Group’s integrated transport operator. Currently Mecheltrans provides freight forwarding of not less than 35 mln tonnes of cargo per year. Mechel’s products are transported by the operator to Russia, CIS as well as to far-abroad countries. Exports are arranged for Europe, Middle East and Asia-Pacific Region. The majority of the cargo goes through land border-crossings to China, Ukraine, Slovakia, Romania, Bosnia and Herzegovina. In 2007 Mecheltrans was officially awarded as the best Russian rolling stock operator.

Alexander Starodubov, Mecheltrans OOO Chief Executive Officer, commented on the event:

“Mecheltrans’ rolling stock fleet will be increased by 12% due to the purchase of 450 railcars through financial leasing. The increase of leasing rolling stock fleet, which in future will pass into our ownership, will allow the company to significantly cut shipping costs. The additional railcars will be engaged in transportation of raw materials, semi-finished goods and finished products between Mechel’s subsidiaries. It is supposed to ship about 1 mln tonnes of cargo per year in these railcars”.

* According to the Russian Central Bank exchange rate of 29,25 RUR/$ as of March 20, 2010.