Neryungri, Republic of Sakha (Yakutia) – December 18, 2007 – Mechel OAO (NYSE: MTL), one of the leading Russian mining and metals companies, announces that the Board of Directors of its coal mining subsidiary, Yakutugol OJSHC, appointed Igor Khafizov as its General Director.

Igor Khafizov (40) was appointed General Director of Yakutugol OJSHC, succeeding Mukhamed Tsykanov, who served as its Acting General Director after Mechel’s acquisition of the coal mining company at auction earlier this year. Mukhamed Tsykanov has been appointed Chairman of the Board of Directors of Yakutugol OJSHC and joins the management of Mechel OAO.

“Igor Khafizov is a highly qualified mining specialist who understands the operations of a large mining company as he elevated his career from an excavator assistant driver to General Director. He successfully managed the largest township-forming subsidiary enterprises including the Korshunov Mining Plant and Southern Kuzbass coal company, which are included in Mechel’s mining division. Under his management, these assets strengthened as efficient and profitable enterprises yielding steady profit for the company and economic benefits for its employees. At Yakutugol, Igor Khafizov will focus his initiatives on bringing the Yakutugol operations into accordance with Mechel OAO requirements and standards, increasing profitability through reducing costs, increasing output, developing and approving Yakutugol’s sustainable growth program while also taking into account the development of the Elga project, and the improvement of the work environment for employees. I am confident that his solid experience and extensive knowledge will facilitate the successful implementation of the subsidiary’s projects, and positively affect business and economic operations of our new large coal asset,” Mechel Management OOO Chief Executive Officer Vladimir Polin said.

Prior to his appointment as General Director at Yakutugol OJSHC, Mr. Khafizov held positions in Mechel’s Southern Kuzbass OAO coal mining subsidiary as Managing Director from February 2006 to December 2007; Mechel’s Korshunov Mining Plant OAO iron ore mining subsidiary as Managing Director from January 2006 to February 2006; and Mechel’s Korshunov Mining Plant OAO iron ore mining subsidiary as its General Director from 2003 to 2006. From 1992 to 2003 he held various positions at Mechel’s Korshunov Mining Plant. Mr. Khafizov graduated from Urals Mining Institute with the specialty of Mining Engineer. He is a recipient of the “Miner of Russia” gold badge.