Moscow, Russia – July 01, 2008 – Mechel OAO (NYSE: MTL), one of the leading Russian mining and metals companies, announces the results of its Annual General Shareholders’ Meeting that was held on June 30, 2008.

The Annual General Shareholders’ Meeting adopted the following resolutions:

• To approve a dividend of RUR 26.38 per one ordinary registered book-entry share (about USD 1.12 per one ADR 1) based on the company’s operational results for 2007. The total dividend recommended by the Board of Directors to the Annual General Shareholders’ Meeting amount to RUR 10.981 billion (approximately USD 465.6 million 1), which complies with Mechel’s previously announced intention to allocate not less than 50% of its net income under US GAAP to pay dividends beginning from the payment of the dividends for fiscal year 2005.

Dividends should be paid out by bank transfer not later than December 31, 2008.

1 Calculated at the exchange rate of the Russian Federation Central Bank as of May 29, 2008, amounting to 23.5847 Russian Rubles per one US Dollar.

• To elect the following people to Mechel’s Board of Directors (BoD):

o Igor Zyuzin;

o Alexey Ivanushkin;

o Vladimir Polin;

o Roger Gale (independent director);

o A. David Johnson (independent director);

o Serafim Kolpakov (independent director);

o Alexander Yevtushenko (independent director);

o Valentin Proskurnya (independent director);

o Igor Kozhukhovskiy (independent director).

The number of Directors on the Company’s Board remains unchanged from the last year. Independent directors, as before, make up the majority in Mechel’s BoD.

• To approve Mechel’s annual report and annual Russian financial statements and report, including profit and loss account, and to appoint BDO Unicon ZAO, Moscow, as Mechel’s auditor for its Russian statutory accounts.