OREANDA-NEWS. August 12, 2011. Vale S.A. (Vale) informs that its Board of Directors approved today the payment of the additional dividend to Vale’s shareholders amounting to USD  3 billion (BRL  4,854,900,000.00), equivalent to USD  0.576780063 (BRL  0.933403176) per outstanding share.

The decision of our Board of Directors in addition to other decisions taken so far implies a record breaking return of cash to shareholders in 2011, including payment of dividends/interest on shareholders’ equity and share buyback, which shows Vale’s very clear commitment to the optimization of capital allocation.

Our strong cash generation and its excellent performance perspectives allow the financing of growth opportunities and the return of capital to shareholders while maintaining a healthy balance sheet, contributing to the creation of shareholder value.

Form of payment

Payment of the additional dividend will be made as follows:

1. Distribution of BRL  4,854,900,000.00 equivalent to BRL  0.933403176 per outstanding common or preferred share, in the form of dividend, based on the number of shares on  August 11, 2011 (5,201,289,353).

The values were obtained from the conversion of the US dollar value into Brazilian reais using the exchange rate for the sale of US dollar (Ptax – option 5 code), as informed by the Central Bank of Brazil on August 10, 2011, of BRL  1.6183 per US dollar, as announced on July 28,2011.

2. The payment will be made from August 26, 2011 onwards. The holders of American Depositary Receipts (ADRs) and Hong Kong Depositary Receipts (HDRs) will receive the payment through JP Morgan, the depositary agent for the ADRs and HDRs, on September 2 and 5, 2011, respectively.

3. All shareholders on these respective record dates will have the right to the dividend payment. The record date for the owners of shares traded on the BM&F Bovespa is August 11, 2011. The record date for the holders of ADRs traded on the New York Stock Exchange (NYSE) and Euronext Paris is August 16, 2011 and for the holders of HDRs traded on the Hong Kong Stock Exchange (HKEx) is at the close of business in Hong Kong on August 16, 2011.

4. Vale shares will start trading ex-dividend on BM&F Bovespa, NYSE and Euronext Paris as of August 12, 2011, and on HKEx as of August 15, 2011.