Moscow, Russia– June 8, 2017 – Mechel PAO (NYSE: MTL, MOEX: MTLR), a leading Russian mining and metals company, announces the decisions made by its Board of Directors at a meeting held on June 6, 2017.

The Board of Directors made the following recommendations to the general meeting of Mechel PAO’s shareholders:

- not to pay an annual dividend with respect to ordinary shares;
- to pay an annual dividend of 10.28 rubles per one preferred share (approximately 0.18 US dollars per one preferred share and 0.09 US dollars per one preferred ADR*);
- to make the payment by bank transfer within the time period and according to form prescribed by Russian law.

The Board of Directors also recommended the general meeting of Mechel PAO’s shareholders to approve dividing part of accumulated profit from previous years as follows:

- to allocate 1,426,421,086.20 rubles (approximately 25,192,883.90 US dollars*) for payment of dividends for listed preferred shares;
- to allocate 7,872,869,111.52 rubles (approximately 139,047,494.02 US dollars*) to cover the 2016 loss;
- to leave the remainder of accumulated profit from previous years (18,232,323,119.96 rubles, approximately 322,012,064.99 US dollars*) unallocated.

The Board also suggested that the list of persons entitled to receive dividends for 2016 be made based on the data in the Mechel PAO Shareholders’ Register as of July 11, 2017.

The Board of Directors has also approved the following people as candidates to the Board and the company’s Revision Commission to be voted upon at the annual general meeting of Mechel PAO’s shareholders:

- For election to the Board of Directors:
1. Igor V. Zyuzin
2. Oleg V. Korzhov
3. Georgy G. Petrov
4. Alexander N. Kotsky
5. Alexander D. Orischin
6. Viktor A. Trigubko
7. Alexander N. Shokhin
8. Tigran G. Khachaturov
9. Yury N. Malyshev

- For election to the Revision Commission:
1. Alexander N. Kapralov
2. Natalya S. Zykova
3. Irina V. Bolkhovskikh

The annual general meeting of shareholders will be held on June 30, 2017 at the following address: Russia, Moscow, Leningradsky Prospect, 40, Petroff Palace - Petrovskiy Putevoy Dvorets, at 12:00 local time.

*Based on the Russian Central Bank exchange rate of 56.62 RUR/$ as of June 6, 2017.

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Mechel PAO
Ekaterina Videman
Tel: + 7 495 221 88 88
ekaterina.videman@mechel.com