Vale S A : Press Release - Vale informs on estimates update

Press Release

Vale informs on estimates update

Rio de Janeiro, December 7th, 2022 - Vale S.A. ("Vale") informs that it has updated its estimates and that these must be considered as such:

Estimated production volumes

Year	2022	2023	2026	2030+
Iron ore (Mt)	~310	310-320	340-360	>360
Pellets & briquettes (Mt)	~33	36-40	50-55	~100
Nickel (kt)	~180	160-175	230-245¹	>300²
Copper (kt)	~260	335-370	390-420	~900

¹Including

indirect

expos ur e

to total

nickel

sourced

from

PTVI

mines

for

Bahodopi

and

Pomalaa.

²Including

indirect

expos ur e

to total

nickel

sourced

from

PTVI

mines

for

Bahodopi,

Pomalaa and Sorowak o HPAL.

All-in components

Year

2022

2023

2026

2030+

Iron ore Premiums¹ (US$/t)

~7

~8

8 - 12

18 - 25

Iron ore C1 cash cost - ex 3rd party purchase²

19.5 - 20

20 - 21

-

-

(US$/t)

Iron ore All-in costs3 (US$/t)

49

47

42

-

Nickel All-in costs4 (US$/t)

13,000

13,000

10,000

-

Copper All-in costs5 (US$/t)

4,000

3,200

2,600

-

¹ Including

iron ore fines quality adjustm ent

and iron

ore

fines pellet

adjustment.

² 2022 BRL/USD

exchang e

rate

of

5.16

and

2023

BRL/USD

exchang e

rate of

5.20.

In 2023

includes tailing

filtrati on plants

ramp-up,

health

& safety, dam

managem e nt ,

geotechnic s, risk and

sustainability

costs.

3 Approxi m at el y

all -in

costs

after

by-product s

before

sustaining

investment.

Decreas e

in next

years

consider s

higher

premium s

and share of

agglomer at ed

products, lower

bunker costs,

higher volumes, and

fixed cost

dilution.

4 Approxim at el y

all -in

costs

after

by-products

before

sustaining

investment.

Decreas e

in next

years

consider s

higher

volume

of premium

materials

in the mix

including

by -

product s,

and

fixed cost dilution

(VBME and

CCM 1

ramp-up),

Onça

Puma

2nd Furnac e.

5 Approxi m at el y

all -in

costs

after

by-products

before

sustaining

investment.

Decreas e

in next

years

consider s

higher

volumes

and fixed

cost dilution,

Salobo

3

ramp-up

and

producti vity

improvem ent s.

Potential contribution of EBITDA generated by higher Iron ore premiums and volumes

In Ferrous business, higher iron ore all-in premium and volumes could potentially contribute with US$ 4 billion EBITDA by 2026, based on 3Q22 Iron Ore EBITDA margin of approximately US$ 50/t and expected iron ore volumes of approximately 310Mt in 2022.

Mineral exploration R&D expenses

Year		2022		2023	2024	2025	2026
Exploration (US$ million)	~170		~180	~250	~300	~350
Capital expenditure (US$ billion)
Year	2022	2023		2024-2027
(average per year)
CAPEX (US$ billion)	~5.5	6.0			6.0 - 6.5

Press Release

Brumadinho & Mariana commitments (US$ billion)¹

Year	2022	2023	2024	2025	2026	2027+
Decharacterization (US$ billion)	0.4	0.4	0.5	0.5	0.5	2.44
Brumadinho agreements² (US$ billion)	1.4	1.1	0.9	0.6	0.9	0.0
Incurred expenses (US$ billion)	0.6	0.5	0.5	0.4	0.3	0.35
Samarco & Renova³ (US$ billion)	0.4	1.9	1.0	0.3	0.1	0.16
Total (US$ billion)	2.8	3.9	2.9	1.8	1.8	2.8

1	Amounts	stated	include	inflation adjustment s, net of	judicial deposits and	without discount	to present value,	consideri ng averag e BRL/USD exchang e rate of 5.4066.
2	Includes	Integral	Reparati on Agreem ent,	individual,	labor and emergenc y	indemnific ati ons,	tailing remov al	and containm ent works.
3	Includes	Germano	dam	dechar act eriz ati on	provision.
4	Related	to 2027- 2035.
5	Related	to 2027.
6	Mainly	related	to	2027.

Free cash flow

Vale's 2026 free cash flow sensitivity ranging from US$ 5.7 billion to US$ 12.4 billion, depending on the following assumptions: (i) annual average iron ore pricing ranging from US$ 90/dmt to US$ 110/dmt; (ii) annual average nickel price (LME) ranging from US$ 7,500/t to US$ 10,500/t; (iii) annual average copper price (LME) ranging from US$/t 20,000/t to US$ 24,000/t.

Vale informs that it has discontinued all previous guidance.

Vale clarifies that the information provided in this document represent only an expectation, hypothetical data that by no means constitute a promise of performance by Vale and/or its management. The estimates presented involve market factors that are beyond Vale's control and, therefore, can be subject to new changes. Additionally, Vale informs that will file again in due course t he item 11 of its Reference Form, in the period required by the Resolution CVM number 80.

Gustavo Duarte Pimenta

Executive Officer of Investor Relations

For further information, please contact:

[e-mail]

Ivan Fadel: [e-mail]

Mariana Rocha: [e-mail]

Samir Bassil: [e-mail]

This press release may include statements that present Vale's expectations about future events or results. All statements, wh en based upon expectations about the future, involve various risks and uncertainties. Vale cannot guarantee that such statements will prove correct. These risks and uncertainties include factors related to the following: (a) the countries where we operate, especially Brazil and Canada; (b) the global economy;

1. the capital markets; (d) the mining and metals prices and their dependence on global industrial production, which is cyclical by nature; and (e) global competition in the markets in which Vale operates. To obtain further information on factors that may lead to results different from those forecast by Vale, please consult the reports Vale files with the U.S. Securities and Exchange Commission (SEC), the Brazilian Comissão de Valores Mobiliários (CVM) and in particular the factors discussed under "Forward-Looking Statements" and "Risk Factors" in Vale's annual report on Form 20-F.