Moscow, Russia – January 11, 2011 – Mechel OAO (NYSE: MTL), one of the leading Russian mining and steel companies, announces a dividend payment (including taxes) of RUR 910,223,721.05 (approximately US$29.9 million as of December 31, 2010), based on the Company’s results for the 2009 fiscal year.

Mechel OAO has allocated a total of RUR 910,245,362.40 (approximately US$29.9 million *) (including taxes) for its annual dividend payment to shareholders for the 2009 fiscal year. This includes RUR 456,510,250.35 paid to holders of privileged registered book-entry shares or RUR 3.29 per one privileged registered book-entry share, and RUR 453,735,112.05 paid to holders of ordinary registered book-entry shares or RUR 1.09 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 2009 according to US GAAP.

As of December 31, 2010, Mechel OAO’s Russian and foreign shareholders were paid a total of RUR 910,223,721.05 (including taxes). Total dividends of RUR 21,641.35 (approximately US$ 710 *), or 0.002% 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 dividend to the holders of Mechel’s ADRs were transferred to the account of the Company’s depositary bank Deutsche Bank, which will distribute them till January 12, 2011.

* According to the Russian Central Bank exchange rate of 30.47 RUR/$ as of December 31, 2010.