BSGR Guinea was granted a 25 year mining license, renewable for 10 year periods thereafter, in respect of Zogota, Simandou South. BSGR Guinea is further expediting its exploration programme in Simandou Blocks 1 and 2, and has commenced a feasibility study which is scheduled for completion by no later than Q1 of 2012.

Vale and BSGR will implement the Zogota project and conduct a feasibility study for Blocks 1 & 2 with the creation of a logistics corridor for shipment through Liberia. In order to be granted the right to ship through Liberia, the joint venture is committed to renovate 660 km of the Trans-Guinea railway for passenger transportation and light commercial use. Vale will be responsible for management control and marketing of the joint venture with the exclusivity for the off-take for all iron ore produced.

The project involves USD6-8Billion of capex all committed & underwritten by Vale. Targeted production of 50-100 mtpa of iron ore, dependent on market conditions.

A new website, representing the new JV company, will be launched in due course.

For further information, please contact:

Julia Frischtak of Vale
julia.frischtak@vale.com
Tel +55 213 8144 201

Nina Mintz of Financial Dynamics
nina.mitz@fd.com
Tel: +33 147 036 810

Jon Simmons of Financial Dynamics
Jon.Simmons@fd.com
Tel +44 207 831 3113.

For further information on the BSGR group, please visit BSG Resources.