SHAREHOLDERS DEBENTURES 2H15 1 www.vale.com [email protected] Tel.: (55 21) 3485-3900 Investor Relations Department Rogério T. Nogueira André Figueiredo Carla Albano Miller Fernando Mascarenhas Andrea Gutman Bruno Siqueira Claudia Rodrigues Mariano Szachtman Renata Capanema Códigos de negociação: CVRDA6, CVRDB6, CVRDC6, CVRDD6 Any additional information about the shareholders debentures, including the Prospectus for Public Trading of Shareholders Debentures, can be obtained on our website, www.vale.com/Investors/Equity and Debt/Shareholders debentures, from GDC Partners Serviços Fiduciários DTVM Ltda. as fiiduciary agente for the debentures, www.gdcdtvm.com.br, and from the CVM (Brazilian Securities and Exchange Commission). 2 Second Half of 2015 (2H15) Rio de Janeiro, March 30, 2016 – Vale will pay on March 31, 2016, R$ 128,061,750.56, equivalent to R$ 0.329581176 per shareholder debenture, related to the total remuneration for the period between July and December of 2015 (2H15). The financial settlement will occur on April 1, 2016. Shareholders Debentures Remuneration 6 month period ending December 31, 2015 (R$) Remuneration on copper concentrate 9,552,187.34 Remuneration on iron ore 118,509,561.22 Total remuneration 128,061,750.56 Remuneration per debenture 0.329581176 The total remuneration of R$ 128,061,750.56 for 2H15 refers to 1.25% of the net revenues from the sale of copper concentrate from the Sossego mine plus 1.8% of the net revenues from the sale of iron ore from the Northern System. Remuneration of Shareholders Debentures R$/shareholders debenture – 1H10/2H15 0.413 0.32 0.319 0.330 0.264 0.02 0.03 0.03 0.03 0.02 0.03 0.02 Income tax will be charged on the amount to be paid to debenture holders, as fixed-income investments, applying the rate in relation to the individual situation of the beneficiary, with the exception of those who can provide legal, unequivocal, and proof that they are exempt. Annual remuneration of shareholders debentures YEAR Per debenture (R$) Total Amount (R$) 2010 0.050 19,507,835.79 2011 0.057 22,372,791.36 2012 0.057 22,260,404.79 2013 0.341 132,642,793.33 2014 0.732 284,859,604.30 2015 0.594 230,899,093.47 3 Iron ore In 2H15, sales of iron ore fines (excluding ROM sales) totaled 149.7 Mt out of which 67.5 Mt correspond to the sales volumes in the Northern System, which is entitled to the remuneration of shareholders debentures. Sales of Vale’s iron ore, net of maritime freight costs, totaled R$ 17.6 billion in 2H15, out of which R$ 8.1 billion corresponds to the Northern System. After applying the discounts provided in the Deed of Debentures to calculate the net revenues and the percentage of 1.8%, the value of the remuneration related to net revenues of iron ore is R$ 118.5 million. Remuneration on iron ore (R$ million) 2H15 1H15 2H14 2015 2014 Net sales revenues¹ 6,583.8 5,121.6 6,309.1 11,705.4 14,721.7 % Basis for calculation 1.8% 1.8% 1.8% 1.8% 1.8% Remuneration on iron ore 118.5 92.2 113.6 210.7 265.0 ¹ Gross sales minus expenses with transport and insurance and taxes on sales, which include taxes and contributions levied on sales separately, or on billing or gross revenues from sales, as well as the financial compensation due to the Brazilian Federal Government, States and Municipalities. In Vale’s Southeastern System, iron ore sales from the mineral deposits covered by the Private Deed for Shareholder Debentures totaled 1,166 million metric tons until December 31, 2015. Should the annual sales volumes of iron ore from the Southeastern System remain the same as the volumes reached in the last semester, the level of 1.7 billion metric tons is expected to be reached by December 2022. However, this forecast may not be confirmed, resulting on either the anticipation or delay of the aforementioned dates for reaching the accumulated sales levels. 4 Copper in concentrate In 2H15, sales of copper concentrate from Sossego totaled 185 thousand metric tons (equivalent to approximately 50 thousand metric tons of contained copper), 7.04% lower than the 199 thousand metric tons of sales recorded in 1H15 (equivalent to approximately 54 thousand metric tons of contained copper). Sales of that product generated net revenues of R$ 764.2 million, a 10.0% decrease when compared to the R$ 851.9 million in 1H15, due to lower sales volumes and the decrease of the average realized price, which decreased from US$ 4,871/t in 1H15 to US$ 3,858 in 2H15. Remuneration on copper concentrate R$ million 2H15 1H15 2H14 2015 2014 Net sales revenue1 764.2 851.9 845.4 1,616.1 1,589.6 % Basis for calculation2 1.25% 1.25% 1.25% 1.25% 1.25% Remuneration for copper in concentrate 9.6 10.6 10.6 20.2 19.9 1 Gross sales minus expenses with transport and insurance and taxes on sales, which include taxes and contributions levied on sales separately, or on billing or gross revenues from sales, as well as the financial compensation due to the Brazilian Fede ral Government, States and Municipalities. 2 On April 15, 1997, Vale only had a 50% stake in Mineração Serra do Sossego S.A. (Sossego). In 2001 Vale bought the remainin g 50% of Sossego from Phelps Dodge do Brazil Mineração Ltda. Hence, the percentage basis for calculating r emuneration is 2.5%, as described in the Deed of Issue of Debentures, multiplied by the Vale’s share in the project at the time, 50%, and therefor e, equal to 1.25%. 5 Sales and leasing of mining rights In the 2H15 there was no payment, sale or leasing of mining rights contained in the Deed of Debentures. Losses of mining rights In 2H15, there was not an increase in the size of the portfolio when compared to the previous half-year, in the quantitative areas, no changes, only in the values of hectares a decrease of 4,900.84 hectares mainly due to research permits publications (after interference removal with priority areas) and approval of final research report with reduced area to the limits of the deposit. There wasn’t any area lost from the portfolio in the period. The mining rights in force on December 31st, 2015, covered by the Deed of Issue of Debentures, amount 385 processes, equivalent to 2,219,188.17 hectares and are shown on the maps and lists in the attached Inventory of Mining Rights. Projects under development On February 25th, 2016, Vale announced its 2015 financial results, which is available on our website,http://www.vale.com/EN/investors/information-market/Press- Releases/ReleaseDocuments/vale_IFRs_USD_4t15i.pdf. The following table presents the evolution of the announced projects related to future income from shareholders debentures. Description of main projects under execution Project Status Related Future Remuneration Carajás Serra Sul S11D Development of a mine and Delivery of eletrocenters of the Payment of 1.8% of net sales as from the processing plant, located in the mine and plant ongoing. beginning of sales volumes from S11D. Southern range of Carajás, Pará, Transmission line connecting Brazil. Carajás to Canaã energized Estimated nominal capacity of 90 Physical progress of 80% Mtpy. Cauê Itabiritos Adaptations of the plant for In process of ramp-up with its Payment of 1.8% of net sales from the processing of low-grade itabiritos tie-ins in final stages. The date that the cumulative sales volume, as from Minas do Meio, located in the project was delivered on time from May 1997, reaches 1.7 billion metric Southeastern System, Minas Gerais. and budget. tons in the Southeastern System.. Physical progress of 95% Estimated nominal capacity of 24 Mtpy (with net addition of 4 Mtpy capacity in 2017). 6 Attachment – Inventory of Mining Rights Block Municipality State Substance(s) Hectares Stage1 Application to Aroaba/Relógio Serra ES Gneiss 150.00 carry out research Mining Cachoeiro Cachoeiro do Itapemirim ES Limestone 685.26 concession São Félix do Xingu, Gold, silver, copper, Parauapebas, Canaã dos iron, manganese, Mining Carajás Carajás, Marabá, Tucumã, PA nickel, quartizito, 294,618.24 concession Curionópolis e Água Azul do granite, beryl, tin, Norte tantalum Mining Corumbá Ladário e Corumbá MT Iron 6,987.63 concession Guanhães, Morro do Pilar, Mining Espinhaço Sabinópolis, Senhora do Porto MG Gold, iron 23,312.99 concession e Conceição do Mato Dentro Rio Maria, Bannach, Cumarú Tungsten, chromium, Application to Gradaús do Norte, Ourilândia do Norte e PA 54,254.54 silver mine Tucumã Saprolite, sulphur, Application to Almeirim, Mazagão e Monte AP, phosphate, Parú Jari Sul 1,777,766.00 carry out Alegre PA manganese, gold, research titanium Santa Bárbara, Mariana, Nova Lima, Itabira, Brumadinho, Dolomite, iron, gold, Quadrilátero Ouro Preto, São Gonçalo do arsenic, vanadium, Mining MG 35,264.81 Ferrífero Rio Abaixo, Barão de Cocais, quartz, manganese, concession Caeté, Rio Piracicaba e Catas silver, nickel Altas Riacho dos Rio Pardo de Minas e Riacho Application to MG Iron 9,882.50 Machados dos Machados mine Phosphate and Mining Tapira Tapira MG 1,987.65 titanium concession Phosphate and Mining Salitre Serra do Salitre e Patrocínio MG 2,890.14 titanium concession Vazante, Coromandel e Research Vazante MG Zinc 11,389.01 Lagamar permit 1 Most advanced stage of all areas in the block 7 .