MECHEL OAO CONTINUES IMPLEMENTATION OF ITS CEMENT PRODUCTION PROJECT


Moscow, Russia – April 21, 2009 – Mechel OAO (NYSE: MTL), one of the leading
Russian mining and metals companies, announces obtaining of decision from OeKB
Austrian insurance agency to issue insurance coverage for the credit agreement
which is to be made to finance the contract between Mechel’s subsidiary, Mechel
Materials OOO, and FMW of Austria. The contracts are prepared as part of
Mechel’s project to launch its own cement production.
Mechel continues implementation of the project to establish its own production
of construction materials. In line with the project, the decision was obtained
from OeKB Austrian insurance agency on issuing insurance coverage for the credit
contract which is to be concluded to finance the agreement between Mechel’s
subsidiary, Mechel Materials OOO, and the Austrian company FMW. FMW was
contracted to construct a milling complex for production of slag Portland cement
at Mechel’s Chelyabinsk Metallurgical Plant OAO (CMP OAO) subsidiary. The
contract amount is limited at € 80.0 mln. The insurance coverage amounts to €
72.3 million.
The obtained decision means that OeKB is ready to provide credit insurance for
loan which will be used to finance the contract for milling complex
construction.
The contract for supply of the main technological equipment for the milling
complex (vertical Jar rollers) has been concluded with the German company
Loesche GmbH. In order to finance the contract a credit line has been opened
with Commerzbank AG. Insurance coverage under the credit line is issued by the
German Euler Hermes export agency for over € 25.0 million.
Mechel Materials OOO is a part of Mechel group. Currently the subsidiary is
implementing the project of slag Portland cement production on the bases of
granulated slag produced by Chelyabinsk metallurgical plant blast-furnaces
(production line will be located at CMP). Production capacity of the plant is
projected to reach 1.6 million tonnes of high quality slag Portland cement
annually. Production is expected to commence in the third quarter of 2011.
Implementation of the project will enable Mechel to produce high marginable slag
Portland cement which is in high demand by the market. The new plant will also
help to improve the environmental situation in the region, as it allows to
resolve the problem of utilization of steel production waste.

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Mechel OAO
Ilya Zhitomirsky
Phone: + 7 495 221 88 88
ilya.zhitomirsky@mechel.com
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Mechel is one of the leading Russian companies. Its business includes four
segments: mining, steel, ferroalloy and power. Mechel unites producers of coal,
iron ore concentrate, steel, rolled products, ferroalloys, hardware, heat and
electric power. Mechel products are marketed domestically and internationally.
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Some of the information in this press release may contain projections or other
forward-looking statements regarding future events or the future financial
performance of Mechel, as defined in the safe harbor provisions of the U.S.
Private Securities Litigation Reform Act of 1995. We wish to caution you that
these statements are only predictions and that actual events or results may
differ materially. We do not intend to update these statements. We refer you to
the documents Mechel files from time to time with the U.S. Securities and
Exchange Commission, including our Form 20-F. These documents contain and
identify important factors, including those contained in the section captioned
“Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements” in our
Form 20-F, that could cause the actual results to differ materially from those
contained in our projections or forward-looking statements, including, among
others, the achievement of anticipated levels of profitability, growth, cost and
synergy of our recent acquisitions, the impact of competitive pricing, the
ability to obtain necessary regulatory approvals and licenses, the impact of
developments in the Russian economic, political and legal environment,
volatility in stock markets or in the price of our shares or ADRs, financial
risk management and the impact of general business and global economic
conditions.