MOSCOW, February 21 /PRNewswire/ --

Mechel OAO (NYSE: MTL), one of the leading Russian mining and metals
companies, announces that it has signed a contract and is starting
construction of a railway spur track to the Elga coal deposit (Yakutia).

The contract for designing and constructing the railway spur track to
connect Ulak railroad station of the Baikal-Amur Mainline with the Elga coal
deposit (Yakutia) was signed between Mechel and Transstroy Engineering
Corporation, a subsidiary of Transstroy Design and Construction Company, on
February 19.

The total length of the railroad will be approximately 315 kilometers.
The railroad's design comprises about 420 engineering structures, including
194 bridges. The railroad's throughput capacity after completion of all
construction stages will be 25.0 million tonnes annually.

Construction of the railroad is the first stage in the development of the
Elga deposit, from which annual coal output is planned to reach about 30.0
million tonnes. Commissioning of the railroad for permanent operations will
take place not later than September 30, 2010.

"This project is a key aspect of our plans to develop the promising Elga
coal deposit, and is consistent with the implementation of Mechel's strategic
program aimed at further growing its mining segment. The construction will be
carried out in three phases. Concurrently with the railroad construction,
development of the Elga deposit itself will start. This will enable Mechel to
ensure the possibility to transport coal from the deposit simultaneously with
the completion of the railroad Phase 1," Mechel Management OOO Chief
Executive Officer Vladimir Polin commented.

Mechel is one of the leading Russian companies. Its business includes
three segments: mining, steel, and power. Mechel unites producers of coal,
iron ore concentrate, nickel, steel, rolled products, 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.