TO DO WHAT MUST BE DONE THIS IS OUR COMMITMENT.

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2 TO DO WHAT MUST BE DONE THIS IS OUR COMMITMENT. We deeply regret the Fundão Dam burst on November 5 th, 2015 in Mariana (MG) and its impact on the people, communities and the environment. We understand that we are responsible for the major task of trying to do what is right. To reiterate this commitment, an agreement between Samarco, its shareholders, Vale and BHP Billiton, the Federal government and also Minas Gerais and Espirito Santo state governments was signed in early March. The agreement provides for the establishment of a private law Foundation that will be responsible for implementing about 40 programs gathered in two main work fronts, one socio-economic and the other socio-environmental. The document focuses on the emergency actions that are being adopted by Samarco since November and proposes new projects. Prior to the signing of the agreement, Samarco had already been mobilizing all necessary efforts to meet the affected people s needs and to mitigate the environmental consequences. These actions continue and are now also part of the agreement. 01

3 TO DO WHAT MUST BE DONE THIS IS OUR COMMITMENT. Overview All families who have lost their homes are already installed in temporary houses or temporary accommodation chosen by them. Possible locations for the reconstruction of the Bento Rodrigues and the Paracatu de Baixo communities are already being identified and will be chosen with community participation. All students from the affected communities in the Mariana and Barra Longa region have concluded the 2015 school year and are up to date with the 2016 school year. 719 hectares were revegetated along the Doce, Carmo and Gualaxo rivers. The measure protects the riverbank areas and prevents sediments from being deposited into the riverbeds. Water quality is being monitored at 118 different sites along the Doce River and in marine areas near the mouth - 34 sites at sea and another 84 along the Doce River. All 7 damaged bridges were rebuilt and access to communities was fully reestablished emergency financial assistance cards have been distributed to affected individuals. Dams are stable, with real-time monitoring. *Data updated on 02

4 THE AGREEMENT Commitment and Transparency The Agreement was signed on March 2 ND, 2016 between Samarco and its shareholders, Vale and BHP Billiton, the Federal government and the state governments of Minas Gerais and Espirito Santo. The document focuses on the socio-environmental and socio-economic compensation actions, maintaining what is being adopted by Samarco since November, besides establishing clear commitments, defining deadlines for the submission and execution of any new projects and also setting transparency and accountability rules. The affected populations will be able to monitor all projects, external audits will occur and an ombudsman service will be created to attend to the citizens demands. We understand that we are responsible for the major task expressed in the agreement and we will make every effort to comply with our obligations. Samarco has a great commitment to the impacted people and environment and will give full support to the Foundation and to the implementation of the programs in all work fronts, as provided in the signed document. Roberto Carvalho, Director-President-in-office. The Foundation The agreement provides for the creation of a Foundation that will be maintained by Samarco and that should be created within 120 days. Until it is in operation, the company will continue to perform all the social and environmental restoration actions in progress. Investment BRL4.4 billion When First three years BRL240 million per year for compensatory actions From 2016 to 2030 Between BRL800 million and BRL1.6 billion Between 2019 and 2021 BRL500 million - basic sanitation fund for affected municipalities Annual contributions will be defined according to the forecast of the annual progress. By the end of 2018 Starting in

5 THE AGREEMENT Socio-economic and socio-environmental highlights SOCIO-ENVIRONMENTAL COMMITMENTS Availability of resources, as compensation of BRL500 million, for certain affected municipalities, to use in the preparation and execution of plans for sewage collection and treatment and landfills. Compensatory recovery of 5 thousand springs to be defined by the Basin Committee of the Doce River. Recovery of Permanent Protection Areas (PPAs) of the Doce River and tributaries through the compensatory reforestation of 10 thousand hectares and conduction of natural regeneration of 30,000 hectares in a period of ten years in the amount of BRL1.1 billion. SOCIO-ECONOMIC COMMITMENTS Reconstruction of the affected locations, such as Bento Rodrigues, Paracatu de Baixo (Mariana) and Gesteira (Barra Longa), ensuring their participation in the dialogue process with the affected communities to define measures for the recovery or relocation. Running a compensation program and compensations through coordinated negotiation, designed to repair and compensate the people affected, with optional adhesion. Cultural material recovery and preservation of the cultural heritage affected. Implementation of actions for the recovery of economic and productive activities affected, such as agriculture, fishing, services and commerce. Implementation and maintenance of measures to support the indigenous people affected. Creation of permanent channels of communication and dialogue with the community, as well as carrying out agendas to present the progress and results of the programs to be implemented. The health, social protection and education programs for the restoration of affected public services and the follow up of individuals and families affected are foreseen. 04

6 SOCIO-ECONOMIC ACTIONS Family housing All affected families are already installed in homes or other types of accommodation chosen by them, in Mariana and Barra Longa. The transferring of the families to the new housing followed the prioritization criteria and methodology defined by the Commission of Representatives of the Affected Communities. Steps for the delivery of houses to families Occupation, Work and Income On all work fronts, priority is given to hiring locals. In March, 220 young people concluded training in construction and gastronomy technical courses. In Mariana and Barra Longa, from the 312 people eligible for work, 225 were hired through Samarco s Occupation, Work and Income Front. 05

7 SOCIO-ECONOMIC ACTIONS Reconstruction Amongst the major reconstruction actions is the setting, still in the month of April, of the new district of Bento Rodrigues location. Residents will decide on the location of all common use equipment, such as squares and religious temples. Thenceforth, urbanization works will be initiated. Steps for reconstruction Definition. of the land Design, with the community, the new plant of each district. In this stage, the conceptual project, defining the localization of equipment, such as churches, schools, health centers, parks and soccer fields, will be elaborated. The criteria to define the size of the land and construction standards of the homes will also be decided still without individual decisions. Individual dialogue with the families to decide details, such as location and structure of each residence and finishing standards. Once the individual agreements are closed, the reconstruction will start. Moving and monitoring the families in new homes. 06

8 SOCIO-ECONOMIC ACTIONS Financial Support 547 financial aid cards were delivered to families in the communities of Mariana, Barra Longa and Rio Doce (MG); financial aid cards were directed to fishermen and riverines along the Doce River in Minas Gerais and in Espirito Santo; The aid includes the monthly payment of a minimum wage to each person in the household who has suffered income loss per work activity as a direct result of the dam burst, plus an additional 20% of the minimum wage for each dependent and a basic foods hamper. Financial aid cards are given to communities and riverine population 07

9 SOCIO-ECONOMIC ACTIONS Infrastructure 100% of all access ways clear. All 7 damaged bridges rebuilt and ready for use. In Barra Longa 57 houses have been renovates and another 39 are under the process. 24 of all commercial establishments have been renovated and another 8 are under the process. Bridge over the Gualaxo river, une of the seven bridges rebuilt by Samarco Rural property 170 rural properties were mapped and integrate the Agribusiness Reestablishment Plan, which aims at supporting producers so that each property affected by the accident is able to regain sustainability. Teams consisted of zootechnicians, agronomists and farm technicians are performing soil analysis of the properties, as well as soil preparation and correction with the use of limestone and fertilizers, crop cultivation and weeding. Approximately 122,000 meters of fencing has been accomplished on affected rural properties. 08

10 SOCIO-ECONOMIC ACTIONS Animals More than 6,900 animals have been attended to by Samarco. They are currently under the company s care. 1,178 of them are large animals. Over 2,361 tons of inputs have been distributed to animals in Barra Longa, Pedras, Barretos, Paracatu de Baixo, Paracatu de Cima, Camargos, Ponte do Gama, Campinas, Mariana, Bento Rodrigues e Águas Claras. Rescued and assisted animals April 20th,

11 SOCIO-ECONOMIC ACTIONS Health Samarco has hired 27 qualified professionals doctors, psychologists ans other to assist the people impacted. Health professionals were hired in Mariana and Barra Longa 10

12 SOCIO-ECONOMIC ACTIONS Education All students from the affected schools, in Barra Longa and in the Mariana districts, have completed the 2015 school year and have started 2016 up to date, as planned. The company carried out a number of renovations in order to receive students and also offered school transportation. The students received kits comprising of backpack, pencils, crayons, pens, paint, play dough, and other school supplies. Teachers and students received psychological support. Patrimony Approximately 400 sacred art pieces rescued from the Chapels of São Bento and Nossa Senhora das Mercês (Bento Rodrigues), Santo Antônio (Paracatu) and Nossa Senhora da Conceição (Gesteira). 282 training sessions were given to people involved in the rehabilitation activities, including members of the community, in order for them to be able to handle any findings. All students from the impacted schools have started the 2016 school year 11

13 ENVIRONMENTAL ACTIONS Revegetation To date, 719 hectares over the rivers Doce, Carmo and Gualaxo in Minas Gerais were revegetated. This stage of the work promotes the improvement of soil conditions and allows future recovery actions, the minimization of dust dispersion and assists in the containment of sediments reaching the watercourses. BEFORE AFTER 12

14 ENVIRONMENTAL ACTIONS Water Water supply reestablishment in all cities affected by the passing of the turbidity plume. Coagulant usage in water treatment plants. The Doce River s color and turbidity level recovery Daily monitoring of the river s - 22 points set by IBAMA. More than 500,000 analyzes performed, generating 25,000 reports. Current results indicate that the river s water quality is similar to the patterns observed in 2010, as indicated in the December report by the Brazilian Geological Service (CPRM) and the National Water Agency (ANA). Water Monitoring Water quality monitoring at 118 points along the Doce River and in the marine areas near the river mouth - 34 points at sea and 84 points on the Doce River. Turbidity plume monitoring by means of overflights (3 times per week). 118 monitoring sites along the Doce River and in the ocean 13

15 ENVIRONMENTAL ACTIONS Sonar In March, the second phase of the presence of fish in the Doce River region monitoring took place. The aim was to continue observing and mapping the presence of marine fauna in the water course, as carried out in the first expedition held in December The existence of shoals was reconfirmed. Second sonar expedition held in March 14

16 DAMS Monitoring Real-time radar, laser scanning, camera, water level meter (piezometer) and accelerometer monitoring, among others. New Mining Dam Emergency Action Plan completed, including the installation of sirens along the Mariana and Barra Longa communities. Drills execution of assisted emergency drills, in March, 2016, with participation of 1,327 residents of the Mariana and Barra Longa communities. Conducted by the state and municipal Civil Defenses. Monitoring room at the Germano Unit 15

17 DAMS The Germano and Santarém dam structures are stable. Structural reinforcement works completed - Selinha dyke and Santarém dam. Three containment dykes built to prevent tailings from reaching rivers Carmo, Gualaxo and Doce. Permanent contention is being built in this drought period. BEFORE AFTER April 20th,

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