Press Releases

Mechel Announces Results of Its Annual General Shareholders Meeting

29June2012
Moscow, Russia June 29, 2012 Mechel OAO (NYSE: MTL), one of the leading Russian mining and metals companies, announces that its Annual General Shareholders Meeting was held on June 29, 2012.

The following key resolutions were adopted by shareholders at the meeting:

• To pay dividends of 8.06 rubles per one ordinary share (approximately $0.27 per ADR*). The payment is due to be made by bank transfer in less than 60 days since the decision to pay was made.

• To pay a dividend of 31.28 rubles per one preferred share (approximately $1.05 per one preferred share and approximately $0.52 per one preferred ADR*). The payment is due to be made by bank transfer in less than 60 days since the decision to pay was made.

• To allocate profit from past years as follows:

- dividend payment of placed Company’s ordinary shares – 3,355,142,204.7 rubles (about $112,560,335.64*)
- dividend payment of placed Company’s privileged shares – 4,340,316,301.2 rubles (about $145,611,550.82*)
 

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

1. Arthur David Johnson;
2. Vladimir Gusev;
3. Alexander Yevtushenko;
4. Igor Zyuzin;
5. Igor Kozhukhovsky;
6. Yevgeny Mikhel;
7. Valentin Proskurnya;
8. Roger Ian Gale;
9. Viktor Trigubko.
 

The number of the Board’s members remained the same as last year. Viktor Trigubko has replaced Serafim Kolpakov as member of the Board of Directors.

• To approve the Company’s Annual Report for 2011.

• To approve the Company’s Annual Financial Statements inclusive of the Income Statement (Profit and Loss Accounts) for 2011.

• To elect the following people to Mechel OAO’s audit committee:

1. Yelena Pavlovskaya-Mokhnatkina;
2. Natalya Mikhailova;
3. Andrey Stepanov.
 

• To appoint Energy Consulting/Audit ZAO as the auditor of Mechel OAO (Moscow).

• To approve the revised Bylaw on rewards to the members of Mechel OAO’s Board of Directors and compensation of expenses incurred by them while performing the functions of members of the Board of Directors.

* Based upon the Russian Central Bank exchange rate of 29.8075 RUR/$ as of the date of the Board of Directors’ recommendation to the General Shareholders’ Meeting on making a decision on dividend payment (May 6, 2012).

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Mechel OAO
Maria Kolmogorova
Phone: + 7 495 221-88-88
maria.kolmogorova@mechel.com

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Mechel is one of the leading Russian companies. Its business includes four segments: mining, steel, ferroalloy and power. Mechel unites producers of coal, iron ore concentrate, nickel, ferrochrome, ferrosilicon, steel, rolled products, hardware, heat and electric power. Mechel products are marketed domestically and internationally.

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Some of the information in this press release may contain projections or other forward-looking statements regarding future events or the future financial performance of Mechel, as defined in the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. We wish to caution you that these statements are only predictions and that actual events or results may differ materially. We do not intend to update these statements. We refer you to the documents Mechel files from time to time with the U.S. Securities and Exchange Commission, including our Form 20-F. These documents contain and identify important factors, including those contained in the section captioned “Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements” in our Form 20-F, that could cause the actual results to differ materially from those contained in our projections or forward-looking statements, including, among others, the achievement of anticipated levels of profitability, growth, cost and synergy of our recent acquisitions, the impact of competitive pricing, the ability to obtain necessary regulatory approvals and licenses, the impact of developments in the Russian economic, political and legal environment, volatility in stock markets or in the price of our shares or ADRs, financial risk management and the impact of general business and global economic conditions.

 

29.06.2012

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