Mechel announces payment of dividends based on 2011 fiscal year results

Mechel, one of the leading Russian mining and metals companies, announces a dividend payment (including taxes) of 7,694,945,433.30 rubles (approximately US $241.2 million), based on the Company’s results for the 2011 fiscal year.

Mechel has allocated a total of 7,695,458,505.90 rubles (approximately 241.2 million US dollars*) (including taxes) for its annual dividend payment to shareholders for the 2011 fiscal year. This includes 4,340,316,301.20 rubles (approximately 136 million US dollars*) paid to holders of privileged registered book-entry shares or 31.28 rubles (approximately 0.98 US dollars*) per one privileged registered book-entry share, and 3,355,142,204.70 rubles (approximately 105.2 million US dollars*) paid to holders of ordinary registered book-entry shares or 8.06 rubles (approximately 0.25 US dollars*) per one ordinary registered book-entry share.

As of August 13, 2012, Mechel’s shareholders were paid a total of 7,694,945,433.30 rubles (including taxes; approximately 241.2 million US dollars*). Total dividends of 513,072.60 rubles (approximately 16,083.8 US dollars*), or 0.007% 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.

All funds to pay the dividends to the holders of Mechel’s ADRs were transferred to the account of the Company’s depositary bank Deutsche Bank.

* Based upon the Russian Central Bank exchange rate of 31.90 RUR/$ as of August 13, 2012.