Update on the Cairn India Ltd. Acquisition

19 August 2011

Update on the Cairn India Ltd. Acquisition

As announced on 1 August 2011, Vedanta Resources plc ("Vedanta") has received a formal notification from the Government of India providing conditional approval for the acquisition of a majority stake in Cairn India Ltd. (the "Transaction").

Cairn India Ltd. (Cairn India) is seeking shareholder approval for the conditions imposed by the Government of India, and has posted the ballot to its shareholders, including Vedanta. Cairn India shareholders are required to vote on the Transaction by 10 September 2011.

As of date, Vedanta has a funding requirement of $4.5bn for the acquisition of the 30% stake in Cairn India, which is available in the form of fully committed facilities valid up to December 15, 2011 and internal sources such as repayment of intercompany debt from subsidiaries.

The size of the Bridge to Equity Facility was originally $1.0 billion. Vedanta has permanently reduced this by $730 million and it currently stands at $270 million.

Vedanta continues to work with Cairn Energy towards the completion of the Transaction.

A further announcement will be made in due course.

For further information, please contact:

About Vedanta Resources plc

Vedanta Resources plc ("Vedanta") is a London listed FTSE 100 diversified metals and mining major. The group produces aluminium, copper, zinc, lead, silver, iron ore and commercial energy. Vedanta has operations in India, Zambia, Namibia, South Africa, Ireland and Australia and a strong organic growth pipeline of projects. With an empowered talent pool of 31,000 employees 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.