1

Vale’s Performance in 1Q18

Ricardo Teles / Agência Vale

Rio de Janeiro, April 26th, 2018

2 Ag

en

da“This presentation may include statements that present Vale's expectations about

future events or results. All statements, when based upon expectations about the

future and not on historical facts, involve various risks and uncertainties. Vale

cannot guarantee that such statements will prove correct. These risks and

uncertainties include factors related to the following: (a) the countries where we

operate, especially Brazil and Canada; (b) the global economy; (c) the capital

markets; (d) the mining and metals prices and their dependence on global

industrial production, which is cyclical by nature; and (e) global competition in the

markets in which Vale operates. To obtain further information on factors that may

lead to results different from those forecast by Vale, please consult the reports

Vale files with the U.S. Securities and Exchange Commission (SEC), the

Brazilian Comissão de Valores Mobiliários (CVM), the French Autorité des

Marchés Financiers (AMF) and in particular the factors discussed under

“Forward-Looking Statements” and “Risk Factors” in Vale’s annual report on Form

20-F.”

“Cautionary Note to U.S. Investors - The SEC permits mining companies, in their

filings with the SEC, to disclose only those mineral deposits that a company can

economically and legally extract or produce. We present certain information in

this presentation, including ‘measured resources,’ ‘indicated resources,’ ‘inferred

resources,’ ‘geologic resources’, which would not be permitted in an SEC filing.

These materials are not proven or probable reserves, as defined by the SEC, and

we cannot assure you that these materials will be converted into proven or

probable reserves, as defined by the SEC. U.S. Investors should consider closely

the disclosure in our Annual Report on Form 20-K, which may be obtained from

us, from our website or at http://http://us.sec.gov/edgar.shtml.” Dis

clai

mer

3 Ag

en

da

Agen

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1. Vale’s performance in 1Q18

2. Capital expenditures

3. Capital structure

4. Business segment performance

4

Vale’s performance in

1Q18

5

US$ 4.0 biTotal EBITDA

Performance highlights in 1Q18

5

US$ 890 miCapital Expenditures

US$ 104 miCoal EBITDA

US$ 39.8/tFerrous Minerals

EBITDA Margin

US$ 5.0 biFree Cash Flow

US$ 14.9 biNet Debt

41%9%

77% 18%

1 Excluding Manganese and Ferroalloys

10%1

6

4.3084.109 3.971

1Q17 4Q17 1Q18

EBITDA was leveraged by our premium and flexible product

portfolio in 1Q18

Highlights 1Q18

Adjusted EBITDA was US$ 3.971 billion

in 1Q18, remaining practically in line

with 4Q17, despite the challenge of

seasonally lower volumes

Improved sales mix for Ferrous

Minerals and Base Metals leveraged

higher realized prices

The flexibility of Vale`s supply chain

led to a record sales volume for a first

quarter of iron ore and pellets

Adjusted EBITDA

6

US$ billion

7

Strong cash generated from operations and proceeds from

divestments led to an increase in FCF in 1Q18

7

US$ million

2,943 (381)

(365)(890) 1,084

2,572 52 5,015 (2,277)

(1,437)

(261)1,040

Cashgenerated

fromoperations

Intereston loans

Income taxes& Refis

settlementprogram

Capex Net disposal/acquisitionof assets

andinvestments

NacalaProjectFinance

Others Freecashflow

Debtrepayment,

net

Shareholderremuneration

Others Increase(decrease)

incash & cashequivalents

1

2 3

4

1 Includes derivatives and financial instruments, dividends and interest on capital from associates and JVs and other loans,

advances and investments activities 2 Net cash provided by operating and investing activities from continuing operations 3 Includes the premium paid in the tender offer of the 2022 notes4 Includes dividends and interest on capital paid to noncontrolling interest, transactions with noncontrolling stockholders, net

cash from discontinued operations, effects of disposals of subsidiaries and merger, net cash used in discontinued operations

and foreign exchange effect on cash and cash equivalents

8

Capital expenditures

9

Capital expenditures were reduced to the lowest level for a first

quarter since 2005

1Q18 Highlights

Capital expenditures totaled US$ 890

million in 1Q18, following the trend of

remaining sub US$ 1 billion per quarter

Capital expenditures guidance of US$

3.8 billion for 2018 is reinforced

S11D achieved combined physical

progress of 95% in 1Q18 with the mine

site concluded and 91% progress at the

logistic infrastructure sites

Project and sustaining capex

US$ million

9

587

347 361

526631

529

1Q17 4Q17 1Q18

Growth projects Sustaining

978890

1,113

10

Sustaining capex segmentation is consistent with the

rigorous capital allocation process

Highlights 1Q18

Ferrous Minerals and Base Metals

business segments represented

61% and 34% of sustaining capex,

respectively

Lower nickel sustaining investments,

as non-performing assets in nickel

were placed in care &

maintenance

Higher investment in Ferrous

Minerals due to restart of

pelletizing plants, leveraging on

the higher pellet premium

10

302248 278

365 322

187233

250186

138

12 1626

50

43

25 812

28

24

1Q17 2Q17 3Q17 4Q17 1Q18

Coal Copper Nickel Ferrous Minerals

US$ million

Total Sustaining

526 507 568 631 529

11

Capital structure

12

22,777

18,143

14,901

1Q17 4Q17 1Q18

US$ 5.375 billion

Substantial net debt reduction of US$ 3.2 billion quarter-

on-quarter

12

Net debtCash position

on March 31st, 2018US$ million

13

1.61.5

1.31.2

1.0

1Q17 2Q17 3Q17 4Q17 1Q18

Leverage decreased to 1.0x and will reduce further as net debt

target of US$ 10 bi is reached in the short term

Net debt / LTM1 EBITDA Ratio

1 LTM – last twelve months

Net debt in

1Q18:

US$ 14.901

billion

Cash position in

1Q18:

US$ 5.375 billion

Average

maturity:

9.3 years

Average cost of

debt:

4.97% per annum

13

14

Cash balance will be used to implement a liability management

program to reduce gross debt in 2018

Gross debt amortization schedule1

1 As of March 31st, 2018. Does not include accrued charges.

US$ billion

67% of our debt settlement will occur

after 2022

14

Gross debt

US$ million

29,570

22,48920,276

1Q17 4Q17 1Q18

0.71.7 2.5 1.7

13.2

19.8

2018 2019 2020 2021 2022onwards

Grossdebt

15

Business segment

performance

16

Vale’s premium and flexible portfolio of products leads,

and profits from, the structural “flight to quality” trend

16

-40

-30

-20

-10

0

10

20

30

Jan-16 Apr-16 Jul-16 Oct-16 Jan-17 Apr-17 Jul-17 Oct-17 Jan-18 Apr-18

Título do Gráfico65%-62%

58%-62%

Premiums and discounts

+US$17/t

Source: Bloomberg and Mysteel

US$ 44/t

-US$ 27/t

US$/t

17

3,427

152 2 25 341 212 51 17 49

3,408

EBITDA4Q17

IODEX62% Fe¹

FX Bunker Volume Premiums &commercialinitiatives

Freight &distribution

costs

Unit costs Others EBITDA1Q18

US$ million

18

1 IODEX 62% Fe net effect in both revenues (US$ 238 million) and costs (US$ 86 million).

Active supply chain management, higher quality and

average premium offset seasonally lower sales volumes

Ferrous Minerals Adjusted EBITDA

18

74.3 76.3

66.4

2.1

3.1 1.2 0.8 0.2 3.3

4.1

5.9

AveragePlatts

1Q18 (dmt)

Quality Premium / discount and commercial conditions

Provisionalprices in

prior quarter¹

Laggedprices

Current Provisionalprices

in currentquarter²

CFR reference price (dmt)

Adjustmentfor

FOB sales

Moisture Vale CFR/FOB price(wmt)³

Impact of pricing system adjustments

1 Adjustment as a result of provisional prices booked in 4Q17 at US$ 72.8/t.2 Difference between the weighted average of the prices provisionally set at the end of 1Q18 at US$ 64.8/t based on forward curves and the average

of US$ 74.3/t from the 1Q18 IODEX.3 Vale price is net of taxes.

US$/t, 1Q18

+2.7%

18

Improved product sales mix drove the quality and premium

contributions up to US$ 5.2/t

191 Ex-ROM

EBITDA breakeven decreased by US$ 1.7/t as a result of

higher quality and premiums

14.8

16.4

3.2

0.7 3.1

5.2

33.0

2.4

30.5

3.9 34.5

C1 cash cost¹ Freight Royalties & expenses

Distribution Moisture Quality EBITDA breakeven

iron ore fines

Pellet adjustment

EBITDA breakeven (pellets &

fines)

Sustaining Iron ore & pellets cash breakeven

Cost landed in China

US$/t, 1Q18

19

20

Base Metals EBITDA was positively impacted by improved

sales mix and higher premiums

20

Nickel sales product mix

8% 12% 7%

7%10%

7%

30%23%

22%

55% 56%63%

1Q17 4Q17 1Q18

Class I

Class II battery-suitable

Class II

Intermediates

361674

-2,360

410

-300

1,390

Vale's average aggregate realized

premium after timing and

pricing adjustments

Vale's average aggregate realized premium

IntermediatesClass II premium

Class II battery-suitable discount

Class I premium

Nickel premium/discount by product and

average aggregate realized premiums

US$/t, 1Q18

21

Coal EBITDA continued to improve in 1Q18, driven by higher

realized prices

21

6974

104

1Q17 4Q17 1Q18

Coal EBITDA

US$ million

Highlights 1Q18

Coal adjusted EBITDA increased 41%,

despite lower sales volumes

Higher realized prices were due to the

increase of the share of contracts

linked to index reference price

92% of the metallurgical coal sales were

priced based on market index, including

index-lagged prices, vs. 77% in 4Q17

99% of thermal coal sales were priced

based on index prices vs. 86% in 4Q17

22

Additional

information

23

Fe Pellets Ni Cu Coal

Production and sales highlights

Total: 82.0 Mt

N. System: 40.6 Mt

Total: 12.8 Mt Total: 58.6 Mt

Long Harbour:

8.6 Mt

Total: 93.3 Mt Mozambique: 2.4 Mt

&

Quarterly record%

%

23

Record for a first quarter&

Sales volumes IO & Pel: 84.3 Mt&

24

Highlights 1Q18

Net operating revenues of US$ 8.603

billion

Revenues were US$ 88 million higher

than in 1Q17, mainly due to higher

sales volumes for Ferrous Minerals

and higher sales prices for Base

Metals

58% sales to Asia and 10% domestic

sales

Ferrous Minerals accounted for 76%

of revenues

Base Metals accounted for 19% of

revenues

Net operating revenues by

destination in 1Q18

24

Revenues

42%

17%

9%

10%

7%

6%

6%3%

China EuropeOther Asia BrazilJapan North AmericaRest of the World Middle East

25

5,294

4,747

607

6169 70

4Q17 Sales volumes

Commodities linkedcosts

Exogenous factors

Expenses 1Q18

Costs and expenses

Highlights 1Q18

COGS remained practically in line with 4Q17, after excluding the effects of:

seasonally lower sales volumes;

higher commodities prices, resulting in higher pelletizing plants leasing costs and higher royalties;

other exogenous factors, such as the negative impact of exchange rate variation and higher oil costs

Higher bunker oil prices were partially offset by lower spot freight rates in 1Q18

Costs and expenses1 1Q18 vs. 4Q17

US$ million

25

1 Excluding depreciation.

26

Evolution of iron ore fines cash cost, freight and expenses

14.7 14.6 14.8

1Q17 4Q17 1Q18

C1 cash cost FOB port1 Freight

US$/t

14.2

17.016.4

1Q17 4Q17 1Q18

Expenses2 & royalties

1.5

2.5

3.2

1.3

1Q17³ 4Q17 1Q18

1 Ex-ROM and ex-royalties. 2 Including dividends received. Net of depreciation. 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 (US$ 85 million) associated with the destruction of the “Fábrica Nova

– Timbopeba” long distance belt conveyor.

26

Positive one-off impact3

2.8

27

Iron ore fines sales composition

27

16% 15% 9%

16% 14%13%

67% 70%76%

1Q17 4Q17 1Q18

Premium products¹SouthernSoutheasternOthers

1 Composed of pellets, Carajás and Brazilian Blend Fines.

28

Iron ore pricing systems

Provisional - prior quarter Lagged

Current Provisional - current quarter

0.2

-0.8

4Q17 1Q18

1.0

-0.2

4Q17 1Q18

Pricing system breakdown Impact of pricing mechanisms

US$/t

28

10% 11% 9%

49% 49% 56%

41% 40% 35%

1Q17 4Q17 1Q18

Lagged

Current

Provisional

-0.5

1.2

4Q17 1Q18

2.4

-3.3

4Q17 1Q18

29

Price realization copper

6,961

6,768

6,380

5,827

193

388

553

Average LME copper price

Current period price adjustments

Copper gross realized price

Prior period price adjustments

Copper realized price before discounts

TC/RCs, penalties, premiums and

discounts

Average copper realized price

29

US$/t, 1Q18

30

Unit cost of sales per operation, net of by-product credits

Operation (US$ / t) 1Q18 4Q17 1Q17

North Atlantic Operations1 (nickel) 6,756 4,624 6,699

PTVI (nickel) 7,246 6,609 6,821

VNC (nickel) 8,874 8,420 11,232

Onça Puma (nickel) 7,685 7,536 9,341

Sossego (copper) 3,267 3,270 2,941

Salobo (copper) 1,155 679 1,406

1 North Atlantic figures include Clydach and Acton refining costs.

30

31

228.5204.6

(7.4) (6.4) (4.7) (3.7) (1.6) (0.1)

50.060.070.080.090.0

100.0110.0120.0130.0140.0150.0160.0170.0180.0190.0200.0210.0220.0230.0

Averagereference price

1Q18

Quality Premium, discounts & commercial conditions

Provisional prices in prior

quarters

Lagged and current prices

Provisional prices in current quarters

Freight differential

Valeprice 1Q18

US$/t, 1Q18

31

Impact of pricing system adjustments

Price realization –metallurgical coal from Mozambique

32

US$/t, 1Q18

32

Price realization – thermal coal from Mozambique

94.4 (13.5) 0.8 (0.3) 0.5 (0.0) 0.2

82.0

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

90.0

100.0

Averagereference price

1Q18

Quality Premium, discounts & commercial conditions

Provisional prices in prior

quarters

Lagged and current prices

Provisional prices in current quarters

Freight differential

Valeprice1Q18

Impact of pricing system adjustments

33

17%

74%

8%

Hedge to USD USD BRL Others

23%

63%

13%

Development Agencies Capital MarketsBank Loans

Debt position breakdown

Debt breakdown by instrument Debt breakdown by currency

(after hedge)

33

34