6 VALES FINANCIAL REPORT 1Q15 Iron ore ¹ Including third party purchases, run-of-mine and feed for pelletizing plants. ² Including third party purchases and run -of-mine ² Including third party purchases and run -of-mine. % change 000 metric tons 4Q17 3Q17 4Q16 2017 2016 4Q17/3Q17 4Q17/4Q16 2017/2016 Northern System 46,683 45,001 40,594 169,152 148,123 3.7% 15.0% 14.2% Carajás 38,955 38,776 40,214 146,968 147,743 0.5% 3.1% - S11D 7,728 6,226 380 22,184 380 24.1% n.m. n.m. Southeastern System 26,038 26,898 27,785 108,552 102,735 -3.2% -6.3% 5.7% Itabira 10,333 9,607 8,573 37,837 33,357 7.5% 20.5% 13.4% Minas Centrais 8,456 9,197 10,516 37,632 40,941 -8.0% -19.6% -8.0% Mariana 7,249 8,094 8,696 33,083 28,437 -10.4% -16.6% 16.3% Southern System 19,998 22,536 23,430 86,391 95,686 -11.2% -14.5% -9.7% Paraopeba 6,362 7,247 6,789 26,287 26,404 -12.6% -6.5% -0.4% Vargem Grande 5,033 5,447 6,716 23,271 29,151 -7.6% -25.0% -20.2% Minas Itabirito 8,604 9,877 9,925 36,834 40,131 -12.0% -12.9% -8.1% Midwestern System 643 632 577 2.417 2,304 1.7% 11.4% 4.9% Urucum - - - - 367 - - - Corumbá 643 632 577 2.417 1,937 1.7% 11.4% 24.8% IRON ORE1 PRODUCTION 93,361 95,102 92,386 366,511 348,847 -1.8% 1.0% 5.1% IRON ORE² SALES 79,958 76,794 82,507 291,329 293,436 4.1% -3.1% -0.7% IRON ORE AND PELLETS SALES 93,537 89,929 95,697 343,104 341,145 4.0% -2.3% 0.6% Production summary Vales iron ore production achieved a record of 366.5 Mt in 2017, 5.1% higher than in 2016 mainly due to the S11D ramp-up, which is advancing according to plan, and higher production in the Conceição I plant in the Southeastern System due to the conclusion of its ramp-up in 2016. The annual production of iron ore was within the original guidance of 360-380 Mt, being closer to the lower end of the range, mainly due to the reduction of production of iron ore with high silica content from the Southern and Southeastern Systems, in line with the ongoing strategy to maximize margins. Vale reaffirms its production guidance for 2018 of around 390 Mt, as previously announced on Vale Day.