The Vale VoiceWorking together for a sustainable future

In this issueKronau Project AdvancesTalk with Us on October 16thAnswering Your QuestionsE-Waste Recycling and YouIn the Community Meet Our New Leader

2 October 2014

Kronau Project Advances to FinalFeasibility Study

The final feasibility stage (sometimes called constructionplanning) for the Kronau Project has been approved toproceed. This phase is when Vale creates the basicengineering and detailed plans necessary to begin KronauProject construction. Specifically, this study includesfurther engineering of the mine, utilities and process plantnear Kronau, as well as rail transportation and port servicesto Vancouver.

For the past year Vale has also been in Kronau Projectpartnership discussions. These discussions continue tohappen. However, the company feels it is important tomove the project forward at the same time.

It will take around one year to complete the project’s finalfeasibility stage. Depending on the outcome of this stage,global economics, and potential partners, a final invest-ment decision will be made around the end of 2015 onwhether or not to proceed with construction of the Kronaumine.

Vale’s Kronau Project development schedule is:

• 2014 begin final feasibility stage (construction planning)

• 2015 perform financial investment evaluation

If final investment decision is to proceed…

• 2016 begin construction and drilling activities

• 2020 begin processing plant production

Vale will continue to include the local community as theKronau Project further develops. Please see page four, for alist of answers to questions Vale has been asked bycommunity members.

Kronau Project highlights

• The potash discovery spans approximately 50,000 hectares and is part of the Prairie Evaporite Formation, a geological layer that is located at 1,600 to 1,750 metres underground at our project location.

• The core facilities site was chosen because its geology provides natural containment for brine within the tailings (waste) management area.

• Support infrastructure for the project will include water, power, natural gas, communications, and road and rail access.

• The project will use a dedicated combined heat and power plant to supply energy for the project.

• Vale has been sharing information about this project with Aboriginal communities, rural municipalities and the general public since 2011.

• Vale expects to employ up to 2,000 people on-site during construction and around 350 permanent employees during operations.

Members of Vale’s Kronau Project team met in Regina at the endof August for feasibility study kick-off meetings.

October 2014 3

Let’s Keep Talking

Do you have questions or want moreinformation about what this finalfeasibility study stage means for you?Come talk with our Land, Environmentand Community team on Thursday,October 16th from 3 p.m. to 7 p.m. atthe Kronau Curling Club.

This is your opportunity to askquestions and learn more.

We would also like to gather your inputand feedback on our Kronau Project draftconsultation plans which Vale will holdwith the community throughout thenext year.

Kronau ProjectCome & Go

Thursday, October 16, 20143:00 p.m. – 7:00 p.m.Kronau Curling ClubCome and Go (coffee and pie served)All welcome

We’re looking forward to catching up.Please stop by to say hello and have abite.

Does this mean the Kronau Project is definitelygoing ahead? No. It means the final feasibility stage of the project isstarting. Depending on the outcome of this study, globaleconomics, and potential partners, a final decision to buildthe Kronau mine will be made around the end of 2015.

Why is Vale proceeding alone at this stage? Vale has been in partnership discussions throughout thispast year. These discussions are still occurring but thecompany feels it is important to continue to advance theproject at the same time. This will give us a better chanceof staying on schedule.

Other potash companies and potash projects inSaskatchewan have had a tough year. Why doesVale want to continue to proceed with its KronauProject plans? Building a new mine is a long term investment. Valebelieves the long-term global market fundamentals forpotash are strong and the Kronau Project has the potentialto be a key producer for Vale.

Vale already has fertilizer operations around the world andis the largest potash producer in South America. As anexisting producer we understand the market and believethere is an opportunity for another potash producer in thenear future.

What is involved in this next (and final)feasibility stage of Vale’s Kronau Project? This phase is when Vale creates the execution plansnecessary to begin Kronau Project construction. Specifically,this study includes: basic design, equipment specification,procurement plan, execution plan, detailed work scope,budget and schedule.

Once our draft plans are finalized, parts of them aresubmitted to the provincial government to prove ourenvironmental and social commitments. The governmentwill evaluate these plans to determine whether or not Valeshould receive the necessary construction permits toproceed.

Answering Your Questions

4 October 2014

Is Vale going to consult the community regardingthe Kronau Project’s construction plans? Yes. At certain points throughout this stage, our draftengineering plans will be ready to share with thecommunity for comments and feedback. Some of the wayswe’ll gather feedback from the public include:

• involving local municipalities in key decisions like road closures, relocations, and traffic plans;

• setting up local Community Advisory Groups on topics like infrastructure, community services, environment and the economy;

• posting updates in this newsletter as well as our website;

• hosting open house events; and

• collecting individual feedback via surveys.

Is Vale hiring? How can I apply? Vale will be adding more members to our project team inthe coming months. To find out what jobs are posted andto apply, visit www.valejobs.ca.

I’m a local supplier who is interested in gettingon your project’s vendor list. How do I do this? Vale’s procurement plan is being drafted. In the meantimeif you’re interested in sharing your service offerings withus, please email kronau.project@vale.com. You mustinclude: company name, address, companyrepresentative/contact information, as well as a writtendescription of your company’s general offerings.

I still have questions for Vale about all of this,who can I call? We’d like to hear from you! Send us yourthoughts – phone: 306-791-4510, email:kronau.project@vale.com, web: valepotashcanada.ca.

There’s a place for everything,even e-waste.

Almost everyone has some form of electronic wastegathering dust in their home. But few people know that itcan usually be diverted from landfills and recycled intonew, useable items.

That’s why Jason Ash, Kronau project environmental lead,organized a community e-waste recycling day earlier thissummer.

October 2014 5

“We wanted to get thecommunity involved and makean impact, even if it was just asmall one,” said Ash. “I did someresearch and discovered that 50per cent of Saskatchewanresidents have e-waste to disposeof, however less than 70 per centuse the Saskatchewan WasteElectronic Equipment Program(SWEEP).”

The main reasons why the e-waste program is underused,according to Ash, are lack of awareness and lack ofconvenience. Ash discovered that both the hamlet ofKronau and the Rural Municipality of Edenwold, where theproject is located, are underserved when it comes to e-waste collection.

“Neither of these places have direct access to an e-wasterecycling facility,” said Ash. “So in order to participate in theprogram, all of their residents have to drive to Regina. Iwanted to encourage our neighbours to partake in theSWEEP program and increase awareness by providingthem with closer, more convenient drop-off locations,even if it was for just one day.”

The one-day collection, in Kronau and nearby EmeraldPark, netted more than four truckloads of hard-to-dispose-of material, including televisions, speakers, fax machines,computer accessories and about 200 cans of paint.

“The event confirmed for me that the best way for Vale toincrease its reputation and status within SouthernSaskatchewan is to start at the community level,” said Ash.“Being active participants in the community helps buildtrust and relationships that are invaluable.”

E-Waste Recycling and You

Jason Ash, Kronau project environmental lead

In the Community

6 October 2014

Vale is committed to being a good neighbour.

Have a project you’d like us toconsider supporting?

Learn more about our local funding/exclusion criteriaand apply online at www.valepotashcanada.ca. Werespond (one way or another) to all online fundingrequests. However, it can take up to three months for usto evaluate requests, so apply early!

EYES on success: Educating Youth in Engineering andScience makes learning fun.

Whether building Lego robots, doing a dissection, orlearning about the mantis shrimp, the kids who take partin EYES camps are sure to have a good time. EYES(Educating Youth in Engineering and Science) offers in-school workshops and summer day camp programs toover 15,000 students in southern Saskatchewan each year.

This year, their Regina camps included EYES Jr. for youthentering grades 2 and 3, EYES Camp for grades 4 to 9, E-Design for grades 7 to 9, and the All Girls Program. Theyalso offered their Camp program in Assiniboia, Esterhazy,Estevan, Foam Lake, Moose Jaw, Shaunavon, Swift Current,and Weyburn.

The camps are based around the themes of Innovationand Discovery. Younger groups go on a week-long"science story adventure," while older groups do hands-onscience, engineering, and technology activities basedaround theme days. In 2014, theme days included Biotech,Everyday Science, Elon Musk (Space X, Tesla, and

hyperloops), Construction, Evolution, Invertebrate, andDensity (“Trust me," their website reads, "we will makemass over volume interesting.”)

E-Design takes a different approach than the camps,allowing the kids to direct their own learning experience.The project-based program is entirely self-directed, withEYES giving the youth access to specialized digitaltechnology under the guidance of qualified supervisors.Campers can design and print 3D objects, build andprogram robots, develop photo editing skills, designvideo games, create web pages, program applications,and more.

During the school year, they host EYES Club programmingon Saturday afternoons from January to March, and visitclassrooms to present their 45-minute EYES Workshopsduring May and June. This year, workshops included TheThree Little Pigs (“Is your building strong enough to standtall against the hurricane-like winds?”), Protect the Pill(about time-released medication), and Microbes andMicroscopes (about water analysis and treatment).

Each year, the programming changes, so students arealways learning the most up to date science, and will learnsomething new even if they participate every year fromgrade 2 to 9. This non-profit organization also keeps costsreasonable, and offers bursaries to needy campers. In thepast, EYES has run free programming for disadvantagedneighbourhoods in Regina, and partnered with the OpenDoor Society to run a camp for newcomers to Canada.

Vale recognizes the importance of programs like EYES. Asa Gold Sponsor, Vale donated $5,000 to support the 2014EYES program.

Photo courtesy: www.flickr.com/photos/eyesyouth

October 2014 7

The week began with a tipi raising on Saturday, and apipe ceremony on Sunday morning, and then theAboriginal Youth Entrepreneurship Camp participants gotdown to business – literally.

AYEC is a week-long entrepreneurship intensive,immersing students in topics like creating a successfulbusiness plan, networking, marketing, and finances.

Hosted by the First Nations University of Canada, thecamp aims to teach grade 11 and 12 students how to besuccessful entrepreneurs. From August 9-15, faculty andcamp supervisors worked with the students to help themgenerate ideas for a business plan, which they worked onthroughout the week, and finally presented at the end toa panel of judges made up of sponsors, including arepresentative from Vale. The presentation included acommercial for their business, created with professionalhelp.

"It was an awesome success for students and faculty andcamp supervisors," said Dr. Bettina Schneider, FNUnivassistant professor in the School of Business and PublicAdministration, and department head of IndigenousScience, the Environment, and Economic Development.

Although the final competition was judged, all the teamswalked away with prizes, earning their swag in categoriesincluding best presentation, best business idea, best FirstNations concept, best overall marketing idea, bestmarketing plan, and best commercial

"They all walked away with a sense of accomplishment.They all completed what they set out to complete," saidSchneider. "We wanted to acknowledge the hard work thateverybody showed."

The sixth annual camp hosted 24 students, includingyouth from British Columbia and Labrador. Formerparticipants have gone on to successful business careers,such as musician Adam Jack, who created BiggEntertainment, an entertainment industry collective forartists.

While the focus of the camp is onlearning about entrepreneurship, it'snot all work: Evening activitiesincluded dinner and a movie, golfing(while learning the businessadvantages of knowing the sport),and a trip to Boomers Air Park.

"The days were long and intense, but the evenings were atime for fun; a time to talk and get to know each other,"said Schneider.

AYEC is offered to the students at no charge, which meansFNUniv is reliant on the generosity of sponsors to helpprovide the program. This year, Vale was a Wolf Sponsor,contributing $2,500 to the camp's operations.

"This camp would not be possible without Vale and ourother sponsors," said Schneider. "We're so happy to havethem on board this year."

Next-gen business: Aboriginal Youth Entrepreneurship Camp gives students the right start.

About Michael

Michael has a long and distinguished career stretching back over 25 years. He originally hailsfrom Dublin, Ireland where he studied electrical engineering at the Kevin Street College ofTechnology. He also later studied at the City and Guilds of London program.

In the late 1970s, he moved to Canada where he soon built a name for himself for engineeringwork across the country. In 1988, he joined INCO Canada for whom he worked on a range ofsmelter and power plants in Canada. His time at INCO also took him to projects in China,Australia and Indonesia.

He has also worked in the Alberta oilsands for Syncrude as well as serving as an industryrepresentative for the Alberta provincial electrical code committee.

Since joining Vale in 2007, he has overseen a wide range of projects in Indonesia. In 2013, hereturned to Canada to serve as vice-president of Vale Newfoundland.

Unlike our senior project leader in Regina Matthew Wood, Michael has arrived too late for us to give him any curling lessonsyet. There is always next year, though. In the meantime, we are looking forward to putting Michael’s extensive engineering andproject management experience to work for us as the Kronau Project moves forward.

Contact UsFor all general inquiries contact:

Corporate Office1874 Scarth Street, Suite 1900Regina, SK S4P 4B3+1 (306) 791-4510Email: kronau.project@vale.com

www.valepotashcanada.ca

Get to Know ValeVale is a global mining company that discovers andtransforms minerals into the essential ingredients foreveryday life. Vale Potash Canada Limited is an indirectwholly owned subsidiary of Vale S.A. (Brazil).

The Vale Voice is a Vale Potash Canada Limited newsletterthat provides updates on our company and the KronauProject. Sign up online to receive the electronic version ofthe Vale Voice or email us to receive a hard copy by mail.

Meet Our New LeaderVale’s Kronau Project team is proud to welcome Michael O’Sullivan,our new executive project leader.