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VALE Press Release Vale informs on estimates update Rio de Janeiro , November 29th , 2021 - Vale S.A. ( Vale ) informs that it has updated its estimates and that these must be considered as such : Estimated production volumes Production Iron Ore ( Mt ) 1 2021E 2022E 315-320 320-335 Production 2022E Pellets ( Mt ) 34-38 2023E onwards 50+ Production 2022E Copper ( kt ) 330-355 2023-2026E 390-420 After 2027 450+ Production 2022-2023E After 2024 Nickel ( kt ) 175-190 200+ Iron ore Business estimated costs : C1 cash cost without 3rd party purchase costs of : ( i ) approximately US $ 17 / t in 2021 , ( ii ) between US $ 15.5 / t US $ 16.0 / t in 20232 and ( iii ) between US $ 14.0 / t - US $ 15.0 / t once Vale reaches production level of 400 Mtpy³ . - -Unitary maritime freight costs of approximately US $ 19 / t in 2021 and of approximately US $ 16 / t in the medium term4 . - EBITDA break - even of iron ore and pellets 5 of approximately US $ 45 / t in 2021 and of approximately US $ 35 / t when Vale reaches the production level of 400 Mtpa . Iron ore premium6 Premium7 US $ / t 2021 -6 2023-2026 8-12 After 2029 12-18 CAPEX estimate US $ billion 2022E Vale Total8 5.8 Next year's average 5.0-6.0 1 Includes third party purchase , run - of - mine and feed for pelletizing plants . 2 Assuming : ( i ) US $ 0.7 / t decrease of fixed cost dilution ; ( ii ) US $ 1.0 / t removal of inefficiencies and productivity gains ; ( iii ) US $ 0.5 / t increase with filtrations , dry concentration , geotechnical analysis , drillings and others compared to 2021 and ( iv ) annual average FX BRL / USD of 5.00 . 3 Assuming : ( i ) US $ 1.0 / t reduction in fixed cost dilution , ( ii ) US $ 1.0 / t reduction in inefficiency removal and productivity gains relative to 2023 and ( ii ) annual average FX BRL / USD of 5.00 . 4 Assuming : US $ 2.4 / t decrease related to lower spot freight and bunker fuel costs . 5 Assuming : ( i ) approximately US $ 3 / t reduction in C1 without third party purchases , ( ii ) approximately US $ 3.0 / t reduction due to higher maritime freight efficiency , ( iii ) premiums between US $ 2 / t and US $ 6 / t ( iv ) approximately US $ 2.5 / t reduction in stoppage expenses , expenses dilution , distribution costs and moisture adjustments and ( v ) iron ore price level in 2021 and its consequent impact on costs and royalties equal to the year in which Vale produces 400 Mt. 6 Vale's weighted average iron ore premiums for the current and future portfolio , including IOCJ , BRBF , pellets , iron ore briquettes and others , on top of 62 % Fe benchmark index . 7 Considering different steel production scenarios with steel margins between $ 25-100 / t and carbon prices between $ 0-60 / t CO2eq . 8 Average BRL / USD exchange rate of 5.00 ( 2023 ) .