RONDON PROJECT

Brazil was a very competitive aluminium player, but it has changed.

Domestic consumption Metal production Metal export

1,0

00 t

onnes

0

1,000

2,000

1951 55 60 70 80 82 83 84 85 86 90 94 96 97 99 2000 01 02 03 04 05 06 07 08 09 10 11 12 13 14

1.4 million

Temporary Shutdown AlcoaShutdown Novelis (MG)

0.8 million

0.3 million

ALCAN

CBA

ALCO

AABAL

Bra

sil

–M

eta

l export

ALU

MAR

ALBRAS

Pla

no C

ruzado

Energ

y f

ree

mark

et

Pla

no R

eal

Curr

ency

devalu

ati

on

Energ

y r

ati

onin

g

Fundati

on

of

GT

Inte

rmin

iste

rial

do A

lum

ínio

(G

TA)

VALESU

L

Curr

ency

valu

ati

on

Worl

d c

rise

Novelis

(BA)

Vale

su(R

J)

Shutd

ow

n

15

Temporary shutdown Alumar (MA)

Shutd

ow

n N

ovelis

(MG

)Tem

pora

rysh

utd

ow

n A

lcoa

Source: ABAL

10% of annualgrowth

Brazil has a large bauxite resource base and is supportive of the mining industry.

| Brazil has the world’s third largest bauxite resource base - most remains unexplored;

| Mining industry is supported by governments and local communities.

BAUXITE DEPOSITS

JamaicaGuyana

Suriname

0,8 Bt

1,2 Bt

0,6 Bt

China

India

Vietnam

Indonesia

Australia

6 Bt

3 Bt

0,5 Bt

1 Bt

2,1 Bt

Guinea

7,4 Bt

Brazil

5 Bt

Source: US Geological Survey - Mineral Commodity Summary (2014) and VM Market Intelligence

North region represents86% of Brazil’s bauxite resource.

PARAGOMINAS

MRN

AND JURUTI

BARRO ALTO

BAHIA

POÇOS DE CALDAS

3.0 Bt

1.3 Bt

0.1 Bt

0.1 Bt

0.4 Bt

0.1 Bt

ZONA DA MATA

Para State

Paragominas

Province

Pará State

5 BILLION TONNES OF BAUXITE

3 billion tonnes located in Paragominas region

Bauxite tenements

Mineralized bauxite regions

Source: VM analysis

Rondon is a world class deposit witha large bauxite resource of 1.6 Billion Tonnes,almost 32% of Brazil or 53% of China Resources.

GOIANÉSIA DO

PARÁ

RONDON DO PARÁ

DOM ELISEU

Ulianópolis

Marajoara

Rondon

Nordeste

Goianésia Sul

Rondon

Norte

Rondon

Sul

VM – 5 Exploration Application

JV RTA –16 Exploration Permits

VM – 29 Mining Concessions

VM – 16 Exploration Permits

Mineralized bauxite plateaus

10 km

PARAGOMINAS

City

Bloco Norte

Paragominas

Province

*Considers only Rondon Norte and Rondon Sul because they have a Feasibility Study (FEL3).

| Resources and potential of 1.6 billion tonnes of bauxite

| Reserves of 300 million tonnes of bauxite (1)

| JORC Indepent Audit by AMEC

| Free of organics

| No contaminants

| Sweet bauxite (100% gibbsite)

| 3 Pilot Mines

| Metallurgical tests: CSIRO, etc

Rondon deposits are extremely continuous withkilometers of bauxite along the plateaus.

ore oreore

INCREASING GEOLOGICAL KNOWLEDGE AND CONFIDENCE

Cross Section – Vertical Exaggeration 150x

Clayey Cover (Belterra Clay)

Clayery Bauxite

Massive Bauxite

Ferruginous Bauxite

Ferruginous Laterite

Nodular Bauxite

Mottled Zoze

Rondon Norte

Because of the continuity of the ore theInferred to Measured conversion is very high.

800mQ

Inferred

400mQ

Indicated

200mQ

Measured

JORC Code Independent Audits at Rondon Norte Plateau.

Experienced geologists managing drilling, sampling, QAQC, geological modeling and resource estimation. Detailed procedure

documentation available on request for most procedures. No fatal flaws or critical issues.

Technical excellence observed in many areas.

“

”AMEC did not identify any key or significant issues related to Geology and Mineral Exploration. Some

minor issues had been already resolved at the time of the Audit. AMEC acknowledges that this work, which has been audited several times during the last four years, can be considered as a reference

for mineral exploration worldwide.

October/2011

“

”

September/2013

Bauxite

Bauxite

Mine 2

Mine 2

Mine 2

Overburden

~12 meters

Bauxite ore

~3 meters

Mine 2

Mine 1

Bauxite

Bauxite

20 km

375 Mt @ 42.8% Al2O3, 3.9% SiO2

Rondon Norte

273 Mt @ 40.1% Al2O3, 3.9% SiO2

Rondon Sul

Mine 3

Mine 2

Mine 1

3 Pilot mines open to support metallurgical test ~1,000 tonnes of bauxite each.

Feasibility Study (FEL3) for Rondon Norte and Rondon Sul was prepared by WorleyParsons and SRK whichresults in more than 70 year LOMP @ 9 Mtpa.

Bauxite

Bauxite

Bauxite

Bauxite

0,0

5,0

10,0

15,0

20,0

25,0

30,0

0,0

0,5

1,0

1,5

2,0

2,5

3,0

01 06 11 16 21 26 31 36 41 46 51 56 61 66 71

Ove

rbu

rde

n(m

) &

Stri

pp

ing

Rat

io(m

3 /t)

Bau

xite

Ore

(m

)

YearBauxite Ore (m) Overburden (m) Stripping Ratio (m3/t)

0,0

2,0

4,0

6,0

8,0

10,0

12,0

14,0

16,0

18,0

20,0

0,0

5,0

10,0

15,0

20,0

25,0

30,0

35,0

40,0

45,0

50,0

01 06 11 16 21 26 31 36 41 46 51 56 61 66 71

Re

acti

veSi

lica

(%)

&A

/S R

atio

Ava

ilab

leA

lum

ina

(%)

YearAvailable Alumina (%) Reactive Silica (%) A/S Ratio

375 Mt @ 42.8% Al2O3, 3.9% SiO2

Rondon Norte

273 Mt @ 40.1% Al2O3, 3.9% SiO2

Rondon Sul

20 km

Rondon is one of the most competitive bauxite projects in the world. It will be the fourth bauxite mine in Pará State.

| Expansion Potential to 18 Mtpa

| Located in the 3rd largest bauxite region in the world

| World class mineral resources of 1.6 billion tonne

| Free of organics

| No contaminants

| A/S ratio average ~ 16 for the first 10 years

| Feasible logistic solution

| Build a 140km-branch line to Carajás Railway

| Exports through Itaqui Port, located in São Luis,

Maranhão State

| Competitive CAPEX per tonne

| 97 USD / tonne of annual capacity of washed

bauxite (Feasibility Study)

| 1st Quartile Site Cash Cost

| 9 USD / tonne of washed bauxite

| Feasibility Study (FEL3) WorleyParsons

| Project supported by the local community and the

government

MRN18 Mtpa bauxite

Juruti4.5 Mtpa bauxite

Paragominas10 Mtpa bauxite

Alunorte6 Mtpa alumina Itaqui Port

Alumar3.5 Mtpa alumina

Rondon9 Mtpa bauxite

Bauxite Mine

Alumina Refinery

Port

Legend:

Railway

Capacity

9 Mtpa

Washed Bauxite to export

Expansion

18 Mtpa

Pará State Maranhão State

Rondon will use the strip mining method which is cost competitive and ensures the full environmental recovery. This method is the same used in other bauxite mines in Pará State.

1 - Debushing 2 - Topsoil stocking 3 - Topsoil removal

4 – Overburden removal 5 – Bauxite mining 6 – Dewatered tailing disposal

7 – Topsoil recovery 8 – Revegetation 9 – Crusher feeding

First 10 years ore over 2 meters

First 10 years

overburden

~14 meters

Beneficiation comprehends crushing and washingto remove the clay (kaolinite) from the bauxiteto improve the A/S ratio.

Crushers

Washing Plant

Bauxite Clay (Tailing) DewateringRondon doesn't have dams

The tailing goes back to the mined areas after dewatered

Crushed Stockpile

ROM Stockpile

Reject thickners

The layout allows the expansion from 9 to18 Mtpa washed bauxite.

Beneficiation and Rail Yard

Alumina Refinery

(future)

The design considers:

•2 lines of bauxite beneficiation with 9 Mtpa capacity;

•2 stages of alumina refinery with 3 Mtpa capacity (or 4 lines of 1.5 Mtpa).

500 meters

The route of the branch line does not have native people or environmental issues. The land is mostly flat with no requirements for tunnels or bridges.

Mine

Legend:

Railway Branch

City

Railway

Federal Road

Rondon Project

9 Mtpa Capacity

18 Mtpa Expansion

Branch Line

140 km Rondon

to Açailândia

Carajás Railway

550 km Açailândia

to Itaqui Port

Itaqui Port

Pará State Maranhão State

Norte Sul Railway

50 km

Dom Eliseu

Rondon do Pará

Açailândia

Branch Line has ~140 km, the rail yards add more ~6 km, the maximum gradient will be 1% in export direction, the track

gauge is 1,600 mm (5 ft 3 in), the same as other Federal Concessions like Carajás Railway and Norte Sul Railway

Itaqui Port handled 21.8 Mtpa of cargo in 2015. Berth 99 project will have more than 18 meters of draft,for Capesize Vessels with 135,000 tonnes.

Projected Berth 99

Itaqui Port

106 105 104103 102

101

100

99

Projected Berth 99

Seaborne world bauxite supply routes.

Bauxite supply from Brazil

to Midle East or to China is a

competitive alternative

Brazil

Guinea

Jamaica

Suriname/Guyana

India

Australia

Indonesia

Malaysia

Others

Thanks!CARLOS GATTI

carlos.gatti@vmetais.com.br

Tel 55 11 98777 6776

Av. Eusébio Matoso, 1375 – 10º andar05423-905 | São Paulo | SPwww.vmetais.com.br

Este relatório é confidencial e não deve ser repassado a terceiros. Qualquer dúvida, favor entrar em contato com a Comunicação Corporativa.