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 ańcrued 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 ańcrued 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.