Q3 Production Release

31 January 2014

Vedanta Resources plc

Production Release for the Third Quarter Ended 31 December 2013

Q3 Highlights

· Increased production of integrated refined zinc, lead and silver at Zinc India

· Record oil & gas production of 224kboepd, up 10%

· Resumed iron ore mining operations at Karnataka

· EBITDA at US$1,142 million, up 3%

Zinc - India

Mined metal production was 5% lower as compared with the corresponding prior quarter. For the nine month period, mined metal production was 11% higher, which is the highest ever mined metal production for the nine month period and was driven by higher production at Rampura Agucha and Zawar mines.

Integrated refined zinc production was 17% higher in Q3 due to improved operational efficiencies at the smelters. Production of integrated refined lead was 20% higher due to improved utilization of smelter capacity.

EBITDA for Q3 was up 6% due to higher integrated sales volume partially offset by lower silver prices and higher cost of production. The cost of production (COP) of zinc excluding royalty and silver credits was US$826 per tonne in Q3 as compared with US$814 per tonne in the corresponding prior quarter. EBITDA from the silver business was US$47 million.

Mined metal production is expected at around 900kt in FY2014 reflecting slower than expected ramp up of underground mining project and some change in mining sequence wherein preference has been given to primary mine development during this period. Integrated saleable silver production is expected to be in the range of 290 - 300 tonnes (9.3 - 9.7 moz) in FY2014.

Mine development is progressing well at all our underground projects. Kayad mine has become operational during the quarter.

Zinc - International

Production at Zinc International was 19% lower in Q3 due to an unplanned maintenance shutdown at Skorpion in November and December after a tank failure. The operations are ramping up and we expect a total production of 90 kt in Q4 FY2014.

EBITDA for Q3 was 69% lower due to lower production; as well as lower despatches from Skorpion and BMM that had an EBITDA impact of approximately US$20 million, which will be despatched in Q4. COP was higher at $1,257 per tonne as compared with $1,079 per tonne, due to the shutdown.

Oil and Gas

In Q3, average gross operated production and working interest production were 224,493 barrels of oil equivalent per day (boepd) and 140,830 boepd, respectively, 10% higher than the corresponding prior period, driven primarily by the production ramp-up at Rajasthan. The overall facility uptime was at 99%.

The gross production at the Rajasthan block was 10% higher at 186,359 boepd on account of the 42 new wells brought on line during the quarter. Development Area 1 (DA- 1) which includes the Mangala and Aishwarya fields produced a gross average of 160,975 boepd and Development Area 2 (DA-2) which includes the Bhagyam field produced a gross average of 25,384 boepd.

Production at Cambay was 51% higher in Q3 due to the infill wells campaign that was completed in FY2013. Production at Ravva was marginally lower in Q3, though recovery rates continue to be over 47%.

Revenue for the quarter was US$804 million, post profit sharing with the Government in all the producing blocks and the royalty expense in the Rajasthan block, up 2% driven by higher volumes. EBITDA for the quarter was US$616 million, in line with the last year due to the higher revenues partly offset by the increased exploration costs and one time charge on account of adoption of fair value methodology of stock option valuation.

There have been encouraging results from the exploration programme across the portfolio. Since resuming of exploration in Rajasthan, the drilling program achieved over 50% success rate, opened up 3 new play types and added oil- in- place resources of 500 - 600 million barrels. With 4 rigs dedicated to exploration in Rajasthan and two high impact wells being drilled, we are on track to drill out 50% of the gross risked prospective resources in the block by the end of FY2014. Aishwarya Barmer Hill was recognized as the 27th Discovery, with successful testing at 450 bopd. The 28th Discovery, the V2Y Channel, opened up multiple pay zones in the low permeability Barmer Hill formation; the zones together have demonstrated a flow of 450 bopd. At Ravva, a 'high value high risk' deep exploration prospect was spud, drilling for which is likely to be completed in the current quarter and testing would follow thereafter.

On the east coast on India, the Declaration of Commerciality for the Nagayalanka discovery was submitted during the quarter and the first oil is expected in 2017 at an expected production rate of over 10,000 bopd. In addition, appraisal wells are yielding early indications of potential resource accretion. This is expected to strengthen the Eastern India portfolio.

Acquisition of seismic data is ongoing in other exploration assets, such as South Africa, KG Offshore and Mumbai Offshore blocks.Iron Ore

In Karnataka, following clearance from the Supreme Court of India and obtaining other statutory clearances, we resumed mining operations from December 28, 2013 at a provisional capacity of 2.29 mtpa. We are ramping up production to a run-rate of around 0.5 million tonnes per month, and we expect to commence sales through auction shortly.

In Goa, sale of the inventory through e-auction is expected to commence shortly. These e-auctions will be conducted post verification of the inventory, and will be monitored by a Committee appointed by the Supreme Court. The Supreme Court has also set up a separate committee to conduct a macro EIA study to arrive at a ceiling of annual excavation of iron ore in the state of Goa. Both these committees are expected to separately submit their reports to the court by February 15, 2014 for the Court's consideration.

EBITDA in Q3 was US$ (4.6) million as compared to US$ (13.7) million in the corresponding prior quarter, due to higher contribution from the pig iron business.

Copper - India and Australia

In Q3, copper cathode production was at 99,000 tonnes, highest ever for a quarter.

Mined metal production at Australia was 5,000 tonnes in Q3, lower due to a disruption of the operation caused by an accident at the mine. Q4 production will remain affected due to a mud rush incident at one of the stopes.

Net unit cost of conversion at Copper- India was 9.6 US cents/lb compared with 10.8 US cents/lb in the prior period.

EBITDA was up by 37% due to higher Tc/Rc and increased contribution from the 80 MW power plant, partially offset by lower by-product credit.

Copper - Zambia

Mined metal production was 19% lower in Q3 as compared with the corresponding prior quarter mainly on account of suspension of mining operations at COP F&D since January 2013. Production was lower compared to Q2 due to equipment availability constraints and a power interruption at Konkola.

Cost of integrated production excluding royalty was at USc240/lb, 16% lower than Q3 last year, due to suspension of the high-cost COP F&D operations.

We expect integrated production of 130-135 kt in FY2014 at a cost of USc230/lb excluding royalty.

We are working on a turnaround of the operation by improving volumes and profitability. Having earlier completed the project phase of the Konkola Deeps Mining Project (KDMP), we are now focusing on underground mine planning and development and enhancing the underground mining team with additional talent. We are also transitioning to a higher degree of mechanized mining, which would improve volumes, productivity, costs and profitability, and increase our contribution to the exchequer in the form of higher royalties and taxes.

At the Nchanga smelter we have increased custom smelting volumes since December using suitable feed from neighbouring mines to improve smelter utilizations and costs. Additionally, we have optimized the blend and throughput of the feed to the Tailings Leach Plant (TLP) for higher production.

EBITDA in Q3 was US$39.6 million compared with US$ 36.4 million.

Aluminium

The Lanjigarh alumina refinery recommenced operations in July and has ramped up well, producing 181,000 tonnes in Q3. It had a capacity utilization of 72% in Q3 as compared with 46% in Q2, and is expected to further increase in the current quarter. This resulted in 43% of the total alumina requirement in Q3 being met by the refinery as compared with 17% in Q2.

The Jharsuguda-I and Korba-II smelters continued to operate above their rated capacities with

 a consistent cost performance.

Aluminium COP at BALCO and the Jharsuguda smelter was $1,709 per tonne and $1,591 per tonne, compared with $1,939 per tonne and $1,928 per tonne last year, respectively. COP at Jharsuguda was lower primarily due to the depreciation of the Indian rupee, improved operational efficiencies and reduced power costs, on account of better quality of coal and lower proportion of e-auction coal. COP at BALCO was lower primarily due to the depreciation of the Indian rupee and improved operational efficiencies partly offset by the tapering of coal linkage.

EBITDA in Q3 was up 64% as compared with the corresponding prior period mainly on account of lower COP partially offset by lower LME price.

We expect to tap first metal at the 325 ktpa BALCO-III Aluminium in H1 FY2015. We expect to synchronize the first unit of the BALCO 1,200 MW power plant in Q1 after obtaining all regulatory approvals, which are progressing well. We continue to evaluate the potential start up date of the first of four lines of the 1.25 mtpa Jharsuguda- II smelter.

Power

Power sales were higher at 2,196 million units in Q3, up 3% over the previous year, primarily due to higher power sales from the 2,400MW Jharsuguda power plant which had a PLF of 38%. PLFs at Jharsuguda and 270MW BALCO power plant remained low largely due to a combination of weak demand and evacuation constraints.

Average power realizations were at INR 3.39 per unit during the quarter against INR 3.56 per unit in the corresponding prior quarter. The power generation cost at Jharsuguda during the quarter was INR 2.09 per unit as compared with INR 2.22 per unit in the corresponding prior quarter. The decline in realization during the quarter has been compensated by the decline in the COP on account of improvement in the quality of coal and lower auxiliary consumption.

EBITDA improved by 12% in Q3 primarily due to higher power sales from the 2,400MW Jharsuguda power plant.

The boiler light up of the first 660 MW unit of the 1,980 MW Talwandi Sabo power project was achieved in Q3 and the unit is expected to be synchronized in the next few months.

Production Summary (Unaudited)

(in '000 tonnes, except as stated)

1. Including captive consumption of 1,927 tonnes in Q3 FY2014 vs 1,647 tonnes in Q3 FY2013, and 5,271 tonnes in nine months ended FY2014 vs 4,723 tonnes in nine months ended FY2013

2. Excluding captive consumption of 324,000 ounces in Q3 FY2014 vs 271,000 ounces in Q3 FY2013, and 897,000 ounces in nine months ended FY2014 vs 791,000 ounces in nine months ended FY2013

3. Iron Ore sales include internal consumption of nil in Q3 FY2014 vs nil in Q3 FY2013 and nil in 9 months ended FY2014 vs 0.17 million tonnes in nine months ended FY2013.

4. Sales of iron ore from Karnataka were nil in Q3 FY2014 vs 0.03 million tonnes in Q3 FY2013 and 0.02 million tonnes in nine months ended FY2014 vs 0.09 million tonnes nine months ended FY2013.

5. Includes production under trial run of nil in Q3 FY2014 vs. 456 million units in Q3 FY2013 and nil in nine months FY2014 vs 795 million units in nine months ended FY2013.

Financial Summary (Unaudited):

(in US$ milllion, except as stated)

6. Includes revenue of power supplied from BALCO 270 MW power plant to BALCO Smelter US$9.1 million in Q3 FY2014 vs US$0.9 million in Q3FY2013 and US$27.0 million in nine months period FY2014 vs US$7.9 million in nine months period FY2013

(in US$ milllion, except as stated)

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About Vedanta Resources plc

Vedanta Resources plc ("Vedanta") is a London listed diversified global natural resources major. The group produces aluminium, copper, zinc, lead, silver, iron ore, oil & gas and commercial energy. Vedanta has operations in India, Zambia, Namibia, South Africa, Ireland, Liberia, Australia and Sri Lanka. With an empowered talent pool globally, Vedanta places strong emphasis on partnering with all its stakeholders based on the core values of entrepreneurship, excellence, trust, inclusiveness and growth. For more information, please visit www.vedantaresources.com.

Disclaimer

This press release contains "forward-looking statements" - that is, statements related to future, not past, events. In this context, forward-looking statements often address our expected future business and financial performance, and often contain words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "should" or "will." Forward-looking statements by their nature address matters that are, to different degrees, uncertain. For us, uncertainties arise from the behaviour of financial and metals markets including the London Metal Exchange, fluctuations in interest and or exchange rates and metal prices; from future integration of acquired businesses; and from numerous other matters of national, regional and global scale, including those of a political, economic, business, competitive or regulatory nature. These uncertainties may cause our actual future results to be materially different that those expressed in our forward-looking statements. We do not undertake to update our forward-looking statements.