June 2006

The views expressed here may contain information derived from publicly available sources that have not been independently verified. No representation or warranty is made as to the accuracy, completeness or reliability of this information.
Any forward looking information in this presentation has been prepared on the basis of a number of assumptions which may prove to be incorrect. This presentation should not be relied upon as a recommendation or forecast by Vedanta Resources plc.
This presentation may contain “ ”– 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 “ ”“ ”“ ”“ ”“ seeks, ” or
“ ” 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 environmental, climatic, natural, political, economic, business, competitive or regulatory nature. These uncertainties may cause our actual future results to be materially different that those expressed in our forwardlooking statements. We do not undertake to update our forward-looking statements.
Nothing in this presentation constitutes either an offer to sell or a solicitation of an offer to buy any securities in the United States or any other jurisdiction.
Acquisition of Sterlite Gold Ltd
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© 2006, Vedanta Resources plc

 Vedanta Resources acquires 55% controlling interest in Sterlite Gold
 Followed by a cash offer to acquire remaining outstanding common shares
 Cash consideration of C$68.45m representing a price of C$0.258 per share.
 Main assets - open pit gold mine at Zod and gold processing plant at Ararat, Armenia
 Conditions include offer subject to minimum acceptances
 Related party transaction – independent valuations and financial advice obtained
 Subject to relevant regulatory approvals
 Expected closing in calendar 3Q 2006
Acquisition of Sterlite Gold Ltd
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© 2006, Vedanta Resources plc

Location
 The Zod mine is in the Vardhenis region of Gegarkounk province
 150 km south-east of Yerevan
Overview
 Sterlite Gold owns 100% of
Armenia Gold Recovery
Company (AGRC)
 AGRC assets consist of
– Zod Mine
– Meghradzor Mine
– Ararat processing plant
 Zod Mine has a stated JORC resources of 2.1m oz
 Plan to increase output at
Zod from c. 45k oz to 120k oz
Acquisition of Sterlite Gold Ltd
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© 2006, Vedanta Resources plc

Published category
Measured and indicated
Inferred
Million tonnes
17.00
1.80
Grade
(g/t)
3.9
2.6
Contained GOLD
(tonnes)
65.5
4.6
GOLD
(million ounces)
2.10
0.15
 JORC compliant, as of Dec 2004.
 Russian geological data indicates a total resource of 9.2 million ounces.
Acquisition of Sterlite Gold Ltd
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© 2006, Vedanta Resources plc

Proposed Processing Plant
Admn. Bldg.
Workshop/Garage
Acquisition of Sterlite Gold Ltd
Planned Open Pit
Phase I and II Pit
Planned Waste Dumps
Planned Tailings Dam
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© 2006, Vedanta Resources plc

Current operations
 Small scale and some drilling activity
 Produced 330,000 oz in last 5 years,
44,000oz in 2005
 Produced over 100,000 oz in 2002 when earnings were $3m at gold prices < $400
 Mine has operated for many years and
2002 onwards as Sterlite Gold
Phase III Expansion – the opportunity
 Increase production from c. 45koz to
120koz
 Involves increase in ore throughput to 1m tonnes from 400kt and an improvement in recoveries
 Process refractory ore using pressure oxidation
 Run concurrently with CIL plant
 SGD disclosed preliminary capex estimate of USD 85m
 USD11m previously invested in mining
 Estimated 18 to 24 months to complete
 Potential exists to more than double resource at Zod
Acquisition of Sterlite Gold Ltd
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© 2006, Vedanta Resources plc

 DCF analysis of Phase III project performed at US$450/oz
 The transaction represents a P / NPV of 0.9x to 1.1x, based on an NPV range from the independent valuation report of US$54.1m to US$66.1m
 Value is attractive when compared to the current total gold peer group P / NPV multiple of
3.1x and a junior gold producer trading multiple 2.4x**
 Comps: Value of US$30 per resource oz compares with US$100-150 per oz for gold cos.
Russian transaction multiples vary significantly
 Premium of 223% over the Sterlite Gold closing share price of C$0.08 on 12 June 2006 and a premium of 166% over the weighted average share price (WAP) for Sterlite Gold over 30 days
 Comps: Gold industry acquisition premium for acquisitions by majors of junior companies of
70% to the share price on the day prior to announcement and 82% to the WAP over 30 days* (see next slide)
*Transactions considered include Harmony/Avgold, Anglogold/Ashanti, Placer Dome/Aurion, Glamis/Fransisco, Anglogold/Acacia, Barrick/Sutton, Ashanti/SAMAX,
Kinross/Amax, Homestake/Plutonic, Barrick/Arequipa
**Producers considered include Newmont, Anglo Gold Ashanti, Gold Fields, Harmony, Newcrest, Goldcorp, Glamis, Kinross, Centerra. Junior producers considered include
DRD, High River Gold, Randgold, Oxus Gold, Bema Gold, Kazakhgold, Golden Star, Nevsun
Acquisition of Sterlite Gold Ltd
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© 2006, Vedanta Resources plc

 Transaction also represents a 20% premium to the 3-year high of C$0.215 / share reached in
November 2003 and similar levels in November 2004
 Sterlite Gold has traded at a discount to its peers and to the gold price for several reasons, including lack of news flow and very limited broker coverage
Sterlite Gold share price v Gold price
0.25
Sterlite Gold share price
0.2
Gold price
750
700
650
600
0.15
0.1
0.05
0
550
500
450
400
350
300
Acquisition of Sterlite Gold Ltd
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© 2006, Vedanta Resources plc

 Gold has attractive fundamentals
 Low risk entry into the commodity – the asset and geography is well known to the Group
 Vedanta can deploy its proven project development skills
 The existing asset base has excellent growth potential
 A ready and in-situ management team now being enhanced
 Provides a platform for exploiting new geological and development gold opportunities in India and elsewhere
 Gold stocks trade at a higher multiple and any future spin-off is expected to generate significant value
Acquisition of Sterlite Gold Ltd
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© 2006, Vedanta Resources plc

 India has similar geology to Africa and Western Australia. The pre-cambrian auriferous greenstone belts are comparable to the gold-bearing greenstone belts of the latter
 The level of exploration in India has lagged that of other similar markets. But changes to the regulatory environment, provides the basis for success
 Existing production in India is modest, and led by Hutti Gold Mines in Karnataka, with additional output from Bharat Gold Mines in Karnataka (Kolar Gold Fields) and Andhra
Pradesh. Both are currently state controlled
 The Geological Survey of India (GSI) and The Mineral Exploration Corporation Ltd (MECL) have further gathered a significant pool of data on various prospects
 A number of junior miners undertaking exploration programmes in the country
 India is also the largest consumer of gold with demand in 2005 reaching 850 tonnes, of which
590 tonnes was accounted for by gold jewelry. The majority of demand is met through imports. Rising income levels are increasing purchasing power
Acquisition of Sterlite Gold Ltd
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© 2006, Vedanta Resources plc

 Strong economics with significant upside potential
 Development project to be undertaken – environmental, POX, drilling
 Further strengthens existing group project growth pipeline
 Vedanta will be able to leverage its renowned project development skills
 Vedanta can unlock value – we know the asset
 Provides a platform for gold in India and elsewhere, plug other resources in progressive
Armenia
 An excellent and timely opportunity for Vedanta
Acquisition of Sterlite Gold Ltd
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© 2006, Vedanta Resources plc

 Both Vedanta and Sterlite Gold appointed independent committees
 Both received independent valuation and legal advice
 Vedanta received independent financial advice and technical input
 Fairness opinion obtained
 No shareholder circular required
Acquisition of Sterlite Gold Ltd
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© 2006, Vedanta Resources plc

AGRC was set up in 1998 and today holds the Zod mine, Meghradzor deposit and
Ararat processing plant unit
Meghradzor
Sterlite Gold
100%
AGRC unit
Zod unit
Ararat
Acquisition of Sterlite Gold Ltd
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© 2006, Vedanta Resources plc

Zod mine
Exploration
Establishing Gold deposit
Planning and designing
Planning of pit limits and production planning & scheduling
Production Drilling
Drilling holes up to 175mm
Blasting
Loading of holes with explosives and blasting
Mucking and Loading
Loading of blasted muck into Trucks
Hauling
Transporting material to stock pile or waste dump
Transportation of ore to plant
Acquisition of Sterlite Gold Ltd
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© 2006, Vedanta Resources plc

Ararat plant
Railways
Ore transport to Ararat from Zod mine
Acquisition of Sterlite Gold Ltd
Tippers & Bins
Ore unloaded to conveyor belt
Dam Tailings by Repulper
Mill Building
Grinding of ore passing
0.074mm 80%
CIL
Leaching of grinded ore slurry with
NaCN at 10.5 -11 PH
Tails to Thickener,
Tailing Dam
Elution Building
Stripping of Gold from loaded carbon
Barron
Carbon
Gold Room
Electro winning of Gold from Eluded solution and Smelting
Dore to
Shipment
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© 2006, Vedanta Resources plc