§ Highest ever integrated saleable silver production at ; up 67% y-o-y

§ Integrated saleable zinc production up 8% y-o-y at 206kt

§ Integrated saleable lead production up 42% y-o-y at 35kt

§ Mined metal production marginally lower from a year ago at 228kt

, : today announced its results for the third quarter ended .

Mr. Agnivesh Agarwal, Chairman - 'We are happy to report strong refined metal production with silver touching new highs. However, the current low zinc metal prices are contrary to the market fundamentals. We are carrying out a review of our high cost operations to ensure all of our operations are sustainable in the present weak zinc market.'

Unaudited Financial Summary

(In Rs. crore, except as stated)

(1) Excluding captive consumption of 2, in Q3 FY2016 as compared with 2,394 MT in corresponding prior period.

(2) Excluding captive consumption of 10.7 MT in Q3 FY2016 as compared with 12.5 MT in corresponding prior period.

(3)Silver occurs in Lead & Zinc ore and is recovered in the smelting and silver-refining processes.

(4)Historical CoP has changed due to re-allocation of administrative expenses between zinc and lead.

Note: Numbers may not add up due to rounding off.

Operational Performance

Mined metal production was 228,082 MT in Q3 as compared with 242, a year ago. The decrease was largely on account of change in mining mix due to increased contribution from Sindesar Khurd mine and Kayad mine, resulting in lower average grades. For the nine month period, mined metal production increased by 13% to 700, from corresponding prior period.

While Q4 is expected to be weak as per mine plan, full year guidance of marginal growth in mined metal production is maintained; production of refined metals will also be ahead of previous year with silver being significantly higher.

Integrated zinc and lead metal production during the quarter increased by 8% y-o-y and 42% y-o-y to 206, and 35, respectively on account of enhanced smelter efficiency and conversion of inventories. For the nine month period, integrated zinc and lead metal production increased by 20% and 42% respectively from corresponding prior period.

Integrated silver metal production was the highest ever during the quarter, up 67% y-o-y to . The increase was driven primarily by enhanced volumes from Sindesar Khurd mine as well as higher smelter efficiency. For the nine month period, integrated silver production increased by 56% to from a year ago.

The zinc metal cost of production per MT before royalty during the quarter was Rs. 52,383 , which is marginally higher by 4% in rupee terms (lower by 2% in USD terms) from a year ago. The increase is attributed to lower average grades due to change in mining mix, increased & additional regulatory levies and rupee depreciation. This was partly offset by lower coal & commodity prices and higher volumes with better efficiencies. Looking at the current downturn in LME prices, the Company has embarked on a journey of reducing the cost structures to sustain the competiveness of its operations.

Financial Performance

Revenues during the quarter were Rs. , which is 11% lower from a year ago. The impact of higher volumes and rupee depreciation was more than offset by lower LME prices and zinc premium.

EBITDA during the quarter was Rs. , which is 30% lower from a year ago primarily on account of lower LME prices and impact of newly levied contribution to the . .

Net profit decreased to Rs. during the quarter as compared to Rs. a year ago in line with above and due to lower investment income, partly offset by lower tax.

Expansion Projects

With the on-going multi-year transition to underground mining, mine development is crucial to sustaining future production for the Company. Total mine development during the quarter was accelerated by 55% y-o-y, achieving an all-time record of 15,822 metres.

Sindesar Khurd mine ramped up production capacity to a run rate of 3 million MT per annum three months ahead of the schedule indicated earlier, supported by the development of two auxiliary lenses as separate production centres. During the quarter, mill debottlenecking was completed in-line with the mine production, while a new mill project of 1.5 million MT per annum capacity also commenced. The shaft sinking project continues to be ahead of plan.

Rampura Agucha main shaft sinking crossed 860 metres during the quarter of the ultimate depth of 950 metres. Pre-stripping for further deepening of the open pit is progressing satisfactorily, mitigating the risk of delays in decline development and regular stoping from underground mine due to ore body characteristics.

The ramp up of Kayad mine is on track and is expected to achieve 1 million MT per annum production capacity run rate by year end, making it one of the fastest underground mine ramp ups.

Zawar and Rajpura Dariba mine expansion projects are being reviewed in the light of current environment of low commodity prices.

Liquidity and investment

As on , cash and cash equivalents were Rs. , out of which Rs. was invested in mutual funds, Rs. in bonds and Rs. in fixed deposits. The Company follows a conservative investment policy and invests in high quality debt instruments.

Earnings Call on at

The Company will hold an earnings conference call on at , where senior management will discuss the Company's results and performance. The dial in numbers for the call are given below:

Primary: +91 22 6746 5962

Secondary: +91 22 3960 0762

For further information, please contact:

About Vedanta Resources

('Vedanta') is a listed diversified global natural resources company. The group produces aluminium, copper, zinc, lead, silver, iron ore, oil & gas and commercial energy. Vedanta has operations in , , , , , , and . With an empowered talent pool globally, Vedanta places strong emphasis on partnering with all its stakeholders based on the core values of trust, sustainability, growth, entrepreneurship, integrity, respect and care. 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.