Vale reports on executive deliberations after dam rupture

Monday, January 28, 2019

Vale statement

Following the rupture of the dam of Dam I of the Corrigo del Bean Mine, in Brumadinho (MG), Vale informs that the Board of Directors, in an extraordinary meeting, on 01.27.2019, discussed the following governance measures:

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Based on Art. 15, 1st of the Bylaws, it established two Independent Committees of Extraordinary Advice ("CIAE") to the Board of Directors, coordinated and made up of a majority of external, independent members, with good reputation and with experience in the topics that they will be discussed, to be indicated by the Council.

The first Independent Committee will be dedicated to the follow-up of the measures aimed at assisting the victims and recovering the area affected by the rupture of the dam, to ensure that all necessary resources are used - "CIAE for Support and Reparation".

The second Independent Committee will be dedicated to the determination of the causes and responsibilities for the breaking of the dam - "CIAE of calculation".

Additionally, it deliberated the following changes in the remuneration and incentives system:

1. The suspension of the Compensation Policy for Shareholders and, consequently, the non-payment of dividends and interest on own capital, as well as any other discussion on the repurchase of shares of its own issue; and

2. Suspension of payment of variable remuneration to executives.

The Board of Directors will remain in preparation and monitoring the evolution of the events related to the rupture of the dam and will take the necessary additional measures.

This press release was published in English using an automated translation system