MECHEL ANNOUNCES PROLONGATION OF VTB BANK CREDIT FACILITIES

Moscow, Russia – April 16, 2012 – Mechel OAO (NYSE: MTL), one of the leading
Russian mining and metals companies, announces the extension of credit
facilities totalling 13.6 billion rubles (approximately 462 million US dollars*)
previously obtained from VTB Bank for Mechel’s enterprises.
Subsidiaries of Mechel Mining, which is part of Mechel Group, and VTB Bank
signed amendments to the credit facilities, extending the maturities by three
years until 2015.
In late 2008, VTB Bank opened short-term non-secured credit lines totaling 13.6
billion rubles (approximately 462 million US dollars*) for subsidiaries of
Mechel Mining.  The loans’ maturities were later extended until 2012. The credit
facilities were used to finance the borrowers’ current operations.
“VTB Bank is a longstanding strategic partner for Mechel Group, and signing
these agreements is additional proof of our successful partnership. These
accords will enable us to optimize the Group’s credit portfolio structure by
significantly decreasing the share of short-term loans, which is particularly
important in light of significant volatility in the financial market .
Extension of these facilities by three years also shows the great trust one of
Russia’s leading banks has for our company as a reliable partner and a
high-quality borrower,” Mechel OAO’s Chief Financial Officer Stanislav
Ploschenko noted.
* Based upon the Russian Central Bank exchange rate of 29.47 RUR/$ as of April
14, 2012.
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Mechel OAO
Ekaterina Videman
Tel: +7 495 221-88-88
ekaterina.videman@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, nickel, ferrochrome, ferrosilicon, steel, rolled products,
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.