MECHEL REPORTS RAISING US$2BLN PRE-EXPORT FINANCE FACILITY TO REFINANCE ITS
EXISTING DEBT OBLIGATIONS

Moscow, Russia – September 13, 2010 – Mechel OAO (NYSE: MTL), one of the leading
Russian mining and metals companies, raised the US$2bln pre-export facility.
The new facility is split between the borrowers in mining (OJSHC Yakutugol and
Southern Kuzbass Coal Company for US$857.1 mln each), steel (OAO Chelyabinsk
metallurgical plant for US$95.3 mln) and ferroalloy (OAO South Urals Nickel
Plant for US$190.5 mln) divisions of Mechel Group and is drawn in two tranches,
a 3-year and a 5-year one. Repayment will be done by monthly instalments after 9
and 15 months grace periods respectively. The Facility is structured as a
secured dual tranche pre-export facility.
The proceeds raised under the new US$2bln facility have been used for
refinancing Mechel Group’s remaining debt obligations under the two syndicated
pre-export facilities (the original US$ 2,000,000,000 and the US$ 1,000,000,000
facilities raised for acquisition of OJSC Yakutugol and Oriel Resources Ltd.
respectively). Those facilities were already in the repayment phase with final
maturity in December 2012.
The Company appointed ING Bank N.V. and The Royal Bank of Scotland N.V. as
Co-ordinators. In addition, BNP Paribas SA, Closed Joint Stock Company UniCredit
Bank, Commerzbank Aktiengesellschaft, HSBC Bank plc, Natixis, OJSC “Nordea
Bank”, Raiffeisen Zentralbank Oesterreich AG, Société Générale, UniCredit Bank
AG (formerly known as Bayerische Hypo- und Vereinsbank AG), VTB Bank (Austria)
AG, VTB Bank (Deutschland) AG and VTB Bank (France) SA acted as Mandated Lead
Arrangers and Morgan Stanley and Credit Suisse as Lenders for the facility.
Stanislav Ploshchenko, Mechel’s Chief Financial Officer commented: “Mechel has
become the first Russian metals and mining company which arranged a new 5 year
tenor PXF transaction after the financial crisis. It is also remarkable that
this transaction came only a year after the restructuring of Mechel’s
international debt on less attractive terms. This time we also have fewer banks
in the pool, many of them significantly increased their exposure since the
previous facilities, but we also have completely new banks, which suggests a
significant revaluation of our credit risk profile in the financial community.
We are thankful to our foreign partners in the banking sector for their trust
and commitment to our Group and to this transaction. The new financing is more
favorable to our Group not only in tenor but also in pricing and collateral
security. Besides, the new feature of this transaction is that it is structured
without cross security and cross guarantees between our Group’s divisions and
therefore marks a significant step forward in our strategy to separate the
divisions not only from the operational management’s prospective but also in
financing their operations including future debt and equity raising.”

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Mechel OAO
Vladislav Zlenko
Tel: + 7 495 221 88 88
vladislav.zlenko@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, steel, ferrochrome, ferrosilicon, rolled products,
hardware, heat and electric power. Mechel products are marketed domestically and
internationally.
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