MECHEL ANNOUNCES PAYMENT OF DIVIDENDS BASED ON 2010 FISCAL YEAR RESULTS

Moscow, Russia – August 3, 2011 –  Mechel OAO (NYSE: MTL), one of the leading
Russian mining and metals companies, announces a dividend payment (including
taxes) of 7,270,817,107.14 rubles (approximately 261.39 million US dollars*),
based on the Company’s results for the 2010 fiscal year.
Mechel OAO has aсcrued a total of 7,270,862,346 rubles (approximately 261.4
million US dollars*) (including taxes) for its annual dividend payment to
shareholders for the 2010 fiscal year. This includes 3,636,818,742.15 rubles
(approximately 130.75 million US dollars*) paid to holders of privileged
registered book-entry shares or 26.21 rubles (approximately 0.94 US dollars*)
per one privileged registered book-entry share, and 3,634,043,603.85 rubles
(approximately 130.65 million US dollars*) paid to holders of ordinary
registered book-entry shares or 8.73 rubles (approximately 0.31 US dollars*) per
one ordinary registered book-entry share. The amount of funds allocated to pay
the annual dividend is approximately 40% of the company’s net profit for 2010
according to US GAAP.
As of August 2, 2011, Mechel OAO’s Russian and foreign shareholders were paid a
total of 7,270,817,107.14 rubles (approximately 261.4 million US dollars*)
(including taxes). Total dividends of 45,238.86 rubles (approximately 1,626.4 US
dollars*), or 0.0006% of the allocated amount, were not distributed to certain
shareholders due to their failure to fulfill their obligations to provide
information on their bank details required to transfer the dividends aсcrued to
the holders’ ordinary registered book-entry shares.
All funds to pay the dividend to the holders of Mechel’s depositary receipts
were transferred to the account of the Company’s depositary bank Deutsche Bank.
* According to the Russian Central Bank exchange rate of 27.8154 RUR/$ as of
August 3, 2011.
***
Mechel OAO
Ekaterina Videman
Phone: + 7 495 221-88-88
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.