Iron ore Northern and Eastern ranges 31,888 28,920 36,400 60,808 69,238 10.3% -12.4% -12.2% Southeastern System 27,630 22,213 27,450 49,843 55,616 24.4% 0.7% -10.4% Minas Centrais 9,373 7,755 9,642 17,128 19,979 20.9% -2.8% -14.3% Southern System 22,244 18,530 22,318 40,774 43,822 20.0% -0.3% -7.0% Vargem Grande 5,795 4,686 6,325 10,479 12,791 23.7% -8.4% -18.1% Midwestern System 670 609 587 1,279 1,142 10.0% 14.1% 12.0% 96,755 81,953 91,849 178,707 178,048 18.1% 5.3% 0.4% PRODUCTION1 PELLETS SALES ¹ Including third party purcha ses, run -of-m ine and feed fo r pelletizing p lants. ² Including third party purcha ses and run -of-mine. Production and sales overview Vales iron ore production achieved a quarterly record of 96.8 Mt in 2Q18, despite the severe truckers strike that affected Brazil during a 12-day period in May 2018. Vales supply chain flexibility together with the efforts of its team enabled Vale to overcome this crisis almost unscathed. A side effect of the strike was the devaluation of the BRL against the USD, which compensated minor cost impacts related to our efforts to mitigate the abovementioned adversities. Vales iron ore production in 2Q18 was 5.3% higher than in 2Q17 marked by lower silica content (4.2% on average in 2Q18 vs. 4.5% in 2Q17) and a lower alumina content (1.3% on average in 2Q18 and in 2Q17) when compared to other market participants. The lower level of contaminants was mainly a result of the S11D ramp-up and the curtailment of high silica production in the Southern and Southeastern Systems as of 3Q17. Higher volumes were 6 Corumbá6706095871,2791,14210.0%14.1%12.0% IRON ORE IRON ORE SALES273,290 71,22169,262144,510134,5772.9%5.8%7.4% IRON ORE AND86,520 84,34681,741170,865159,6392.6%5.8%7.0% Minas Itabirito9,2437,7129,41816,95718,35319.9%-1.9%-7.6% Paraopeba7,2066,1326,57513,33812,67917.5%9.6%5.2% Mariana7,7615,4198,73313,17917,74043.2%-11.1%-25.7% Itabira10,4979,0409,07619,53617,89716.1%15.7%9.2% S11D14,322 11,6805,09426,0028,23022.6%181.2%215.9% % change 000 metric tons2Q181Q182Q171H181H172Q18/1Q182Q18/2Q171H18/1H17 Northern System46,210 40,60141,49486,81177,46713.8%11.4%12.1%