The largest producing companies in Brazil are: Vale with 84.52%, CSN with 5.45%, Samarco with 6.29%, MMX with 2.03%, and Usiminas with 1.71%.

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1 Iron Brazil is the world s second largest producer of iron ore, according to the U.S. Geological Survey and UNCTAD (United Nations Conference on Trade and Development). According to these sources, in the top three producers were China with 1.33 billion tons, Australia with 48 million tons, and Brazil with 39 million tons. When one takes into account the average grade of Chinese iron ore, however, production can be considered to be 38 million tons, compared with Australia and Brazil s iron ore. The largest producing companies in Brazil are: Vale with 84.52%, CSN with 5.45%, Samarco with 6.29%, MMX with 2.3%, and Usiminas with 1.71%. The main producing states in Brazil are: MG (67%), PA (29.3%) and others (3.7%). PRODUCTION MILLIONS OF TONS 3, 2,5 2,2 2,24 2,4 32 2, 1,5 1, 5 RESERVES 1,6 1,6 1, Source: USGS , ,34 1,54 1, Estimated production for 212: World: 2,8 and Brazil: 51,8. The measured and indicated reserves of iron ore in Brazil reach 29 billion tons, ranking the Country second with regard to world reserves of 18 billion tons. However, considering reserves in terms of iron contained in the ore, Brazil plays a prominent role at the international arena. This is because the high levels found in hematite ore (6% of iron) in Pará, and itabirite (5% of iron) in Minas Gerais. DEMAND FOR IRON ORE The global market tends to remain dependent on iron ore exports from Australia and Brazil at least until the end of 215. These two countries have a combined market share of 7-72%. Moreover, new projects make a pronounced contribution in the medium term, which will have an influence on the supply and demand curve for the ore supplied to China. According to studies by Credit Suisse, in the medium term we will be faced with technical and logistical challenges because of the declining quality of the ore. 1,9 World 1,92 Brazil

2 BRAZIL S EXPORTS Gross revenues from Brazilian iron ore exports in reached US$ 41.8 billion, which was above revenues in (US$ 28.9 billion). Iron Over the past eight years, Brazil s iron ore exports reached the following levels: BRAZIL'S IRON EXPORTS YEAR VS. WEIGHT (T) 35, 33, 33,829 31, 29, 281,682 31,931 27, 25, 244, ,59 266,4 23, 21, 19, 17, 15, 5,, 45,3, 4,6, 35,9, 31,2, 26,5, 21,8, 17,1, 12,4, 7,7, 3,, 2,925 4,992,745 9,415,82 223,378 11,754,156 (*) Total exports by companies affiliated with SINFERBASE were 287,6 million tons in (**) FOB (Free on Board) Average value for the year Source: MDIC 212 YEAR VS. AVERAGE PRICE** (FOB) 13,887,799 16,538,421 13,246,94 28,911,882 41,817,251 As of November 212 Exports: 294 million tons 33

3 Iron MAIN PURCHASING COUNTRIES OF BRAZIL'S IRON ORE 212 Germany Oman 2.95% 3.6% Italy 4.9% Netherlands 4.56% South Korea 4.97% Argentina 2.95% China 45.78% Japan 9.71% Other 21.93% IRON ORE PRODUCTION INCREMENTS Ranking Company / Year Vale 311,8 36, 425, 425, 2 CSN 2,1 3, 89, 89, 3 Samarco 23,223 24, 3,5 3,5 4 Ferrous Resources - 3, 23, 4, 5 Outros , 2, 6 MMX 7,5 13, 42,5 42,5 7 Usiminas 6,3 12, 29, 29, 8 Namisa - 8, Anglo American - 5,5 35, 35, 1 Mineração Corumbaense - 5, 1, 1, 11 V&M - 5, 5, 5, 12 Arcelor Mittal - 4,3 15, 15, 13 Mhag - 1, 12, 12, 14 Bahia Mineração - - 2, 2, 15 Bemisa - - 2, 5, 16 Manabi , TOTAL 368,923 47,8 751, 89, Source: IBRAM estimativas 212 In thousands of tons 34

4 IRON ORE SPOT PRICE (CFR CHINA) US$ Iron US$ Source: Credit Suisse, the Bloomberg Professional TM Service 212 Average value for the year US$ HISTORICAL AND FORECAST IRON ORE PRICES US$/TON Source: the Bloomberg Professional TM Service, Credit Suisse Iron Ore (62% Fe CFR Tianjin Spot) 213 AVG's quarterly forecast Average value for the year 35

5 Iron China is the largest purchaser of Brazil s iron ore over 45% of Brazil s exports go to China. It is expected that by 22 China will need to import from Brazil at least 4 million tons per year to meet its infrastructure expansion needs. According to Barclays, out of these 4 million tons/year, 5% would be supplied by Australia and at least 3% by Brazil. By way of comparison, 39 million tons was Brazil s total iron ore production in, of which 33.8 million tons were exported. IRON ORE IMPORTS CHINA M/MT 1, Source: Deutsche Bank IRON ORE MARKET PRICING SPOT PRICE US$ 15/T (CFR*) Brazil/Australia 4 Spot Price US$ 15/T (CFR*) Canada/USA/Europe/China , China 1,2 215 Cumulative Tonnage (Millions of tons) Iron Ore Production Cost Curve (US$/t) (CFR*) Cost and Freight (at the designated destination port) 36

6 Brazil and Australia are notorious iron ore producers due to the high content of Fe, the quality of reserves and efficient logistics (first portion of the curve). The second and third highlighted portions of the curve show the composition of ore producers with substandard reserves in small mines and lowly mechanized processes that cause the marginal cost to go up, especially in China. Iron Dreamstime 37