Tubarão Pellet Plants Vale’s Performance in 1Q18

www.vale.com vale.ri@vale.com App Vale Investors & Media iOS: https://itunes.apple.com/us/app/vale-investor-media-portugues/id1087134066?ls=1&mt=8 Android: https://play.google.com/store/apps/details?id=com.theirapp.valeport Tel.: (55 21) 3485-3900 Investor Relations André Figueiredo André Werner Carla Albano Miller Fernando Mascarenhas Samir Bassil Andrea Gutman Bruno Siqueira Clarissa Couri Renata Capanema Department Except where otherwise indicated the operational and financial information in this release is based on the consolidated figures in accordance with IFRS. Vale’s quarterly financial statements are reviewed by the company’s independent auditors. The main subsidiaries that are consolidated are the following: Companhia Portuária da Baía de Sepetiba, Mineração Corumbaense Reunida S.A., Minerações Brasileiras Reunidas S.A. PT Vale Indonesia Tbk, Salobo Metais S.A, Vale International Holdings GMBH, Vale Canada Limited, Vale International S.A., Vale Manganês S.A., Vale Malaysia Minerals Sdn. Bhd., Vale Moçambique S.A., Vale Nouvelle-Calédonie SAS, Vale Oman Pelletizing Company LLC and Vale Oman Distribution Center LLC. BM&F BOVESPA: VALE3 NYSE: VALE EURONEXT PARIS: VALE3 LATIBEX: XVALO

Vale’s performance in 1Q18 Chief Executive Officer Mr. Fabio Schvartsman commented on the 1Q18 results: “We are well positioned to generate significant shareholder value by leveraging our premium and flexible product portfolio. We are pleased that Vale has shown remarkable flexibility and performance during a very complex first quarter 2018, which was crucial to achieve the same level of EBITDA as 4Q17, despite the challenge of seasonally lower volumes”. He concluded that: “I am committed to make Vale a more predictable company. Thus, in any given price scenario, the market will be able to easily forecast Vale’s performance. This will only be possible by having full control of everything other than prices, meaning that we will have a very strict capital allocation policy, a relentless focus on performance and constant efforts to optimize our cost structure”.  The flexibility of Vale’s supply chain led to a record sales volume for a first quarter of iron ore and pellets, despite the challenge of seasonally lower production. Consequently, adjusted EBITDA totaled US$ 3.971 billion in 1Q18, remaining practically in line with 4Q17.  Vale’s operational cash flow generation in 1Q18, together with the proceeds from the sale of fertilizer assets and the Project Finance in Mozambique, supported the increase in Free Cash Flow vs. 4Q17, totaling US$ 5.015 billion, the best performance since 1Q11, which enabled a substantial net debt reduction of US$ 3.242 billion quarter-on-quarter. “1Q18 was marked by our deleveraging, with net debt achieving US$ 14.9 billion, the lowest level since 2Q11, while paying US$ 1.4 billion in shareholder remuneration. We will reach the US$ 10 billion net debt target in the short term and our sound balance sheet and strong cash generation will enable us to significantly increase shareholder remuneration”, highlighted Chief Financial Officer Mr. Luciano Siani Pires.  Consistent with Vale’s strategy to adopt a rigorous capital allocation process based on returns, Capital Expenditures reached US$ 890 million, the lowest level for a first quarter since 1Q05, following the trend of remaining sub US$ 1 billion per quarter and reinforcing Vale’s Capex guidance of US$ 3.8 billion in 2018.  The Ferrous Minerals business had an outstanding result in 1Q18, with an adjusted EBITDA of US$ 3.408 billion in 1Q18, as a result of the contributions of higher quality and average premium, which improved Vale’s realized CFR/FOB wmt price, reflecting: (i) the flexibility of the 1 Excluding Manganese and ferroalloys. 3

operations; (ii) the active supply chain management; and (iii) the increase of premium product share in total sales.  Vale’s premium and flexible portfolio of products is in a leading position to profit from the structural “flight to quality” trend. In 1Q18, Vale reached another milestone towards improving Fe content, price realization and pellets contribution that resulted in a lower iron ore fines and pellets EBITDA breakeven2,3 of US$ 30.5/dmt in 1Q18, a reduction of US$ 1.7/t vs. 4Q17, and in a higher adjusted EBITDA per ton for Ferrous Minerals3 that totaled US$ 39.8/t in 1Q18, an increase of US$ 3.7/t vs. 4Q17. “Vale’s Ferrous division is following its well defined value over volume strategy and is progressively optimizing its price realization and margins based on its increasing proportion of premium products as well as through an active management of its global supply chain”, commented Mr. Peter Poppinga, Executive Officer for Ferrous Minerals and Coal.  Vale’s decision to restart Tubarão II pellet plant and the negotiation of better terms for pellet premiums averaging US$ 60/wmt for the year, an increase of over US$ 10/wmt vs. 2017, are reflected in its results with adjusted EBITDA for pellets amounting to US$ 763 million in 1Q18, a 13% increase vs. 4Q17, and representing 19% of Vale’s total adjusted EBITDA.  Vale is a premium nickel player with a unique product mix and market position and was able to benefit from the higher nickel prices in 1Q18, with an adjusted EBITDA for Base Metals of US$ 644 million. “We are focused on further improving the competitiveness of the Base Metals business optimizing margins and maintaining the optionality of nickel in the scenario of higher demand for Class I nickel. In 1Q18 we partially compensated the unplanned production shortcomings in the Coleman mine in Sudbury with the marketing focus on maximizing price realization over our premium product mix with higher margins”, commented Mr. Eduardo Bartolomeo, Executive Officer for Base Metals.  VNC registered its best result ever for the second consecutive quarter, with an adjusted EBITDA of US$ 28 million in 1Q18, reflecting higher nickel and cobalt prices.  The results of Vale’s Coal business continued to improve in 1Q18, driven by higher realized prices, showing Vale’s effort to increase the share of contracts linked to the index reference price, which resulted in an increase of 41% in adjusted EBITDA for the Coal business, amounting to US$ 104 million in 1Q18, despite lower volumes. Vale announced a new dividend policy on March 29th, 2018, which was designed to be: (i) both aggressive and sustainable over a long period of time, (ii) applicable in any price scenario, and (iii) predictable as regards payment dates and the amount to be distributed. The policy will be effective as of the results of the first half 2018. Therefore, according to the new policy, the 1Q18 results translate into a minimum shareholder remuneration of US$ 1.033 billion, which will be further increased by applying the threshold of 30% over the adjusted EBITDA less sustaining investments to 2Q18 results, for payment in September 2018. 2 Measured by unit cash costs and expenses on a landed-in-China basis (and adjusted for quality, pellets margin differential and moisture, excluding ROM). 3 Considers the new allocation criteria for general and administrative expenses as described in the box “Managerial Allocation Changes” of this Earnings Release 4

Selected financial indicators Net operating revenues 8,603 9,167 8,515 Adjusted EBIT 3,098 3,133 34.2 4,109 3,400 39.9 4,308 Adjusted EBIT margin (%) 36.0 Adjusted EBITDA 3,971 Iron ore - Platts' 62% IODEX 74.3 65.6 771 2,051 85.6 2,490 2,230 Net income (loss) 1,590 Underlying earnings 1,787 Net debt 14,901 18,143 22,777 5 Capital expenditures 890 977 1,113 Underlying earnings per share on a fully diluted basis (US$ / share)0.37 0.36 0.40 Adjusted EBITDA margin (%)46.2 44.8 50.6 Total costs and expenses5,620 6,270 5,115 US$ million1Q184Q171Q17

Market overview IRON ORE Iron ore Platts IODEX 62% averaged US$ 74.3/dmt in 1Q18, an increase of 13% from 4Q17 as a result of the continued healthy steel production worldwide. The announcement of steel production by the National Bureau of Statistics in China for March of 74Mt is the highest level since August 2017, despite winter production restrictions in Northern China. Looking at 1Q18 as a whole, Chinese steel production posted a strong increase of 5.4% YoY. China’s steel sector good performance in 1Q18 continued to be supported by strong property construction and machinery. Besides, the extension of part of the capacity cuts in the 26+2 cities to November 2018 provide a support not only for steel prices, but also for higher iron ore grade, such as pellets and IOCJ, which are expected to be in good demand and commanding a premium as production efficiency and stricter environmental policies are in emphasis in China, reinforcing the structural change in premiums and discounts dynamics going forward. The Short Term Range Outlook, recently published by World Steel Association, expects steel demand in the developed world to increase by 1.8% in 2018, demand in emerging and developing economies (excluding China) is expected to increase by 4.9% and a flat demand growth scenario is forecast for China. COAL Seaborne Coking coal market started 2018 with Australian exports impacted by severe weather, logistics constraints and lingering effects of a January derailment, which led prices to US$ 263.0/t in the beginning of the year. As supply recovered in Australia and production grew in China, prices corrected reaching US$ 197.5/t in March. In thermal coal, Newcastle Fob Index peaked at US$ 110.8/t in February, from US$ 104.9/t in early January, and has since eased back to US$ 90.7/t on the back of soft downstream demand contributing to a build-up in inventories in China, in line with the end of the winter season. Richards Bay Fob Index range traded between US$ 88.0/t to US$ 96.0/t, supported by healthy demand in India and stronger prices in Asia. NICKEL LME nickel prices continued improving during 1Q18 to an average of US$ 13,276/t, from US$ 11,584/t in 4Q17, representing the strongest pricing quarter since 1Q15. Inventories declined indicating that the market remained in deficit in 1Q18.Total exchange inventories (LME and SHFE) continued to decline closing at 368kt, by the end of 1Q18, down 44kt since the start of 2018. Demand for nickel in non-stainless steel applications continues to be positive, particularly in the automotive, battery and aerospace sectors, while the oil and gas sector continue to recover. 6

Global stainless-steel production in 1Q18 remained practically in line with 1Q17. Supply increased approximately 3% in 1Q18 relative to 1Q17. This growth was in Class II material (e.g. nickel pig iron NPI) (+5% YoY), while Class I material was relatively unchanged YoY. The nickel market should remain volatile in the short-term and prices could go down from the recent high levels that were seen in April. Near-term outlook for nickel remains balanced, despite Indonesian ore exports continue to increase. Demand for batteries in electric vehicles is likely to grow at an accelerated pace relative to past years as electric vehicles penetrate the automotive market, although this still represents a relatively small market for nickel. Overall, we expect the market to remain in deficit in 2018, albeit smaller than 2017, given supply growth. Capital investment for new projects and replacement volumes have been deferred within the context of challenging economic conditions. The long-term outlook for nickel depends on the demand evolution for electric vehicles. Nickel in electric vehicle batteries can become an increasingly important source of demand growth particularly as battery chemistry favors higher nickel content due to lower cost and higher energy density. COPPER LME copper price averaged US$ 6,961/t in 1Q18, slightly higher than the US$ 6,808/t in 4Q17, being the strongest pricing quarter since 4Q14. Copper inventories on the LME and COMEX both increased in 1Q18 vs. 4Q17 by 182 kt and 23 kt, respectively, while SHFE decreased 5.5 kt. Overall, inventories across all three exchanges increased by 200 kt over the same period. Global demand increased approximately 2% in 1Q18 vs. 1Q17. In China specifically demand increased 2.2% in the same period and was driven primarily by higher infrastructure investment. On the supply side, global refined copper production increased nearly 2% over 1Q18 vs. 1Q17. A number of labor negotiations were concluded this quarter and this has reduced the potential for supply disruption for the year, given that these settlements form precedent for the upcoming negotiations. Near-term outlook for copper remains balanced, with growing demand and with supply expected to keep pace unlike in 2017, which saw supply growth lag demand given the disruptions. Over the long-term, copper demand is expected to grow, partly driven by the increasing investment in renewable energy as well as infrastructure investments, while future supply growth is challenged given declining ore grades and the need for greenfield investment. COBALT Cobalt price averaged US$82,238/t in 1Q18 an increase of 27% when compared to 4Q17. The reason for this continuous run-up in price is growing demand from the electric vehicle battery market together with anticipated future demand growth. Cobalt is one of the key metals, besides nickel, to produce the highest energy density batteries for use in electric vehicles. The cobalt market needs to grow significantly in order to feed into battery 7

demand – but unlike other metals, cobalt is predominantly a by-product of Nickel and Copper mine. This means that it does not have the flexibility to respond to demand pressures as readily as other commodities. Moreover, much of the cobalt comes and is found in the DRC. Given views on electric vehicle demand, we remain optimistic for cobalt prices in the near term while substitution threat from nickel has the potential to dampen expectations going into mid to long term. 8

Operating revenues Net operating revenues in 1Q18 were US$ 8.603 billion, US$ 88 million higher than in 1Q17. The increase in sales revenues was mainly due to higher sales volumes for Ferrous Minerals (US$ 682 million) and higher sales prices for Base Metals (US$ 258 million), being partially offset by lower Ferrous Minerals sales prices (US$ 652 million) and lower sales volumes for Base Metals (US$ 221 million). The flexibility of Vale’s supply chain led to record sales volumes for a first quarter of iron ore4 and pellets4 totaling 83.9 Mt in 1Q18, 7.7 Mt higher than in 1Q17. Net operating revenue by destination North America 535 6.2 638 7.0 596 7.0 Canada 157 1.8 269 2.9 303 3.6 South America 1,016 11.8 1,307 14.3 942 11.1 Others 175 2.0 158 1.7 134 1.6 China 3,594 41.8 3,824 41.7 3,818 44.8 South Korea 254 3.0 449 4.9 224 2.6 Europe 1,468 17.1 1,260 13.7 1,500 17.6 Italy 102 1.2 162 1.8 123 1.4 Middle East 369 4.3 301 3.3 293 3.4 4 Excludes ROM 9 Rest of the World2713.21882.11882.2 Total8,603100.09,167100.08,515100.0 Others97011.37247.91,00111.8 Germany3964.63744.13774.4 Others4915.75676.24435.2 Japan6057.06336.95116.0 Asia4,94457.55,47359.74,99658.7 Brazil8419.81,14912.58089.5 Mexico440.5180.290.1 USA3343.93513.82843.3 US$ million1Q18%4Q17%1Q17%

Net operating revenues by destination in 1Q18 Net operating revenue by business area Ferrous Minerals 6,527 75.9 6,698 73.1 6,497 76.3 ROM 9 0.1 8 0.1 15 0.2 Manganese ore 83 1.0 88 1.0 43 0.5 Others 106 1.2 110 1.2 111 1.3 Metallurgical coal 293 3.4 306 3.3 254 3.0 Base Metals 1,634 19.0 2,000 21.8 1,597 18.8 Copper 511 5.9 744 8.1 568 6.7 Gold as by-product 148 1.7 157 1.7 130 1.5 Cobalt 90 1.0 79 0.9 41 0.5 Others 62 0.7 67 0.7 97 1.1 10 Total8,603100.09,167100.08,515100.0 Others130.280.160.1 Silver as by-product80.190.170.1 PGMs740.9620.7851.0 Nickel7909.294110.37608.9 Thermal coal871.0961.0700.8 Coal3804.44024.43243.8 Ferroalloys410.5470.5430.5 Pellets1,58518.41,42215.51,45917.1 Iron ore fines4,70354.75,02354.84,82656.7 US$ million1Q18%4Q17%1Q17%

Costs and expenses COST OF GOODS SOLD (COGS) COGS5, net of depreciation, totaled US$ 4.396 billion in 1Q18, remaining practically in line with 4Q17, after excluding the effects from: (i) seasonally lower sales volumes impact on COGS (US$ 607 million); (ii) higher commodities prices, resulting in higher pelletizing plants’ leasing costs (US$ 36 million) and higher royalties (US$ 36 million); (iii) other exogenous factors6, such as the negative impact of exchange rate variation on COGS (US$ 8 million) and higher oil costs (US$ 61 million). Further details regarding cost performance are provided in the “Performance of the Business Segments” section. COGS by business segment US$ million 1Q18 % 4Q17 % 1Q17 % 65.9 3,664 63.3 2,826 59.7 Ferrous Minerals 3,445 Base Metals 1,303 24.9 1,558 26.9 1,455 30.7 7.7 490 8.5 351 7.4 Coal 400 Other products 76 1.5 79 1.4 102 2.2 - 918 - 846 - Depreciation 828 5 COGS currency exposure in 1Q18 was as follows: 52% BRL, 34% USD, 12% CAD and 2% EUR. 6 Higher bunker oil prices were offset by lower spot freight rates in 1Q18. 11 COGS, ex-depreciation4,396-4,873-3,888-Total COGS5,224100.05,791100.04,734100.0

EXPENSES Total expenses, excluding depreciation, amounted to US$ 351 million in 1Q18, US$ 70 million lower than in 4Q17. The main reasons for this decrease were: (i) lower pre-operating and stoppage expenses (US$ 36 million), mainly due to lower pre-operating expenses with S11D and lower stoppage expenses at the Stobie and Birchtree mines in Canada; (ii) lower R&D expenses (US$ 35 million) and (iii) lower SG&A expenses (US$ 20 million). SG&A, excluding depreciation, totaled US$ 105 million in 1Q18, US$ 20 million lower than in 4Q17, mainly due to lower services expenses (US$ 10 million) and lower selling expenses (US$ 7 million), while personnel expenses remained in line with the previous quarter. R&D expenses totaled US$ 69 million in 1Q18, US$ 35 million, or 33.7%, lower than in 4Q17, following the usual seasonality of higher disbursements in the last quarter of the year. Pre-operating and stoppage expenses, excluding depreciation, totaled US$ 52 million in 1Q18, US$ 36 million lower than in 4Q17, mainly due to lower S11D pre-operating expenses, as the operation reached about 50% of its nominal capacity (US$ 24 million), and lower stoppage expenses with the Stobie and Birchtree mines (US$ 7 million), which were placed in care and maintenance in 4Q17. Other operating expenses were US$ 125 million in 1Q18, US$ 21 million higher than in 4Q17, mainly as a result of non-recurring expenses in 1Q18. Expenses US$ million 1Q18 4Q17 1Q17 Administrative 112 127 111 Services 19 29 14 Others 12 15 14 R&D 69 104 65 Pre-operating and stoppage expenses 78 125 115 S11D 24 43 34 Depreciation 26 37 31 Depreciation 45 58 62 Expenses ex-depreciation 351 421 319 12 Other operating expenses12510477 Total expenses396479381 Others284513 Long Harbour--37 Selling121913 Depreciation192129 Personnel626254 SG&A ex-depreciation10512595 SG&A124146124

Costs and expenses 5,224 Costs 5,791 4,734 873 Depreciation 976 908 13 Costs and expenses ex-depreciation4,7475,2944,207 Expenses396479381 Total costs and expenses5,6206,2705,115 US$ million1Q184Q171Q17

Adjusted earnings before interest, taxes, depreciation and amortization Adjusted EBITDA was US$ 3.971 billion in 1Q18, remaining practically in line with 4Q17 despite seasonally lower volumes, as a result of higher realized prices across the businesses. Quarterly adjusted EBITDA for Ferrous Minerals was US$ 3.408 billion in 1Q18, benefiting from contributions of higher quality and average premium, which boosted Vale’s realized CFR/FOB wmt price, reflecting: (i) the flexibility of the operations; (ii) the active supply chain management; and (iii) the increase of premium products share in total sales. Adjusted EBITDA of the Base Metals business segment was US$ 644 million in 1Q18, mainly as a result of higher nickel realized prices. Realized prices reflected Vale’s positioning on nickel products with higher margins and the optimization of the production lines, leading to higher premiums. That, along with the overall increase of the LME nickel benchmark price, resulted in an increase in price realization compared to 4Q17. Adjusted EBITDA of the Coal business segment was US$ 104 million in 1Q18, US$ 30 million higher than in 4Q17, mainly due to the higher average realized price. Other business segments Adjusted EBITDA was negative US$ 185 million, improving US$ 22 million vs. 4Q17, mainly due to lower services and R&D expenses in 1Q18. 14

Adjusted EBITDA US$ million 1Q18 4Q17 1Q17 Net operating revenues 8,603 9,167 8,515 COGS (5,224) (5,791) (4,734) SG&A (124) (146) (124) Pre-operating and stoppage expenses (78) (125) (115) Other operational expenses (80) (104) (77) Dividends and interests on associates and JVs 70 236 - Depreciation, amortization & depletion 873 976 908 Iron ore - Platts' 62% IODEX 74.3 65.6 85.6 Adjusted EBITDA by business area US$ million 1Q18 4Q17 1Q17 Ferrous Minerals 3,408 3,427 4,048 Base Metals 644 815 442 Iron ore - Platts' 62% IODEX 74.3 65.6 85.6 15 Others(185)(207)(251) Total3,9714,1094,308 Coal1047469 Adjusted EBITDA3,9714,1094,308 Adjusted EBIT3,0983,1333,400 Research and development(69)(104)(65)

Net income Net income was US$ 1.590 billion in 1Q18 vs. US$ 771 million in 4Q17, increasing by US$ 819 million, mainly as a result of the following impacts: (i) lower non-cash losses on monetary and exchange rate variation (US$ 660 million) and (ii) lower impairments and other results on non-current assets (US$ 399 million), which improved to negative US$ 18 million in 1Q18 from negative US$ 417 million in 4Q17. Underlying earnings were US$ 1.787 billion in 1Q18, in line with 4Q17. Underlying earnings US$ million 1Q18 4Q17 1Q17 Underlying earnings 1,787 2,051 2,230 Impairment and other results on non-current assets (18) (417) 512 Other financial results (14) (59) (61) Income tax over excluded items 59 409 (177) ¹ Includes foreign exchange variation, shareholders debentures and currency and interest rate swaps. Net financial results showed a loss of US$ 624 million in 1Q18 vs. a loss of US$ 1.287 billion in 4Q17. The improvement of US$ 663 million was mainly a result of lower non-cash losses on exchange rate and monetary variations of US$ 185 million in 1Q18 vs. US$ 845 million in 4Q17, and gains on currency derivatives and interest rate swaps of US$ 105 million in 1Q18 vs. losses of US$ 133 million in 4Q17, which were partly offset by the higher negative impact of the mark-to-market of shareholders debentures (US$ 129 million). The BRL depreciated 0.4% against the USD from BRL 3.31/ USD as of December 31st, 2017 to BRL 3.32/ USD as of March 31st, 2017. Gross interest has steadily decreased as a result of the gross debt reduction, amounting to US$ 336 million in 1Q18 vs. US$ 452 million in 1Q17 and US$ 378 million in 4Q17. 16 Net Income (loss)1,5907712,490 Results from discontinued operations(82)(487)(83) Unrealized financial results¹(142)(726)69 Items excluded from basic earnings

Financial results US$ million 1Q18 4Q17 1Q17 Financial expenses (647) (562) (1,115) Capitalization of interest 60 73 103 Tax and labor contingencies 9 (10) (18) Shareholder debentures (183) (54) (412) Financial expenses (REFIS) (58) (69) (126) Financial income 118 149 64 Derivatives¹ 90 (29) 209 Others² (bunker oil, commodities, etc) (15) 104 (38) Foreign Exchange (64) (540) 236 Monetary variation (121) (305) (7) ¹The net derivatives gain of US$ 90 million in 1Q18 is comprised of settlement losses of US$ 25 million and mark-to-market gain of US$ 115 million. ² Other derivatives include bunker oil derivatives which, for 1Q18 were 0 (zero). Equity income from affiliated companies Equity income from affiliated companies showed a gain of US$ 85 million in 1Q18 vs. a loss of US$ 66 million in 4Q17. The main contributors to equity income were the leased pelletizing companies in Tubarão (US$ 77 million), CSI (US$ 21 million), Aliança Geração de Energia (US$ 19 million), MRS (US$ 12 million), and Aliança Norte Energia (US$ 7 million), which were partly offset by losses from CSP (US$ 42 million), partly due to the non-cash impact of the BRL depreciation on its USD denominated debt, and VLI (US$ 13 million), due to seasonally lower volumes. 17 Financial result, net(624)(1,287)(613) Currency and interest rate swaps105(133)247 Others(139)(124)(210) Gross interest(336)(378)(452)

Shareholders’ remuneration Vale paid in March 2018 R$ 4.7 billion (US$ 1.4 billion) of shareholder remuneration in the form of interest on capital. Vale’s Board of Directors approved the distribution of R$ 2.2 billion in December 2017 and R$ 2.5 billion in February 2018, which is equivalent to the minimum established by Brazilian corporate law. The decision to pay the minimum requirement is consistent with Vale’s primary focus to reduce its net debt to US$ 10 billion7 Following Vale’s deleveraging path, on March 29th, 2018 Vale announced a new shareholder remuneration policy that was designed to be both aggressive and sustainable over a long period of time, to be applied in any price scenario, allowing further predictability regarding the payment dates and the amount to be distributed. The new policy will be effective as of the results of the first half 2018. Therefore, according to the new policy, the 1Q18 result translate into a minimum shareholder remuneration of US$ 1.033 billion, which will be further increased by applying the threshold of 30% over adjusted payment in September 2018. EBITDA less sustaining investments to 2Q18 results, for 7 Net of dividend payment. 18

Investments8 Capital expenditures have reached the lowest level for a first quarter since 2005, totaling US$ 890 million in 1Q18 with US$ 361 million in project execution and US$ 529 million in sustaining capital. Capital expenditures decreased US$ 87 million when compared to the US$ 977 million spent in 4Q17, mainly due to a lower sustaining capex following the usual seasonality of disbursements. The guidance for investments remains as announced at the last Vale Day at US$ 3.8 billion for 2018, with CLN S11D as the main capital project being developed. Project Execution and Sustaining by business area Ferrous Minerals 655 680 830 Base Metals 197 259 208 Others 1 - 5 Project execution Investment in project execution totaled US$ 361 million in 1Q18, in line with 4Q17. Ferrous Minerals accounted for about 92% of the total investment in project execution in 1Q18. About 98% of the US$ 333 million invested in Ferrous Minerals in 1Q18 relates to the S11D project and the expansion of its associated infrastructure (US$ 325 million). Project execution by business area Ferrous Minerals 333 315 528 Base Metals 15 23 10 Power generation 4 5 13 Others 1 0 5 S11D (including mine, plant and associated logistics – CLN S11D) achieved combined physical progress of 95% in 1Q18 with the mine site concluded and 91% progress at the logistic infrastructure sites. 8 Does not include investments in Fertilizers 19 Total361347587 Coal9532 US$ million1Q184Q171Q17 Total8909771,113 Power generation4614 Coal333356 US$ million1Q184Q171Q17

The duplication of the railway reached 85% physical progress with 542 Km duplicated and together with the successful S11D mine and plant ramp-up enabled 1Q18 production volume to reach more than half of the total 2017 production. S11D Logistics – Duplication of the railway Progress indicator9 progress a Net additional capacity. b Original capex budget of US$ 11.582 billion . Sustaining capex Sustaining capital expenditure totaled US$ 529 million in 1Q18, decreasing 16.2% when compared to 4Q17, mainly due to the usual seasonality in 4Q17. The Ferrous Minerals and Base Metals business segments accounted for 61% and 34%, respectively, of total sustaining capex in 1Q18. 9 Pre-operating expenses were not included in the estimated capex for the year, although included in the total estimated capex column, in line with Vale’s Board of Directors approvals. Estimated capex for the year is only reviewed once a year. 20 ProjectCapacityEstimated (Mtpy)start-up Executed capexEstimated capex (US$ million)(US$ million) Physical 2018Total2018 Total Ferrous Minerals projects CLN S11D230 (80)a1H14 to 2H192776,852647 7,850b91%

Vale’s strategy to adopt a rigorous capital allocation process based on returns was translated into: (i) lower nickel sustaining investments, as non-performing assets in nickel were placed in care and maintenance, and (ii) higher investment in Ferrous Minerals due to the restart of the pelletizing plants, leveraging on the higher pellet sustaining investments by business. premium, as shown in the evolution of Evolution of sustaining capital by business Sustaining capex in the Base Metals business segment was mainly for: (i) operational improvements (US$ 107 million); (ii) enhancement in the current standards of health and safety and environmental protection (US$ 60 million); and (iii) maintenance improvements and expansion of tailings dams (US$ 9 million). Sustaining capital for the Ferrous Minerals business segment included, among others: (i) enhancements and replacements in operations (US$ 226 million); (ii) improvement in the current standards of health and safety, social and environmental protection (US$ 43 million); and (iii) maintenance, improvement and expansion of tailings dams (US$ 38 million). Maintenance of railways and ports in Brazil and Malaysia accounted for US$ 77 million. In 1Q18, Vale’s Executive Board approved a multi-year program on digital transformation and automation of its iron ore and logistics operations. In 2018, the first phase of the program will focus on: (i) asset performance, with autonomous trucks; (ii) maintenance, with predictive analysis as well as automation in inspection and maintenance; (iii) workforce effectiveness, with planning and process optimizations; and (iv) supply chain, with real-time performance monitoring and optimization. These investments will be charged to sustaining capex and will be disbursed from 2018 until 2023, totaling US$ 250 million. The objective of the program is circa US$ 0,50/t cost reductions. 21

The projects for restarting pellet plants are on schedule, with the start-ups of the Tubarão I and São Luis pellet plants envisioned for 2Q18 and 3Q18, respectively. The Tubarão II pellet started up in January 2018 ahead of time and on budget. The three projects total US$ 150 million, and involve mainly revitalization work at the investments. pellet plants and will be charged to sustaining Sustaining capex by type - 1Q18 Minerals Operations 226 18 107 351 Health and Safety 37 1 11 49 Administrative & Others 16 1 5 22 Sustaining capex by business area Ferrous Minerals 322 365 302 Base Metals 181 236 198 Power generation 0 1 1 Others 0 0 - Corporate social responsibility Investments in corporate social responsibility totaled US$ 114 million in 1Q18, of which US$ 79 million dedicated to environmental protection and conservation and US$ 35 million to social projects. Portfolio Management Vale concluded and received the proceeds for the Project Finance for the Nacala Logistics Corridor (NLC) in March. The amount totaled US$ 2.6 billion as a takeout of part of the shareholder loans conceded for the construction of NLC, net of certain related premiums and fees paid or to be paid by NLC. Vale concluded the sale of its Fertilizer business, excluding the assets in Cubatão, to The Mosaic Company in January 2018. The sale of Vale Cubatão to Yara, for a total consideration of US$ 255 million, is still subject to approval by Brazilian antitrust authorities. 22 Total529631526 Coal242825 US$ million1Q184Q171Q17 Total32324181529 Social investments and environmental protection644959 Waste dumps and tailing dams38-947 US$ millionFerrousCoalBase MetalsTOTAL

Free cash flow Free cash flow was US$ 5.015 billion in 1Q18. Cash generated from operations was US$ 2.943 billion in 1Q18, US$ 1.028 billion lower than the adjusted EBITDA, mainly due to disbursements in 1Q18 related to profit sharing and suppliers, already provisioned during 2017, thus not affecting EBITDA in 1Q18. Free Cash Flow 1Q18 US$ million 23

Debt indicators Vale delivered a substantial reduction in net debt down to US$ 14.901 billion as of March 31st, 2018, equivalent to a net debt to LTM adjusted EBITDA ratio of 1.0x. The debt decrease was supported by strong cash generation and cash inflows of US$ 3.7 billion from the conclusion of the Fertilizers deal with Mosaic and from the Project Finance at Nacala Corridor in 1Q18, reinforcing Vale’s goal to reach the US$ 10 billion net debt mark in the short term. The significant debt reduction was achieved despite payment of shareholders’ remuneration of US$ 1.4 billion on March 15th, 2018. Gross debt amounted to US$ 20.276 billion as of March 31st, 2018, decreasing by US$ 2.213 billion from December 31st, 2017 and by US$ 9.294 billion from March 31st, 2017. The decrease in gross debt against the end of last quarter was mainly due to net debt repayments10 of US$ 2.546 billion in 1Q18. In March, 2018, Vale Overseas Limited (Vale Overseas) exercised the right to redeem all the outstanding 4.625% guaranteed notes due 2020 and commenced an offer to purchase its 5.875% guaranteed notes due 2021 and its outstanding 4.375% guaranteed notes due 2022. The offers to purchase the 2021 and 2022 notes, totaling a principal amount of US$ 1.750 billion, were concluded in 1Q18 and the redemption of the 2020 notes, with a principal amount of US$ 499 million, was concluded on April 17th, 2018. Considering the redemption of the 2020 notes, Vale’s gross debt is equivalent to a pro forma value of US$ 19.8 billion. 10 Debt repayments less debt additions. Include interest payments. 24

Debt position Gross debt after currency and interest rate swaps was 91% denominated in USD, with 28% based on floating and 72% based on fixed interest rates as of March 31st, 2018. Average debt maturity increased to 9.3 years on March 31st, 2018, against 8.9 years on December 31st, 2017 and 7.9 years on March 31st, 2017. Average cost of debt, after the abovementioned currency and interest rate swaps, decreased to 4.97% per annum on March 31st, 2018, against 5.06% per annum on December 31st, 2017. As the company prepaid debt with shorter maturities, the average maturity increased, and in theory the average cost should 25

have increased. However, the average cost was actually reduced due to refinancing of bank loans at lower interest rates. Interest coverage, measured by the ratio of LTM11 adjusted EBITDA to LTM gross interest, was 9.5x in 1Q18, higher than the 9.0x in 4Q17 and 7.9x in 1Q17. Leverage, measured by gross debt to LTM adjusted EBITDA, decreased to 1.4x as of March 31st, 2018 from 1.5x as of December 31st, 2017 and from 2.1x as of March 31st, 2017. Measuring by net debt to LTM adjusted EBITDA, leverage decreased to 1.0x as of March 31st, 2018 from 1.2x as of December 31st, 2017 and from 1.6x as of March 31st, 2017. Debt indicators Total debt 20,276 22,489 29,570 Total debt / adjusted LTM EBITDA (x) 1.4 1.5 2.1 Adjusted LTM EBITDA / LTM gross interest (x) 9.5 9.0 7.9 11 Last twelve months 26 Net debt / adjusted LTM EBITDA (x)1.01.21.6 Net debt14,90118,14322,777 US$ million1Q184Q171Q17

27 Changes in managerial allocation Vale conducted a benchmark study with its peers to determine the practices for allocating corporate expenses and classifying special events. As a result, Vale decided to promote changes in its reporting so investors would be able to better compare Vale’s adjusted EBITDA to its peers. According to market practices, general & administrative (G&A) expenses are not attributable to any operational segment and do not impact performance of the business areas. Special events are usually non-recurring and non-operational events and should not impact the adjusted EBITDA. Vale’s changes are supported by market practices and are also intended to exclude the volatility of non-recurring events on its results, in order to reflect the proper operational result of each business. Details on the proposed changes are as follows: (i) G&A expenses From 1Q18 onwards, Vale allocates general and administrative expenses in "Others", because these expenses are not directly related to the performance of each business segment. The new allocation criterion is in line with the one adopted by other companies in the industry, allowing a better comparison of Vale’s business segments performance with its peers. The prior periods were restated to reflect this allocation change and the tables considering the former and new allocation criteria are presented in Annex 4 of this performance report. (ii) Special events From 1Q18 onwards, Vale classifies non-recurring and non-operational effects on the performance of the company as special events, not impacting its adjusted EBITDA. In 1Q18, Vale identified as a special event the provision for litigation of US$ 45 million, as Vale’s assessment of the likelihood of loss for various litigations have been updated. In the opposite direction, in 1Q17, Vale concluded the equity transaction with Mitsui to sell 15% of its stake in Vale Mozambique and 50% of its stake in the Nacala Logistics Corridor and recognized a gain in the income statement of US$ 515 million. This transaction was non-recurring and, therefore, classified as a special event, not affecting Vale’s adjusted EBITDA. Additionally, there were slight adjustments in the calculation of the iron ore fines and pellets EBITDA break-even. Starting in 1Q18, sustaining investments for pellets are added to the iron ore fines sustaining investments component, instead in the pellet adjustment component. As a result, the iron ore fines and pellets EBITDA break-even changed but the iron ore fines and pellets cash break-even landed in China, including the sustaining investments, remained the same. The prior periods were restated to reflect this allocation change.

Performance of the business segments Segment information — 1Q18, as per footnote of financial statements others1,2 Revenues & stoppage¹ associates EBITDA Iron ore fines 4,703 (2,078) (13) (20) (35) - 2,557 Pellets 1,585 (813) (1) (5) (3) - 763 Mn & Alloys 124 (74) (1) - - - 49 Copper4 502 (248) (1) (4) - - 249 ¹ Excluding depreciation and amortization 2 General and administrative expenses are allocated in “Others” 3 Including copper and by-products from Vale’s nickel operations 4 Including by-products from our copper operations 28 Others62(70)(153)(28)(6)10(185) Total8,603(4,396)(185)(69)(52)703,971 Coal380(335)2(3)-60104 Base Metals1,634(953)(16)(13)(8)-644 Nickel31,132(705)(15)(9)(8)-395 Others ferrous106(73)(3)---30 ROM9-----9 Expenses Dividends and US$ millionNetCost¹SG&A andR&D¹Pre operatinginterests onAdjusted and JVs Ferrous Minerals6,527(3,038)(18)(25)(38)-3,408

Ferrous Minerals Adjusted EBITDA of the Ferrous Minerals business segment was US$ 3.408 billion in 1Q18, due to contributions of higher quality and better average premium, which boosted Vale’s realized CFR/FOB wmt price, reflecting: (i) the flexibility of the operations; (ii) the active supply chain management; and (iii) the increase of premium products share in total sales. Additionally, Vale’s realized CFR/FOB wmt price was also supported by strong market premiums. Adjusted EBITDA remained practically in line with 4Q17, despite the impact of seasonally lower sales volumes (US$ 341 million), mainly as a result of higher premiums (US$ 85 million of iron ore fines and US$ 138 million of pellets) and of the net effect of the 13% increase of the Platts IODEX in revenues and the related pro-cyclical effect in costs (US$ 152 million). Some of Vale’s costs vary with iron ore prices and increased by US$ 86 million in line with a stronger price environment, such as: (i) pelletizing plant leasing costs, which are adjusted based on pellet premiums; (ii) iron ore royalties; and (iii) third party purchased products. However, Vale was able to capture the benefits of the higher iron ore prices, with a much greater impact on revenues, which increased by US$ 238 million, resulting in the abovementioned net effect of US$ 152 million. EBITDA variation 4Q17 vs. 1Q18 – Ferrous Minerals business segment 29

Ferrous Minerals EBITDA margin12 Adjusted EBITDA per ton for Ferrous Minerals, excluding Manganese and Ferroalloys, was US$ 39.8/t in 1Q18, 10.3% higher than the US$ 36.1/t recorded in 4Q17, mainly as a result of Vale’s sales mix improvement and higher pellet premiums. Iron ore fines (excluding Pellets and ROM) EBITDA13 Adjusted EBITDA of iron ore fines was US$ 2.557 billion in 1Q18, remaining practically in line with 4Q17, despite seasonally lower sales volumes (US$ 302 million), which were partially offset by higher IODEX (US$ 143 million) and higher quality and premiums (US$ 85 million). SALES REVENUES AND VOLUME Net sales revenues of iron ore fines, excluding pellets and Run of Mine (ROM), decreased to US$ 4.703 billion in 1Q18 vs. US$ 5.023 billion in 4Q17, as a result of the seasonally lower sales volumes (US$ 548 million) which were partially offset by higher sales prices (US$ 228 million). Sales volumes of iron ore fines totaled 70.8 Mt in 1Q18, achieving the best first quarter ever, as a result of the flexibility and active supply chain management. Sales were 11.0% lower than in 4Q17, but nonetheless offset the usual seasonality in production volumes, which decreased 12.2%. CFR sales of iron ore fines totaled 50.0 Mt in 1Q18, representing 71% of all iron ore fines sales volumes in 1Q18, remaining in line with the share of CFR sales in 4Q17. Vale’s sales mix improved substantially year-on-year, as a result of S11D’s ramp-up and the decision to progressively reduce low grade ore production. The share of pellets, Carajás and blended ores increased to 76% in 1Q18 from 67% of total sales in 1Q17 and 70% in 4Q17. Consequently, Vale’s product sales mix leveraged the impact of rising market premiums, driving the increase in the contributions of quality and average premium to Vale’s realized CFR/FOB wmt price that amounted to US$ 5.2/t in 1Q18 vs. US$ 2.3/t in 1Q17 and US$ 3.9/t in 4Q17. 12 Excluding Manganese and Ferroalloys. 13 Considers the new allocation criteria for general and administrative expenses as described in the box “Managerial Allocation Changes” of this Earnings Release. 30

Sales composition Net operating revenue by product Iron ore fines 4,703 5,023 4,826 Pellets 1,585 1,422 1,459 Others 106 110 111 Total 6,527 6,698 6,497 Volume sold Iron ore fines 70,811 79,603 63,682 ROM 410 355 1,636 Pellets 13,125 13,579 12,582 Ferroalloys 34 34 30 REALIZED PRICES Pricing system breakdown 31 Manganese ore338740196 ‘000 metric tons1Q184Q171Q17 Manganese & Ferroalloys12413586 ROM9815 US$ million1Q184Q171Q17

Price realization – iron ore fines Vale’s CFR dmt reference price for iron ore fines (ex-ROM) was US$ 76.3/t, US$ 2.0/t higher than the IODEX, as a result of higher quality and premiums (US$ 5.2/t), despite the negative effect of the pricing system adjustments (US$ 3.1/t). Vale’s CFR/FOB wmt price for iron ore fines (ex-ROM) increased 5.2% (US$ 3.3/t), after adjusting for moisture and the effect of FOB sales, which accounted for 29% of total sales volumes in 1Q18. CFR/FOB wmt price increase in 1Q18 vs. 4Q17 was lower than the IODEX variation during the same period due to the negative net impact of the pricing system adjustments of US$ 6.3/t (adjustments were a positive of US$ 3.1/t in 4Q17 vs. a negative of US$ 3.2/t in 1Q18). The ‘Premiums/Discounts and commercial conditions’ increased by US$ 1.2/t, from US$ 1.9/t in 4Q17 to US$ 3.1/t in 1Q18, mainly as a result of the abovementioned improvement in the sales mix. Price realization in 1Q18 was impacted by:  Provisional prices set at the end of 4Q17 at US$ 72.8/t, which were later adjusted based on the price of delivery in 1Q18, and positively impacted prices in 1Q18 by US$ 1.2/t compared to a negative impact of US$ 0.5/t in 4Q17 as a result of higher realized prices of the indexes in 1Q18 compared to the indexes anticipated in the forward curve and provisioned in 4Q17. 32

 Provisional prices set at the end of 1Q18 at US$ 64.8/t vs. the IODEX average of US$ 74.3/t in 1Q18, which negatively impacted prices in 1Q18 by US$ 3.3/t compared to a positive impact of US$ 2.4/t in 4Q17.  Quarter-lagged contracts, priced at US$ 65.3/t based on the average prices for Sep-Oct-Nov, which negatively impacted prices in 1Q18 by US$ 0.8/t compared to a positive impact of US$ 0.2/t in 4Q17. Iron ore sales of 24.8 Mt, or 35% of Vale’s sales mix, were recorded under the provisional pricing system, which was set at the end of 1Q18 at US$ 64.8/t. The final prices of these sales and the required adjustment to sales revenues will be determined and recorded in 2Q18. Average prices Iron ore - Metal Bulletin 65% index 90.30 84.70 99.11 Provisional price at the end of the quarter 64.84 72.80 77.90 Iron ore fines CFR/FOB realized price 66.41 63.10 75.78 Pellets CFR/FOB (wmt) 120.78 104.71 115.96 Ferroalloys 1,212.78 1,361.31 1,433.33 COSTS Costs for iron ore fines amounted to US$ 2.078 billion (or US$ 2.353 billion with depreciation charges) in 1Q18. Costs remained practically in line with 4Q1714, despite the negative impact of the lower dilution of fixed costs at lower volumes and the pro-cyclical iron ore price-linked cost factors in royalties. IRON ORE COGS - 4Q17 x 1Q18 Rate 4Q17 x C1 cash costs 1,166 (129) 1 13 (115) 1,051 Others 189 (21) - 41 20 209 Depreciation 293 (32) - 14 (18) 275 Unit maritime freight cost per iron ore metric ton was US$ 16.4/t in 1Q18, US$ 0.6/t lower than in 4Q17, mainly due to the impact of lower freight spot prices (US$ 0.5/t) and the active 14 After adjusting for the effects of lower sales volumes (US$ 246 million) and the negative impact of exchange rate variations (US$ 1 million). 33 Total2,595(278)135(242)2,353 Total costs before depreciation and2,302(246)121(224)2,078 amortization Freight947(96)-(33)(129)818 Variance drivers Total US$ million4Q17VolumeExchangeOthersVariation1Q18 1Q18 Manganese ore246.93119.34219.39 ROM21.9522.559.17 Iron ore fines CFR reference price (dmt)76.3072.6086.70 Iron ore - Platts' 62% IODEX74.2665.5785.64 US$/ metric ton1Q184Q171Q17

management of the supply chain (US$ 0.4/t), which were partially offset by higher bunker oil prices (US$ 0.5/t)15. Supply chain management has consistently improved, resulting in smoother process interfaces and better allocation of the fleet at Vale’s disposal, thus reducing freight costs. C1 CASH COST C1 cash cost FOB port per metric ton for iron ore fines ex-royalties remained practically in line with 4Q17 at US$ 14.8/t in 1Q18, despite the negative impacts of fixed cost dilution at lower volumes, which were practically offset by the successful ramp-up of S11D. C1 cash cost FOB port per metric ton of iron ore fines ex-royalties in BRL remained practically in line at R$ 48.3/t in 1Q18, as the exchange rate remained stable vs. 4Q17 and also due to the abovementioned effects. Expenses per ton in BRL increased to R$ 3.1/t in 1Q18 from the R$ 2.7/t recorded in 4Q17 due to the effect of dilution on seasonally lower sales volumes. Iron Ore Fines Costs and Expenses in BRL C1 Cash Costs¹ 48.3 47.7 46.1 ¹ Net of depreciation. 2 Considers the new allocation criteria for general and administrative expenses as described in the box “Managerial Allocation Changes” of this Earnings Release. 3 Expenses per ton totaled a positive amount in 1Q17, mainly due to the recovery of the insurance associated with the disassembly of the “Fábrica Nova – Timbopeba” long distance belt conveyor. Iron ore fines cash cost and freight Costs (US$ million) Distribution costs 53 54 25 Maritime freight costs 818 947 608 Sales volumes (Mt) Total ROM volume sold 0.4 0.4 1.6 Volume sold (ex-ROM) 70.8 79.6 63.7 Freight % of CFR sales 71% 70% 67% Volume CFR (Mt) 50.0 55.6 42.8 Vale's iron ore unit freight cost (US$/t) 16.4 17.0 14.2 15 The average bunker oil price in Vale’s freight portfolio increased from US$ 342/t in 4Q17 to US$ 364/t in 1Q18. 34 Maritime freight costs818947608 Vale's iron ore cash cost (ex-ROM, ex-royalties), FOB (US$ /t)14.814.614.7 Total iron ore volume sold71.280.065.3 FOB at port costs (ex-ROM)1,2071,3001,044 FOB at port costs (ex-ROM and ex-royalties)1,0511,166937 COGS, less depreciation and amortization2,0782,3011,677 1Q184Q171Q17 Expenses1,23.12.7(0.5)3 Total51.450.445.6 R$/t1Q184Q171Q17

EXPENSES16 Iron ore expenses, net of depreciation, amounted to US$ 68 million in 1Q18, 29.2% lower than in 4Q17. Sales and other expenses totaled US$ 13 million in 1Q18, decreasing US$ 3 million vs. 4Q17, mainly due to lower expenses with Vale’s commercial offices abroad. R&D amounted to US$ 20 million, 25.9% lower than in 4Q17, following the usual seasonality of disbursements. Pre-operating and stoppage expenses, net of depreciation, amounted to US$ 35 million, decreasing US$ 18 million vs. 4Q17, mainly as a result of lower S11D pre-operating expenses. Evolution of iron ore fines cash cost, freight and expenses Expenses and royalties per ton increased to US$ 3.2/t in 1Q18 from US$ 2.5/t in 4Q17, mainly as a result of higher royalties and the effect of seasonally lower sales volumes on the expenses dilution. Royalties increased as a result of the pro-cyclical effect of higher iron ore prices and higher royalty rates, effective as of November 17th, 2017, as established in the new Brazilian mining code. Iron ore pellets Adjusted EBITDA for pellets in 1Q18 was US$ 763 million, 13.0% higher than the US$ 675 million recorded in 4Q17. The increase of US$ 88 million was mainly a result of higher prices 16 Considers the new allocation criteria for general and administrative expenses as described in the box “Managerial Allocation Changes” of this Earnings Release. 35

and premiums (US$ 206 million), which were partially offset by lower dividends received17 in 1Q18 (US$ 44 million) and higher costs18 (US$ 57 million). Net sales revenues for pellets amounted to US$ 1.585 billion in 1Q18, increasing US$ 163 million from the US$ 1.422 billion recorded in 4Q17 as a result of higher premiums (US$ 138 million) and IODEX (US$ 68 million). Realized prices increased from an average CFR/FOB of US$ 104.7/t in 4Q17 to US$ 120.8/t in 1Q18 mainly due to the increase of US$ 10.6/dmt in pellet premiums. The effect of higher prices was partially offset by slightly lower sales volumes (US$ 42 million), which marginally decreased from 13.6 Mt in 4Q17 to 13.1 Mt in 1Q18. CFR pellet sales of 3.3 Mt in 1Q18 represented 25% of total pellet sales, in line with 4Q17. FOB pellet sales amounted to 9.8 Mt in 1Q18, slightly lower than the 10.3 Mt recorded in 4Q17. Pellet costs totaled US$ 813 million (or US$ 917 million with depreciation charges) in 1Q18. After adjusting for the effects of lower volumes (US$ 22 million), costs increased by US$ 57 million vs. 4Q17, mainly due to higher leasing costs (US$ 36 million) and fuel costs (US$ 19 million). The reason for increased leasing costs was higher premiums impacting the pre-determined formula of the leasing contracts. EBITDA unit margin for pellets was US$ 58.1/t in 1Q18, 16.9% higher than in 4Q17. Pellets - EBITDA million million Dividends Received (Leased pelletizing plants) - - 44 3.2 Cash Costs (Iron ore, leasing, freight, overhead, energy and other) (813) (61.9) (779) (57.4) Expenses (SG&A, R&D and other) (9) (0.7) (12) (0.9) Iron ore fines and pellets cash break-even19 Vale’s premium and flexible portfolio of products is best positioned to lead and profit from the structural “flight to quality” trend. In 1Q18, Vale reached another milestone towards improving Fe content and price realization by decreasing its iron ore fines and pellets EBITDA breakeven20 to US$ 30.5/dmt in 1Q18. The reduction of US$ 1.7/t, when compared to 4Q17, was mainly a result of the abovementioned higher quality and premiums for iron ore fines (US$ 1.3/t) and a better pellets performance (US$ 0.6/t). 17 Dividends from leased pelletizing plants, which are usually paid every 6 months (in 2Q and 4Q). 18 After adjusting for the effects of lower volumes (US$ 20 million) and exchange rate variations (US$ 0.5 million). 19 Please see the new allocation criteria for general and administrative expenses as described in the box “Managerial Allocation Changes” of this Earnings Release. 20 Measured by unit cash costs and expenses on a landed-in-China basis (and adjusted for quality, pellets margin differential and moisture, excluding ROM). 36 EBITDA76358.167549.7 1Q184Q17 US$ US$/wmtUS$ US$/wmt Net Revenues / Realized Price1,585120.81,422104.7

Quarterly iron ore and pellets cash break-even on a landed-in-China basis, including sustaining capex per ton of US$ 3.9/dmt, decreased from US$ 36.1/dmt in 4Q17 to US$ 34.5/dmt in 1Q18. Iron ore and pellets cash break-even landed in China¹ Vale's iron ore cash cost (ex-ROM, ex-royalties), FOB (US$ /t) 14.8 14.6 14.7 14.8 Iron ore fines distribution cost² 0.7 0.7 0.4 0.6 Iron ore fines moisture adjustment 3.1 3.0 2.8 2.9 Iron ore fines EBITDA break-even (US$/dmt) 33.0 34.0 31.3 32.6 Iron ore fines pellet adjustment (2.4) (1.8) (2.3) (1.9) Iron ore fines and pellets EBITDA break-even (US$/dmt) 30.5 32.2 29.1 30.8 Iron ore fines sustaining investments 3.9 4.0 4.0 3.6 Iron ore fines and pellets cash break-even landed in China (US$/dmt) 34.5 36.1 33.1 34.3 ¹ Measured by unit cost + expenses + sustaining investment adjusted for quality ² Distribution cost per ton calculation method has been revised and adjusted retroactively, now dividing by total sales volume instead of CFR sales volume ³ Net of depreciation and includes dividends received Manganese and ferroalloys Adjusted EBITDA of manganese ore and ferroalloys was US$ 49 million in 1Q18, remaining in line with 4Q17, as higher realized prices (US$ 21 million) were offset by lower volumes (US$ 20 million). Costs and expenses in 1Q18 remained practically in line with 4Q17. Volume sold by destination – Iron ore and pellets Americas 9,875 9,995 11,974 Others 3,031 2,763 1,874 China 47,285 54,182 44,199 Others 4,301 6,405 3,676 Germany 4,517 4,747 3,988 Others 5,628 4,918 4,047 Rest of the World 1,857 1,626 896 Total 84,346 93,537 77,900 37 Middle East2,6272,3511,901 France1,4031,795936 Europe11,54811,4608,971 Japan6,8537,5186,283 Asia58,43968,10554,158 Brazil6,8447,23210,100 ‘000 metric tons1Q184Q171Q17 Iron ore fines quality adjustment(5.2)(3.9)(2.4)(3.4) Iron ore fines expenses³ & royalties3.22.51.52.4 Iron ore fines freight cost (ex-bunker oil hedge)16.417.014.215.4 US$/t1Q184Q171Q172017

Selected financial indicators - Ferrous Minerals Net Revenues 6,527 6,698 6,497 Expenses¹ (18) (22) 65 R&D expenses (25) (34) (20) Adjusted EBITDA 3,408 3,427 4,048 Adjusted EBIT 2,976 2,973 3,649 ¹ Net of depreciation and amortization Selected financial indicators - Iron ore fines Adjusted EBITDA (US$ million) 2,557 2,654 3,161 Adjusted EBITDA (US$/t) 36.1 33.3 49.6 Selected financial indicators - Pellets Adjusted EBITDA (US$ million) 763 675 803 Adjusted EBITDA (US$/t) 58.1 49.7 63.8 Selected financial indicators - Ferrous ex Manganese and Ferroalloys Adjusted EBITDA (US$ million) 3,359 3,378 4,010 Adjusted EBITDA (US$/t) 39.8 36.1 51.5 ¹ Volume including iron ore fines, pellets and ROM. 38 Volume Sold (Mt)¹84.393.577.9 US$ million1Q184Q171Q17 Volume Sold (Mt)13.113.612.6 US$ million1Q184Q171Q17 Volume Sold (Mt)70.879.663.7 US$ million1Q184Q171Q17 Adjusted EBIT margin (%)45.644.456.2 Depreciation and amortization(432)(454)(399) Dividends and interests on associates and JVs-80-Pre-operating and stoppage expenses¹(38)(56)(45) Costs¹(3,038)(3,239)(2,449) US$ million1Q184Q171Q17

Base Metals 39 NICKEL PRIMER: A PREMIUM AND FLEXIBLE BUSINESS, READY FOR TOMORROW Vale is not only a premium iron ore producer; it is also a premium player in the nickel market, with a unique product mix and market position. Vale’s nickel products are predominately used in specialty applications where high quality and purity are required. On the other hand, more than 50% of the nickel produced, and consumed, in the world is classified as Class II nickel, typically used in the production of stainless steel, a market that does not seek, nor require, higher quality material with high levels of purity and minimal levels of deleterious elements. The forecast for the global nickel market is a continuing deficit in the medium to long term. The deficit is stronger for higher quality nickel, given the decline in world supplies of Class I nickel (down 7% 2017 vs. 2016) and demand from specialty / higher quality nickel product markets, which remains robust. Most of Vale’s products are high quality nickel products, highlighting that Vale is the producer of choice for specialty nickel applications, serving the market when there are stringent chemical and physical specifications, requiring high purity levels and low quantities of deleterious elements. All these markets pay a premium over the LME benchmark.

40 At the moment, given that Vale is a premium producer with about 65% of its supply being Class I nickel products and over 20% being Class II battery-suitable nickel products, it still sells part of its high-quality and battery-suitable nickel products to the stainless-steel market. This means that Vale’s nickel business does not yet capture the full premium for the high quality it produces. However, if more and more car manufacturers trend towards batteries for electric vehicles (EVs), the upside will be there for Vale. Battery applications require high purity chemicals which are made with high purity feed stock or battery-suitable nickel that requires purification. This creates an opportunity for Vale to capture higher premiums for a significant part of its sales volumes in the coming years with reduced costs of production, low investments and no significant change in the flowsheet. In fact, in operations such as VNC and PTVI, the advent of electric vehicles has potential to reduce costs – through the elimination of stages in the beneficiation process – and avoid capex disbursements in refining. Vale sells high quality Class I nickel in the form of nickel powders, cathodes, rounds, plating pellets and commodity pellets / discs. The rigorous quality standards of those Class I products allows their use in numerous high-end industries, including aircraft, aerospace, chemicals, batteries and underwater industrial machinery. Vale will capture more premiums as it stops selling Class I nickel to Class II markets, and, in the longer term, if demand for EVs picks up, Vale will be ready to capture a pricing upside for over 85% of its product mix, fully benefiting from its high-quality assets and premium product portfolio.

BUSINESS PERFORMANCE21 1Q18 marked a shift in Base Metals management through the optimization of production and sales while focusing on a premium nickel product mix with higher margins. This shift led to increased levels of premiums in Vale’s product mix, reaching US$ 38 million22 in 1Q18 as Vale’s Class I products earned nearly double the amount of premium obtained in 1Q17. 21 Considers the new allocation criteria for general and administrative expenses as described in the box “Managerial Allocation Changes” of this Earnings Release. 22 Net effect of premiums and discounts according to their respective share in the mix of products. 41 This strategy starts now. In 1Q18, Vale almost doubled the amount of premium when compared to 1Q17. Vale’s extra high-quality Class IA products (Vale’s very own special category above Class I) captured more than double the amount of premium obtained for Class I products, with some them being sold for as much as US$ 19,000/t. Also, to support investors with the appropriate tools to assess and evaluate Vale’s nickel business, from this quarter onwards you will be presented with a breakdown of Class I, Class II battery-suitable, Class II and Intermediate products in the sales volume section as well as a revamped price realization analysis, with further insights into Vale’s product mix and realized product premium. Vale, the world’s premium and flexible leader in nickel.

Adjusted EBITDA was US$ 644 million in 1Q18, a decrease of US$ 171 million vs. 4Q17, mainly as a result of lower nickel and copper sales volumes (US$ 153 million), reflecting Vale’s optimization of the production lines, and higher costs23 (US$ 81 million), which were partially offset by the better price realization (US$ 108 million) due to the higher levels of premiums and increase in the LME nickel benchmark price. SALES REVENUES AND VOLUMES Nickel sales revenues were US$ 790 million in 1Q18, decreasing US$ 151 million vs. 4Q17 as a result of lower sales volumes (US$ 258 million) which were partially offset by higher nickel realized prices (US$ 108 million). Sales volumes totaled 58 kt in 1Q18, 22 kt lower than in 4Q17. Copper sales revenues were US$ 511 million in 1Q18, decreasing US$ 233 million vs. 4Q17 as a result of lower sales volumes (US$ 158 million) and lower copper realized prices (US$ 75 million). Sales volumes were 88 kt in 1Q18, 23 kt lower than in 4Q17. Cobalt sales revenues totalled US$ 90 million in 1Q18, increasing US$ 11 million vs. 4Q17, as a result of higher cobalt prices (US$ 19 million) partially offset by lower sales volumes (US$ 8 million) in the quarter. Sales volumes of cobalt by-product amounted to 1,276 t in 1Q18, 92 t lower than in 4Q17. Sales revenues from gold contained as a by-product in nickel and copper concentrates amounted to US$ 148 million in 1Q18, decreasing by US$ 9 million vs. 4Q17 as a result of lower gold by-product realized prices (US$ 14 million), partially offset by higher sales volumes (US$ 5 million). Sales volumes of gold as a by-product amounted to 112,000 oz in 1Q18, 4,000 oz higher than in 4Q17. PGMs (platinum group metals) sales revenues totalled US$ 74 million in 1Q18, increasing US$ 12 million vs. 4Q17. Sales volumes were 73,000 oz in 1Q18 vs. 68,000 oz in 4Q17. The PGMs sales volume increased mainly due to higher sales volumes of palladium which were partially offset by lower sales volumes of platinum. Net operating revenue by product Nickel 790 941 760 Gold as by-product 148 157 130 Silver as by-product 8 9 7 PGMs 74 62 85 Others 13 8 6 Total 1,634 2,000 1,597 23 Costs net of volume effect. 42 Cobalt907941 Copper511744568 US$ million1Q184Q171Q17

REALIZED NICKEL PRICES Vale’s nickel products are classified as Class I, Class II battery-suitable, Class II and Intermediates. In 1Q18, 63% of Vale’s sales was high-quality Class I, and when considering Class II products that can be used in the production of batteries, 85% of Vale’s current sales has an upside with the advent of EVs. Nickel sales product mix - % change Class I nickel products accounted for 63% of total nickel sales in 1Q18. Part of the Class I nickel products is being sold at increasing premiums for the specialties/high-quality markets but part of it is sold to Class II markets, with lower premiums. As demand for specialty products and batteries for EVs increases, a larger portion of Vale’s high-quality Class I nickel products will be sold to Class I markets, capturing a larger share of premiums among its products. Also, with demand for EVs, the value of premiums is set to increase due to the rising scarcity of Class I nickel in the market. Class II battery-suitable nickel products accounted for 22% and, though these products are not classified as Class I, they are suitable, at reduced costs and avoiding capex disbursements in refining, for application in EV batteries. Battery suitable is composed of Utility Nickel and NHC from VNC and Tonimet from PTVI. The business case for VNC is linked with the upside potential of EVs as both nickel oxide and NHC can be used for the batteries market. Currently, NHC is sold to the market with a discount whilst the nickel oxide is sent to be refined into Utility Nickel in Dalian. Both products can be used for EV batteries. Therefore, as demand for batteries increases, Vale will be able to not only reduce costs but also to avoid capex disbursements in refining by cutting stages of production and selling nickel oxide at better margins. Likewise, PTVI has an upside with the advent of EVs as, currently, its nickel matte is transformed into nickel oxide to be refined into Tonimet at Matsusaka. In the future, Vale can 43

also cut production costs by only selling nickel oxide at better margins instead of incurring extra production costs and investments with refining. The other Class II nickel products and Intermediates are not suitable for electric vehicles, accounting for 14% of total nickel sales. Premiums / discount by nickel product Class II battery-suitable nickel (300) (230) (180) Intermediates (2,360) (1,370) (1,570) Premiums for Class I nickel products have reached US$ 1,390/t in 1Q18, an increase of 48% and 90% when compared to 4Q17 and 1Q17, respectively. The increase is mainly due to a combination of renegotiation of contracts to more favourable terms as well as the flight to quality in the specialty applications market. The average nickel realized price was US$ 13,637/t, US$ 361/t higher than the average LME nickel price of US$ 13,276/t in 1Q18. The aggregate impact of the aforementioned premiums and discounts (considering their respective volumes in the sales mix) was:  Premium for Class I nickel products for 63% of sales, leading to an aggregate impact of US$ 876/t;  Discount for Class II battery-suitable nickel products for 22% of sales, leading to an aggregate impact of -US$ 66/t;  Premium for Class II nickel products for 7% of sales, with aggregate impact of US$ 29/t; Discount for Intermediates for 7% of sales, leading to an aggregate impact of -US$ 165/t; and,   Other timing and pricing adjustments, mainly due to the differences between the LME price at the moment of sale and the quarterly LME average, along with the negative impact of fixed forward price sales under rising LME prices, leading to an aggregate impact of -US$ 313/t. 44 Class II nickel410200190 US$/t1Q184Q171Q17 Class I nickel1,390940730

Nickel premium / discount by product and average aggregate premiums REALIZED COPPER PRICES The realized copper price was US$ 5,827/t, US$ 1,134/t lower than the average LME copper price of US$ 6,961/t in 1Q18. Vale’s copper products are sold on a provisional pricing basis during the quarter with final prices determined in a future period, generally one to four months forward24. The realized copper price differed from the average LME price in 1Q18 due to the following factors:  Current period price adjustments: mark-to-market of invoices still open in the quarter based on the copper price forward curve25 at the end of the quarter (-US$ 193/t);  Prior period price adjustment: variance between the price used in final invoices (and in the mark-to-market of invoices from previous quarters still open at the end of the quarter) and the provisional prices used for sales in previous quarters (-US$ 88/t);  TC/RCs, penalties, premiums and discounts for intermediate products (-US$ 553/t). 24 On Mar 31st, 2018, Vale had provisionally priced copper sales totaling 73,290 tons valued at a LME forward price of US$ 6,699/t, subject to final pricing over the following months. 25 Includs a small number of final invoices that were provisionally priced and settled within the quarter. 45

Price realization – copper Average prices Nickel - LME 13,276 11,584 10,271 Nickel 13,637 11,781 10,547 Platinum (US$/oz) 1,041 880 917 Silver (US$/oz) 15.47 15.48 13.50 SALES VOLUME PERFORMANCE Sales volumes of nickel were 58 kt in 1Q18, 22 kt lower than in 4Q17 and 14 kt lower than in 1Q17. Sales volumes were lower due to production optimization, as well as the build-up of inventories in the refineries and the maintenance shutdowns in Coleman, in Sudbury, and in PTVI. Sales volumes of copper totaled 88 kt in 1Q18, 23 kt lower than in 4Q17 and 12 kt lower than in 1Q17. Sales volumes decreased mainly due to lower production volumes and the drawdown of saleable product inventories in 4Q17. Sales volumes of gold as a by-product totalled 112,000 oz in 1Q18, 4,000 oz higher than in 4Q17, mainly due to corrections for North Atlantic precious metals volumes in 4Q17. 46 Cobalt (US$/t)70,58857,68045,415 Gold (US$/oz)1,3241,4501,202 Copper5,8276,7355,661 Copper - LME6,9616,8085,831 US$/ metric ton1Q184Q171Q17

Volume sold Nickel operations & by products Class I nickel 37 44 40 Class II nickel 4 8 5 Copper 26 37 38 Silver as by-product ('000 oz) 321 383 351 Cobalt (metric ton) 1,276 1,368 892 Copper 62 74 62 Silver as by-product ('000 oz) 173 219 194 COSTS OF GOODS SOLD (COGS) Costs totaled US$ 953 million in 1Q18 (or US$ 1.303 billion including depreciation). Costs increased by US$ 81 million vs. 4Q17 after adjusting for the effects of lower sales volumes (US$ 264 million) and the negative effect of exchange rate variations26 (US$ 6 million). The increase was mainly due to increased costs in nickel operations (US$ 51 million) and in Salobo (US$ 27 million). The increased costs in nickel operations was mainly due to pro-cyclical effects of higher nickel prices on third-party purchased feed (US$ 41 million), which is offset by higher nickel realized prices of the finished product, and maintenance expenses in Coleman (US$ 26 million 1Q18 vs. US$ 10 million 4Q17), whereas the increase in Salobo was mainly related to the unfavorable impact of lower production volumes on unit costs along with higher supplies costs. BASE METALS COGS - 4Q17 x 1Q18 Rate 4Q17 x 1Q18 Nickel operations 875 (227) 6 51 (169) 705 Depreciation 429 (112) 2 31 (79) 350 26 Exchange rate variations in COGS only. 47 Total1,558(376)8112(256)1,303 Copper operations255(37)-30(8)248 Total costs before depreciation and1,130(264)681(177)953 amortization Variance drivers US$ million4Q17VolumeExchangeOthersTotal Variation1Q18 Gold as by-product ('000 oz)9710885 Copper operations & by products PGMs ('000 oz)7368104 Gold as by-product ('000 oz)15-23 Intermediates4107 Class II battery-suitable nickel131820 Nickel588072 ‘000 metric tons1Q184Q171Q17

EXPENSES27 Sales expenses and other expenses, excluding depreciation, totalled US$ 16 million in 1Q18, an increase of US$ 4 million when compared to the US$ 12 million in 4Q17. Pre-operating and stoppage expenses were US$ 8 million in 1Q18, mainly due to care and maintenance costs associated with the Stobie mine, in Sudbury, and the Birchtree mine, in Thompson (US$ 6 million) and costs associated with the revision of the Voisey’s Bay Mine Expansion project (US$ 2 million). UNIT CASH COST27 North Atlantic operations unit cash cost net of by-product credits increased from the US$ 4,624/t recorded in 4Q17 to US$ 6,756/t in 1Q18, mainly due to pro-cyclical effects of higher nickel prices on third-party purchased feed and costs associated with the unscheduled maintenance shutdown at the Coleman Mine in Sudbury. The mine was in a maintenance shutdown since November 2017 and returned to production in April 2018. PTVI unit cash cost increased from the US$ 6,609/t recorded in 4Q17 to US$ 7,246/t in 1Q18, with lower dilution of fixed costs and higher spending with supplies. VNC unit cost net of by-product credits increased from the US$ 8,420/t recorded in 4Q17 to US$ 8,874/t in 1Q18, mainly due to negative inventory adjustments which were partially offset by higher by-product credits. Onça Puma unit cash cost increased slightly from the US$ 7,536/t recorded in 4Q17 to US$ 7,685/t in 1Q18, mainly due to higher costs with maintenance services. Sossego unit cost was US$ 3,267/t in 1Q18, in line with 4Q17. Salobo unit costs increased from the US$ 679/t recorded in 4Q17 to US$ 1,155/t in 1Q18, mainly due to the unfavourable impact of lower production on unit costs and higher supplies costs. 27 Considers the new allocation criteria for general and administrative expenses as described in the box “Managerial Allocation Changes” of this Earnings Release. 48

Base Metals – unit cash cost of sales per operation, net of by-product credits PTVI 7,246 6,609 6,821 Onça Puma 7,685 7,536 9,341 Sossego 3,267 3,270 2,941 1 North Atlantic figures include Clydach and Acton refining costs. EBITDA breakeven – nickel operations28 28 Considering only the cash effect of US$ 400/oz that Wheaton Precious Metals pays for 70% of Sudbury’s gold by-product, nickel operations EBITDA breakeven would increase to US$ 7,394/t 49 Salobo1,1556791,406 COPPER VNC8,8748,42011,232 US$/t1Q184Q171Q17 NICKEL North Atlantic operations16,7564,6246,699

EBITDA breakeven – copper operations (Salobo and Sossego)29 EBITDA breakeven considers the abovementioned unit cash cost after by-products as well as expenses and premiums/discounts per ton of nickel and copper sales volume. In the case of copper operations, the realized price to be used against the EBITDA breakeven should be the copper realized price before discounts (US$ 6,380/t), given that TC/RCs and other discounts are already part of the EBITDA breakeven build-up. Performance by operation30 The breakdown of the Base Metals EBITDA components per operation is detailed below. Base Metals EBITDA overview – 1Q18 North PTVI VNC Onça Sossego Salobo Others Base US$ million Costs (533) (125) (125) (32) (87) (160) 109 (953) expenses Pre-operating and stoppage (8) - - - - - - (8) 29 Considering only the cash effect of US$ 400/oz that Wheaton Precious Metals pays for 75% of Salobo’s gold by-product, copper operations EBITDA breakeven would increase to US$ 3,492/t 30 Considers the new allocation criteria for general and administrative expenses as described in the box “Managerial Allocation Changes” of this Earnings Release. 50 R&D(5)(2)(1)-(3)(1)-(13) EBITDA2574328255419542644 Sales and other(1)-(1)-(1)-(14)(16) Total AtlanticSiteSitePumaMetals Net Revenues80317015557145356(53)1,634

EBITDA Base Metals – EBITDA by operation North Atlantic operation1 257 366 180 VNC 28 12 (28) Sossego 54 67 64 Others2 42 (10) 30 1 Includes the operations in Canada and in the United Kingdom. 2 Includes the PTVI and VNC off-takes, intercompany sales eliminations, purchase of finished nickel and corporate center allocation for Base Metals. Details of Base Metals’ adjusted EBITDA by operation are as follows: (i) The North Atlantic operations EBITDA was US$ 257 million, decreasing by US$ 109 million vs. 4Q17 mainly due to lower sales volumes (US$ 86 million) and higher costs ($44 million). The higher costs were mainly associated with the pro-cyclical effect of higher nickel prices on third-party purchased feed (US$ 41 million), which was offset by higher nickel realized prices of the finished product, and costs related to the Coleman maintenance shutdown (US$ 26 million 1Q18 vs. US$ 10 million 4Q17). (ii) PTVI’s EBITDA was US$ 43 million, in line with 4Q17 as higher realized nickel prices (US$ 12 million) and lower expenses (US$ 4 million) were offset by higher costs31 (US$ 11 million) and lower sales volumes (US$ 6 million). (iii) VNC's EBITDA was US$ 28 million, increasing by US$ 16 million when compared to 4Q17, mainly as a result of higher realized nickel and cobalt prices (US$ 34 million) which were partially offset by higher costs32 (US$ 12 million), higher expenses (US$ 3 million) and lower sales volumes (US$ 3 million). (iv) Onça Puma’s EBITDA was US$ 25 million, decreasing US$ 4 million vs. 4Q17, mainly as a result of lower sales volumes (US$ 16 million) which were partially offset by higher realized nickel prices (US$ 8 million) and lower expenses (US$ 3 million). (v) Sossego’s EBITDA was US$ 54 million, decreasing US$ 13 million vs. 4Q17, mainly as a result of lower realized copper prices (US$ 15 million) and lower sales volum es (US$ 3 million) which were partially offset by lower expenses (US$ 6 million). 31 Costs not including volume effect. 32 Costs not including volume effect. 51 Total 644815442 Salobo195306169 Onça Puma25292 PTVI434525 US$ million1Q184Q171Q17

(vi) Salobo’s EBITDA was US$ 195 million, decreasing US$ 111 million vs. 4Q17, mainly as a result of lower sales volumes (US$ 51 million), lower realized prices (US$ 33 million) and higher costs (US$ 27 million). Selected financial indicators - Nickel operations Net Revenues 1,132 1,358 1,132 Expenses¹ (15) (3) (14) Pre-operating and stoppage expenses¹ (8) (25) (38) R&D expenses (9) (15) (9) Adjusted EBITDA 395 440 209 Depreciation and amortization (296) (377) (323) Adjusted EBIT 99 63 (114) 1 Net of depreciation and amortization. The margin of nickel operations (defined as net revenues minus costs divided by net revenues) increased to 37.7% in 1Q18, vs. 35.6% in 4Q17 and 23.9% in 1Q17. This was a direct result of Vale’s deliberate decision to reduce volumes through the optimization of production lines, which led not only to higher margins, but also a higher realized nickel premiums. Selected financial indicators - Copper operations Net Revenues 502 642 465 Expenses¹ (1) (9) - R&D expenses (4) (3) (2) Adjusted EBITDA 249 375 233 Adjusted EBIT 195 321 182 ¹ Net of depreciation and amortization. The margin of copper operations (defined as net revenues minus costs divided by net revenues) decreased to 50.6% in 1Q18, vs. 60.1% in 4Q17, mainly due to the unfavorable impact of lower Salobo production volumes on unit costs and lower copper realized prices. 52 Adjusted EBIT margin (%)395039 Depreciation and amortization(54)(54)(51) Dividends and interests on associates and JVs---Pre-operating and stoppage expenses¹---Costs¹(248)(255)(230) US$ million1Q184Q171Q17 Adjusted EBIT margin (%)95(10) Dividends and interests on associates and JVs---Costs¹(705)(875)(862) US$ million1Q184Q171Q17

Coal EBITDA The results of Vale’s Coal business continued to improve in 1Q18, mainly driven by higher realized prices. Vale’s average realized price increased US$ 15.6/t from US$ 136.6/t in 4Q17 to US$ 152.2/t in 1Q18, showing Vale’s effort to increase the share of contracts linked to market index pricing, leveraging on metallurgical and thermal coal market prices as they reached their highest quarterly average levels since 4Q16 and 1Q12, respectively. As a result, adjusted EBITDA for the Coal business increased 41% in 1Q18, reaching US$ 104 million, despite lower volumes. The result was US$ 30 million higher than the US$ 74 million recorded in 4Q1733, mainly due to higher average realized prices (US$ 42 million). Coal prices Metallurgical coal index price1 228.5 204.7 168.2 Thermal coal index price2 94.4 92.4 82.4 Vale’s average realized price 152.2 136.6 126.2 ¹ Platts Premium Low Vol Hard Coking Coal FOB Australia. 2 Argus API4 FOB Richards Bay 6000 kg/kcal Nar METALLURGICAL COAL In 1Q18, 92% of the metallurgical coal sales were priced based on market index, including index-lagged prices, vs. 77% in the previous quarter, while 8% were sold based on fixed prices (spot shipments and trial cargos) vs. 19% in 4Q17, thus improving commercial conditions. The metallurgical coal realized price increased US$ 26.2/t in the quarter while the seaborne index price increased US$ 23.8/t in the same period. The better price realization was mainly due to a higher concentration in sales linked to current and lagged index prices in 1Q18, which was partially offset by higher provisional prices for previous and current quarters. 33 Considers the new allocation criteria for general and administrative expenses as described in the box “Managerial Allocation Changes” of this Earnings Release. 53 Vale’s thermal coal realized price82.078.668.2 Vale’s metallurgical coal realized price204.6178.4165.2 US$/ metric ton1Q184Q171Q17

Price realization – Metallurgical coal US$/t 1Q18 THERMAL COAL In 1Q18, 99% of thermal coal sales were priced based on index prices vs. 86% in the previous quarter, with the remaining 1% based on fixed prices vs. 14% in 4Q17, once again improving commercial conditions. The realized price of thermal coal was US$ 82.0/t in 1Q18, US$ 3.4/t higher than in 4Q17. Price realization for thermal coal was mainly impacted by the quality adjustment against the reference index, given our lower calorific values and higher ash levels, which negatively affected prices by US$ 13.5/t. 54

Price realization – Thermal coal US$/t, 1Q18 COSTS AND EXPENSES Coal pro-forma cash cost is composed of: (i) the mine and handling facilities operational costs, (ii) the logistics tariff paid by Vale to Nacala Logistics Corridor (NLC), which is set annually to cover mainly operational and financial costs of NLC, and (iii) the interest received by Vale on the outstanding shareholder loans to NLC. Cash cost through Nacala NLC net tariff (B) 27.0 52.0 - NLC’s debt service to Vale (D) 24.0 40.2 - Pro-forma cash cost through Nacala was US$ 104.5/t in 1Q18, in line with 4Q17. Cost at port decreased US$ 16.1/t, from US$ 144.6 /t in 4Q17 to US$ 128.0/t in 1Q18, despite US$ 8.9/t higher operational costs of mine, plants and logistics due to lower dilution of fixed costs, as production was affected by severe weather conditions in 1Q18 and labor actions in 4Q17. The lower cost at port results from the lower NLC tariff set for 2018, considering the higher forecast production volume and the lower interest charge, as the Project Finance substitutes the previous shareholder loan. 55 Pro-forma cash cost (E = C – D)104.5104.484.2 Cost at Nacala Port (C = A+B)128.5144.684.2 US$ / metric ton1Q184Q171Q17 Mine and logistics operational cost (A)101.592.684.2

NLC’s debt service to Vale was US$ 24.0/t in 1Q18 vs. US$ 40.2/t in 4Q17, due to the retroactive charges to adjust the tariff in accordance with the Project Finance applied in 4Q17. Going forward a lower debt service for Vale is expected as US$ 2.6 billion of shareholder loans were repaid after the disbursement of the Project Finance in March 2018 and as the tariff component associated with debt service will therefore mostly fund the repayment of the Project Finance. The result will be an increase of pro-forma costs. Net operating revenue by product Metallurgical coal 293 306 254 Average prices Metallurgical coal 204.6 178.4 165.2 Volume sold Metallurgical coal 1,432 1,715 1,537 Thermal coal 1,065 1,228 1,031 Selected financial indicators - Coal Net Revenues 380 402 324 Costs¹ (335) (433) (248) Expenses¹ 2 (4) (4) R&D expenses (3) (3) (3) Dividends and interests on associates and JVs 60 112 - Adjusted EBITDA 104 74 69 Adjusted EBIT 39 13 (35) Adjusted EBIT margin (%) 10.3 3.2 (10.8) ¹ Net of depreciation and amortization 56 Depreciation and amortization(65)(61)(104) Pre-operating and stoppage expenses¹---US$ million1Q184Q171Q17 Total2,4972,9432,568 ‘000 metric tons1Q184Q171Q17 Thermal coal82.078.668.2 US$/ metric ton1Q184Q171Q17 Thermal coal879670 Total380402324 US$ million1Q184Q171Q17

Financial indicators of non-consolidated companies For selected financial indicators of the main non-consolidated companies, see Vale’s quarterly financial statements on www.vale.com / investors / information to the market / financial statements. Conference call and webcast Vale will host two conference calls and webcasts on Thursday, April 26th, to discuss its 1Q18 performance. The first, in Portuguese (non-translated), 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 Standard Time, 4:00 p.m. British Standard Time). Dial in to conference calls/webcasts: In Portuguese: Participants from Brazil: (55 11) 3193-1001 or (55 11) 2820-4001 Participants from the US: (1 800) 492-3904 Participants from other countries: (1 646) 828-8246 Access code: VALE In English: Participants from Brazil: (55 11) 3193-1001 or (55 11) 2820-4001 Participants from the U.S.: (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 podcast will be available on Vale’s Investor Relations website. 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, 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) and the French Autorité des Marchés Financiers (AMF), and in particular the factors discussed under “Forward-Looking Statements” and “Risk Factors” in Vale’s annual report on Form 20-F. 57

ANNEX 1 – SIMPLIFIED FINANCIAL STATEMENTS Income statement US$ million 1Q18 4Q17 1Q17 Net operating revenue 8,603 9,167 8,515 Gross margin (%) 39.3 36.8 44.4 Research and development expenses (69) (104) (65) Other operational expenses (125) (104) (77) Operating profit 2,965 2,480 3,912 Financial revenues 118 149 64 Gains (losses) on derivatives, net 90 (29) 209 Equity results in associates and joint ventures 85 (66) 73 (14) (59) (61) ventures Income (loss) before taxes 2,412 1,068 3,311 Current tax (93) 243 (501) Net Earnings (loss) from continuing operations 1,691 1,226 2,588 Loss attributable to noncontrolling interest (19) 32 (15) 1,590 771 2,490 stockholders) Earnings (loss) per share (attributable to the Company's stockholders - US$) 0.31 0.15 0.48 Company's stockholders - US$) Equity income (loss) by business segment Ferrous Minerals 77 91 77 (117) 57 78 Base Metals 1 1 - - 1 1 Steel (21) (25) (115) 174 (1) (1) 58 Others2428(28)4268 Total85100(66)10073100 Logistics------Coal45--1014 US$ million1Q18%4Q17%1Q17% Diluted earnings (loss) per share (attributable to the0.310.150.48 Gain (loss) from discontinued operations(82)(487)(83) Net earnings (attributable to the Company's Deferred tax(628)(85)(222) Impairment and others results in associates and joint Monetary and exchange variation(185)(845)229 Financial expenses(647)(562)(1,115) Impairment and others results in non-current assets(18)(417)512 Pre-operating and stoppage expenses(78)(125)(115) Selling, general and administrative expenses(124)(146)(124) Cost of goods sold(5,224)(5,791)(4,734) Gross profit3,3793,3763,781

Balance sheet US$ million 3/31/2018 12/31/2017 3/31/2017 Cash and cash equivalents 5,368 4,328 6,716 Other financial assets 376 2,022 2,114 Inventories 3,967 3,926 3,641 Prepaid income taxes 722 781 73 Others 602 538 568 460 3,587 4,519 operation Judicial deposits 1,993 1,986 990 Recoverable income taxes 587 530 538 Deferred income taxes 6,106 6,638 7,127 Fixed assets 66,463 66,939 67,462 Current liabilities 9,990 13,114 11,825 Suppliers and contractors 3,598 4,041 3,647 Other financial liabilities 1,008 986 1,248 Provision for income taxes 227 355 120 Dividends and interest on capital - 1,441 821 Others 1,038 992 921 for sale and discontinued operations Loans and borrowing 18,310 20,786 27,163 Taxes payable 4,796 4,890 5,098 Deferred income taxes 1,704 1,719 1,677 Provisions 6,984 7,027 5,938 Gold stream transaction 1,793 1,849 2,032 Others 1,466 1,463 1,723 59 Total liabilities48,57754,41259,437 Stockholders' equity45,80744,77243,571 Total liabilities and stockholders' equity94,38499,184103,008 Liabilities related to associates and joint ventures633670787 Other financial liabilities2,9012,8943,194 Liabilities directly associated with non-current assets held2131,1791,039 Non-current liabilities38,58741,29847,612 Liabilities related to associates and joint ventures369326284 Provisions8681,394651 Taxes payable703697687 Loans and borrowing1,9661,7032,407 Total assets94,38499,184103,008 Liabilities Others282267324 Recoverable taxes667638767 Other financial assets3,0473,2323,379 Non-current assets held for sale and discontinued Non-current assets12,68213,29113,125 Recoverable taxes1,0551,1721,553 Accounts receivable2,6892,6003,237 Assets Current assets15,23918,95422,421

Cash flow US$ million 1Q18 4Q17 1Q17 Cash flows from operating activities: Net income (loss) before taxes on income 2,412 1,068 3,311 Adjustments to reconcile Equity Income (85) 66 (73) Other items from non-current assets 14 417 (512) Impairment on assets and investments 18 59 61 Variation of assets and liabilities Accounts receivable 17 173 498 Inventories 56 157 (221) Payroll and related charges (541) 210 (242) Tax assets and liabilities, net 189 (246) 7 Others (294) 262 (376) Interest on loans and financing (381) (352) (515) Derivatives received (paid), net (25) (17) (107) Remuneration paid to debentures - (65) - Income taxes - settlement program (125) (123) (121) Cash flows from investing activities: Acquisition of subsidiary - - - Proceeds from disposal of assets and investments 1,101 201 537 and associates Proceeds from goldstream transaction - - - Others (1) (65) (55) Cash flows from financing activities: Additions - 175 1,150 Payments to shareholders: Dividends and interest on capital attributed to noncontrolling interest (91) (2) (3) Net cash provided by (used in) financing activities (3,822) (3,039) 284 discontinuing operations Increase (decrease) in cash and cash equivalents 1,149 (292) 2,424 Effect of exchange rate changes on cash and cash equivalents (6) (99) 44 Non-cash transactions: 60 73 103 capitalization 60 Additions to property, plant and equipment - interest Cash of subsidiaries disposed(103)-(14) Cash and cash equivalents, end of period5,3684,3286,716 Cash and cash equivalents in the beginning of the period4,3284,7194,262 Increase (decrease) in cash and cash equivalents from(44)(80)(5) Other transactions with noncontrolling interest(17)0255 Dividends and interest on capital(1,437)(2)-Repayments(2,277)(3,210)(1,118) Loans and financing---Net cash used in investing activities2,843(840)(800) Loans and advances receivable2,640(103)(144) Dividends and interest on capital received from joint ventures10124-Additions to property, plant and equipment(890)(978)(1,129) Additions to investments(17)(19)(9) Net cash provided by operating activities2,1723,6672,945 Income taxes(240)(74)(368) Net cash provided by operations2,9434,2984,056 Suppliers and contractors(340)(131)82 Items of the financial result6241,287613 Depreciation, depletion and amortization873976908

ANNEX 2 – VOLUMES SOLD, PRICES AND MARGINS Volume sold - Minerals and metals ‘000 met ric t ons 1Q18 4Q17 1Q17 Iron ore fines 70,811 79,603 63,682 Pellets 13,125 13,579 12,582 Ferroalloys 34 34 30 Metallurgical coal 1,432 1,715 1,537 Copper 88 111 100 Silver as by-product ('000 oz) 494 602 545 Cobalt (metric ton) 1,276 1,368 892 Average prices Iron ore fines CFR reference price (dmt) 76.30 72.60 86.70 ROM 21.95 22.55 9.17 Manganese ore 246.93 119.34 219.39 Thermal coal 82.00 78.57 68.16 Nickel 13,637 11,781 10,547 Platinum (US$/oz) 1,041 880 917 Silver (US$/oz) 15.47 15.48 13.50 Operating margin by segment (EBIT adjusted margin) % 1Q18 4Q17 1Q17 Ferrous Minerals 45.6 44.4 56.2 Coal 10.3 3.2 (10.8) Base Metals 18.0 19.2 4.3 Total¹ 36.0 34.2 39.9 ¹ excluding non-recurring effects 61 Cobalt (US$/t)70,58857,68045,415 Gold (US$/oz)1,3241,4501,202 Copper5,8276,7355,661 Metallurgical coal204.60178.38165.17 Ferroalloys1,212.781,361.311,433.33 Pellets CFR/FOB (wmt)120.78104.71115.96 Iron ore fines CFR/FOB realized price66.4163.1075.78 US$/ton1Q184Q171Q17 PGMs ('000 oz)7368104 Gold as by-product ('000 oz)112108108 Nickel588072 Thermal coal1,0651,2281,031 Manganese ore338740196 ROM4103551,636

ANNEX 3 – RECONCILIATION OF IFRS AND “NON-GAAP” (a) Adjusted EBIT¹ INFORMATION Net operating revenues 8,603 9,167 8,515 SG&A (124) (146) (124) Research and development (69) (104) (65) Pre-operating and stoppage expenses (78) (125) (115) Dividends and interests on associates and JVs 70 236 - 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 Vale’s 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 US$ million 1Q18 4Q17 1Q17 Adjusted EBITDA 3,971 4,109 4,308 Working capital: - - - Inventories 56 157 (221) Suppliers (340) (131) 82 Payroll and related charges (541) 210 (242) Adjustment for non-recurring items and other effects (115) (236) - Cash provided from operations 2,943 4,298 4,056 Income taxes paid - current (240) (74) (368) Interest paid for third parties (381) (352) (515) Participative stockholders' debentures paid - (65) - Derivatives received (paid), net (25) (17) (107) Net cash provided by (used in) operating activities 2,172 3,667 2,945 (c) Net debt US$ million 1Q18 4Q17 1Q17 Total debt 20,276 22,489 29,570 Net debt 14,901 18,143 22,777 ¹ Including financial investments (d) Total debt / LTM Adjusted EBITDA US$ million 1Q18 4Q17 1Q17 Total debt / LTM Adjusted EBITDA (x) 1.4 1.5 2.1 Total debt / LTM operational cash flow (x) 1.7 1.8 3.0 (e) LTM Adjusted EBITDA / LTM interest US$ million 1Q18 4Q17 1Q17 Adjusted LTM EBITDA / LTM gross interest (x) 9.5 9.0 7.9 LTM adjusted EBITDA / LTM interest payments (x) 9.7 9.1 8.3 LTM operational profit / LTM interest payments (x) 7.1 6.7 5.4 62 Cash and cash equivalents¹5,3754,3466,793 Income taxes paid - settlement program(125)(123)(121) Others(105)16(369) Accounts receivable17173498 Adjusted EBIT3,0983,1333,400 Other operational expenses(80)(104)(77) COGS(5,224)(5,791)(4,734) US$ million1Q184Q171Q17

ANNEX 4 – MANAGERIAL ALLOCATION CHANGES Adjusted EBITDA Before managerial allocation changes Ferrous Minerals 3,967 2,232 3,674 3,319 13,192 Coal 61 157 46 66 330 Others After managerial allocation changes Ferrous Minerals (130) (46) (89) (58) (323) 4,048 2,315 3,763 3,427 13,553 Base Metals 442 412 587 815 2,256 Others (251) (164) (211) (207) (833) Pellets - EBITDA US$/wmt US$/wmt US$/wmt US$/wmt million million million million Expenses (SG&A, R&D and other) -16 -1.3 -16 -1.3 -29 -2.2 -30 -2.2 After managerial allocation changes other) EBITDA 803 63.9 653 52.4 692 52.7 675 49.7 Selected financial indicators - Ferrous Minerals Before managerial allocation changes Adjusted EBITDA 3,967 2,232 3,674 3,319 13,192 Adjusted EBIT 3,550 1,768 3,205 2,773 11,296 After managerial allocation changes Depreciation and amortization (399) (414) (442) (454) (1,709) Adjusted EBIT margin (%) 56 37 49 44 47 ¹ Net of depreciation and amortization Selected financial indicators - Iron ore fines Before managerial allocation changes Adjusted EBITDA (US$/t) 49 22 38 32 35 Adjusted EBITDA (US$ million) 3,161 1,570 2,961 2,654 10,346 63 Adjusted EBITDA (US$/t)5023393336 After managerial allocation changes Adjusted EBITDA (US$ million)3,0941,5022,8882,56710,051 US$ million1Q172Q173Q174Q172017 Adjusted EBIT3,6491,9013,3212,97311,844 Expenses¹65(11)(27)(22)5 Adjusted EBIT margin (%)5535474145 Depreciation and amortization(417)(427)(456)(466)(1,766) Expenses¹(16)(94)(116)(130)(356) US$ million1Q172Q173Q174Q172017 Expenses (SG&A, R&D and-4-0.3-3-0.2-16-1.2-12-0.9 EBITDA79163640516795265748 1Q172Q173Q174Q17 US$US$US$US$ Before managerial allocation changes Coal691665374362 Base Metals4103865617822,139 US$ million1Q172Q173Q174Q172017

Selected financial indicators - Pellets Before managerial allocation changes Adjusted EBITDA (US$/t) 63 51 52 48 53 Adjusted EBITDA (US$ million) 803 653 692 675 2,823 Selected financial indicators - Ferrous ex Manganese and Ferroalloys Before managerial allocation changes Adjusted EBITDA (US$/t) 50 27 40 35 38 Adjusted EBITDA (US$ million) 4,010 2,281 3,705 3,378 13,374 Iron ore and pellets cash break-even landed in China¹ Iron ore fines expenses³ & royalties 2.6 3.9 3.5 3.6 3.4 Iron ore fines EBITDA break-even (US$/dmt) 32.4 36.4 31.0 35.2 33.8 Iron ore fines pellet adjustment (2.1) (1.9) (1.0) (1.3) (1.5) Iron ore fines and pellets EBITDA break-even (US$/dmt) 30.4 34.4 30.0 33.9 32.2 Iron ore fines sustaining investments 3.8 2.8 2.9 3.4 3.2 34.2 37.2 32.9 37.3 35.5 (US$/dmt) Iron ore fines expenses³ & royalties 1.5 2.9 2.5 2.5 2.4 Iron ore fines EBITDA break-even (US$/dmt) 31.3 35.3 29.9 34.0 32.6 Iron ore fines pellet adjustment (2.3) (2.2) (1.2) (1.8) (1.9) Iron ore fines and pellets EBITDA break-even (US$/dmt) 29.1 33.1 28.7 32.2 30.8 Iron ore fines sustaining investments 4.0 3.1 3.2 4.0 3.6 (US$/dmt) ¹ Measured by unit cost + expenses + sustaining investment adjusted for quality ³ Net of depreciation and includes dividends received Iron Ore Fines Costs and Expenses in BRL Before managerial allocation changes After managerial allocation changes ¹ Net of depreciation 64 Expenses¹(0.5)4.13.52.72.5 Expenses¹2.77.36.66.25.8 R$/t1Q172Q173Q174Q172017 Iron ore fines and pellets cash break-even landed in China33.136.131.836.134.3 Iron ore fines and pellets cash break-even landed in China After managerial allocation changes US$/t1Q172Q173Q174Q172017 Before managerial allocation changes Adjusted EBITDA (US$/t)5128413639 After managerial allocation changes Adjusted EBITDA (US$ million)3,9302,1993,6173,27113,017 US$ million 1Q172Q173Q174Q172017 Adjusted EBITDA (US$/t)6452535055 After managerial allocation changes Adjusted EBITDA (US$ million)7916406796572,767 US$ million1Q172Q173Q174Q172017

Selected financial indicators - Copper operations Before managerial allocation changes Adjusted EBITDA 230 250 334 371 1,185 Adjusted EBIT 178 191 279 317 965 After managerial allocation changes Adjusted EBITDA 233 253 337 374 1,197 Adjusted EBIT 182 195 282 321 979 Selected financial indicators - Nickel operations Before managerial allocation changes Expenses¹ (43) (32) (45) (33) (152) Adjusted EBITDA 180 136 227 411 954 Adjusted EBIT (150) (202) (116) 27 (441) Adjusted EBIT margin (%) (13) (20) (10) 2 (9) After managerial allocation changes Adjusted EBITDA 209 159 251 441 1,060 Depreciation and amortization (323) (332) (340) (377) (1,372) Adjusted EBIT (114) (173) (89) 63 (312) Selected financial indicators - Coal Before managerial allocation changes Adjusted EBITDA 61 157 46 66 330 Adjusted EBIT (44) 80 (10) 4 30 After managerial allocation changes Adjusted EBITDA 69 166 53 74 362 Adjusted EBIT (35) 90 (2) 13 66 ¹ Net of depreciation and amortization 65 Adjusted EBIT margin (%)(11)19(1)34 Depreciation and amortization(104)(76)(55)(61)(296) Expenses¹(4)(2)(2)(4)(12) Adjusted EBIT margin (%)(14)17(3)12 Depreciation and amortization(105)(77)(56)(62)(300) Expenses¹(12)(11)(9)(12)(44) US$ million1Q172Q173Q174Q172017 Adjusted EBIT margin (%)(10)(17)(8)5(7) Expenses¹(14)(9)(21)(3)(47) Depreciation and amortization(330)(338)(343)(384)(1,395) US$ million1Q172Q173Q174Q172017 Adjusted EBIT margin (%)3939475044 Depreciation and amortization(51)(58)(55)(54)(218) Expenses¹-(1)(5)(9)(15) Adjusted EBIT margin (%)3838474944 Depreciation and amortization(52)(59)(55)(54)(220) Expenses¹(3)(4)(8)(12)(27) US$ million1Q172Q173Q174Q172017