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Vale Florestar S/A

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Forest Plantations – Growth Opportunities in Brazil

Distribution of commercial forests across the world

Fonte: Silviconsult

Land use in Brazil

Fonte: ABRAF

206 million ha

Pasture 18.6%Other 17.1%Native Forest 56.5%Forest Plantations 0.8%Agriculture 7.0%

Source: IBGEOther 25.7%China 31.7%India 10.0%USA 10.0¨%Russia 7.0%Sweden 5.8%Poland 3.3%Sudan 3.3%Brazil 3.2%

Source: Silviconsult

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Brazil currently has 4.26 million hectares of eucalyptus plantations, with annual

growth of 4.6% since 2000

Forest Plantations – Growth Opportunities in Brazil

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Million há

Source: ABRAF, SBS, adapted by Silviconsult

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Eucalyptus timber consumption in Brazil: around 114 million m³/year

Brazilian Forestry Market – Diversified Internal Consumption

Other 2.8%Pulp 32.8%Planks/boards 5.1%Plywood 3.6%Sawed wood 19.7%Charcoal 13.4%Firewood 22.%

Source: Diverse – Adjusted by Silviconsult

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Annual consumption of eucalyptus logs outstrips supply by 2 million m³

Brazilian Forestry Market – Higher Demand Than Supply

Annual deficit

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Million m3

SupplyDemandBalance

Source: Silviconsult

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Productivity – Commercial Advantage in Brazil

Eucalyptus Plantations:

High productivity (Mean Annual Increment > 30/40) and short production cycle (7 years)

MAI (m3/ha/year)

Cycle (years)

BrazilUruguayIndonesiaChilePortugal USACanada

Source: Diverse, adapted by Silviconsult

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Expansion Opportunities at New Frontiers

Area of Forest Plantations2008 (1000 ha)

Total in 2008 = 6.6 million ha

Source: Abraf Annual Report (2009)

87% of planted area

Growth opportunities:

- High productivity

- Large areas of degraded land

- Developing market

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Vale Florestar today

Vale Florestar was created as a Vale project in 2005 and came into operation in 2007

Over the past three years, 24.5 million trees have been planted on 41 leased farms

Area: approximately 70,000 hectares

Vale has invested around R$230 million* in the project – more than one-third of the total

planned amount

Vale Florestar currently employs 1,500 people

(*) As of March 2010

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Partnership for Forest Projects

Vale Florestar S/A

Investment FundR$ 605.04 million

leasing licensing sapling production

planting monitoring sales

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The Future: Vale Florestar S/A

Vale Florestar will operate across a total area of approximately 450,000 ha:

300,000 ha to protect and restore native forest

150,000 ha to develop commercial eucalyptus plantations

The project will require total investment of R$605 million* by 2014, generating 4,000

jobs during peak production

By restoring degraded areas, Vale Florestar S/A will promote carbon capture

The project will have its own tree nursery to grow saplings, with capacity to produce 28

million saplings per year. It will be able to supply saplings to other projects in the region

It will help attract forestry-related industries to the region, instigating a multiplier effect

(*) Adjusted for inflation

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Operational Area

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Area Planted by Vale Florestar

4,1

10,1

5,8

2007 2008 2009

Area planted (1000 hectares)

Breakdown by farm Breakdown by municipality

Total: 20,000 ha

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Planting of native species – Preciosa FarmPlanting of native species – Preciosa Farm

Vale FlorestarRestoration of Natural Habitat

November 2007 March 2010

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BEFORE AFTER

November 2007 March 2010

Surpresa Farm Surpresa Farm

Vale FlorestarProcess of Restoring Degraded Areas

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WatercourseNovember 2007

Surpresa FarmSurpresa Farm

Vale FlorestarProcess of Restoring Degraded Areas

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March 2010

Surpresa FarmSurpresa Farm

Vale FlorestarProcess of Restoring Degraded Areas

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2007 2010

2007 2010

2008

2008

Santa Fé Farm Santa Fé Farm

Vale FlorestarProcess of Restoring Degraded Areas

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Arizona Farm – April 2007Arizona Farm – April 2007

Vale Florestar – Commercial plantations combinedwith preservation of environmental protection areas

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Arizona Farm – March 2010Arizona Farm – March 2010

Vale Florestar – Commercial plantations combinedwith preservation of environmental protection areas

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Vale Florestar S/A aims to reverse this trend...

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Vale Florestar S/A aims to reverse this trend...

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A new reality

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Thank you

Arizona Farm – March 2010Arizona Farm – March 2010