Mechel’s Board recommends dividend amount

On May 10, 2011, Mechel’s Board of Directors recommended to the Annual General Shareholders’ Meeting annual dividend of 8.73 rubles per one ordinary share (approximately $0.32 per ADR*) for the 2010 fiscal year. Also Mechel’s Board recommended annual dividend of 26.21 rubles per one preferred share (about $0.95 per one preferred share and $0.47 per one preferred American Depositary Share*).

The total dividend the Board recommended to the Annual General Shareholders’ Meeting would amount to 3,634,043,603.85 rubles (about $131.4 million*) for ordinary shares. The total dividend for preferred shares is 3,636,818,742.15 rubles (about $131,5 million*). This dividend payment amount is in line with Mechel OAO’s Charter provision regarding preferred shares.

According to the Board’s decision dividend payment will be made in cash by wire transfer no later than 60 days after the day the decision to make the dividend payment is approved.

The list of persons entitled to receive dividends will be made on the record date for those entitled to participate in the Annual General Shareholders’ Meeting, based on the data in the Shareholders’ Register as of April 20, 2011. The Annual General Shareholders’ Meeting will be held on June 6, 2011, at the address: 1 Krasnoarmeyskaya Ul., Moscow, Russian Federation.

* According to the Russian Central Bank exchange rate of 27,6635 RUR/$ as of May 7, 2011.