Moscow, Russia — February 14, 2012 – Mechel OAO (NYSE: MTL), one of the leading Russian mining and metals companies, announces successful closure of the books for the placement of its BO-04 series bonds. The funds procured by the placement will be used to re-finance short-term debt facilities.

On February 10, 2012 Mechel OAO closed the books for the placement of its non-convertible interest-bearing documentary stock bonds of the BO-04 series with an obligatory centralized custody (ID serial number 4Â02-04-55005-Åof 05.02.2009). The bonds mature in 1,092 days, with a put option in two years.

The bonds have a total nominal value of 5.0 billion rubles (approximately 167 million US dollars*). The first coupon rate is 10.25% per year.

The BO-04 series bonds will be placed on the MICEX Stock Exchange ZAO on February 14, 2012, with Coalmetbank OAO acting as the issuer’s agent for the placement.

VTB Capital ZAO, Otkritie Bank OAO, Troika Dialog Investment Company ZAO and Coalmetbank OAO acted as managers of the placement.

* Based upon the Russian Central Bank exchange rate of 29.89 RUR/$ as of February 14, 2012.