Moscow, Russia – June 02, 2009 – Mechel OAO (NYSE: MTL), one of the leading Russian mining and metals companies, announces its Board’s dividend recommendation.

On June 2, 2009, Mechel’s Board of Directors recommended to the annual general shareholders’ meeting annual dividends of 5.53 rubles per one ordinary share (approximately $0.18 per ADR) * for the 2008 fiscal year. Also Mechel’s Board recommended annual dividends of 50.55 rubles per one preferred share (about $1.6)*.

The total dividend the Board recommended to the annual general shareholders’ meeting would amount to 2,301,977,219.85 rubles (approximately $75 million)* for ordinary shares. The total dividend for preferred shares is 7,014,162,053.25 rubles (more than $228 million). This dividend payment amount is in line with Mechel OAO’s Charter provision regarding preferred shares.

According to the Board’s decision dividend payment will be in cash by wire transfer not later than December 31, 2009.

The record date for the Mechel’s share, preferred share and ADR-holders entitled to participate in the annual general shareholders’ meeting and to receive dividends is June 4, 2009. The annual general shareholders’ meeting will be held on June 30, 2009, at the address: 1 Krasnoarmeyskaya St, Moscow, Russian Federation.

“Unfavorable conditions on the world and Russian financial and product markets, which we are witnessing since October 2008, brought about changes in our dividend policy for common shares. In the current situation we consider it unjustified to withdraw significant funds from our operational cash flows. Yet, having respect for our shareholders’ rights, we don’t think it is appropriate to completely refuse from dividend payments,” commented Stanislav Ploschenko, Mechel OAO’s CFO.

* According to the Russian Central Bank exchange rate of 30.7441 RUR/$ as of June, 2, 2009.