Moscow, Russia – January 14, 2008 - Mechel OAO (NYSE: MTL), one of the leading Russian mining and metals companies, announces that it has closed syndication of a US$2.0 billion loan for refinancing its Yakutian coal assets acquired at auction on October 5, 2007.

Mechel OAO and the international banks acting as the joint book running managers for the loan, ABN AMRO, BNP Paribas, Calyon, Natixis, Sumitomo Mitsui Banking Corporation Europe Limited, Société Générale Corporate & Investment Banking, and Commerzbank AG officially closed the loan syndication started on November 2, 2007.

Through the loan, Mechel refinanced short term loans taken for the acquisition of the block of shares of Yakutugol OAO (75% of the statutory capital minus one share), Elgaugol OAO (68.86% of the statutory capital), and the real estate complex of a railway and a road between the Zeysk Railway Station (Far Eastern Railway) to the Elga coal deposits.

The syndicated loan is comprised of a Classic Secured 5-year Pre-Export Finance Facility totaling $1.7 billion (85%) and 3-year Term Loan Facility totaling $300 million (15%). General syndication, which was joined by thirteen leading world banks, resulted in an oversubscription of the Acquisition Refinancing Package for $105 million, but the Company elected not to increase the Facility size.

As previously announced, the loan funds totaling $2.0 billion were credited to the company’s accounts on December 12, 2007.