Mechel Completes Its Preferred Shares Placement

MOSCOW - Mechel OAO (NYSE: MTL), one of the leading Russian mining and metals companies, announces the completion of the open subscription placement of its preferred shares.

The preferred shares placement was completed April 2, 2009, when the procedures of payment and transition of shares to the buyer occurred. During the placement process only one offer to purchase the preferred shares of the Company was submitted. The preferred shares were purchased by one of Mechel’s subsidiaries, Skyblock Limited. According to the international financial reporting standards of US GAAP used by the Company, the issued shares have become treasury stocks.

Placement of the preferred shares through public offering in the amount of 138,756,915 started on April 1, 2009. In compliance with the resolution of Mechel OAO’s Board of Directors, the nominal value of each preferred registered book-entry share is RUR 10.0 (approximately USD 0.3).

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.

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.

Source: Mechel OAO

Ilya Zhitomirsky, Mechel OAO, +7-495-221-88-88, ilya.zhitomirsky at mechel.com