Moscow, Russia– May 10, 2012 – Mechel OAO (NYSE: MTL), one of the leading Russian mining and metals companies, announces its Board’s dividend recommendation.

On May 10, 2012, Mechel’s Board of Directors held a meeting confirming recommendations to the annual general shareholders’ meeting regarding the payment of dividends:

• the Board recommended annual dividend of 8.06 rubles (approximately $0.27 per ADR*) per one ordinary share;

• the Board recommended annual dividend of 31.28 rubles per one preferred share (approximately $1.05 per one preferred share and $0.52 per one preferred ADR*).

According to the Board’s decision dividend payment will be made in cash by wire transfer no later than 60 days after the day of the decision to make the dividend payment.

The Board recommended to Mechel OAO’s general shareholders’ meeting to divide part of the accumulated profit from past years in the following way:

• to allocate 3,355,142,204.70 rubles (approximately $112,560,335.64*) for payment of dividends for listed ordinary shares;

• to allocate 4,340,316,301.20 rubles (approximately $145,611,550.82*) for payment of dividends for listed preferred shares.

The list of persons entitled to take part in the general shareholders’ meeting and the list of persons entitled to receive dividends for the 2011 fiscal year will be made based on the data in the Shareholders’ Register as of May 22, 2012. The annual general shareholders’ meeting will be held on June 29, 2012, at the address: 1 Krasnoarmeyskaya Ul., Moscow, Russian Federation.

* Based on the Russian Central Bank exchange rate of 29.8075 RUR/$ as of May 6, 2012.