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Vale goes to the BM&F Bovespa Stock Exchange

Luciano Siani

Vale CFO

August 2015

1

Dis

clai

mer

“This presentation may include statements that present Vale's

expectations about future events or results. All statements,

when based upon expectations about the future and not on

historical facts, involve various risks and uncertainties. Vale

cannot guarantee that such statements will prove correct.

These risks and uncertainties include factors related to the

following: (a) the countries where we operate, especially

Brazil and Canada; (b) the global economy; (c) the capital

markets; (d) the mining and metals prices and their

dependence on global industrial production, which is cyclical

by nature; and (e) global competition in the markets in which

Vale operates. To obtain further information on factors that

may lead to results different from those forecast by Vale,

please consult the reports Vale files with the U.S. Securities

and Exchange Commission (SEC), the Brazilian Comissão de

Valores Mobiliários (CVM), the French Autorité des Marchés

Financiers (AMF) and The Stock Exchange of Hong Kong

Limited, and in particular the factors discussed under

“Forward-Looking Statements” and “Risk Factors” in Vale’s

annual report on Form 20-F.”

2

We have been working in several dimensions to further improve

Vale´s highly competitive position

Delivering

projects

Increasing

Volumes Reducing

Costs and

expenses

Increasing

productivity

Strengthening

our license

to operate

Setting the basis

for strong Free

Cash Flows

3

7,117

4,521

3,547

2012 2013 2014

-51%

We have reduced our expenses1,2 significantly

¹ Net of depreciation and amortization.

² Includes SG&A, R&D, Pre-operating and stoppage and Other expenses.

³ Excludes the positive one off impact of US$ 244 million of the goldstream transaction in 1Q13 4 Excludes the positive one off impact of US$ 230 million of the goldstream transaction in 1Q15. 5 Includes US$ 107 million of provisions from environmental obligations, US$ 98 million due to the write-down of thermal coal stocks

and US$ 90 million due to the write-down of the ICMS credits.

Source: Company reports of 2012, 2013, 2014 and 2Q15.

-22%

809

1,204

638 633

295

3Q14 4Q14 1Q15 2Q15

4

US$ millions

3

5

One off impact

4

We have also made significant progress on cost reductions,

as per the example of iron ore

C1 Cash Cost FOB¹ port Brazil

US$/t

Freight Costs

US$/t

22.5 21.5

18.3

15.8

3Q14 4Q14 1Q15 2Q15

22.3 21.7

17.2 16.8

3Q14 4Q14 1Q15 2Q15

-30%

¹ Cost of mine, plant, railway and port, excluding ROM, third party acquisitions and royalties (US$ 2,2/t in 3Q14, US$ 1,7/t in

4Q14, US$ 1,5/t in 1Q15 and US$ 1.2/t in 2Q15).

Source: Company reports of 2014 and 2Q15

-25%

Expenses

US$/t

5.9

9.3

4.0 3.9

3Q14 4Q14 1Q15 2Q15

-34%

5

And we remain committed to delivering additional

productivity gains

• Improvement in availability of the transportation fleet

in the Northern System

• Resizing of infrastructure, drilling and transportation

fleets

• Optimization of mine plans

• Ramp up of the Itabirites projects

• Improvement in the yield of the concentration plants

• Extension of the natural screening process to older

plants in Carajás

• Full automatic operation of reclaimers

• Automated operation of trains

• Implementation of innovative technology:

− Distributed traction technology

− Energy control systems at the ports

− Reverse routes at the ports

Mine

Beneficiation

Logistics

corridors

Example of initiatives Status

Completed

In implementation

6

High quality products will replace lower grade material

We obtained the operational licenses for new mines and

started the ramp up of three Itabiritos projects

Itabirites Projects N4WS and N5S in Carajás

N4WS Waste

Dump

Plant 2

Plant 2

Primary

Crusher

N5W

N5S

N4E

N4W

• N4WS licensed in 2014

―Pre-stripping completed

―Already mining the first layer of product (“canga”)

• N5S extension licensed in May 2015

• Conceição Itabiritos I started up in 4T13

• Vargem Grande Itabiritos started up in 4Q14

• Conceição Itabiritos II started up in 2T15

• Cauê Itabiritos will start up 2S15

7

And our iron ore break-even is being reduced

1Q15

18.3

1.5

17.2

4.0

3.6

1.2

43.4

C1 Cash Cost Port

Royalties

Freight

Expenses

Moisture

Quality

Total

2Q15

• Break-even¹

reduced to US$

39.1/dmt

• Carajás’

operational cost

in June, 2015

already at US$

12/t

US$/dmt, adjusted by quality

15.8

1.2

16.8

3.9

3.4

2.0

39.1

Delta vs 1Q15

2.5

0.4

0.1

4.3

Base case price US$ 50/t

¹ Iron ore fines unit cost and expenses landed in China

8

Mozambique Coal

Mt

2.0

2.2

2.4

1H13 1H14 1H15

Copper

Kt

Nickel

Kt

Iron Ore¹

Mt

130 129

136

1H13 1H14 1H15

181 169

212

1H13 1H14 1H15

¹ Own production, excluding Samarco’s attributable production

Source: Company reports of 2Q13, 2Q14 and 2Q15.

135

151

160

1H13 1H14 1H15

Our production volumes have increased across all

business segments with the completion of our projects

9

The iron ore supply in 2016 will be defined according to margins

340

340

376

Iron oreSupply 2015

Potential increase in 2016

Iron oreSupply 2016

Mt

• The installed

capacity will be 376

Mt in 2016

• The potential

production increase

will be defined

according to the

margins

optimizations plan

• Inventories will be

optimized along the

supply chain

10

We expect nickel production to increase in 2H15

69

67 136

167

303

1Q15 2Q15 1H15 2H15 Nickel's totalproduction guidance

2015

Nickel

Kt

• Ramp-up of VNC

• Increase in PTVI’s production after the

maintenance of furnaces

• Higher production in Canada in 2H15 with the

anticipation of the preventive maintenance in

Sudbury originally planned for 2H15

11

7.3 7.2

5.1 4.3

1H12 1H13 1H14 1H15

Capex¹

US$ billion

Our capex¹ has reduced as we completed our projects

Status of Vale’s project portfolio

2Q15

• 8 projects delivered in 2014

• S11D advancing as planned: mine and logistics

physical progress of 67% and 41%, respectively

• Conceição Itabiritos II: delivered in 2Q15 and

started up in the quarter

• Cauê Itabiritos: 86% of physical progress

• Mozambique: mine and logistics physical progress

of 93% and 89%, respectively

¹ Growth plus sustaining capex.

Source: Company reports of 2012, 2013, 2014 and 2Q15.

12

And we are seeking to further reduce our capex in 2015

2.2

2.1 4.3

~4.0 8.0-8.5

1Q15 2Q15 1H15 2H15 Capex 2015

Capex¹

US$ billion

• Structural reduction in sustaining capex

• Change in scope of some projects

• Positive impact from BRL depreciation

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Project Capacity

Mtpy

Estimated

start-up

Executed capex

US$ million

2015 Total

Estimated capex

US$ million

2015 Total

Physical

progress

Carajás Serra Sul S11D 90 2H16 568 4,060 1,321 6,878² 67%

CLN S11D 230 (80¹) 1H14 to 2H18 924 3,577 2,375 9,484² 41%

Cauê Itabiritos 24 (4¹) 2H15 139 825 350 1,317³ 86%

CSP4 1.5 1H16 - 1,055 185 1,2244 87%

Moatize II 11 2H15 289 1,673 629 2,068 93%

Nacala corridor5 18 2H14 431 3,324 648 4,444 89%

Our investment cycle is almost over

¹ Net additional capacity

² Original capex budget for S11D of US$ 8.089 billion and for CLN S11D of US$ 11.582 billion

³ Original capex budget of US$ 1.504 billion 4 Original capex of US$ 2.734 billion; out of the original capex – US$ 1.491 billion financed directly by CSP project. 5 Completion of the greenfield sections of the Nacala corridor occurred in 4Q14 while brownfield section 7 (500Km) is still being upgraded.

14

The S11D project is at an advanced stage of implementation

Main facts (mine and processing plants)

• Start-up: 2H16

• Capacity: 90 Mtpy

• Estimated cash cost1: US$ 10/t

• Fe %: 66.7%

• Production process: truckless mining

system and dry processing.

• Dry processing plant, reducing operating

costs as it avoids the need for tailing

dams.

1 Cash cost FOB port (mine, plant, railway and port, including royalties).

Truckless system

Processing plants

15

The S11D project will help us further reduce our costs

US$/dmt, adjusted by quality, 2018(F) with S11D

12.5

1.5

16.2 1.5

2.8 3.7

30.8

C1 Cash CostFOB Port

Royalties Freight Expenses Moisture Quality Total

Gap in relation to 2Q15

3.3 0.6 2.4 1.7 8.3

Base case price: US$ 50/t

16

Meanwhile, we continue to divest non-core assets and form

strategic partnerships

El Hatillo

Araucária

Ferroalloy plants in

Europe

Oil and Gas

Concessions I

CADAM

Goldstream I

Goldstream II

VLI

Log-in

Fosbrasil

Tres Valles

Mozambique

deal with Mitsui

Belo Monte

Aluminium

assets

Norsk Hydro

Reference

US$ 1 billion

8 VLOCs¹

MBR preffered

shares

2011

US$ 1.1 billion

2012

US$ 1.5 billion

2013

US$ 6.0 billion

2015

US$ 5.0 billion

10 Very

Large Ore

Carriers

Source: Company reports of 2012, 2013, 2014 and 2Q15.

17

From these divestments and partnerships we expect to raise

US$ 6-7 billion in cash proceeds in 2015

Timing Cash Impact

in 2015 Status Initiatives

• Mozambique

Coal

• Project Finance in advanced stage

of discussion

• Government authorizations and

direct agreements with lenders

under discussion

• Goldstream • Completed with US$ 900 million

received in March 2015

4Q

1Q

Transaction details

• Investment agreement with

Mitsui for partnering in the

Mozambique coal project

• Sale of an additional 25% of

the payable gold stream from

the Salobo mine

• VLOCs • Sale of four vessels to COSCO and

other four vessels to China

Merchants Energy Shipping for US$

445 million and US$ 448 million,

respectively

1Q/2Q • Sale of Valemaxes with the

signature of long-term, low

cost freight agreements

• Preffered

shares

• Sale of 36,4% of MBR’s total capital in

preferred shares with call option

• Cash proceeds of R$ 4 billion are

expected until the end 3Q15.

3Q • Issuance of non-voting shares

on specific assets

18

In parallel we continue to manage our current debt profile

7.3

5.0

0.7

1.6

Revolvinig creditlines

Financingunrelated to

projects³

Financing ofprojects

Total

Committed lines of credit²

US$ 7,3 billion available in lines of credit

Schedule of amortization of the debt¹

80% of the debt settlement will occur after 2018

¹ On the 30th of July of 2015.

² Amount not withdrawn yet

³ Export – Import Bank of China e Bank of China Limited: credit related to the construction of Valemaxes vessels. 4 BNDES: related to several projects in Brazil.

1.4 1.9 2.4 3.8

19.9

29.4

2015 2016 2017 2018 2019onwards

Grossdebt

US$ billion

4

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Results from our initiatives are already setting the basis for strong

free cash flow generation as of 2018

• Capex will be around US$ 4 billion

• Volumes will increase by about 40% in iron ore, 20% in copper

and 15% in nickel

• Costs will decrease with higher productivity, further dilution of

fixed costs and expenses, and organizational restructuring

• Iron ore quality will support an increase in price realization

• Freight costs will decrease

• Free cash flow and dividends will reach unprecedented levels

and debt will reduce gradually

20