OREANDA-NEWS. January 29, 2013. Sesa Goa Limited ("SGL" or the "Company") hereby announces its unaudited consolidated results for the third quarter ("Q3") and nine months ("nine months period") ended 31 December 2012.

Unaudited Consolidated Financial Summary

(in crores, except as stated)

Quarter ended

Nine months ended

Particulars

31 December

31 December

2012

2011

2012

2011

Net Sales / Income from operations

237

2,617

2,264

5,516

Net Profit (PAT) Incl. Associate

497

692

1,983

1,533

Income

Earnings Per Share*

Basic

5.71

7.96

22.81

17.64

Diluted

5.71

7.96

22.81

17.64

- *Non annualised

Unaudited Consolidated Production & Sales Summary

(in million dry metric tonnes, or as stated)

Quarter ended

Nine months ended

Particulars

31 December

31 December

2012

2011

2012

2011

IRON ORE

Production of Saleable Ore

-

3.3

3.7

8.8

Goa

-

3.3

3.7

7.8

Karnataka

-

-

-

1.0

Sales

0.0

5.0

3.1

10.8

Goa

-

4.4

3.0

8.4

Karnataka

0.0

0.6

0.1

2.4

VALUE ADDITION BUSINESS

Production ('000 tonnes)

Pig Iron

83

64

204

190

Met Coke

91

65

237

193

Sales ('000 tonnes)

Pig Iron

62

68

180

191

Met Coke

80

69

212

181

Energy (MU Net Generation / Sales

42

-

116

-

Operating Performance

Iron ore mining operations in both Karnataka and Goa remain suspended due to regulatory restrictions. During Q3, approximately 0.03 million tonnes of iron ore was sold from Karnataka through court monitored e-auctions. There was no production or sale of iron ore during the quarter at the Goa operations.

Government Authorities have ordered suspension of mining operations of all mining leases in the State of Goa, stoppage of mining transport across the State of Goa and suspension of environmental clearances in September, 2012. In October, 2012 the Supreme Court has ordered suspension of all mining operations and transportation of iron ore of the mines in the State. In view of the foregoing, operations at the Company's mines in Goa remain suspended. The Company has filed an application before the Supreme Court seeking modification or vacation of the aforesaid order. The hearing in the Court is yet to commence effectively.

In Karnataka, the Supreme Court allowed A Category mines to resume mining operations, in line with recommendations of the Central Empowered Committee (CEC), and is in the process of resuming B Category mines including our mine in Karnataka. The CEC has approved our Reclamation and Rehabilitation plan at a provisional production capacity of 2.29 mtpa and we expect to commence mining in Karnataka, subject to receiving the court's and other necessary approvals.

Value Addition Business

Production of pig iron and met coke increased by 29% and 40% in Q3 to 82,869 tonnes and 90,664 tonnes respectively as compared to 64,163 tonnes and 64,671 tonnes in the corresponding quarter of the previous year. The increase is primarily on account of the commissioning of new pig iron capacity during Q2 FY2013 (increase of 375 ktpa taking total capacity to 625 ktpa) and the associated metallurgical coke capacity. The new blast furnace operated partially during the current quarter on account of reduced availability of iron ore.

Sales of pig iron were lower by 8% in Q3 to 62,258 tonnes as compared to 68,020 tonnes during the corresponding quarter of the previous year due to unfavorable market conditions while the sales of met coke increased by 15% in Q3 to 79,542 tonnes as compared to 68,931 tonnes in the corresponding quarter of the previous year.

During Q3 and the nine months period, power sales were 42 million units and 116 million units respectively. Power sales are not comparable with the previous periods in view of GEPL acquisition in March 2012, and the recent commissioning of new 30 MW power plant.

Western Cluster Limited, Liberia

During the quarter, SGL acquired the remaining 49% of the outstanding common shares of Western Cluster Limited (thereby taking the equity interest in the project to 100%) for a cash consideration of USD 33.5 million. Over 48,000 meters of drilling has been completed till December 31, 2012 in the three deposits. We remain on track to deliver the first shipment in FY2014.

Financial Performance

During Q3 and the nine months period, net profit including associate income was at ' 497 crores and ' 1,983 crores, including share of profit from Cairn India at ' 669 crores and ' 1,899 crores respectively.

The Company recorded a Net Loss before share in profit of associate for Q3 at ' 172 crores compared to a Net Profit of ' 570 crores in the corresponding quarter of the previous year. Net Profit for the nine months period before associate income was ' 84 crores, a decline of 94% as compared to the

corresponding period in the previous year. During Q3, dividend of ' 192 crores was received from associate, which has not been considered while computing net loss / net profit before associate income for Q3 and the nine months period. The profits declined due to lower sales volume on account of suspension of mining operations in Goa and Karnataka.

Scheme of Amalgamation and Arrangement (Sesa-Sterlite Merger)

The transaction has received approvals of respective companies' equity shareholders, the Stock Exchanges in India and the Competition Commission of India. Approvals of Foreign Investment Promotion Board and the Supreme Court of Mauritius have been received for the merger of Ekaterina Limited with Sesa Goa Limited. Hearings at the High Court of Madras have been completed and the order is awaited. Hearings at the High Court of Bombay at Goa are in progress.