OREANDA-NEWS. October 18, 2011. Vale S.A. (Vale) informs that its Board of Directors approved today the payment of the second installment of the 2011 minimum dividend of USD  2.0 billion (BRD  3,507,200,000.00), and an additional dividend of USD  1.0 billion (BRD  1,753,600,000.00). Thus, the amount to be paid is USD  3.0 billion (BRD  5,260,800,000.00), equivalent to USD  0.583750002 (BRD  1.023664003) per outstanding common or preferred share.

The decision of our Board of Directors, in addition to other decisions taken so far implies a record dividend distribution in 2011, of USD  9.0 billion. In addition to the record dividend distribution, there is a share buyback program of up to USD  3.0 billion, expected to run until November 25, 2011. The return of cash to shareholders of up USD  12.0 billion shows our commitment to optimize the capital allocation and maximize the shareholders return.

Form of payment

Payment of the additional dividend will be made as follows:

1. Distribution of BRD  5,260,800,000.00 equivalent to BRD  1.023664003 per outstanding common or preferred share, in the form of dividend, based on the number of shares on October 13, 2011 (5,139,186,279), being BRD  3,259,936,860.93 in the form of interest on capital and BRD  2,000,863,139.07 in the form of dividends, equivalent to, per share, USD  0.361729803 (BRD  0.634329383) as interest on capital and USD  0.222020199 (BRD  0.389334620) as dividends.

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 October 13, 2011, of BRD  1.7536 per US dollar, as announced on January 31, 2011 and September 26, 2011.

2. The payment will be made from October 31, 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 November 7 and 8, 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 October 14, 2011. The record date for the holders of ADRs traded on the New York Stock Exchange (NYSE) and Euronext Paris is October 19, 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 October 19, 2011.

4. Vale shares will start trading ex-dividend on BM&F Bovespa, NYSE and Euronext Paris as of October 17, 2011, and on HKEx as of October 18, 2011.