Vedanta Resources plc 16 Berkeley Street London W1J 8DZ

Tel: +44 (0) 20 7499 5900

Fax: +44 (0) 20 7491 8440

www.vedantaresources.com

Vedanta Resources plc

4 November 2015

Interim Results for the Six Months ended 30 September 2015

Financial Highlights

• Revenue of US$5.7 billion and EBITDA(1) of US$1.3 billion, 12% and 39% lower than H1 FY2015 respectively, primarily due to lower commodity prices

• EBITDA margin (adjusted)(2) of 30% (H1 FY2015 : 43%)

• Underlying (Loss)/Earnings Per Share(3) of (57.6) US cents (H1 FY2015: 9.4 US cents)

• Basic (Loss)/Earnings Per Share of (117.7) US cents (H1 FY2015: (4.7) US cents), primarily due to lower commodity prices

• Free cash flow after growth capex of US$1.3 billion (H1 FY2015:US$0.2 billion)

• Gross debt reduced by US$0.2 billion to US$16.5 billion (US$0.7 billion over 1 year)

• Net debt reduced by US$0.9 billion to US$7.5 billion (US$1.5 billion over 1 year)

• No interim dividend in light of the current market volatility, board to review at year-end

  
  

  Business Highlights

• Strong mined and refined metal production at Zinc India; integrated silver production increased 50%

• Oil & Gas: Q2 production up 6% on Q2 FY2015; H1 FY2016 production in line with guidance

• Aluminium: stable volumes from existing smelters with cost reduction initiatives in progress; further pots at Jharsuguda-II smelter to commence ramp-up in Q3 FY2016

• Copper India: stable operations with 96% capacity utilisation

• Iron Ore: approvals received for all major mines at Goa, and mining recommenced at 2 mines; export duty reduced from 30% to 10% for less than 58% Fe iron ore, effective from 1 June 2015

• Power: TSPL first unit achieved 71% availability during H1 FY2016; 86% in Q2 FY2016

Anil Agarwal, Chairman of Vedanta Resources Plc, commented: 'We have delivered a sound financial performance over the past six months and maximised free cash flow, while facing challenging commodity markets. This accomplishment is attributable to cost optimisation across our diversified asset portfolio. As India's only diversified natural resources company, Vedanta's exposure to meeting the country's future resources demands enhances our growth opportunities, in addition to our global prospects. I am confident that our talented team of professionals, who are committed to a sustainable future, will ensure that Vedanta continues to create significant value for all shareholders and benefit communities wherever we operate.'

(US$ million, except as stated)

1. Earnings before interest, taxation, depreciation, amortisation /impairment and special items

2. Excludes custom smelting revenue and EBITDA at Copper and Zinc India operations as custom smelting has different business economics

3. Based on profit for the period, after adding back special items and other gains and losses, and their resultant tax and non-controlling interest effects (refer to note 4 of condensed financial statements). In the prior period, the underlying attributable profit included the net tax benefit from the Sesa Sterlite merger offset by a deferred tax charge due to the change in tax rates at Cairn India

There will be a conference call at 9:00a.m. UK time (2:30p.m. India time) on 4 November 2015, where senior management will discuss the results.

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The results will be webcast and can be accessed via investor relations section of our website

www.vedantaresources.com

For further information, please contact:

Communications Finsbury

Roma Balwani

President - Group Communications, Sustainability and CSR

Tel: +91 22 6646 1000

[email protected]

Daniela Fleischmann Tel: +44 20 7251 3801

Investors

Ashwin Bajaj

Director - Investor Relations

Radhika Arora

Associate General Manager - Investor Relations

Ravindra Bhandari

Manager - Investor Relations

Tel: +44 20 7659 4732

Tel: +91 22 6646 1531

[email protected]

About Vedanta Resources

Vedanta Resources Plc ('Vedanta') is a London-listed diversified global resources company. 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.

CHAIRMAN'S STATEMENT

Over the past six months, we delivered strong operational performance across our businesses. We achieved an EBITDA of $1.3 billion and a strong EBITDA margin (adjusted)(1) of 30%. Our financial performance however has been impacted by low commodity prices with revenues down 12% at $5.7 billion.

During the first half of this financial year we generated free cash flow post project capex of $1.3 billion driven by reduction in opex, capex and better working capital management. In line with our stated strategic priority of reducing debt and increasing cash flows, we have reduced gross debt by $200 million and net debt by $0.9 billion as compared to FY2015.

During this period we have witnessed continued volatility in commodity markets, creating challenging conditions for all resource companies. As a result of this market uncertainty, the Board has decided not to pay an interim dividend and the Board will review dividend payments in May 2016 when we deliver our FY2016 results.

From my perspective, though the global resource sector outlook is challenging over the short- to-medium term, I am optimistic about the longer-term future.

Following a disciplined approach to capital spending and efficiency in operations is key to managing this period of volatility. Our efforts over the past few quarters have been on driving efficiencies across our diversified portfolio of tier-one assets, optimising our operating expenditure and deploying capital in a disciplined manner, taking measured steps to drive positive free cash flow at each of our businesses.

As India's largest diversified natural resources company, we believe we have the right mix of commodities to benefit from future demand both domestically and globally. The IMF recently stated that India is the world's fastest-growing major economy, and the country's trajectory is set to continue, with declining inflation and interest rate cuts supporting the Government of India's growth agenda.

There have been a number of important operational developments during this period. Last month, we made our maiden shipment of iron ore from Goa after mining in the state resumed. We welcome the state Government's efforts to get the industry up and running, and we are in discussions with the Government to increase mining capacities and to remove other levies.

In July 2015, we broke ground at the $680 million Gamsberg project in South Africa, one of the world's largest underdeveloped deposits of zinc and where the overall capex has been reduced by $100 million. This exciting milestone comes at a time when demand for zinc is growing and supply is shrinking.

In Zambia, as we continue to work towards the turnaround of this asset, we have seen positives in terms of higher production and lower costs of production during the period.

Over the past six months we also pressed ahead with our stated strategic priority to simplify our corporate structure through the merger of Vedanta Limited and Cairn India, which I am confident will create significant value for our shareholders.

The Group's long-term success relies on the diversity of our people, from the ground up to the boardroom. I was delighted to welcome Cynthia Carroll as a key adviser in September, 2016. Cynthia will focus on Vedanta's long-term strategy.

Vedanta takes very seriously its responsibilities to all its people. When it comes to the safety, health and well-being of those who work for us, we are committed to reduce our lost-time injury frequency rate as we continue to work towards eliminating fatalities. We constantly educate and have the tools to ensure that safety is the priority for all at Vedanta every day. I am deeply saddened by seven fatalities during the first half of this year, and we work towards achieving Zero Harm. There remains a lot to do on our journey towards achieving this.

To help achieve a culture of Zero Harm across the organisation, and to drive the business forward, we are fostering a dynamic culture of innovation, encouraging our people to embrace