Vale S.A. — Capital/Financing Update 2012

May 7, 2012

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Press Release

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Vale divests the kaolin business

Rio de Janeiro, May 7, 2012 – Vale S.A. (Vale) informs that it has sold its 61.5% stake on CADAM S.A. (CADAM) to KaMin LLC (KaMin), a privately-owned US company, for US$ 30.1 million.

CADAM is a kaolin producer that operates an open-pit mine in the state of Amapá, Brazil, a beneficiation plant and a private port, both in the state of Pará, Brazil. The mine and the plant are linked via a 5.8kilometer pipeline. Vale will receive US$ 30.1 million for CADAM’s controlling stake, to be paid over a fiveyear period.

The sale of CADAM is part of our continuous efforts to optimize the asset portfolio. Together with the sale of Pará Pigmentos S.A. (PPSA) in 2010, it consolidates Vale’s divestiture of the kaolin business.

Vale’s growth and sustainable value creation strategy encompasses a multilane road, and active portfolio asset management is a very important option to optimize capital allocation and focus management attention.

For further information, please contact: +55-21-3814-4540 Roberto Castello Branco: roberto.castello.branco@vale.com Viktor Moszkowicz: viktor.moszkowicz@vale.com Carla Albano Miller: carla.albano@vale.com Andrea Gutman: andrea.gutman@vale.com Christian Perlingiere: christian.perlingiere@vale.com Fernando Frey: fernando.frey@vale.com Marcio Loures Penna: marcio.penna@vale.com Samantha Pons: samantha.pons@vale.com Thomaz Freire: thomaz.freire@vale.com

This press release may include statements that present Vale’s expectations about future events or results. All statements, when based upon expectations about the future and not on historical facts, 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; (c) 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), the French Autorité des Marchés Financiers (AMF), and The Stock Exchange of Hong Kong Limited, and in particular the factors discussed under “Forward-Looking Statements” and “Risk Factors” in Vale’s annual report on Form 20-F.