1. The Executive Committee of Vale will announce by January 31 of each year, a proposal to be approved by the Board of Directors, of a minimum dividend to be paid to Vale shareholders during the year. The minimum value announced, expressed in US dollars (USD), will be established according to the Company's expected performance in the year of distribution.
2. The proposal will establish payment in two semiannual installments, under the form of dividends and/or interest on shareholders equity, to be paid respectively in April and October.
3. In case that the proposal is approved, the value established will be paid in Brazilian Reais (BRL). The amount will be obtained from the conversion of the USD amount to BRL using the USD/BRL exchange rate bid value (Ptax – option 5) informed by the Central Bank of Brazil the day prior to the Board meeting that will decide upon the declaration and payment of dividends.
4. During the year, the Executive Committee of Vale may propose to its Board of Directors, based on the analysis of Vale´s cash position evolution, the payment of an extra installment, complementary to the minimum dividend announced in January. If approved by the Board of Directors, this extra installment can be paid together with any of the other two installments previously established.