PT Vale Indonesia Tbk : announces Signing of Divestment Definitive Agreements

For immediate release

PT Vale announces Signing of Divestment Definitive Agreements

June 19, 2020 - PT Vale Indonesia Tbk ("PT Vale", IDX Ticker: INCO) was informed that its shareholders, Vale Canada Limited and Sumitomo Metal Mining Co., Ltd have signed the definitive agreements ("Agreements") for the sale of a 20% stake in PT Vale Indonesia to PT Indonesia Asahan Aluminium (Persero)1 ("Inalum"), in compliance with PT Vale's divestment obligation under the Contract of Work dated 15 January 1996 with the Government of Indonesia (as amended) ("COW").

The signing of the Agreements is a continuation of the Heads of Agreement which was previously signed on 11 October 2019. Based on the COW, divestment is one of the requirements for PT Vale's continuity of operations beyond 2025.

The final terms and conditions were settled in the Agreements and include the secondary purchase of 20% of PT Vale shares by Inalum. Upon completion of the transaction in accordance with the terms and conditions of the Agreements, Inalum will have acquired 20% of PT Vale shares, being 14.9% from VCL and 5.1% from SMM. Vale and SMM will then have a stake of 44.3%2 and 15.0% in PT Vale (respectively), totalling a 59.3% participation.

For its stake, VCL and SMM will receive approximately IDR5,525 billion or US$371 million3 in cash upon completion, which is expected to happen by the end of 2020.

The signing of the Agreements positions PT Vale well to contribute to the development of Indonesia and reinforces PT Vale's long-standing commitment to value-added processing of nickel resources, sustainability and local empowerment in the country.

• 1 Recently renamed MIND ID.

• 2 The 44.3% stake Vale will have in PT Vale after this transaction includes the participation through VCL (43.8%) and Vale Japan

Limited (0.5%).

3 Share price of IDR2,780/share

For further information, please contact: Bernardus Irmanto, Chief Financial [e-mail] or visit our website atwww.vale.com/indonesia

PT Vale Indonesia Tbk

Jakarta: The Energy Building 31 st Floor SCBD Lot 11 A, Jl. Jend. Sudirman Kav 52-53, Jakarta 12190, Indonesia. T. (62) 21 524 9000 F. (62) 21 524 9020

Makassar: Jl. Somba Opu No. 281, Makassar 90001, Indonesia. T. (62) 411 873 731 F. (62) 411 856 157

Sorowako: Plant Site Sorowako, Kabupaten Luwu Timur 92984, South Sulawesi, Indonesia. T. (62) 21 524 9100 F (62) 21 524 9565