VALE Vale SA

VALE’S PERFORMANCE IN 2Q15 Further reducing costs and expenses – Iron ore C1 cash cost FOB port at US$ 15.8/t 1

www.vale.com rio@vale.com Tel.: (55 21) 3814-4540 InvestorRelations Rogério T. Nogueira André Figueiredo Carla Albano Miller Fernando Mascarenhas Andrea Gutman Bruno Siqueira Claudia Rodrigues Marcio Loures Penna Mariano Szachtman Department BM&F BOVESPA: VALE3, VALE5 NYSE: VALE, VALE.P HKEx: 6210, 6230 EURONEXT PARIS: VALE3, VALE5 LATIBEX: XVALO, XVALP Except where otherwise indicated the operational and financial information in this release is based on the consolidated figures in accordance with IFRS and, with the exception of information on investments and behavior of markets, quarterly financial statements are reviewed by the company’s independent auditors. The main subsidiaries that are consolidated are the following: Compañia Minera Miski Mayo S.A.C., Mineração Corumbaense Reunida S.A., PT Vale Indonesia Tbk (formerly International Nickel Indonesia Tbk), Salobo Metais S.A, Vale Australia Pty Ltd., Vale International Holdings GMBH, Vale Canada Limited (formely Vale Inco Limited), Vale Fertilizantes S.A., Vale International S.A., Vale Manganês S.A., Vale Moçambique S.A., Vale Nouvelle-Calédonie SAS, Vale Oman Pelletizing Company LLC and Vale Shipping Holding PTE Ltd. 2

Vale’sperformancein2Q15 Rio de Janeiro, July 30, 2015 – Vale S.A. (Vale) reached iron ore production of 85.3 Mt in 2Q15, the highest output for a second quarter in Vale’s history with Carajás production reaching 31.6 Mt, also a record for a second quarter. Gross revenues totaled US$ 7.084 billion in 2Q15, increasing US$ 726 million vs. 1Q15, as a result of higher sales volumes and better price realizations in spite of lower iron ore and nickel reference prices. Costs and expenses, net of depreciation charges, at US$ 4.937 billion in 2Q15 were in line with 1Q151, despite the growth in sales volumes, and decreased by US$ 1.630 billion2 in 1H15 vs. 1H14. Costs3 decreased by US$ 1.367 billion (13.8%) when compared to 1H14. SG&A4 and other expenses decreased by US$ 128 million5 (15.9%), R&D decreased by US$ 68 million (22.3%) and pre-operating and stoppage expenses6 decreased by US$ 67 million (15.8%) in 1H15 vs. 1H14. C17 cash cost FOB port per metric ton for iron ore fines ex-royalties reached US$ 15.8/t in 2Q15 vs. US$ 18.3/t in 1Q15, driven by the ongoing cost reduction initiatives and the ramp-ups of both the N4WS mine and some of the Itabirites projects. Adjusted EBITDA was US$ 2.213 billion, 38.1% higher than in 1Q15 mainly as a result of lower costs and higher sales volumes in most of the business segments, which impacted positively EBITDA by US$ 236 million and US$ 184 million, respectively. Capital expenditures amounted to US$ 2.119 billion in 2Q15 and US$ 4.329 billion in 1H15, decreasing US$ 727 million vs. 1H14. Investments in project execution totaled US$ 1.434 billion in 2Q15, while sustaining capex totaled US$ 685 million. Divestments accounted for US$ 445 million in 2Q15, as Vale concluded the sale of four very large ore carriers to China Ocean Shipping Company (Cosco). Net income was US$ 1.675 billion in 2Q15 against a net loss of US$ 3.118 billion in 1Q15. The US$ 4.793 billion improvement in net income was mostly driven by the non-cash effect 1 After adjusting for the positive impact of the goldstream transaction in 1Q15. 2 Amount is net of depreciation. Reduction calculated after adjusting for the US$ 230 million one-off positive impact from the goldstream transaction in 1Q15. 3 Net of depreciation. 4 Net of depreciation. 5 Net of the effect of the goldstream transaction. 6 Net of depreciation. 7 C1 cash cost at the port (mine, plant, railroad and port, before royalties) 3

on financial results of the 3% end to end appreciation of the BRL against the USD in 2Q15 versus the 21% depreciation of the BRL against the USD in 1Q15. Underlying earnings totaled US$ 973 million in 2Q15, against an underlying loss of US$ 678 million in 1Q15. Gross debt totaled US$ 29.773 billion as of June 30th, 2015, increasing US$ 1.286 billion from the debt position as of March 31st, 2015. Net debt totaled US$ 26.509 billion given a cash balance of US$ 3.264 billion. Average debt maturity was 8.4 years with an average cost of debt of 4.43% per annum. EBITDA from the Ferrous Minerals business segment increased with higher realized prices and further reductions in costs and expenses • Adjusted EBITDA for Ferrous Minerals reached US$ 1.811 billion in 2Q15, representing an increase of US$ 784 million from the US$ 1.027 billion recorded in 1Q15, mainly as a result of higher realized prices (US$ 216 million), higher volumes (US$ 171 million), and lower costs (US$ 173 million). • Adjusted EBITDA exceeded total capex in the Ferrous Minerals business segment by US$ 534 million in 2Q15 vs. a negative US$ 455 million in 1Q15. • Vale’s CFR dmt reference price for iron ore fines (ex-ROM) increased by US$ 3.3/t from US$ 58.2/t in 1Q15 to US$ 61.5/t in 2Q15. Vale’s CFR/FOB wmt price for iron ore fines (ex-ROM) after adjusting for moisture and the effect of FOB sales on 38% of the total sales volumes increased by US$ 4.6/t from US$ 46.0/t per metric ton in 1Q15 to US$ 50.6/t in 2Q15. This US$ 4.6/t increase was higher than the US$ 4.0/t decrease in the average Platts IODEX 62% which came down from US$ 62.4/t (CFR China) in 1Q15 to US$ 58.4/t in 2Q15. Product quality measured by Fe content improved from 63.0% in 1Q15 to 63.2% in 2Q15 mostly due to the ramp-ups of the N4WS mine and the Itabirites projects. • Unit cash costs and expenses (adjusted for quality and moisture) landed in China reduced from US$ 43.4/t in 1Q15 to US$ 39.1/t in 2Q15 for iron ore fines on a dry metric ton (dmt) basis. • • Carajás production costs FOB port amounted to less than US$ 12/t in June 2015. • Unit freight cost for iron ore, ex-hedge impact of US$ 2.0/t, was US$ 16.8/t in 2Q15 vs. US$ 17.2/t in 1Q15, driven by the renegotiation of chartering contracts. • Sustaining capex for iron ore fines totaled US$ 262 million (US$ 4.1/ wmt) in 2Q15. 4

• Physical progress on the S11D mine and plant project reached 67% whilst the physical progress at CLN S11D, railway and port, achieved 41%, with 62% on the railway spur. EBITDA from the Base Metals business segment decreased with lower nickel prices Sales revenues totaled US$ 1.648 billion in 2Q15, US$ 62 million lower than in 1Q15 mainly as a result of lower nickel prices. • • Adjusted EBITDA was US$ 406 million in 2Q15, having improved by US$ 43 million after deducting the effects of the goldstream transaction (US$ 230 million) in 1Q15 and of the lower prices (US$ 85 million) in 2Q15. • Production of nickel at 67,100 t in 2Q15, was in line with the previous quarter, despite production interruptions in Sudbury and planned maintenance shutdowns in Indonesia and New Caledonia. Production of copper and gold reached 104,900 t and 100,000 oz in 2Q15, respectively, the best performance for a second quarter. • • Salobo reached US$ 119 million in EBITDA, a record for a quarter, as the operation continues its ramp-up. EBITDA from the Coal and Fertilizers business segments improved further driven by lower costs and lower expenses Adjusted EBITDA for Fertilizers increased to US$ 163 million in 2Q15 from US$ 90 million in 1Q15 mainly driven by lower costs (US$ 33 million8), higher sales volumes (US$ 23 million) and lower expenses (US$ 15 million). • • Adjusted EBITDA for Fertilizers totaled US$ 253 million in 1H15 vs. US$ 107 million in 1H14, creating a positive expectation for 2H15 alongside the upcoming crop season. • Adjusted EBITDA for coal improved to a negative US$ 102 million in 2Q15 vs. a negative US$ 128 million in 1Q15, mainly as a result of lower costs9 (US$ 55 million), despite the lower coal prices, which negatively impacted results by US$ 18 million. • Coal costs decreased driven by lower FOB costs in Mozambique and the good operational performance of Carborough Downs. 8 After adjusting for the effects of higher volumes. 9 Net effect on costs, after adjusting the volume and exchange rate impacts 5

• Moatize II reached 93% of physical progress in 2Q15 with a capital expenditure of US$ 172 million in 2Q15 while the Nacala Corridor reached 89% physical progress with capital expenditures of US$ 206 million in 2Q15. 2Q15 was marked by a substantial reduction in cash costs, especially in iron ore, and by further progress in the implementation of our project portfolio, laying down the foundations of an even more competitive and profitable company in the near future. Selected financial indicators Gross operating revenues 7,084 6,358 10,079 11.4 (29.7) Adjusted EBIT 1,040 540 2,995 92.6 (65.3) Adjusted EBITDA 2,213 1,602 4,104 38.1 (46.1) Net income (loss) 1,675 (3,118) 1,428 (153.7) 17.3 Underlying earnings per share on a fully diluted basis (US$ / share) 0.19 (0.13) 0.38 (239.3) (51.8) Cash and cash equivalent 3,264 3,685 7,067 (11.4) (53.8) Total gross debt/ adjusted EBITDA (x) 3.3 2.6 1.5 26.5 125.2 Gross operating revenues 13,442 19,761 (32.0) Adjusted EBIT 1,580 6,016 (73.7) Adjusted EBITDA 3,815 8,162 (53.3) Underlying earnings per share on a fully diluted basis (US$ / share) 0.06 0.78 (93.3) 6 Capital expenditures4,3285,056(14.4) Underlying earnings2954,004(92.9) Adjusted EBIT margin (%)12.031.0 Net operating revenues13,20519,405(32.0) US$ million1H151H14% (A) (B)(A/B) Capital expenditures2,1192,2102,469(4.1)(14.2) Total Net Debt26,50924,80223,1906.914.3 Total gross debt29,77328,48730,2574.5(1.6) Underlying earnings973(678)1,959(241.7)(50.9) Adjusted EBITDA margin (%)31.825.741.4 Adjusted EBIT margin (%)14.98.730.2 Net operating revenues6,9656,2409,90211.6(29.7) US$ million2Q151Q152Q14%% (A)(B)(C)(A/B)(A/C)

Operatingrevenues Gross operating revenues in 2Q15 were US$ 7.084 billion, 11.4% higher than in 1Q15. The increase in sales revenues was mainly due to higher realized prices of iron ore fines (US$ 310 million) and higher volumes of iron ore fines (US$ 359 million) and pellets (US$ 87 million). Sales to Asia represented 51.1% of total gross revenues in 2Q15, increasing from the 47.4% share of sales revenues recorded in 1Q15. Sales to the Americas represented 26.2% of total sales, while sales to Europe represented 18.0% and sales to the Middle East 4.0%. Sales to China represented 36.5% of total gross revenues in 2Q15, while Brazil represented 16.4%, Japan 5.9%, Germany 5.4%, Canada 4.7%, the United States 3.4% and South Korea 2.6%. Gross operating revenue by destination US$ million 2Q15 % 1Q15 % 2Q14 % North America 583 8.2 566 8.9 643 6.4 Canada 332 4.7 305 4.8 269 2.7 South America 1,273 18.0 1,280 20.1 1,839 18.2 Others 114 1.6 106 1.7 192 1.9 China 2,584 36.5 1,776 27.9 3,555 35.3 South Korea 184 2.6 249 3.9 448 4.4 Europe 1,276 18.0 1,127 17.7 1,750 17.4 Italy 115 1.6 130 2.1 199 2.0 Middle East 286 4.0 286 4.5 281 2.8 The Ferrous Minerals business segment accounted for 65.2% of our gross operating revenues in 2Q15, compared to 62.1% in 1Q15. The increase was mainly driven by the higher iron ore and pellets realized sales prices and volumes. The Base Metals business segment decreased its share in gross revenues to 23.3% in 2Q15 from 26.9% in 1Q15 mainly driven by lower nickel prices, while Fertilizers continued to increase its share to 8.7% in 2Q15 from 8.1% in 1Q15 and Coal slightly decrease its share to 2.1%. 7 Rest of the World470.7861.41771.8 Total7,084100.06,358100.010,079100.0 Others78011.06299.99849.8 Germany3815.43685.85675.6 Others4336.14066.43903.9 Japan4175.95829.29969.9 Asia3,61851.13,01347.45,38953.5 Brazil1,15916.41,17518.51,64816.3 Mexico90.140.13-USA2413.42574.03713.7

Gross operating revenue by business areas Ferrous Minerals 4,622 65.3 3,947 62.1 7,053 70.0 ROM 37 0.5 32 0.5 69 0.7 Manganese ore 32 0.5 41 0.6 63 0.6 Others 118 1.7 102 1.6 182 1.8 Metallurgical coal 137 1.9 129 2.0 196 1.9 Base Metals 1,648 23.3 1,710 26.9 1,889 18.7 Copper 483 6.8 464 7.3 482 4.8 Gold 128 1.8 113 1.8 87 0.9 Others 31 0.4 29 0.5 7 0.1 Potash 34 0.5 33 0.5 38 0.4 Nitrogen 94 1.3 93 1.5 102 1.0 Others 54 0.8 43 0.7 276 2.7 8 Total7,084100.06,358100.010,079100.0 Others160.2140.2290.3 Phosphates4706.63735.94924.9 Fertilizer nutrients6148.75138.16616.6 Silver70.180.1100.1 PGMs1251.81252.01151.1 Nickel87412.397115.31,18811.8 Thermal coal90.1160.35-Coal1462.11452.32012.0 Ferroalloys290.4390.6590.6 Pellets1,00314.299915.71,28912.8 Iron ore fines3,40348.02,73443.05,39153.5 US$ million2Q15%1Q15%2Q14%

Costs and expenses Costs and expenses increased to US$ 5.925 billion in 2Q15 from the US$ 5.700 billion recorded in 1Q15, mainly due to the positive one-off effect of the US$ 230 million stemming from the goldstream transaction recorded as revenues in “other operating expenses” in 1Q15. Excluding this positive one-off effect in 1Q15, costs and expenses remained stable, despite the increase in sales volumes in 2Q15. Costs and expenses US$ million 2Q15 1Q15 2Q14 Costs 5,186 5,168 6,081 826 Expenses 739 5321 Total costs and expenses 5,925 5,7001 6,907 Depreciation 988 1,035 901 Costs and expenses ex-depreciation 4,937 4,6651 6,006 ¹ Includes US$ 230 million from the goldstream transaction COST OF GOODS SOLD (COGS) COGS10 totaled US$ 5.186 billion in 2Q15, remaining in line with the US$ 5.168 billion recorded in 1Q15, despite the increase in sales volumes in most of the business segments in 2Q15. Ferrous Minerals costs decreased by US$ 30 million, Base Metals costs decreased by US$ 23 million, while Fertilizers costs increased by US$ 42 million and Coal costs increased by US$ 24 million in 2Q15 vs. 1Q15. After adjusting for the effects of higher sales volumes, costs decreased by US$ 342 million in 2Q15 vs. 1Q15. The cost reductions were mostly driven by the depreciation of the BRL against the USD and by the positive results of cost reduction initiatives, especially in the Ferrous Minerals business segment, supported by the ramp-ups of the N4WS, the Conceição I and the Vargem Grande Itabirites projects. COGS totaled US$ 10.354 billion in 1H15, reducing US$ 1.3 billion in comparison with the US$ 11.671 billion recorded in 1H14, despite the increase in volumes in most of the business segments. Ferrous Minerals costs decreased by US$ 652 million, Fertilizers costs decreased by US$ 279 million and Coal costs decreased by US$ 148 million, while Base Metals costs increased by US$ 67 million in 1H15 versus 1H14, due to higher depreciation associated with the start-up of the Long Harbour processing plant. Further details on cost performance are provided in the “Performance of the Business Segments” section. 10 COGS currency exposure in 2Q15 was made up as follows: 51% Brazilian Reais, 34% US dollar, 13% Canadian dollar,1% Australian dollar and 1% other currencies. 9

COGS by business Ferrous minerals 3,035 58.5 3,065 59.3 3,549 58.4 Coal 233 4.5 209 4.0 314 5.2 Other products 35 0.7 31 0.6 179 2.9 Depreciation 882 912 802 EXPENSES Total expenses increased to US$ 739 million in 2Q15 from the US$ 532 million recorded in 1Q15, mainly due to the positive one-off effect of the US$ 230 million stemming from the goldstream transaction recorded as revenues in “other operating expenses” in 1Q15. Excluding this positive one-off effect in 1Q15, expenses were down 3.0%. Total expenses decreased by 10.5% in 2Q15 from the US$ 826 million recorded in 2Q14. SG&A decreased to US$ 159 million in 2Q15, representing an 18.5% decrease from the US$ 195 million recorded in 1Q15, and a 32.9% decrease from the US$ 237 million recorded in 2Q14. SG&A expenses decreased across all of the business segments. R&D expenses totaled US$ 118 million in 2Q15, remaining stable in comparison with the US$ 119 million recorded in 1Q15, and decreasing 26.3% from the US$ 160 million recorded in 2Q14. R&D expenses were mostly concentrated in iron ore and pellets (US$ 38 million) and nickel (US$ 23 million). Pre-operating and stoppage expenses totaled US$ 259 million in 2Q15, in line with the US$ 264 million registered in 1Q15, and with the US$ 264 million recorded in 2Q14. Lower expenses at Long Harbour in the 2Q15 were offset by an increase in VNC expenses resulting from the scheduled maintenance stoppage. Other operating expenses increased to US$ 203 million in 2Q15, from US$ 184 million in 1Q15, after deducting the above-mentioned one-off positive effect of the goldstream transaction (US$ 230 million), and from US$ 165 million in 2Q14, due to additional provisions for contingencies and losses. Total expenses decreased to US$ 1.271 billion in 1H15, from the US$ 1.718 billion recorded in 1H14. After deducting the positive one-off effect of US$ 230 million from the goldstream transaction recorded in 1Q15, expenses were down 12.6%. 10 COGS, ex-depreciation4,3044,2575,279 Total COGS5,186100.05,168100.06,081100.0 Fertilizers4418.53997.75999.8 Base metals1,44227.81,46528.31,44023.7 US$ million2Q15%1Q15%2Q14%

Expenses Administrative 151 20.4 170 31.9 221 26.8 Services 26 3.5 28 5.3 48 5.8 Others 17 2.3 30 5.6 21 2.5 expenses¹ VNC 116 15.7 88 16.5 150 18.2 S11D 14 1.9 13 2.4 - - Others 50 6.8 53 10.0 86 10.4 Depreciation 106 124 99 ¹ Includes U$ 72 million of depreciation charges in 2Q15, US$ 93 million in 1Q15 and US$ 47 million in 2Q14. ² Include one-off effects of US$ 230 million from the gold stream transaction in 1Q15, which reduced other expenses. 11 Expenses ex-depreciation633408727 Other operating expenses²20327(46)(9)16520 Total Expenses739100532100826100 Moatize111.5122.3--Long Harbour689.29818.4283.4 Selling81.1254.7161.9 R&D118161192216019 Pre-operating and stoppage259352645026432 Depreciation344.6305.6526.3 Personnel7410.08215.410012.1 US$ million2Q15%1Q15%2Q14% SG&A ex-depreciation125165185 SG&A15921.519536.623728.7

Adjusted earnings before interest, taxesdepreciationand amortization Adjusted EBITDA was US$ 2.213 billion, 38.1% higher than in 1Q15 mainly as a result of lower costs and higher sales volumes in most of the business segments, which impacted EBITDA positively by US$ 236 million and US$ 184 million, respectively. Adjusted EBITDA margin was 31.8% in 2Q15. Adjusted EBIT was US$ 1.040 billion in 2Q15, being US$ 500 million higher than in 1Q15. Adjusted EBITDA Gross operating revenues 7,084 6,358 10,079 COGS (5,186) (5,168) (6,081) Research and development (118) (119) (160) Other operational expenses (203) 46 (165) Depreciation, amortization & depletion 988 1,035 901 Adjusted EBITDA by business area Ferrous minerals 1,811 1,027 3,604 Base metals 406 678 609 Others (65) (65) (27) 12 Total2,2131,6024,104 Fertilizer nutrients1639072 Coal(102)(128)(154) US$ million2Q151Q152Q14 Dividends received18527208 Adjusted EBITDA2,2131,6024,104 Adjusted EBIT1,0405402,995 Pre-operating and stoppage expenses(259)(264)(264) SG&A(159)(195)(237) Net operating revenues6,9656,2409,902 US$ million2Q151Q152Q14

Net income Vale posted net income of US$ 1.675 billion in 2Q15 compared to a net loss of US$ 3.118 billion in 1Q15. The US$ 4.793 billion improvement in net income was mostly driven by the effect on financial results of the end to end 3% appreciation of the BRL against the USD in 2Q15 vs. the end to end 21% depreciation of the BRL against the USD in 1Q15. Underlying earnings totaled US$ 973 million after excluding the following one-off effects: (i) foreign exchange and monetary variation gain (US$ 482 million); (ii) currency and interest rate swap gain (US$ 243 million); (iii) gain on the mark-to-market of shareholder debentures (US$ 361 million); (iv) loss on the sale of four very large ore carriers corresponding to capitalized interests not included in the sale agreement (-US$ 55 million); (v) gain on the sale of our participation in Yankuang, a producer of coking coal, methanol and other products (US$ 79 million); (vi) loss on financial instruments fair value valuation (-US$ 18 million); and (vii) tax adjustments on the above referred items (-US$ 396 million). Net financial results showed a gain of US$ 532 million in 2Q15, compared to a loss of US$ 4.510 billion in 1Q15. The main components of net financial results include: (i) financial expenses (US$ 215 million), (ii) financial revenues (US$ 30 million), (iii) foreign exchange and monetary gains (US$ 482 million) and (iv) gains on derivatives (US$ 235 million), composed mainly of a gain of US$ 243 million due to currency swap gains. Differently from the depreciation of the BRL vs. the USD of 21% throughout 1Q15 which led to a US$ 4.180 billion financial loss, the 3% appreciation of the BRL11 against the USD in 2Q15 led to a US$ 764 million12 gain, of which US$ 521 million came from the net of the US$ 16.182 billion of USD denominated liabilities and USD denominated assets recorded in Vale’s (parent company) financial statements and US$ 243 million13 came from the mark-to-market of the swap transactions implemented to convert debt instruments into USD. 11 From 3.20 in 1Q15 to 3.10 BRL/USD in 2Q15 12 Also impacted by the appreciation of 4% of the Euro against the US Dollar throughout 2Q15 13 Also impacted by the appreciation of 4% of the Euro against the US Dollar throughout 2Q15 13

Equity income from affiliated companies Equity income from affiliated companies was positive in US$ 218 million in 2Q15, reverting the negative result of US$ 271 million recorded in 1Q15. The main contributors to Vale’s equity income were Samarco (US$ 126 million), the leased pelletizing companies in Tubarão (US$ 27 million), VLI (US$ 22 million), MRS (US$ 15 million) and CSP (US$ 54 million). CSA 14 Effects of currency price volatilityonVale’sfinancial performance In 2Q15, from end to end, the Brazilian Real (BRL) appreciated 3.0% against the US Dollar (USD) from BRL 3.20/ USD as of March 31st, 2015 to BRL 3.10/ USD as of June 30th, 2015. On a quarterly average, the exchange rate depreciated by 6.9%, from an average BRL 2.87/ USD in 1Q15 to an average BRL 3.07/USD in 2Q15. Although Vale reports its financial performance in USD, the BRL depreciation impacts its results since the functional currency of Vale’s parent company, Vale S. A., is the BRL. The end to end appreciation of the BRL against the USD and other currencies caused mainly non-cash gains of US$ 764 million on our earnings before taxes in 2Q15, driven by its impact on: •The net of the USD and other currencies denominated liabilities and the USD and other currencies denominated assets (accounts receivable, cash etc) – which amounted to a gain of US$ 521 million in 2Q15, recorded in the financial statements as "Foreign exchange and monetary variation". •The forward and swaps derivatives that are used to reduce the volatility of our cash flows in USD. In 2Q15, the changes in fair value and the settlements of the currency swaps from the BRL and other currencies to the USD caused one-off gains of US$ 243 million. The BRL depreciation on a quarterly average had positive impacts on our cash flows. In 2Q15 most of our revenues were denominated in USD, while our COGS were 51% denominated in BRL, 34% in USD and 13% in Canadian dollars (CAD) and about 75% of our capital expenditures were denominated in BRL. The depreciation of the BRL and of other currencies in 2Q15 reduced our COGS by US$ 161 million.

contributed negatively to Vale’s equity income (US$ 31 million) alongside Teal Minerals (US$ 17 million). Underlying earnings Underlying earnings 973 (678) 1,959 Impairment on assets Gain (loss) on fair value on non-current assets - (55) - 193 (774) - Foreign exchange and monetary variation 482 (3,019) 484 Fair value on financial instruments (18) Tax effects of Impairment - - (127) Financial results US$ million 2Q15 1Q15 2Q14 Gross interest¹ (228) (195) (400) Others² 174 154 (368) Financial expenses (215) (219) (983) Currency and interest rate swaps 243 (1,263) 363 Derivatives 235 (1,340) 368 Monetary variation (39) (102) (5) ¹ The capitalization of interest over assets under construction amounted to US$ 177 million in 2Q15 and US$ 195 million in 1Q15. ² Other financial expenses include the mark-to-market of shareholder debentures which amounted to US$ 361 million in 2Q15, US$ 275 million in 1Q15 and -US$ 268 million in 2Q14. 15 Financial result, net532(4,510)(59) Foreign exchange521(2,917)489 Others (bunker oil, commodities, etc)(8)(77)5 Financial income306872 Financial expenses (REFIS)(144)(144)(180) Tax and labour contingencies(17)(34)(35) Income tax over excluded items(390)1,356(191) Net Income (loss)1,675(3,118)1,428 Gain (loss) on sale of investments7918(18) Currency and interest rate swaps243(1,263)363 Shareholders Debentures361275(268) Items excluded from basic earnings US$ million2Q151Q152Q14

Investments Capital expenditures totaled US$ 2.119 billion in 2Q15 with US$ 1.434 billion in project execution and US$ 685 million in sustaining, totaling US$ 4.329 billion in 1H15 with US$ 2.950 billion in project execution and US$ 1.379 billion in sustaining. Capital expenditures decreased US$ 727 million in 1H15 vs. the US$ 5.056 billion spent in 1H14. Total capital expenditures by business area Ferrous Minerals 1,277 60.3 1,482 67.1 1,302 52.7 Base Metals 372 17.5 281 12.7 338 13.7 Power Generation 24 1.1 28 1.3 23 0.9 Others 1 - 2 0.1 76 3.1 Project execution Vale’s investments in project execution decreased from US$ 1.563 billion in 2Q14 to US$ 1.434 billion in 2Q15. Ferrous Minerals accounted for about 70% and Coal accounted for 27% of the total investments in project execution. Project execution by business area Ferrous Minerals 1,001 69.9 1,104 72.8 823 52.6 Base Metals 11 0.8 17 1.1 80 5.1 Power Generation 24 1.7 28 1.8 23 1.5 FERROUS MINERALS About 95% of the US$ 1.001 billion invested in Ferrous Minerals in 2Q15 relates to growth initiatives in iron ore, namely the S11D project and the expansion of its associated infrastructure (US$ 786 million) and the Itabiritos projects (US$ 162 million). S11D (including mine, plant and associated logistics – CLN S11D) advanced as planned and reached combined physical progress of 53% in 2Q15 with 67% progress at the mine site and 41% at the logistic sites. The transportation of the modules to the area of the beneficiation plant reached 61% completion and the assembly of the mine substation electrocentres is ongoing. The railway spur reached 62% physical progress and the off-shore pile-driving in the north berth reached 75% physical progress. 16 Steel60.470.5785.0 Total1,434100.01,516100.01,563100.0 Fertilizer Nutrients70.5130.9150.9 Coal38426.834622.854634.9 US$ million2Q15%1Q15%2Q14% Total2,119100.02,210100.02,469100.0 Steel60.370.3783.1 Fertilizer Nutrients492.3562.5652.6 Coal38918.335416.058723.8 US$ million2Q15%1Q15%2Q14%

Capital expenditures for the Itabiritos projects totaled US$ 162 million in 2Q15. The commissioning of the Cauê Itabiritos project was initiated, with the assembly of the modules of the plant substation concluded. The Conceição Itabiritos II, with nominal capacity of 13 Mtpy of pellet feed and 6 Mtpy of sinter feed is in the process of ramp-up. The project was delivered on time and on budget, with total investments of US$ 964 million at this point. COAL Vale invested US$ 172 million in the Moatize II project and US$ 206 million in the Nacala Logistics Corridor in 2Q15. Moatize II achieved 93% physical progress with 89% physical progress in the electromechanical assembly and the tie-ins executed during the quarter as planned. The brownfield sections of the railway are still being revamped with 74% physical progress and the start-up is scheduled for 3Q15. The port expansion at Nacala-à-Velha was concluded with all essential equipment to the start-up commissioned. 17

Description and status of main projects (Mtpy) electrocenters initiated. • Onshore expansion – civil works and terminal. • Assembly of modules of the plant do Meio, located in the Southeastern • Cold commissioning of the primary Mozambique. • Revamp of the brownfield sections of a Net additional capacity b Relative to Vale’s stake in the project 18 ProjectDescriptionCapacityStatus Ferrous Minerals projects Carajás Serra Sul• Development of a mine and S11Dprocessing plant, located in the Southern range of Carajás, Pará, Brazil. 90• Transportation of the modules to the plant area reached 61% completion. • Assembly of the mine substation • Delivery of the Mobile Transfer Crawler (MTC) – of the truckless system – concluded. CLN S11D• Duplication of 570 km railway, with(80)a• Foundation work on the PDM port construction of rail spur of 101 km. expansion ongoing – pile driving in the Acquisition of wagons, locomotives, off-shore north berth reached 75% and onshore and offshorephysical progress. expansions at PDM maritime electromechanical assembly ongoing. • Railway spur reached 62% physical progress. Cauê Itabiritos• Adaptation of the plant to process24 (4)a• Commissioning of the project initiated. low-grade itabirites from the Minas System, Minas Gerais, Brazilsubstation concluded. CSPb• Development of a steel slab plant in1.5• Assembly of the steel structure reached partnership with Dongkuk and 84% physical progress. Posco, located in Ceará, Brazil. Coal Projects Moatize II• New pit and duplication of the11• Electromechanical assembly reached Moatize CHPP, as well as all related89% physical progress. infrastructure, located in Tete, crushing system completed. Nacala Corridor • Railway and port infrastructure • Construction of the Nacala-à-Velha port connecting the Moatize site to the concluded, with all essential equipment Nacala-à-Velha maritime terminal, to the start-up commissioned. located in Nacala, Mozambique.18 the railway reached 74% physical progress.

Progress indicators14 progress S11D 2H18 a Relative to Vale’s stake in the project. b Net additional capacity. c Original capex budget of US$ 8.089 billion. d Original capex budget of US$ 11.582 billion. e Original capex budget of US$ 1.504 billion. f Original capex of US$ 2.734 billion; Out of the original capex - US$ 1.491 billion financed directly by the CSP project. g The greenfield sections of the project concluded; brownfield sections concluding revamp. The start-up of the CSP project was delayed from the 2H15 to the 1H16 due to labor strikes, the termination of a sub-contract and customs clearance delays. Sustaining capex Sustaining capital expenditures amounted to US$ 685 million in 2Q15, a decrease of US$ 221 million when compared to 2Q14. Base Metals accounted for 53% and Ferrous Minerals 38% of the total sustaining capex. Sustaining capital expenditures for Ferrous Minerals included, among others: (i) the replacement and acquisition of new equipment (US$ 110 million), (ii) the improvement in the current standards of health and safety and environmental protection (US$ 62 million), (iii) the expansion of tailing dams (US$ 43 million) and (iv) operational enhancements (US$ 33 million). Out of the total sustaining capex for Ferrous Minerals, maintenance of railways and ports in Brazil totaled US$ 82 million. 14 In this table we do not include pre-operating expenses in the estimated capex for the year, although these expenses are included in the total estimated capex column, in line with our Board of Directors approval process. Moreover, our estimated capex for the year is only reviewed once a year. 19 ProjectCapacityEstimated (Mtpy)start-up Executed capexEstimated capex (US$ million)(US$ million) Physical 2015Total2015 Total Ferrous Minerals projects Carajás Serra Sul902H165684,0601,321 6,878c67% CLN S11D230 (80)b1H14 to9243,5772,375 9,484d41% Cauê Itabiritos24 (4)b2H15139825350 1,317e86% CSPa1.51H16-1,055185 1,224f87% Coal projects Moatize II112H152891,673629 2,06893% Nacala Corridorg182H144313,324648 4,44489%

Sustaining investments in iron ore fines amounted to US$ 262 million in 2Q15, equivalent to US$ 4.1/wmt on the volume sold in 2Q15. Sustaining capex in the Base Metals operations was mainly dedicated to: (i) operational enhancement (US$ 273 million), (ii) improvement in the current standards of health and safety and environmental protection (US$ 42 million), (iii) replacement and acquisition of new equipment (US$ 25 million) and (iv) expansion of tailing dams (US$ 10 million). Base Metals sustaining capex is above normal levels as a result of: (i) the ongoing investments in the Sudbury smelting unit to reduce SO2 and particulate emissions (Clean AER project); and (ii) the optimization of the Sudbury smelting unit to operate with a single furnace. Sustaining capex by type - 2Q15 Minerals¹ Metals Operations 144 2 297 32 475 Health and Safety 51 - 37 1 90 Administrative & Others 26 2 11 2 41 ¹Include Others of US$ 1 million Sustaining capex by business area Ferrous Minerals 276 40.3 378 54.5 479 52.9 Base Metals 361 52.7 264 38.0 259 28.6 Power Generation Others15 - - - - - - 1 0.1 2 0.3 76 8.4 Exchange rate variations Our capex budget is subject to exchange rate variations as about 75% of our investments are denominated in Brazilian Reais. In the table below we provide capex scenarios at different exchange rates, solely based on the depreciation of the BRL vs. the previous exchange rate of 2.60 BRL/USD on which we based our capital budget, without accounting for our other capex reduction initiatives. 15 We have revised the corporate expenditures allocation, which are now included in its respective business segment, instead of the others sustaining capex. 20 Total685100.0694100.0906100.0 Fertilizer Nutrients426.2436.1505.6 Coal40.671.1414.5 US$ million2Q15%1Q15%2Q14% Total277436142685 CSR - Corporate Social Responsibility13-5524 Waste dumps and tailing dams43-10255 US$ millionFerrousCoalBaseFertilizerTOTAL

Exchange rate sensitivity 1 Approved projects only. Portfolio management Vale sold four very large ore carriers of 400,000 tons deadweight to China Ocean Shipping Company (Cosco) in 2Q15. The transaction totaled US$ 445 million. Corporate social responsibility Investments in corporate social responsibility totaled US$ 143 million in 2Q15, out of which US$ 89 million dedicated to environmental protection and conservation and US$ 53 million dedicated to social projects. 21 FX rates BRL/USD 2.60 2.90 3.00 3.10 3.20 3.30 3.40 3.50 CAPEX1 (US$ billion) 2015201620172018 10.27.66.04.9 9.47.05.54.5 9.26.95.44.4 9.06.75.34.3 8.86.55.24.2 8.66.45.14.1 8.46.35.04.0 8.26.24.94.0

Debt indicators Gross debt totaled US$ 29.773 billion as of June 30th, 2015, increasing US$ 1.286 billion from the US$ 28.487 billion as of March 31st, 2015, mainly as a result of the: (i) reduction in operating cash flows as cash collected in 2Q15 decreased driven by seasonally lower sales volumes in 1Q15; (ii) impact of exchange rate on the translation of BRL and EUR denominated debt into USD; and (iii) dividends paid in 2Q15. Net debt totaled US$ 26.509 billion based on a cash position of US$ 3.264 billion as of June 30th, 2015. After interest and currency swaps, Vale’s gross debt on June 30th, 2015, was composed of 31% of floating interest rates and 69% of fixed interest rate-linked debt, while our debt was 95% denominated in US dollars. Average debt maturity remained practically stable at 8.4 years. The average cost of debt, after the above-mentioned hedge transactions, decreased slightly to 4.43% per annum, against 4.46% on March 31st, 2015. Interest coverage, measured by the ratio of the LTM16 adjusted EBITDA to LTM interest payment, was 5.9x against 6.9x on March 31st, 2015. Debt leverage, measured by gross debt to LTM adjusted EBITDA, was 3.3x as of June 30, 2015. Debt indicators Total debt 29,773 28,487 30,257 Total debt / adjusted LTM EBITDA (x) 3.3 2.6 1.5 16 Last twelve months 22 Adjusted LTM EBITDA / LTM interest expenses (x)5.96.913.4 Net debt26,50924,80223,190 US$ million2Q151Q152Q14

Performanceofthebusiness segments In 2Q15, the Ferrous Minerals business segment contributed with 81.8% of Vale’s total adjusted EBITDA, followed by the Base Metals business segment which contributed with 18.3% to total adjusted EBITDA. The Fertilizer business’s adjusted EBITDA represented 7.4% of the total, while the Coal business and Others contributed negatively, with -4.6% and -2.9% of total adjusted EBITDA, respectively. Segment information — 2Q15, as per footnote of financial statements Expenses revenues operating Adjusted US$ million Gross Net Cost¹ and R&D¹ Dividends stoppage¹ ROM 37 33 (19) - - - - 14 Others Ferrous 118 103 (77) (1) (1) (1) 8 31 Nickel³ Copper4 1,240 1,240 (834) (27) (23) (120) - 236 408 408 (222) (14) (2) - - 170 ¹ Excluding depreciation and amortization ² Excluding non-recurring effects 3 Including copper and by-products from our nickel operations 4 Including by-products from our copper operations 23 Fertilizer Nutrients614568(369)2(20)(18)-163 Others5451(32)(55)(29)--(65) Total7,0846,965(4,304)(327)(118)(188)1852,213 Mn & Alloys6153(52)--(4)-(3) Coal146146(186)(44)(6)(12)-(102) Base Metals1,6481,648(1,056)(41)(25)(120)-406 Pellets1,003972(569)-(1)(9)177570 Operating SG&APre others¹&EBITDA² Ferrous Minerals4,6224,552(2,661)(189)(38)(38)1851,811 Iron ore fines3,4033,391(1,944)(188)(36)(24)-1,199

Ferrousminerals Iron ore EBITDA Adjusted EBITDA for iron ore fines in 2Q15 was US$ 1.199 billion, US$ 610 million higher than the US$ 589 million achieved in 1Q15, mainly as a result of higher realized sales prices (US$ 316 million), higher sales volumes (US$ 126 million), lower costs17 (US$ 120 million), and lower SG&A (US$ 24 million). SALES REVENUES AND VOLUME Gross sales revenues of iron ore fines totaled US$ 3.403 billion in 2Q15, 24.5% higher than in 1Q15 due to higher realized sales prices and volumes. ROM sales revenues were US$ 37 million in 2Q15. Sales volumes of iron ore fines reached 67.2 Mt in 2Q15, 13% higher than in 1Q15 and 5.6% higher than in 2Q14 on the back of: (i) production of 85.3 Mt; (ii) acquisition of 4.0 Mt of iron ore from third parties; (iii) deduction of 13.3 Mt of iron ore fines used for the production of pellets; (iv) deduction of the build-up of 3.3 Mt of inventories, (v) deduction of 1.3 Mt due to write-down of inventories and (vi) deduction of 4.2 Mt of ROM sales. CFR sales of iron ore fines were 41.9 Mt, representing 62% of 2Q15 sales, the same percentage of CFR sales reported in 1Q15 Production in 2Q15, excluding Samarco’s attributable production and third party ore, was 85.3 Mt, 10.8 Mt higher than in 1Q15 and 5.8 Mt higher than in 2Q14. Vale’s production in 2Q15 was a record for a second quarter with the production in Carajás at 31.6 Mt, supported by the ramp-up of the N4WS mine. Gross operating revenue by product US$ million 2Q15 1Q15 2Q14 Iron ore fines 3,403 2,734 5,391 Pellets 1,003 999 1,289 Ferroalloys 29 39 59 17 Net effect on costs, after adjusting the volume and exchange rate impacts 24 Others118102182 Total4,6223,9477,053 Manganese ore324163 ROM373269

Volume sold Iron ore fines 67,230 59,420 63,726 Pellets 12,231 11,255 9,504 Ferroalloys 23 30 30 REALIZED PRICES Iron ore sales in 2Q15 were distributed across three pricing systems: (i) 52% based on the current quarter, monthly and daily spot prices, including provisional price sales that were settled within the quarter; (ii) 36% based on provisional prices with price settlement based on the market price defined on the delivery date, in which case prices had not yet been settled at the end of the quarter; and (iii) 12% linked to past prices (quarter-lagged). Vale’s CFR dmt reference price for iron ore fines (ex-ROM) increased by US$ 3.3/t from US$ 58.2/t in 1Q15 to US$ 61.5/t in 2Q15. Vale’s CFR/FOB wmt price for iron ore fines (ex-ROM) after adjusting for moisture and the effect of FOB sales on 38% of the total sales volumes increased by US$ 4.6/t from US$ 46.0/t per metric ton in 1Q15 to US$ 50.6/t in 2Q15. This US$ 4.6/t increase was higher than the US$ 4.0/t decrease in the average Platts IODEX 62% which came down from US$ 62.4/t (CFR China) in 1Q15 to US$ 58.4/t in 2Q15. The main reasons for the better performance in Vale’s reference price versus the average Platts IODEX in 2Q15 were: (i) the increase of the overall iron ore quality which improved by 0.2 percentage points from 63% in 1Q15 to 63.2% Fe content in 2Q15 due to the ramp-ups of the N4WS mine and of some of the Itabirites projects; (ii) along with the positive impact of provisional prices set at the end of 1Q15. Price realization in 2Q15 was impacted as follows: • Provisional prices set at the end of 1Q15 at US$ 51.4/t, which were later adjusted based on the price of delivery in 2Q15, positively impacted prices in 2Q15 by US$ 0.4/t compared to a negative US$ 2.8/t in 1Q15. • Provisional prices set at the end of 2Q15 at US$ 54.5/t vs. the IODEX average of US$ 58.4/t in 2Q15, negatively impacted prices in 2Q15 by US$ 1.4/t compared to a negative impact of US$ 4.9/t in 1Q15. Quarter-lagged contracts, priced at US$ 66.8/t based on the average prices for Dec-Jan-Feb, positively impacted prices in 2Q15 by US$ 1.0/t compared to a positive impact of US$ 2.2/t in 1Q15. • 25 Manganese ore385363496 ROM4,1812,9153,659 ‘000 metric tons2Q151Q152Q14

In 2Q15, iron ore sales of 23.7 Mt, or 36% of Vale’s sales mix, were recorded under the provisional pricing system, which was set at the end of 2Q15 at US$ 54.5/t18. The final prices of these sales and the required adjustment to sales revenues will be determined and recorded in 3Q15. The decrease in bunker oil prices reduced freight costs and thus positively impacted the settlement of FOB prices in 2Q15 by US$ 0.4/t compared to a reduction of US$ 2.9/t in 1Q15. Bunker oil prices impacted the settlement of FOB sales prices as the decrease in bunker oil prices led to a lower freight deduction to the IODEX CFR reference price used to determine the FOB price. 18 The reference for determining the provisional price is SBB Steel Markets Daily forward curve IODEX 62% Fe CFR North China OTC, June 30th, 2015 page 5. 26 ¹ Adjustment as a result of provisional prices booked in 1Q15 at US$ 51.4/t. ² Weighted average difference between prices provisionally set at the end of 2Q15 at US$ 54.5/t based on forward curves and the US$ 58.4/t from the 2Q15 IODEX. Price realization – Iron ore fines

Average sale price Iron ore - Metal Bulletin 65% index 66.02 70.26 n/a Iron ore fines CFR reference price (dmt) 61.50 58.20 103.90 ROM 8.85 10.98 18.86 Manganese ore 83.12 112.95 127.02 COSTS AND EXPENSES Costs for iron ore fines amounted to US$ 1.944 billion (or US$ 2.207 billion with depreciation charges) in 2Q15. Costs decreased by US$ 121 million when compared to 1Q15 after deducting the effects of higher sales volumes (US$ 233 million) and exchange rates variations (US$ 66 million). The decrease was mainly driven by lower maintenance costs (-US$ 49 million), reflecting increases in fleet productivity, and other costs (-US$ 90 million), which were partly offset by higher personnel costs (US$ 46 million) associated with the one-off effect of the payment of the remote area collective agreement for the Northern System employees. Oil costs in the form of diesel amounted to US$ 100 million in 2Q15 against US$ 94 million in 1Q15. Costs were in line with 1Q15 after adjusting for higher volumes (US$ 11 million) and exchange rates variations (-US$ 7 million). Falling oil prices had a limited positive impact on our fuel costs, since prices of diesel in Brazil are not directly correlated to international oil prices. The negative impact of the outstanding hedge accounting position on freight costs was US$ 86 million. For further details, please refer to the ‘The Impact of Bunker Hedging on Vale’s Financial Performance’ box on page 32. Iron ore COGS - 1Q15 x 2Q15 Personnel 182 20 (13) 46 54 236 Energy (Electricity, fuel & gas) 115 13 (8) 12 18 133 Maintenance 281 31 (20) (49) (38) 243 Bunker oil hedge 84 10 - (8) 2 86 and amortization Depreciation 325 37 (15) (84) (62) 263 27 Total2,223270(81)(204)(16)2,207 Others23028(6)(90)(69)162 Total costs before depreciation1,898233(66)(121)461,944 Freight62873-275703 Acquisition of products5822-(12)1068 Outsourced services and Materials31936(19)(22)(5)314 Variance drivers Total Variation 1Q15 x 2Q15 US$ million 1Q15 Volume Exchange rate Others 2Q15 Ferroalloys1,260.871,300.001,966.67 Pellets82.0488.76135.63 Iron ore fines CFR/FOB realized price50.6246.0184.60 Iron ore - Platts's 62% IODEX¹58.4562.40102.60 US$ / metric ton2Q151Q152Q14

Maritime freight costs, which are fully accrued as cost of goods sold, totaled US$ 703 million in 2Q15, showing an increase of US$ 75 million as a result of higher sales volumes when compared to 1Q15. Unit freight cost per iron ore metric ton was US$ 16.8/t in 2Q15, US$ 0.4/t lower than the US$ 17.2/t recorded in 1Q15. This US$ 0.4/t decrease is explained by the renegotiation of contracts of affreightment and lower spot charter freight rates. The changes in bunker oil prices from US$ 356.9/t in1Q15 to US$ 356.7/t in 2Q15 were not material. The impact of the outstanding bunker oil hedge position accounted for as “hedge accounting” in Vale’s unit freight cost was US$ 2.0/t with the settlement of 510,000 tons of bunker oil derivative contracts from the 1,485,000 tons of contracts that were outstanding at the end of March 2015. After adjusting for the hedge accounting effects, Vale’s iron ore unit freight decreased by US$ 0.7/t in 2Q15 vs. 1Q15. For further details, please refer to the ‘The Impact of Bunker Hedging on Vale’s Financial Performance’ box on page 32. The cost of ore acquired from third parties amounted to US$ 68 million on 3.5 Mt sold in 2Q15. On a per-ton basis, cost of ore acquired from third parties decreased from US$ 22.9/t in 1Q15 to US$ 19.4/t in 2Q15. Volumes of third party ore sold increased by 1.0 Mt in 2Q15 vs. 1Q15 Other operational costs amounted to US$ 162 million, decreasing from the US$ 230 million19 in 1Q15. The TFRM20 totaled US$ 45 million in 2Q15 compared to US$ 42 million in 1Q15. The CFEM, Brazil’s federal mining royalty, was US$ 34 million in 2Q15 compared to US$ 44 million in 2Q15. Total C1 cash cost at the port21 (mine, plant, railroad and port, after royalties) was US$ 1.008 billion after deducting depreciation of US$ 263 million, iron ore acquired from third parties of US$ 68 million, iron ore freight costs of US$ 703 million and bunker oil hedge accounting effects of US$ 86 million. C1 Cash cost FOB port per metric ton of iron ore fines ex-royalties was US$ 15.8/t22 in 2Q15 vs. US$ 18.3/t in 1Q15, a reduction of US$ 2.5/t driven by cost reductions in BRL and the depreciation of the BRL against the USD. C1 Cash cost FOB port per metric ton of iron ore fines fell 8.8% in Brazilian Reais from R$ 53.4/t in 1Q15 to R$ 48.7/t in 2Q15. 19 Other Operation costs were reclassified to US$ 230 million in 2Q15 from US$ 268 million in 1Q15. 20 TFRM - State of Minas Gerais and state of Pará tariff for control, monitoring, and supervision of activities related to research, exploration, production, profiting from mineral resources. 21 Excluding ROM and iron ore from third parties 22 As per segment reporting notes to the financial statements: US$ 1.944 billion in costs net of depreciation and amortization, less US$ 703 million in iron ore freight, US$ 68 million in iron ore acquired from third parties, US$ 86 million of hedge bunker oil on iron ore sales of 67.2 Mt, sales of third party ore of 3.5 Mt, and sales volume of ROM of 4.2 Mt. 28

As a highlight, the Northern System (Carajás) production cost FOB port in June 2015 amounted to less than US$ 12/t. Iron ore expenses, net of depreciation, amounted to US$ 248 million in 2Q15 vs. the US$ 229 million recorded in 1Q15. Expenses increased by US$ 33 million when compared to 1Q15 after adjusting for the effects of exchange rates (-US$ 14 million). R&D expenses increased by US$ 3 million. Pre-operating and stoppage expenses, net of depreciation, amounted to US$ 24 million, US$ 3 million lower than the US$ 27 million recorded in 1Q15. Iron ore fines cash cost and freight Costs (US$ million) Costs of ore acquired from third parties 68 58 118 Bunker oil hedge 86 84 - Sales volumes (Mt) Volume acquired from third parties 3.5 2.5 3.1 Volume sold of Vale's own ore (ex-ROM) 63.7 56.9 60.6 % of FOB sales 38% 38% 44% royalties), FOB (US$ /t) Freight Vale's iron ore unit freight cost (US$/t) 18.8 19.5 23.3 Iron ore fines unit cost + expenses landed in China US$/t 2Q15 1Q15 2Q14 Vale's C1 iron ore cash cost (ex-ROM, ex-royalties), FOB (US$ /t) 15.8 18.3 20.8 Iron ore fines freight cost (ex-bunker oil hedge) 16.8 17.2 23.3 ¹ Net of depreciation Iron ore pellets Adjusted EBITDA for pellets in 2Q15 was US$ 570 million, compared to the US$ 397 million in 1Q15. The decrease in sales prices (-US$ 80 million) was offset by higher volumes (US$ 26 million), lower costs (US$ 59 million), exchange rate variations (US$ 24 million) and higher dividends received (US$ 151 million), mostly from Samarco. 29 Iron ore fines expenses ¹3.94.05.2 Iron ore fines unit cost + expenses landed in China (US$/wmt)37.741.051.7 Iron ore royalties1.21.52.4 Vale's iron ore unit freight cost (ex-bunker oil hedge) (US$/t)16.817.223.3 Volume CFR (Mt)41.936.635.8 Vale's C1 iron ore cash cost (ex-ROM, ex-third party ores and ex-15.818.320.8 % of CFR sales62%62%56% Total ROM volume sold4.22.93.7 Total iron ore volume sold71.462.367.4 FOB at port costs (ex-ROM and ex-third party ores)¹1,0871,1281,406 Royalties7986144 FOB at port costs (ex-ROM, ex-third party ores and ex-royalties)1,0081,0421,262 Maritime freight costs703628835 COGS, less depreciation and amortization1,9441,8982,359 2Q151Q152Q14

Gross sales revenues for pellets amounted to US$ 1.003 billion in 2Q15, increasing US$ 4.0 million from the US$ 999 million recorded in 1Q15. The 0.9 Mt increase in sales volumes to 12.2 Mt in 2Q15 from 11.3 Mt in 1Q15 was offset by lower sales prices of US$ 82.0 per ton in 2Q15 vs. US$ 88.8/t in 1Q15. Sales volumes increased by 2.7 Mt in 2Q15 vs. 2Q14 Production reached 12.2 Mt in 2Q15, 0.8Mt higher than in 1Q15 and 2.2 Mt higher than in 2Q14 due to the ramp up of the Tubarão VIII pellet plant. Pellet prices decreased by US$ 6.8/t, from US$ 88.8/t in 1Q15 to US$ 82.0 per metric ton in 2Q15, whereas the Platt’s IODEX iron ore reference price (CFR China) decreased by US$ 4.0/t in the quarter. The slightly higher decrease in Vale´s reference pellet price versus the decrease in the average Platts IODEX was a result of slightly lower pellet premiums in 2Q15 when compared to 1Q15. CFR pellet sales, representing 25% of total pellets sales, increased from 2.6 Mt in 1Q15 to 3.0 Mt in 2Q15. FOB pellet sales increased from 8.6 Mt in 1Q15 to 9.2 Mt in 2Q15. Pellet costs totaled US$ 569 million (or US$ 655 million with depreciation charges) in 2Q15. Costs decreased by US$ 59 million when compared to 1Q15 after adjusting for the effects of higher volumes (US$ 61 million) and exchange rates variations (-US$ 24 million). This decrease is mainly due to lower materials and service costs (-US$ 13 million) and lower maintenance costs (-US$ 24 million). Pre-operating and stoppage expenses for pellets were US$ 9 million in 2Q15 compared to the US$ 5 million in 1Q15. EBITDA unit margins for pellets were US$ 34.6/t in 2Q15. EBITDA in 2Q15 was based on a reference price of US$ 82/t and on dividends received from the leased pelletizing plants in Tubarão (US$ 30 million). C1 Cash costs include costs of iron ore, transformation costs (energy, labour, etc), and lease fees for the pelletizing plants and freight. Pellets - EBITDA ex-Samarco US$/wmt US$ million US$/wmt million Gross Revenues / Realized Price 1,003 82.0 999 88.8 Dividends Received (Leased pelletizing plants) ex-Samarco 31 2.5 26 2.3 -569 -46.5 -591 -52.5 and other) Expenses (SG&A, R&D and other) -10 -0.8 -3 -0.3 30 EBITDA ex-Samarco42434.639735.3 C1 Cash Costs (Iron ore, leasing, freight, overhead, energy Net Revenues / Realized Price97279.596585.7 2Q151Q15 US$ 

Manganese and Ferroalloys Adjusted EBITDA of Manganese ore and ferroalloys in 2Q15 was negative US$ 3 million, US$ 20 million lower than the US$ 17 million in 1Q15, mainly due to lower sales volumes (-US$ 7 million), and lower sales prices (-US$ 10 million), which were partially offset by exchange rate variations (US$ 3 million). Gross sales revenues for manganese decreased to US$ 32 million from US$ 41 million in 1Q15 due to lower sales volumes and lower sales prices. In 2Q15, production of manganese ore reached 554,000 t, compared with 592,000 t in 1Q15 and 505,000 t in 2Q14. Gross sales revenues for ferroalloys amounted to US$ 29 million, decreasing from US$ 39 million in 1Q15, due to lower sales volumes and lower sales prices. Ferroalloys production decreased to 31,000 t in 2Q15 from the 27,000 t recorded in 1Q15. Market outlook - Iron Ore Iron ore prices dropped by 6.25% in the second quarter, from US$ 62.40/t in 1Q15 to US$ 58.4/t in 2Q15, driven by a weak demand from the Chinese downstream sectors and a strong supply of iron ore in the seaborne market. On the demand side, despite China’s economic growth of 7% in 2Q15, fixed asset investments continued to decelerate, with 1H15 growth of 11.4% versus 17.3% in 1H14. The real estate sector is undergoing adjustments and despite the continued increase in property sales in June, property developers lack incentives to start new constructions as stocks remain high. As a result, Chinese steel production in the first half of 2015 was 1.3% lower when compared to the same period of last year. Other regions such as the US, Japan and South Korea also registered lower steel output, driven by strong steel export volume from China (today at 105Mt annualized) that inhibits domestic steel production elsewhere. Estimates are of 2.5-3% lower steel production in 2Q15 compared to 2Q14 in these regions.. On the supply side, major iron ore producers continued to expand production leading to closures of higher cost mines, deferral of decisions and cancelation of projects. This year we estimate that 90 Mt of iron ore capacity should exit the seaborne market with another 110Mt being added. Looking forward, we expect China’s real estate sector to improve with some recovery in house sales. Improvement in the property market will translate into more investments and new floor starts as from 4Q15 and help balance the market in the near term. 31

Volume sold by destination – Iron ore and pellets Americas 11,714 14.0 10,164 13.8 11,181 14.5 Others 1,547 1.8 1,375 1.9 1,923 2.5 China 43,181 51.6 36,879 50.1 39,506 51.4 Others 5,734 6.9 5,134 7.0 5,208 6.8 Germany 5,926 7.1 5,375 7.3 4,651 6.0 Others 5,979 7.1 5,242 7.1 5,202 6.8 Rest of the World 259 0.3 383 0.5 929 1.2 Selected financial indicators - Ferrous minerals Net Revenues 4,552 3,868 6,940 Expenses² (189) (158) (231) R&D expenses (38) (35) (68) Adjusted EBITDA 1,811 1,027 3,604 Adjusted EBIT 1,217 531 3,001 ¹ Iron ore reference price - Platts's 62% IODEX CFR China (US$/dry metric ton) ² Net of depreciation and amortization Selected financial indicators - Iron ore fines (excluding third party ores) Adjusted EBITDA (US$ million) 1,127 562 2,578 Adjusted EBITDA (US$/t) 17.69 9.87 42.51 Selected financial indicators - Pellets (excluding Samarco) Adjusted EBITDA (US$ million) 424 397 652 Adjusted EBITDA (US$/t) 34.64 35.27 68.60 Selected financial indicators - Iron ore fines and Pellets Adjusted EBITDA (US$ million) 1,551 959 3,230 Adjusted EBITDA (US$/t) 20.42 14.07 46.05 32 Volume Sold (Mt)75.96368.14370.133 2Q151Q152Q14 Volume Sold (Mt)12.23111.2559.504 2Q151Q152Q14 Volume Sold (Mt)63.73256.88860.629 2Q151Q152Q14 Adjusted EBIT margin (%)26.713.743.2 Depreciation and amortization(409)(470)(395) Dividends received18526208 Pre-operating and stoppage expenses²(38)(38)(47) Costs²(2,661)(2,636)(3,198) US$ million2Q151Q152Q14 Total83,642100.073,590100.076,889100.0 Middle East2,7973.32,4523.31,7462.3 France1,4551.71,3881.91,7262.2 Europe13,36016.012,00516.311,57915.1 Japan6,5977.96,5728.96,7418.8 Asia55,51266.448,58566.051,45566.9 Brazil10,16712.28,78911.99,25812.0 ‘000 metric tons2Q15%1Q15%2Q14%

33 THE IMPACT OF BUNKER HEDGING ON VALE’S FINANCIAL PERFORMANCE The total effect of bunker oil prices is dependent on the bunker oil hedge taken out by Vale as discussed in our 4Q14 and in our 1Q15 financial performance (please see page 24 at both documents). Bunker oil hedges are recorded as follows: (i)The hedge of the bunker oil exposure associated with our FOB and domestics sales is accounted for as financial results and is marked-to-market every quarter and recorded as financial results. (ii)The hedge of the bunker oil exposure associated with our CFR sales is recorded as hedge accounting, being marked-to-market every quarter and recorded in other comprehensive income and impacting costs of goods sold only at the actual settlement dates. Impact of bunker oil hedging in Vale’s financial performance at settlement date increase on iron FOBNoImpact on financialincrease on Collar a 100% of the forward instruments are to be settled in 2015 More specifically, the impact of the hedged positions in Vale’s results can be summarized as follows: (i)Impact on the financial statements related to the derivatives under Vale’s hedge accounting program: a. In 2Q15: (i) Freight costs increased by US$ 2.0/t with the settlement of derivatives contracts in 2Q15, causing COGS to increase. (ii) Open hedge positions on June 30th, 2015, had no impact in 2Q15 P&L statement, only in other comprehensive income. Concept Current impact Drivers of future impact Freight contract type Hedge accounting Impact of derivative positions in P/L statement Impact incurred in 2Q15 P/L statement Type of Instrument Bunker oil derivative open positions (million tons) Average strike price (US$/t) US$ 2.0/t (US$ CFRYesImpact on COGS86 million)Forward975a498 ore COGS US$ 79 million resultsfinancial results Forward2.873449 Zero Cost1.502341 - 394

23 The actual settlement is based on the specific conditions (executed volumes and prices) of each derivative instrument. The above referred proxy assumes the average price of these instruments and evenly spread bunker tonnage throughout the year. 34 b. In 3Q15 and subsequent quarters: derivatives settlement will impact costs on a monthly basis and can be estimated by the following approximation23: 975,000 t * (Actual bunker oil price – US$ 498 / t) / 6 (ii)Impact on the financial statements related to the trades that are not under Vale´s hedge accounting program: a. In 2Q15: a positive impact of US$ 79 million recognized in the 2Q15 financial expenses due to the realized gain on the settlements which occurred in the quarter and the mark-to-market of the open positions on June 30th, 2015. b. In 3Q15 and subsequent quarters: financial results will be impacted by the changes in the mark-to-market of the open derivative positions at the end of each quarter and by the gains or losses related to the settlements recorded in each quarter.

BaseMetals EBITDA Adjusted EBITDA was US$ 406 million in 2Q15, having improved by US$ 43 million after deducting the effect of the goldstream transaction (US$ 230 million) in 1Q15 and the lower prices (US$ 85 million) in 2Q15. SALES REVENUES AND VOLUMES Nickel gross sales revenues totaled US$ 874 million in 2Q15, decreasing 10.0% vs. 1Q15, mainly due to the lower LME nickel prices of US$ 13,008 per metric ton in 2Q15 vs. US$ 14,338 in 1Q15 (US$ 101 million). Sales volumes in 2Q15 were 67,000 t, 1,000 t lower than in 1Q15. Copper gross sales revenues totaled US$ 483 million in 2Q15, increasing 4.1% vs. 1Q15, mainly as a result of higher sales prices. Copper sales price reached US$ 4,979 per metric ton in 2Q15 vs. US$ 4,735 per metric ton in 1Q15 (US$ 20 million). Copper sales volumes totaled 97,000 t in 2Q15 vs. 98,000 t in 1Q15 (US$ 1 million). Sales volumes in 2Q15 were 27.6% higher than the 76,000 t sold in 2Q14. PGMs (platinum group metals) gross sales revenues were US$ 125 million in 2Q15, in line with 1Q15, due to higher sales volumes of 149,000 oz in 2Q15 vs. 144,000 oz in 1Q15 and lower prices. Gold gross sales revenues amounted to US$ 128 million in 2Q15, 13.3% higher than in 1Q15, mainly due to higher volumes. Sales volumes totaled 109,000 oz in 2Q15, 12,000 oz higher than in 1Q15 and 41,000 t higher than the 68,000 oz sold in 2Q14. Gross operating revenue by product US$ million 2Q15 1Q15 2Q14 Nickel 874 971 1,188 PGMs 125 125 115 Silver 7 8 10 Nickel realized price improved relative to the LME in 2Q15 with an average realized price of US$ 13,008/t. Vale realizes a premium over the LME on the sale of its high purity nickel products (pellets, cathode and powder) and a discount on the sale of intermediate nickel products such as matte from PTVI and on ferro-nickel from Onça Puma. 35 Others31297 Total1,6481,7101,889 Gold12811387 Copper483464482

Copper realized price was US$ 1,064/t lower than the average copper LME price of US$ 6,043/t in 2Q15. The discount on Vale’s realized price versus the LME price is mainly a result of the treatment and refining charges on the sale of our copper products24 (US$ 491/t) and the impact of provisional pricing25 (US$ 263/t). Average sale price US$/ metric ton 2Q15 1Q15 2Q14 Nickel - LME 13,008 14,338 18,465 Nickel 13,045 14,279 17,731 Platinum (US$/oz) 1,109 1,156 1,429 Silver (US$/oz) 14.79 13.75 26.28 Nickel output reached 67,100 t in 2Q15, 3% lower than in 1Q15 as a result of planned maintenance shutdowns in Indonesia and New Caledonia but 8.7% higher than in 2Q14. Copper output reached 104,90026 t in 2Q15, 2.1% lower than in 1Q15 and 29.5% higher than in 2Q14. Vale recorded the best production ever for a second quarter, supported by the ramp-up of Salobo. Gold output amounted to 100,000 oz in 2Q15, the best performance ever for a second quarter, but 2.6% lower than in 1Q15, as a result of the above-mentioned interruption of the Sudbury operations. Volume sold Nickel operations & by products Copper 34 39 32 Silver ('000 oz) 247 452 264 Cobalt (metric ton) 930 1,009 649 Copper 63 59 44 Silver ('000 oz) 157 158 104 24 Vale mainly sells: (i) copper concentrates to custom smelters and refineries that charge a Treatment Charge and Refining Charge (TC/RC) to process the material and (ii) copper anodes which is also an upstream product sent to custom refineries and subject to the Refining Charges. 25 Under a pricing system referred to as MAMA (month after month of arrival), sales of copper concentrates and anodes are provisionally priced at the time of shipment, and final prices are settled on the basis of the LME price for the month after the month of arrival, generally one to three months after the shipment date. 26 Including Lubambe’s attributable production. Production numbers are reported on a copper-contained basis and sales volumes are reported on a payable basis, which is lower, given the loss of copper throughout the smelting process. Lubambe sales volumes are accounted as equity income (-US$ 17 million). 36 Gold ('000 oz)837453 Copper operations & by products PGMs ('000 oz)149144117 Gold ('000 oz)262315 Nickel676867 ‘000 metric tons2Q151Q152Q14 Cobalt (US$/lb)10.739.1013.28 Gold (US$/oz)1,1741,1651,271 Copper4,9794,7356,320 Copper - LME6,0435,8276,787

COSTS AND EXPENSES Costs totaled US$ 1.056 billion in 2Q15 (or US$ 1.442 billion including depreciation). After adjusting for the effects of lower volumes (-US$ 3 million) and exchange rate variations (-US$ 18 million), costs increased slightly by US$ 6 million when compared to 1Q15. Base Metals COGS - 1Q15 x 2Q15 Personnel 196 (1) (4) 3 (1) 195 Energy (Electricity, fuel & gas) 144 - (3) (11) (14) 130 Maintenance 226 (1) (5) 4 (2) 224 and amortization Depreciation 394 5 (2) (11) (8) 386 SG&A and other expenses, excluding depreciation, were US$ 41 million in 2Q15 compared to a revenue of US$ 173 million in 1Q15 due to the positive impact of US$ 230 million from the goldstream transaction. Pre-operating and stoppage expenses, net of depreciation, totaled US$ 120 million, US$ 14 million higher than in 1Q15, mainly reflecting higher expenses at VNC (US$ 32 million) due to planned maintenance shutdown. Performance by operation Unit cash cost of sales, net of by-product credit, by operation are as follows: Base Metals – unit cash cost of sales, net of by-product credits PTVI (nickel) 7,159 7,554 7,752 Salobo (copper) 1,616 2,016 1,626 EBITDA Base Metals’ adjusted EBITDA by operation in 2Q15 was negatively impacted by lower prices (-US$ 85 million), and offset by higher delivery volumes (US$ 26 million) and exchange rate effects (US$ 18 million). Details by operations are as follows: 37 Onça Puma (nickel)9,4999,31810,352 Sossego (copper)2,3532,7002,945 US$ / t2Q151Q152Q14 North Atlantic Operations (nickel)3,2805,4673,742 Total1,4652(20)(5)(23)1,442 Others100-(2)3129129 Total costs before depreciation1,071(3)(18)6(15)1,056 Acquisition of products180--(9)(9)171 Outsourced services and Materials225(1)(5)(12)(18)207 Variance drivers Total Variation 1Q15 x 2Q15 US$ million 1Q15 Volume Exchange rate Others 2Q15

(i) North Atlantic operations’ EBITDA was US$ 261 million, decreasing by US$ 90 million compared with 1Q15 as a result of lower sales prices (US$ 67 million) and higher costs (US$ 47 million), mainly due to the impact of: (i) the fire in the matte processing operation in Sudbury; (ii) the planned maintenance shutdown in Voisey’s Bay; and (iii) the one-time costs associated with the settlement of our collective labour agreement in Sudbury. (ii) PTVI’s EBITDA was US$ 58 million, decreasing by US$ 12 million compared with 1Q15 as a result of lower prices (US$ 25 million), which was partially offset by lower costs (US$ 10 million). (iii) VNC's EBITDA was –US$ 78 million, improving by US$ 31 million compared with 1Q15 as a result of insurance recoveries of US$ 40 million in 2Q15. (iv) Sossego’s EBITDA was US$ 50 million, decreasing by US$ 3 million as a result of slightly lower volumes (US$ 1 million) and slightly higher R&D expenses (US$ 1 million). (v) Salobo’s EBITDA was US$ 119 million, increasing by US$ 19 million compared with 1Q15 as a result of higher volumes (US$ 14 million) alongside the progress of the ramp-up of the operation. (vi) Onça Puma’s EBITDA was US$ 21 million, decreasing by US$ 5 million compared with 1Q15 as a result of lower realized prices (US$ 7 million). Base metals – EBITDA by operation North Atlantic operation1 261 351 244 VNC (78) (109) (57) Salobo 119 100 87 Other3 (25) 187 37 1 Includes the operations in Canada and in the United Kingdom. 2 Includes the US$ 60 million received as insurance for Onça Puma furnace. 3 Includes the PTVI and VNC off-takes, intercompany sales and purchase of finished nickel, proceeds from the goldstream transaction and corporate center for base metals. Market outlook – Base Metals Base metal prices were impacted in the second quarter of 2015 by increasing concerns over Chinese commodity consumption, with investor sentiment turning progressively negative as 38 Total406678609 Onça Puma22126106 Sossego505385 PTVI5870107 US$ million2Q151Q152Q14

the quarter progressed. As we enter Q3, nickel and copper prices are both trading within their respective cost curves. NICKEL LME cash nickel prices averaged $13,008/t in the second quarter of 2015 declining as the quarter progressed. This average price represented a 9% decline quarter-on-quarter or a 30% drop year-on-year. By the end of the quarter, prices fell below $12,000/t for the first time since May 2009. With prices below $12,000/t, around half of nickel operations are now estimated to have negative cash margins. Meanwhile, stocks registered within LME warehouses increased to 456,438 metric tonnes with a declining trend in the last three weeks of the quarter. In contrast to the price movement, there were a number of improvements evident within the nickel market in Q2. Chinese net imports of ferronickel and unwrought nickel improved to their highest levels in over six years as Chinese stainless steel mills increased their consumption of imported nickel. Stainless steel scrap discounts in Europe were reduced indicating increased scarcity of supply, and transaction prices for non-LME deliverable nickel units improved relative to the nickel price. Beyond the typically slower summer period, the market is anticipated to improve as stainless mills return from maintenance combined with tightening ore supply from the Philippines given its rainy season starting in October. COPPER LME cash copper prices were impacted by concerns over Chinese demand with investor positioning turning distinctly negative towards the end of the quarter. Prices averaged $6,043/t in the second quarter, a rise of 4% quarter-over-quarter or an 11% drop year-over-year. During this period exchange stocks declined, led by falls in China as Chinese imports of copper cathode dropped year-over-year. While market indicators suggest limited tightness within the market for cathode, the concentrate market showed strong demand for clean concentrates with falling spot TC/RCs. With moderation in both demand and supply growth, many market analysts anticipate the copper market to be in a small surplus for 2015. In 2016, a number of copper projects will continue to ramp-up. Despite the ramp-up of these projects, the industry continues to face structural supply issues, such as declining ore grades and depletion that is anticipated to limit supply in the years to come. 39

Selected financial indicators – Base Metals Net Revenues 1,648 1,710 1,889 Expenses¹ (41) 173 16 R&D expenses (25) (28) (35) Depreciation and amortization (449) (470) (367) Adjusted EBIT margin (%) (2.6) 12.2 12.8 ¹ Net of depreciation and amortization 40 Adjusted EBIT(43)208242 Adjusted EBITDA406678609 Pre-operating and stoppage expenses¹(120)(106)(148) Costs¹(1,056)(1,071)(1,113) US$ million2Q151Q152Q14

Coal Adjusted EBITDA for the Coal business segment was negative US$ 102 million in 2Q15, compared to negative US$ 128 million in 1Q15. The improvement of US$ 26 million was mainly driven by the lower costs27 (US$55 million) in 2Q15, which were partly offset by lower prices (-US$ 18 million). Gross sales revenues of metallurgical coal increased to US$ 137 million in 2Q15, compared to US$ 129 million in 1Q15. The increase of US$ 8 million was driven by the higher sales volumes (US$ 26 million) in 2Q15, which were partially offset by lower prices (US$ 18 million). Gross sales revenues of thermal coal decreased to US$ 9 million in 2Q15 from US$ 16 million in 1Q15, mainly as a result of lower sales volumes (US$ 7 million). The average realized price for metallurgical coal decreased by 10.1% from US$ 98.17/t in 1Q15 to US$ 88.27/t in 2Q15, whereas spot market prices (reflected by reference indices) decreased by 16.4%28. The relative improvement in price realization was driven by better pricing of the Moatize products over the reference premium hard coking coal prices and by lower freight rates. The average realized price for thermal coal decreased by 12.4% from US$ 62.26/t in 1Q15 to US$ 54.55/t in 2Q15. Sales volumes of metallurgical coal reached 1.6 Mt in 2Q15 increasing by 238,000 t vs. 1Q15 as sales from Mozambique increased 66% quarter-on-quarter. Total sales from Australia decreased with the sale of the existing coal inventory from Isaac Plains and Integra in 1Q15, despite the increase in Carborough Downs’ sales. Sales volumes of thermal coal reached 165,000 t in 2Q15, decreasing by 92,000 t in 2Q15 vs. 1Q15. The decrease in thermal coal sales volumes in 2Q15 was driven by the sale the of existing coal inventory from Isaac Plains and Integra in 1Q15. Coal costs amounted to US$ 186 million (or US$ 233 million with depreciation charges) in 2Q15, in line with the US$186 million recorded in 1Q15. After adjusting for the effects of higher volumes (US$ 55 million), costs decreased by US$ 55 million, mainly as a result of lower FOB costs in Mozambique and the good operational performance of Carborough Downs. Coal expenses, excluding depreciation charges, decreased by US$ 25 million from US$ 87 million in 1Q15 to US$ 62 million in 2Q15. The decrease was mainly due to a lower inventory adjustment on thermal coal in Moatize (US$ 20 million) and a reduction in SG&A expenses (US$ 5 million) in 2Q15. 27 Net effect on costs, after adjusting the volume and exchange rate impacts 28 The percentage was calculated based on the variation of the Premium Low Volatile Hard Coking Coal (FOB Australia) as published by Platts (ticker PLVHA00) 41

Performance by operation Highlights by operation are: • Adjusted EBITDA for the Australian operations was US$ 16 million in 2Q15 compared to negative US$ 5 million in 1Q15. The improvement of US$ 21 million vs. 1Q15 was driven by the stoppage of the non-profitable mines of Integra and Isaac Plains and by the good performance at the Carborough Downs operation, which achieved its best production ever for a second quarter. • Costs net of depreciation for the Australian operations amounted to US$ 37 million in 2Q15, decreasing by US$ 39 million vs. 1Q15. After adjusting for the effects of lower volumes (-US$ 22 million), costs were down by US$ 17 million. Adjusted EBITDA for the Mozambique operations was negative US$ 118 million in 2Q15 compared to negative US$ 123 million in 1Q15. • Mozambique costs net of depreciation amounted to US$ 150 million in 2Q15, increasing US$ 39 million vs. 1Q15. After adjusting for the effects of higher volumes (US$ 77 million), costs were down by US$ 38 million mainly driven by lower logistics costs. • Market outlook - Metallurgical Coal Prices for the premium hard coking coal low volatility benchmark FOB Australia decreased by 16% in the quarter from US$ 104/t in 1Q15 to US$ 93/t in 2Q15, and prices for PCI decreased by 21% from US$92.50/t to US$ 73/t in 2Q15. Metallurgical coal prices declined further with the combination of strong supply and weak demand in the seaborne market. The main drag on demand continued to be the slowdown in China’s property sector which affects steel consumption and ultimately coal demand. Product wise, some relative tightness has been seen in the market for the premium mid volatile coal, which has been priced at the same level as the low volatile benchmark coking coal, instead of commanding the usual 2-3% discount. Coal producers reduced costs mostly on the back of oil and energy price cuts, tax reductions and currency depreciation against the dollar which benefitted seaborne suppliers such as the Australian producers. The coal market may remain oversupplied throughout the year despite some slight production decrease from US producers in 2015. 42

Coal business performance Gross operating revenue by product Metallurgical coal 137 129 196 Average sale price Metallurgical coal 88.27 98.17 107.87 Volume sold Metallurgical coal 1,552 1,314 1,817 Selected financial indicators - Coal US$ million 2Q15 1Q15 2Q14 Net Revenues 146 145 200 Expenses¹ (44) (70) (41) R&D expenses (6) (5) (2) Depreciation and amortization (48) (23) (14) Adjusted EBIT margin (%) (102.7) (104.1) (84.0) ¹ Net of depreciation and amortization 43 Adjusted EBIT(150)(151)(168) Adjusted EBITDA(102)(128)(154) Pre-operating and stoppage expenses¹(12)(12)(9) Costs¹(186)(186)(302) Thermal coal16525773 Total1,7171,5711,890 ‘000 metric tons2Q151Q152Q14 Thermal coal54.5562.2668.49 US$/ metric ton2Q151Q152Q14 Thermal coal9165 Total146145201 US$ million2Q151Q152Q14

Fertilizer Nutrients Adjusted EBITDA for the Fertilizer business segment increased to US$ 163 million in 2Q15 from US$ 90 million in 1Q15. The increase of US$ 73 million from 1Q15 was mainly driven by lower costs29 (US$ 33 million), by higher sales volumes (US$23 million) and by lower expenses (US$ 15 million). Potash gross sales revenues totaled US$ 34 million in 2Q15, in line with the US$ 33 million recorded in 1Q15. Sales volumes increased from 91,000 t in 1Q15 to 102,000 t in 2Q15, whereas realized prices decreased from US$ 358.53/t in 1Q15 to US$ 333.33/t in 2Q15. Realized prices decreased alongside the reduction of the international potash prices. Phosphate products gross sales revenues totaled US$ 470 million in 2Q15, US$ 97 million higher than in 1Q15 as a result of higher sales volumes (US$ 85 million) and of higher realized prices (US$ 12 million). Nitrogen fertilizers gross sales revenues totaled US$ 94 million in 2Q15 vs. US$ 93 million in 1Q15. Slightly higher realized prices (US$ 2 million) were offset by slightly lower sales volumes (US$1 million). Fertilizer costs, net of depreciation, totaled US$ 369 million in 2Q15 (or US$ 441 million with depreciation charges), increasing US$ 32 million vs. 1Q15. After excluding the effects of higher volumes (US$ 65 million) and exchange rate variations (-US$ 12 million), costs decreased US$ 21 million. SG&A, net of depreciation, decreased to US$ 8 million in 2Q15 from US$ 12 million in 1Q15 driven by downsizing initiatives. R&D expenses totaled US$ 20 million in 2Q15, increasing 18% from the US$ 17 million recorded in 1Q15, mainly due to higher expenditures in the Kronau study project. Stoppage expenses totaled US$ 18 million in 2Q15, increasing US$ 4 million vs. 1Q15, mainly as a result of scheduled maintenance stoppages in 2Q15. Market outlook - Fertilizer Nutrients The fertilizer market remained unbalanced in 2Q15 with strong supply and still subdued demand. One of the main reasons for the underwhelming demand was a longer than expected rainy season in the northern hemisphere, especially in the US, which limited the period of fertilizers application. Demand was also impacted by lower agricultural commodities prices and the less favorable exchange rates of major importing countries such as Brazil and India, where purchases have been postponed. 29 After adjusting the effect of higher volumes 44

The phosphate market remained stable in 2Q15 compared to 1Q15. On the demand side, Brazilian agricultural producers continued to postpone purchases of fertilizers due to their high stock levels and the depressed outlook for agricultural commodities prices. In India, demand remained weak as buyers awaited for the strengthening of the Rupee and for the upcoming monsoon season, which usually sustain demand for fertilizers when rainfalls are not scanty. On the supply side, China continued to ship phosphate fertilizers, mostly MAP, to other markets, mainly to Latin America. The potash market faced weaker demand in its main markets. Brazil, India and Southeast Asia countries are facing headwinds due to weaker exchange rates and lower agricultural commodities prices. Supply was also lower, mostly impacted by a strike which affected Israeli producers and a mine flooding in Russia. The reduction in supply was not enough to offset the slowdown in demand. The nitrogen fertilizer market improved with prices edging up in 2Q15. Demand for urea increased with the need of fertilizers for the application season in the northern hemisphere despite the poor weather conditions in most of the USA agricultural regions. Urea supply increased on the back of higher Chinese exports due to weak seasonal Chinese domestic demand. Looking ahead, Latin America fertilizer demand may strengthen in the short term with the next crop season, improving the outlook for most agricultural commodities prices. Fertilizers COGS - 1Q15 x 2Q15 Personnel 45 11 (2) (1) 8 53 Energy (Electricity, fuel & gas) 40 5 (1) 1 5 45 Others 26 10 (3) 17 (9) 16 and amortization Depreciation 63 16 (3) (4) 9 72 45 Total40081(15)(25)41441 Total costs before depreciation33765(12)(21)32369 Maintenance117(1)-617 Outsourced services and Materials21532(5)(4)23238 Variance drivers Total Variation 1Q15 x 2Q15 US$ million 1Q15 Volume Exchange rate Others 2Q15

Fertilizer nutrients business performance Gross operating revenue by product Potash 34 33 38 Nitrogen 94 93 102 Average sale price Potash 333.33 358.53 358.49 MAP 531.90 519.91 574.19 SSP 212.60 198.63 208.41 Phosphate rock 80.59 90.16 64.64 Volume sold Potash 102 91 106 MAP 207 259 208 SSP 523 267 622 Phosphate rock 881 732 789 Nitrogen 150 152 163 Selected financial indicators - Fertilizer Net Revenues 568 478 614 Expenses¹ 2 (20) (19) R&D expenses (20) (17) (19) Depreciation and amortization (77) (67) (116) Adjusted EBIT margin (%) 15.1 4.8 (7.2) ¹ Net of depreciation and amortization 46 Adjusted EBIT8623(44) Adjusted EBITDA1639072 Pre-operating and stoppage expenses¹(18)(14)(13) Costs¹(369)(337)(491) US$ million2Q151Q152Q14 Others phosphates1048364 DCP98124129 TSP23084232 Phosphates ‘000 metric tons2Q151Q152Q14 Nitrogen625.93612.01625.77 DCP604.27571.93613.77 TSP404.60409.56424.39 Phosphates US$/ metric ton2Q151Q152Q14 Others161429 Total614513661 Phosphates470373492 US$ million2Q151Q152Q14

FINANCIALINDICATORSOFNON-CONSOLIDATEDCOMPANIES For selected financial indicators of the main non-consolidated companies, see our quarterly financial statements on www.vale.com/Investors/Quarterly results and reports/Financial statements - Vale. CONFERENCE CALL AND WEBCAST Vale will host two conference calls and webcasts on Thursday, July 30th. The first, in Portuguese (without translation), will begin at 10:00 a.m. Rio de Janeiro time. The second, in English, at 12:00 p.m. Rio de Janeiro time, 11:00 a.m. US Eastern Daylight Time, 4:00 p.m. British Standard Time, and 11:00 p.m. Hong Kong time. Dial in to conference calls/webcasts: In Portuguese: Participants from Brazil: (55 11) 3193-1001 / (55 11) 2820-4001 Participants from the US: (1 888) 700-0802 Participants from other countries: (1 786) 924-6977 Access code: VALE In English: Participants from Brazil: (55 11) 3193-1001 / (55 11) 2820-4001 Participants from USA: (1 866) 262-4553 Participants from other countries: (1 412) 317-6029 Access code: VALE Instructions for participation will be available on the website: www.vale.com/Investors. A recording will be available on Vale’s website for 90 days as of July 30th, 2015. This press release 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. 47

ANNEX1 – SIMPLIFIED FINANCIAL STATEMENTS Income statement Gross operating revenues 7,084 6,358 10,079 Net operating revenue 6,965 6,240 9,902 Selling, general and administrative expenses (159) (195) (237) Pre-operating and stoppage expenses (259) (264) (264) Gain (loss) from sale of assets (55) 193 - Financial expenses (215) (219) (983) Monetary and exchange variation 482 (3,019) 484 Results on sale or write-off of investments from associates and joint ventures 79 18 (18) Deferred tax (118) 930 (452) Loss attributable to noncontrolling interest 46 52 43 stockholders) stockholders - US$) Diluted earnings (loss) per share (attributable to the Company's stockholders - US$) 0.33 (0.61) 0.28 Equity income (loss) by business segment US$ million 2Q15 % 1Q15 % 2Q14 % Ferrous minerals 189 86.7 (142) 52.4 253 103.7 Base metals Steel (18) 14 (7.3) 6.4 (5) (125) 1.8 46.1 (7) (10) (2.9) (4.1) 48 Others3012.81(0.4)--Total218100.0(271)100.0244100.0 Coal31.4--83.3 Net earnings (attributable to the Company's1,675(3,118)1,428 Earnings (loss) per share (attributable to the Company's0.33(0.61)0.28 Net Earnings (loss) from continuing operations1,629(3,170)1,385 Income (loss) before taxes1,814(4,030)2,388 Current tax(67)(70)(551) Equity income218(271)244 Gains (losses) on derivatives, net235(1,340)368 Impairment of non-current assets--(774) Operating profit9857332,221 Financial revenues306872 Other operational expenses(203)46(165) Research and development expenses(118)(119)(160) Cost of goods sold(5,186)(5,168)(6,081) Gross profit1,7791,0723,821 Gross margin (%)25.517.238.6 Taxes(119)(118)(177) US$ million2Q151Q152Q14

Balance sheet US$ million 6/30/2015 3/31/2015 6/30/2014 Cash and cash equivalents 3,158 3,684 7,065 Derivative financial instruments 244 189 229 Related parties 392 522 690 Prepaid income taxes 1,147 1,284 1,015 Others 642 740 1,874 3,607 3,380 759 operation Loans and financing agreements receivable 220 217 237 Recoverable income taxes 422 455 421 Recoverable taxes 669 434 358 Others 736 662 1,004 Payroll and related charges 526 526 1,027 Loans and financing 3,190 3,195 1,801 Income taxes settlement program 411 388 525 Provision for income taxes 178 (171) 327 Asset retirement obligations 114 124 162 Others 315 (339) 622 for sale and discontinued operations Loans and financing 26,583 25,292 28,061 Employee postretirement obligations 2,061 2,121 2,042 Income taxes settlement program 5,071 4,876 6,994 Asset retirement obligations 3,033 2,888 2,709 Redeemable noncontrolling interest - 196 284 Others 1,097 1,056 1,141 Stockholders' equity 49,871 48,317 68,352 49 Total liabilities and stockholders' equity107,348104,550128,751 Total liabilities57,47756,23360,399 Gold stream transaction1,8061,8411,463 Participative stockholders' debentures8521,1652,182 Deferred income taxes3,0893,0993,363 Provisions for litigation1,1471,0871,501 Related parties9490177 Liabilities directly associated with non-current assets held154144-Non-current liabilities47,11846,20750,871 Derivative financial instruments2,2852,496954 Redeemable noncontrolling interest140--Employee postretirement obligations7768103 Taxes payable and royalties391471592 Related parties194267219 Derivative financial instruments837904423 Fixed assets81,82579,54697,830 Total assets107,348104,550128,751 Liabilities Current liabilities10,35910,0269,528 Suppliers and contractors3,8323,4293,727 Derivative financial instruments2534198 Deferred income taxes4,3004,3744,390 Judicial deposits1,0631,1021,632 Non-current assets held for sale and discontinued Non-current assets7,4567,3018,345 Related parties2123105 Recoverable taxes1,5541,5481,788 Inventories4,4294,0644,986 Accounts receivable2,7882,2914,170 Financial investments1061-Assets Current assets18,06717,70322,576

Cash flow Cash flows from operating activities: Adjustments to reconcile net income with cash provided by operating activities: Impairment - - 774 Items of the financial result (984) 3,818 (177) Variation of assets and liabilities Inventories (89) 189 211 Payroll and related charges (10) (567) 205 Goldstream transaction - 532 - Net cash provided by operating activities 995 531 4,595 Additions to investments (36) (10) (76) Additions to property, plant and equipment (2,111) (2,200) (2,712) Dividends and interest on capital received from joint ventures and associates 185 27 208 Others 72 114 149 Cash flows from financing activities: Additions 1,542 1,342 10 Payments to shareholders: Dividends and interest on capital attributed to noncontrolling interest (9) (3) - Net cash provided by (used in) financing activities (92) 1,038 (2,327) Cash and cash equivalents in the beginning of the period 3,684 3,974 7,182 Cash and cash equivalents, end of period 3,157 3,684 7,065 Interest on loans and financing (305) (471) (345) Income taxes - settlement program (103) (106) (128) Non-cash transactions: 50 Additions to property, plant and equipment - interest capitalization177196178 Derivatives received (paid), net(102)(657)-Income taxes(74)(244)(67) Cash paid during the period for: Effect of exchange rate changes on cash and cash equivalents6(175)(271) Increase (decrease) in cash and cash equivalents(533)(115)154 Other transactions with noncontrolling interest(40)--Dividends and interest on capital attributed to shareholders(1,000)-(2,100) Repayments(585)(301)(237) Loans and financing Net cash used in investing activities(1,436)(1,684)(2,114) Proceeds from goldstream transaction-368-Proceeds from disposal of assets and investments454107317 Acquisition of subsidiary-(90)-Cash flows from investing activities: Others168(337)278 Tax assets and liabilities, net(354)34768 Suppliers and contractors214(387)72 Accounts receivable(474)817(28) Others(68)(1,222)206 Loss on measurement or sales of non-current assets(24)(211)-Depreciation, depletion and amortization9871,035901 Net income (loss) from operations1,629(3,170)1,385 US$ million2Q151Q152Q14

ANNEX2– MARGINS VOLUMESSOLD,PRICESAND Volume sold - Minerals and metals ‘000 metric tons 2Q15 1Q15 2Q14 Iron ore fines 67,230 59,420 63,726 Pellets 12,231 11,255 9,504 Ferroalloys 23 30 30 Metallurgical coal 1,552 1,314 1,817 Copper 97 98 76 Silver ('000 oz) 405 610 368 Cobalt (metric ton) 930 1,009 649 Phosphates TSP 230 84 232 DCP 98 124 129 Others phosphates 104 83 64 Average sale prices Iron ore fines CFR/FOB realized price 50.62 46.01 84.60 Pellets 82.04 88.76 135.63 Ferroalloys 1,260.87 1,300.00 1,966.67 Metallurgical coal 88.27 98.17 107.87 Copper 4,978.97 4,757.67 6,319.62 Gold (US$/oz) 1,174.49 1,163.08 1,270.71 Cobalt (US$/lb) 10.73 9.10 13.28 Phosphates TSP 404.60 409.56 424.39 DCP 604.27 571.93 613.77 51 Phosphate rock80.5990.1664.64 SSP212.60198.63208.41 MAP531.90519.91574.19 Potash333.33358.53358.49 Silver (US$/oz)14.7913.7526.28 Platinum (US$/oz)1,109.161,155.591,429.48 Nickel13,044.7814,279.4117,731.34 Thermal coal54.5562.2668.49 Manganese ore83.12112.95127.02 ROM8.8510.9818.86 US$/ton2Q151Q152Q14 Iron ore fines CFR reference price (dmt)61.5058.20103.90 Nitrogen150152163 Phosphate rock881732789 SSP523267622 MAP207259208 Potash10291106 PGMs ('000 oz)149144117 Gold ('000 oz)1099769 Nickel676867 Thermal coal16525773 Manganese ore385363496 ROM4,1812,9153,659

Operating margin by segment (EBIT adjusted margin) Ferrous minerals 26.7 13.7 43.2 Base metals (2.6) 12.2 12.8 ¹ excluding non-recurring effects 52 Fertilizer nutrients15.14.8(7.2) Total¹14.98.730.2 Coal(102.7)(104.1)(84.0) %2Q151Q152Q14

Annex3 – reconciliationofIFRS and“NON-GAAP” (a) Adjusted EBIT¹ information Net operating revenues 6,965 6,240 9,902 SG&A (159) (195) (237) Pre-operating and stoppage expenses (259) (264) (264) ¹ Excluding non-recurring effects. (b) Adjusted EBITDA EBITDA defines profit or loss before interest, tax, depreciation and amortization. Vale uses the term adjusted EBITDA to reflect exclusion of gains and/or losses on sale of assets, non-recurring expenses and the inclusion of dividends received from non-consolidated affiliates. However our adjusted EBITDA is not the measure defined as EBITDA under IFRS, and may possibly not be comparable with indicators with the same name reported by other companies. Adjusted EBITDA should not be considered as a substitute for operational profit or as a better measure of liquidity than operational cash flow, which are calculated in accordance with IFRS. Vale provides its adjusted EBITDA to give additional information about its capacity to pay debt, carry out investments and cover working capital needs. The following table shows the reconciliation between adjusted EBITDA and operational cash flow, in accordance with its statement of changes in financial position: Reconciliation between adjusted EBITDA and operational cash flow Adjusted EBITDA 2,213 1,602 4,104 Accounts receivable (474) 817 (28) Suppliers 214 (387) 72 Gold stream transaction - 532 - Adjustment for non-recurring items and other effects (145) (242) (40) Income taxes paid - current (74) (244) (67) Interest paid for third parties (305) (471) (345) Derivatives received (paid), net (102) (657) 86 (c) Net debt Reconciliation between total debt and net debt Total debt 29,773 28,487 30,257 Net debt 26,509 24,802 23,190 53 Cash and cash equivalents3,2643,6857,067 US$ million2Q151Q152Q14 Net cash provided by (used in) operating activities9965314,595 Participative stockholders' debentures paid-(39)(52) Income taxes paid - settlement program(103)(106)(131) Cash provided from operations1,5802,0485,104 Others(129)104580 Payroll and related charges(10)(567)205 Inventories(89)189211 Working capital: US$ million2Q151Q152Q14 Other operational expenses(203)46(165) Adjusted EBIT1,0405402,995 Research and development(118)(119)(160) COGS(5,186)(5,168)(6,081) US$ million2Q151Q152Q14

(d) Total debt / LTM Adjusted EBITDA Total debt / LTM Adjusted EBITDA (x) 3.3 2.6 1.5 (e) LTM Adjusted EBITDA / LTM interest payments US$ million 2Q15 1Q15 2Q14 LTM adjusted EBITDA / LTM interest payments (x) 5.9 6.9 13.4 54 LTM operational profit / LTM interest payments (x)2.53.28.1 Total debt / LTM operational cash flow (x)5.33.12.1 US$ million2Q151Q152Q14