Mechel : Recommendations of the Board for Profit Distribution based on the 2019 financial year results

RECOMMENDATIONS OF THE COMPANY'S BOARD OF DIRECTORS ON THE DISTRIBUTION OF PROFIT, INCLUDING THE AMOUNT OF DIVIDEND ON THE COMPANY SHARES AND PROCEDURE TO PAY IT BASED ON THE 2019 FINANCIAL YEAR RESULTS.

To recommend the General Shareholders' Meeting to make decision not to pay out dividends on ordinary registered non-documentary shares.

To recommend the General Shareholders' Meeting to make decision to pay out dividends on preferred registered non-documentary shares in the amount of 3 rubles 48 kopeksper share.

To propose to the General Shareholders' Meeting to set the date of compiling the list of persons entitled to receive dividends on preferred registered non-documentary shares, - 17 July 2020.

To recommend the General Shareholders' Meeting to approve distribution of the part of the accumulated profits from previous years as follows:

• dividend payment in respect of placed preferred shares of the Company amounted to-482 874 064,20
  RUB
• profit balance of1 508 353 153,10RUB to be left undistributed "

Notes:

Number of preferred shares: 138 756 915 shares

Number of ordinary shares: 416,270,745 shares

The above calculations are based on the following assumptions:

Profit for the year 2019 attributable to shareholders of Mechel IFRS in rubles: 2 409 mln

Profit for the year 2018 attributable to shareholders of Mechel IFRS in rubles: 12 628 mln