MECHEL’S BOARD RECOMMENDS DIVIDEND AMOUNT

Moscow, Russia – May 28, 2010 – Mechel OAO (NYSE: MTL), one of the leading
Russian mining and metals companies, announces its Board’s dividend
recommendation.
On May 28, 2010, Mechel’s Board of Directors recommended to the annual general
shareholders’ meeting annual dividend of 1.09 rubles per one ordinary share
(approximately $0.035 per ADR)* for the 2009 fiscal year. Also Mechel’s Board
recommended annual dividend of 3.29 rubles per one preferred share (about $0.11
per one preferred share and $0.055 per one preferred American Depositary
Share)*.
The total dividend the Board recommended to the annual general shareholders’
meeting would amount to 453,735,112.05 rubles (about $14.7 million)* for
ordinary shares. The total dividend for preferred shares is 456,510,250.35
rubles (about $14.8 million)*. This dividend payment amount is in line with
Mechel OAO’s Charter provision regarding preferred shares.
According to the Board’s decision dividend payment will be in cash by wire
transfer not later than December 31, 2010.
The record date for the Mechel’s share, preferred share and ADR-holders entitled
to participate in the annual general shareholders’ meeting and to receive
dividends is May 24, 2010. The annual general shareholders’ meeting will be held
on June 30, 2010, at the address: 1 Krasnoarmeyskaya Ul., Moscow, Russian
Federation.
* According to the Russian Central Bank exchange rate of 30.8786 RUR/$ as of May
28, 2010.
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Mechel OAO
Ekaterina Videman
Tel.: (495) 221-88-88
ekaterina.videman@mechel.com
***
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.
***
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.