Vale : proposes payment of dividend to shareholders

Rio de Janeiro, September 28, 2015 - Vale S.A. (Vale) informs that its Executive Board approved and will submit to the Board of Directors the proposal for payment of the second installment of the 2015 dividends in the amount of US$ 500 million, equal to US$ 0.097023796 per common or preferred share in circulation as of August 31_st, 2015 (5,153,374,926).

If the proposal is approved by the Board of Directors, Vale will have distributed to its shareholders US$ 1.5 billion in 2015, including the payment of the first dividend installment of US$ 1 billion in April 30_th, 2015. The amount currently proposed for the second dividend installment is half the amount publicly announced on January 30_th, 2015, reflecting the more uncertain scenario for mineral commodities prices and the focus on managing the balance sheet.

Upon payment of the second dividend installment, Vale will have advanced the required annual preferential dividend for 2015, calculated based on Vale's book equity and paid-in capital, which holders of preferred shares are entitled to, pursuant to Vale's bylaws, and will have also advanced an equal amount to holders of common shares. Compliance with the minimum dividend of 25% of net income pursuant to Brazilian Corporate law and Vale's bylaws will be verified at the end of 2015.

The proposal will be submitted to the Board of Directors for approval in the meeting scheduled for October 15_th, 2015 and, if approved, the payment of US$ 500 million will be made as of October 30_th, 2015. The amount in Brazilian reais will be calculated using the Brazilian real/US dollar exchange rate (Ptax-Option 5) published by the Central Bank of Brazil on October 14_th, 2015.

Once the proposal is approved by the Board, all investors who hold Vale shares at the record dates will have the right to the dividend payment. The record date for the owners of shares traded on the BM&FBovespa is October 15_th, 2015. The record date for the holders of ADRs traded on the New York Stock Exchange (NYSE) and Euronext Paris is October 20_th, 2015 Eastern Standard Time and for the holders of HDRs traded on the Hong Kong Stock Exchange (HKEx) is the close of the business day in Hong Kong on October 20_th, 2015.

Vale shares will be traded ex-dividend on BM&FBovespa, NYSE and Euronext Paris as of October 16_th, 2015 and on the HKEx as of October 19_th, 2015.

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