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Sesa Sterlite Limited: Production Release for the Fourth Quarter and Full Year Ended 31 March 2014

April 10, 2014

MUMBAI, India, April 10, 2014 /PRNewswire/ –

Sesa Sterlite Limited (“Sesa Sterlite” or “the Company”) today announced its
production results for the fourth quarter (Q4) and Full Year ended 31 March 2014.

(Logo:
http://photos.prnewswire.com/prnh/20140117/663814 )

Highlights of the Quarter

        - Full year record production of Oil & Gas, driven by production ramp-up in
          Rajasthan block
        - Higher integrated refined metal production and stable mined metal production
          for the full year at Zinc India
        - First metal tapping at the BALCO 325kt aluminium smelter during Q4
        - Strong utilizations at Tuticorin copper smelter; 2nd 80MW unit of power plant
          commissioned during Q4

Zinc – India Business

                                              Q4             Q3            Full Year
        Particulars (in '000
        tonnes, or as             FY2014  FY2013 % change  FY2014  FY2014     FY2013 % change
        stated)                                       YoY                                 YoY

        ZINC INDIA
        Mined metal content          200     260    (23%)     220     880        870       1%
        Concentrate Sales - Zinc
        (MIC)                          -      61        -       -       -         61        -
        Refined Zinc - Total         182     182        -     196     749        677      11%
        Refined Zinc -
        Integrated                   179     181     (1%)     196     743        660      13%
        Refined Zinc - Custom          4       0        -       -       6         17        -
        Refined Lead - Total [1]      38      35     10%       27     130        125       4%
        Refined Lead -
        Integrated                    31      32     (2%)      27     118        107      10%
        Refined Lead - Custom          7       3        -       -      12         18        -
        Saleable Silver - Total
        (in tonnes) [2]               91     108    (16%)      73     350        374      (6%)
        Saleable Silver -
        Integrated
        (in tonnes)                   68      91    (25%)      72     301        288       4%
        Saleable Silver - Custom
        (in tonnes)                   23      17     34%        1      49         86     (43%)

Mined metal production for the year was 880,000 tonnes, marginally higher than the
previous year. Production in H2 was lower than what we had planned initially due to slower
than expected ramp up of underground mining projects and changes in mining sequence,
wherein preference was given to primary mine development.

Integrated production of refined metal during the year was significantly higher due to
operational efficiencies and higher availability of our smelters. Full year integrated
production of refined zinc, lead and silver were higher by 13%, 10% and 4% respectively.

Zinc – International Business

                                              Q4             Q3            Full Year
        Particulars (in '000
        tonnes, or as                            % change                            % change
                                  FY2014  FY2013           FY2014  FY2014     FY2013
        stated)                                       YoY                                 YoY

        Zinc International            83     102    (19%)      84     364        426    (15%)
        Refined Zinc -Skorpion        33      36     (9%)      23     125        145    (14%)
        Mined metal content -
        BMM and
        Lisheen                       50      65    (24%)      62     239        280    (15%)

Refined zinc production at Skorpion was higher than Q3 by 10,000 tonnes consequent to
ramp up after an unplanned shutdown in Q3 FY2014. However, this was offset by lower mined
metal production at BMM and Lisheen due to lower ore grades. Total production in Q4
remained in line with Q3, and the full year production was lower by 15%. This was lower on
account of disruptions in production caused by accidents at Lisheen and BMM in Q1 FY2014
and the unplanned shutdown at Skorpion in Q3.

Oil & Gas Business

                                              Q4           Q3              Full Year
                                                   %                                 % change
        Particulars               FY2014  FY2013 change  FY2014    FY2014     FY2013
                                                                                          YoY
                                                  YoY

        OIL AND GAS (boepd)
        Average Daily Gross
        Operated
        Production (boepd)       224,429       -      -  224,493  218,651          -        -
        Rajasthan                190,881       -      -  186,359  181,530          -        -
        Ravva                     24,225       -      -   27,857   27,386          -        -
        Cambay                     9,323       -      -   10,277    9,735          -        -
        Average Daily Working
        Interest
        Production (boepd)       142,796       -      -  140,830  137,127          -        -
        Rajasthan                133,616       -      -  130,451  127,071          -        -
        Ravva                      5,451       -      -    6,268    6,162          -        -
        Cambay                     3,729       -      -    4,111    3,894          -        -
        Total Oil and Gas
        (million boe)
        Oil & Gas- Gross           20.20       -      -    20.65    40.45          -        -
        Oil & Gas-Working
        Interest                   12.85       -      -    12.96    30.58          -        -

Note: Sesa Sterlite acquired a 38.7% stake in Cairn India Limited, effective 26th
August 2013. This has increased the company’s stake in Cairn India from 20.1% to 58.8%.
The total oil and gas production (in million boe) in the ‘Full Year FY2014 (Actual)’ are
for the period from 26 August 2013. However, the average daily gross operated and working
interest production numbers in ‘Full Year FY2014 (Actual)’are on proforma basis for twelve
months.

Average gross production for FY2014 was 218,651 barrels of oil equivalent per day
(boepd), 6% higher than the previous year. During the year, the Rajasthan block achieved a
landmark oil production of 200 million barrels, and a 200,000 boepd production milestone
in March 2014.

In Q4 FY2014, average gross operated production and working interest production were
11% and 13% higher at 224,429 boepd and 142,796 boepd, respectively, driven primarily by
the production ramp-up at Rajasthan. In Rajasthan, infill drilling continues across all
major fields and has driven a 13% increase in the production rate to 190,881 boepd.
Development Area (DA1), which includes the Mangala and Aishwariya fields produced a gross
average of 162,245 boepd and DA2, which includes the Bhagyam field produced a gross
average of 28,636 boepd.

In Q4 FY2014, production at Cambay was 50% higher yoy at 9,323 boepd, due to the
infill drilling campaign that was completed in FY2013. Production at Ravva was lower in Q4
FY2014 at 24,225 boepd though recovery rates continue to be over 47%.

Iron Ore Business

                                              Q4             Q3            Full Year
        Particulars (in million
        dry metric                FY2014  FY2013 % change  FY2014  FY2014     FY2013 % change
        tonnes, or as stated)                         YoY                                 YoY

        IRON ORE [3]
        Sales                        0.0       -        -       -     0.0        3.1        -
        Goa                            -       -        -       -       -        3.0        -
        Karnataka                    0.0       -        -       -     0.0        0.1        -
        Production of Saleable
        Ore                          1.5       -        -       -     1.5        3.7     (60%)
        Goa                            -       -        -       -       -        3.7        -
        Karnataka                    1.5       -        -       -     1.5          -        -
        Production ('000 tonnes)
        Pig Iron                     133     104      28%     139     510        308      66%
        Met Coke                     119      94      27%     116     408        331      23%

In Karnataka, we resumed mining on December 28, 2013 and optimized our approved annual
capacity of 2.29mtpa, which resulted in a production of 1.5mt this year. However, only 27
kt was sold during the year.

At Goa, we participated in e-auctions of inventory and sold 0.3 million tonnes during
the quarter but these were not accounted for as sales since the dispatches did not take
place during the quarter. These dispatches have commenced in April.

Regarding mining in Goa, the Expert committee appointed by the Supreme Court submitted
its second interim report to the Court on 24 March 2014. The Expert committee, in its
report, recommended that 27.5mtpa was a sustainable extraction level in the state, but
suggested that the ideal permissible limit be 20mtpa until a scientific study is completed
within 12 months. The decision of the Supreme Court is awaited on this matter.

Copper – India / Australia Business

                                                                              Full
                                    Q4                      Q3                Year
        Particulars (in
        '000 tonnes, or
        as                 FY2014   FY2013 % change       FY2014   FY2014    FY2013 % change
        stated)                                 YoY                                      YoY

        COPPER- INDIA /
        AUSTRALIA
        Copper -
        Cathodes               98       86      14%           99      294       353     (17%)
        Copper - Mined
        metal content           1        7     (85%)           5       18        26     (32%)
        Power sales -
        2X80MW Tuticorin
        power
        plant(million
        units)                144       35        -          162      601        42        -

The Tuticorin copper smelter performed well at 98% utilisation in Q4. The full year
production was 17% lower due to the temporary closure in Q1 FY2014. As announced earlier,
we are scheduled to have a maintenance shutdown of this smelter for approximately 22 days
in Q1.

The company received the final regulatory approval for the second unit of the 2x80MW
power plant in March 2014. Subsequently, we commissioned and capitalized this unit and
generated 25 million units.

As announced earlier, production at our Australian mine remained suspended due to a
mud rush at one of the stopes in January 2014. We are working with Work Place Standards
Authorities at Tasmania to resume operations.

Aluminium Business

                                                                            Full
                                       Q4               Q3                  Year
        Particulars(in '000                       %                                        %
        tonnes, or as        FY2014  FY2013  change     FY2014      FY2014  FY2013    change
        stated)                                 YoY                                      YoY

        ALUMINIUM
        Alumina-Lanjigarh       227       -       -        181         524     527        (1)%
        Total Aluminum
        Production              200     195      2%        200         794     774         3%
        Jharsuguda-I            135     133      1%        136         542     527         3%
        Korba-II                 64      62      3%         64         251     247         2%
        Korba-III [4]             1       -       -          -           1       -         -

The Lanjigarh alumina refinery operated at 91% of its rated capacity and produced
227,000 tonnes in Q4 FY2014, 25% higher than Q3. Full year production was 524,000 tonnes,
after restarting the refinery in July 2013. This resulted in a steady increase of alumina
feed from Lanjigarh to our smelters, contributing to 28% of the smelters’ alumina
requirements in FY2014 and 49% in Q4.

In Q4, production at Jharsuguda Plant I and Korba Plant II smelters continued to
remain stable and both these plants operated above their rated capacities.

We commenced the Korba-III 325kt smelter with the first metal tapping in Q4. We
produced around 900 tonnes of aluminium with power sourced from the BALCO 270MW power
plant. We expect to ramp up significantly during FY2015 consequent to the commissioning of
the 1,200MW power plant, which expects to receive regulatory approvals in Q1 FY2015.

Power Business

                                              Q4               Q3          Full Year
        Particulars (in million
        units)                    FY2014  FY2013 % change  FY2014  FY2014     FY2013 % change
                                                      YoY                                 YoY

        POWER
        Total Power Sales          2,093   2,638    (21%)   2,196   9,374     10,129     (7%)
        Jharsuguda 2,400MW [5]     1,701   2,073    (18%)   1,827   7,625      7,530      1%
        BALCO 270MW                   84     282    (70%)      75     390      1,241    (69%)
        MALCO                        231     204     13%      236     911        847      8%
        HZL Wind Power                77      78     (2)%      59     448        511    (12%)

Power sales were 20% lower in Q4 as compared to corresponding prior period, primarily
due to lower sales at our Jharsuguda 2,400MW and BALCO 270MW power plants on account of
weak market demand and evacuation constraints. The Jharsuguda 2,400MW operated at a plant
load factor of 35%.

The boiler light up of the first 660MW unit of the 1,980MW Talwandi Sabo power plant
was achieved in Q3 and synchronization was completed subsequently. Coal logistics were
established in Q4 and we expect to commence trial runs in Q1 FY2015.

Note: Figures in previous periods have been regrouped or restated, wherever necessary
to make them comparable to current period.

Production Summary (Unaudited)

(in ’000 tonnes, except as stated)

                                             Q4               Q3           Full Year
        Particulars
                               FY 2014  FY 2013 % change FY 2014  FY 2014    FY 2013 % change
                                                     YoY                                  YoY

        Zinc India
        Mined metal content        200      260    (23%)     220      880        870       1%
        Concentrate Sales-
        Zinc (MIC)                   -       61       -        -        -         61        -
        Refined Zinc (Total)       182      182      0%      196      749        677      11%
        Refined Zinc (
        Integrated)                179      181     (1%)     196      743        660      13%
        Refined Zinc (
        Custom)                      4        0       -        -        6         17        -
        Refined Lead (Total)
        [1]                         38       35     10%       27      130        125       4%
        Refined Lead (
        Integrated)                 31       32     (2%)      27      118        107      10%
        Refined Lead (
        Custom)                      7        3       -        -       12         18        -
        Saleable Silver -
        Total
        (in tonnes) [2]             91      108   (16%)       73      350        374      (6%)
        Saleable Silver -
        Integrated
        (in tonnes)                 68       91   (25%)       72      301        288       4%
        Saleable Silver -
        Custom
        (in tonnes)                 23       17    34%         1       49         86     (43%)
        Zinc
        International(Total)        83      102   (19%)       84      364        426     (15%)
        Zinc -refined
        Skorpion                    33       36    (9%)       23      125        145     (14%)
        Mined metal content(
        BMM and
        Lisheen)                    50       65   (24%)       62      239        280     (15%)
        Oil and Gas
        Average Daily Gross
        Operated
        Production (boepd)     224,429        -       -  224,493  218,651          -        -
        Rajasthan              190,881        -       -  186,359  181,530          -        -
        Ravva                   24,225        -       -   27,857   27,386          -        -
        Cambay                   9,323        -       -   10,277    9,735          -        -
        Average Daily Working
        Interest
        Operated Production
        (boepd)                142,796        -       -  140,830  137,127          -        -
        Rajasthan              133,616        -       -  130,451  127,071          -        -
        Ravva                    5,451        -       -    6,268    6,162          -        -
        Cambay                   3,729        -       -    4,111    3,894          -        -
        Total Oil and Gas
        (million boe)
        Oil & Gas - Gross        20.20        -       -    20.65    40.45          -        -
        Oil & Gas ( Working
        Interest)                12.85        -       -    12.96    30.58          -        -
        Iron Ore [3]
        Sales                      0.0        -       -        -      0.0        3.1        -
        Goa                          -        -       -        -        -        3.0        -
        Karnataka                  0.0        -       -        -      0.0        0.1        -
        Production of
        Saleable Ore               1.5        -       -        -      1.5        3.7     (60%)
        Goa                          -        -       -        -        -        3.7        -
        Karnataka                  1.5        -       -        -      1.5        0.0        -
        Production ('000
        tonnes)
        Pig Iron                   133      104     28%      139      510        308      66%
        Met Coke                   119       94     27%      116      408        331      23%

                                             Q4               Q3           Full Year
        Particulars
                               FY 2014  FY 2013 % change FY 2014  FY 2014    FY 2013 % change
                                                     YoY                                  YoY

        Copper( India /
        Australia
        Copper (Mined metal
        content)                     1        7    (85%)       5       18         26     (32%)
        Copper (Cathodes)           98       86     14%       99      294        353     (17%)
        Power sales - 2X 80MW
        Tuticorin
        power plant(million
        units)                     144       35       -      162      601         42        -
        Alumina
        Lanjigarh                  227        -       -      181      524        527      (1)%
        Aluminium
        Total Aluminum
        Production                 200      195       2%     200      794        774       3%
        Jharsuguda                 135      133       1%     136      542        527       3%
        Korba-II                    64       62       3%      64      251        247       2%
        Korba-III [4]                1        -       -        -        1          -        -
        Power (in million
        units)
        Total Power Sales        2,093    2,638     (21%)  2,196    9,374     10,129      (7%)
        Jharsuguda 2,400MW
        [5]                      1,701    2,073     (18%)  1,827    7,625      7,530       1%
        Balco 270MW power
        Sales                       84      282     (70%)     75      390      1,241     (69%)
        MALCO                      231      204      13%     236      911        847       8%
        HZL Wind Power              77       78      (2)%     59      448        511     (12%)

Note: Sesa Sterlite acquired a 38.7% stake in Cairn India Limited, effective 26th
August 2013. This has increased the company’s stake in Cairn India from 20.1% to 58.8%.
The total oil and gas production (in million boe) in the ‘Full Year FY2014 (Actual)’ are
for the period from 26 August 2013. However, the average daily gross operated and working
interest production numbers in ‘Full Year FY2014 (Actual)’are on proforma basis for twelve
months.

        1) Including captive consumption of 1,991 tonnes in Q4 FY2014 vs 1,777
          tonnes in Q4 FY2013, and 7,262 tonnes in FY2014 vs 6,500 tonnes in FY2013
        2) Excluding captive consumption of 10 tonnes in Q4 FY2014 vs 9 tonnes in Q4
          FY2013 and 38 tonnes in FY2014 vs 34 tonnes in FY2013
        3) Iron Ore sales include internal consumption of nil in Q4 FY2014 vs nil in Q4
          FY2013 and nil in FY2014 vs 0.17 million tonnes in FY2013.
        4) Production under trial run
        5) Includes production under trial run of nil in Q4 FY2014 vs. nil in Q4 FY2013
          and nil in FY2014 vs 795 million units in FY2013.

About Sesa Sterlite Limited

Sesa Sterlite Limited (“Sesa Sterlite”) is one of the world’s largest diversified
natural resources companies. Our business primarily involves exploring, extracting and
processing minerals and oil & gas. We produce oil & gas, zinc, lead, silver, copper, iron
ore, aluminium and commercial power and have a presence across India, South Africa,
Namibia, Ireland, Australia, Liberia and Sri Lanka. Sesa Sterlite has a strong position in
emerging markets with over 80% of its revenues from India, China, East Asia, Africa and
the Middle East.

Sustainability is at the core of Sesa Sterlite’s strategy, with a strong focus on
health, safety and environment and on enhancing the lives of local communities.

Sesa Sterlite is a subsidiary of Vedanta Resources plc, a London-listed company. Sesa
Sterlite is listed on the Bombay Stock Exchange and the National Stock Exchange in India
and has ADRs listed on the New York Stock Exchange.

        Sesa Sterlite Limited
        (Formerly known as Sesa Goa Limited)
        Vedanta, 75, Nehru Road
        Vile Parle (East), Mumbai - 400 099

http://www.sesasterlite.com

        Registered Office:
        Sesa Ghor, 20 EDC Complex
        Patto, Panaji (Goa) - 403 001
        CIN: L13209GA1965PLC000044

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.

        For further information, please contact:
        Ashwin Bajaj
        Senior Vice President - Investor Relations
        sesasterlite.ir@vedanta.co.in
        Tel: +91-22-6646-1531


    Photo: 

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SOURCE Sesa Sterlite Limited


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