ORSK, Russia, September 27 /PRNewswire/ --

Mechel OAO (NYSE: MTL), one of the leading Russian mining and metals
companies, announces it has commissioned new self-propelled drilling rigs at
the open pit mines of its subsidiary, Southern Urals Nickel Plant OAO.
Commissioning of the new equipment will enable Mechel to increase nickel ore
mining efficiency while reducing production costs.

The new Russian-made self-propelled drilling rig, UKB-5S, was
commissioned at the Sakharinsk open pit mine at the Southern Urals Nickel
Plant OAO this month. A similar unit was delivered to the Buruktal open pit
mine administration last week.

The cost of commissioning two UKB-5S drilling rigs was more than RUR12.0
million (approximately US$480 thousand). The designed capacity of each unit
is approximately 400 running meters per month.

The acquisition of the drilling rigs will allow the plant to carry out
independent operational exploration while obtaining data for reliable
planning and managing quality of mined silicate-nickel ore. The new equipment
will help the miners define more precise boundaries of ore bodies, volumes
and quality of mineral reserves.

The commissioning of the new self-propelled drilling rigs was implemented
in line with Mechel's mining subsidiaries technical re-equipment program.
Mechel OAO intends to invest approximately US$1.2 billion in its mining
segment during 5 years.

Mechel is one of the leading Russian mining and metals companies. Mechel
unites producers of coal, iron ore, nickel, steel, rolled products, and
hardware. 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.