Moscow, Russia – March 16, 2010 – Mechel OAO (NYSE: MTL), one of the leading Russian mining and metals companies, announces placing its commercial papers.

On March,16, 2010 Mechel OAO completed placement of its interest-bearing commercial papers of BO-02 series with an obligatory centralized custody(ID serial number 4B02-02-55005-E of 05.02.2009) at MICEX Stock Exchange ZAO.

Placement was performed by public subscription through collection of offers for fixed-price purchase of commercial papers with coupon rate for the first coupon period under the terms and conditions of Securities Prospectus and Decision on Securities Issuance.

The number of the commercial papers placed makes 5,000,000 pieces (100% of the issue volume), the nominal value of the commercial papers is 1000 roubles each and the total nominal value of the placed commercial papers is 5,000,000,000 roubles.

The 1st coupon rate of the commercial papers of BO-02 series is set at the level of 9.75 % per year which corresponds to the sum of 48.62 roubles. According to the Prospectus of the commercial papers of B0-02 series and the Decision on the commercial papers issue of B0-02 series, the coupon rate from the 2nd to the 6th coupon is equal to the 1st coupon rate.

VTB Capital ZAO, Sberbank OAO, AKB Svyaz Bank OAO and Coalmetbank OAO were managers of the placement.

Stanislav Ploshchenko, Mechel’s Chief Financial Officer commented on the event: “All in all, we are satisfied with the placement results. Due to the new level of the cost of debt we achieved at the public market we continue improving the group’s credit portfolio by replacing more expensive short-term secured bank loans with more efficient public instruments. High demand – the book was more than four-time oversubscribed at the bottom of the price range - and high quality of investors base, give us reasons to count on healthy liquidity of this paper as well as good perspective for further placement of Mechel’s bonds”.