Presentation on Sterlite Gold Ltd - Vedanta Resources

Acquisition ofSterlite Gold LtdJune 2006

Cautionary Statement and DisclaimerThe views expressed here may contain information derived from publicly available sources that have not beenindependently verified. No representation or warranty is made as to the accuracy, completeness or reliability ofthis information.Any forward looking information in this presentation has been prepared on the basis of a number of assumptionswhich may prove to be incorrect. This presentation should not be relied upon as a recommendation or forecastby Vedanta Resources plc.This presentation may contain “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 financialperformance, and often contain words such as “expects,”“anticipates,”“intends,”“plans,”“believes,”“seeks,”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 MetalExchange, fluctuations in interest and or exchange rates and metal prices; from future integration of acquiredbusinesses; and from numerous other matters of national, regional and global scale, including those of aenvironmental, climatic, natural, political, economic, business, competitive or regulatory nature. Theseuncertainties may cause our actual future results to be materially different that those expressed in our forwardlookingstatements. 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 inthe United States or any other jurisdiction.Acquisition of Sterlite Gold Ltd2© 2006, Vedanta Resources plc

Summary of transaction• 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 2006Acquisition of Sterlite Gold Ltd3© 2006, Vedanta Resources plc

Location and overviewLocation• The Zod mine is in the Vardhenis region of Gegarkounk province• 150 km south-east of YerevanOverview• Sterlite Gold owns 100% ofArmenia Gold RecoveryCompany (AGRC)• AGRC assets consist of– Zod Mine– Meghradzor Mine– Ararat processing plant• Zod Mine has a stated JORCresources of 2.1m oz• Plan to increase output atZod from c. 45k oz to 120kozAcquisition of Sterlite Gold Ltd4© 2006, Vedanta Resources plc

Zod resource base* (central and western blocks)Published categoryMilliontonnesGrade(g/t)Contained GOLD(tonnes)GOLD(million ounces)Measured and indicated 17.00 3.9 65.5 2.10Inferred 1.80 2.6 4.6 0.15• JORC compliant, as of Dec 2004.• Russian geological data indicates a total resource of 9.2 million ounces.Acquisition of Sterlite Gold Ltd5© 2006, Vedanta Resources plc

Zod topographyPhase I and II PitPlanned Open PitPlanned Waste DumpsProposed Processing PlantAdmn. Bldg.Workshop/GaragePlanned Tailings DamAcquisition of Sterlite Gold Ltd6© 2006, Vedanta Resources plc

Current operations and Expansion opportunityCurrent 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 whenearnings were $3m at gold prices < $400• Mine has operated for many years and2002 onwards as Sterlite GoldPhase III Expansion –the opportunity• Increase production from c. 45koz to120koz• Involves increase in ore throughput to 1mtonnes from 400kt and an improvement inrecoveries• Process refractory ore using pressureoxidation• Run concurrently with CIL plant• SGD disclosed preliminary capex estimateof USD 85m• USD11m previously invested in mining• Estimated 18 to 24 months to complete• Potential exists to more than doubleresource at ZodAcquisition of Sterlite Gold Ltd7© 2006, Vedanta Resources plc

Valuation• 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 theindependent 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 of3.1x 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 apremium of 166% over the weighted average share price (WAP) for Sterlite Gold over 30days• Comps: Gold industry acquisition premium for acquisitions by majors of junior companies of70% to the share price on the day prior to announcement and 82% to the WAP over 30days* (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 includeDRD, High River Gold, Randgold, Oxus Gold, Bema Gold, Kazakhgold, Golden Star, NevsunAcquisition of Sterlite Gold Ltd8© 2006, Vedanta Resources plc

Share price history• Transaction also represents a 20% premium to the 3-year high of C$0.215 / share reached inNovember 2003 and similar levels in November 2004• Sterlite Gold has traded at a discount to its peers and to the gold price for several reasons,including lack of news flow and very limited broker coverageSterlite Gold share price v Gold price0.25750Sterlite Gold share priceGold price7000.2650C$ / share0.150.1600550500450US$ / oz0.05400350030006/06/200301/08/200326/09/200321/11/200316/01/200412/03/200407/05/200402/07/200427/08/200422/10/200417/12/200411/02/200508/04/200503/06/200529/07/200523/09/200518/11/200513/01/200610/03/200605/05/2006Acquisition of Sterlite Gold Ltd9© 2006, Vedanta Resources plc

Acquisition rationaleThe opportunity• 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 Indiaand elsewhere• Gold stocks trade at a higher multiple and any future spin-off is expected to generatesignificant valueAcquisition of Sterlite Gold Ltd10© 2006, Vedanta Resources plc

Indian gold potential• India has similar geology to Africa and Western Australia. The pre-cambrian auriferousgreenstone 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 theregulatory environment, provides the basis for success• Existing production in India is modest, and led by Hutti Gold Mines in Karnataka, withadditional output from Bharat Gold Mines in Karnataka (Kolar Gold Fields) and AndhraPradesh. 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 which590 tonnes was accounted for by gold jewelry. The majority of demand is met throughimports. Rising income levels are increasing purchasing powerAcquisition of Sterlite Gold Ltd11© 2006, Vedanta Resources plc

Conclusions –an excellent development opportunity• 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 progressiveArmenia• An excellent and timely opportunity for VedantaAcquisition of Sterlite Gold Ltd12© 2006, Vedanta Resources plc

Appendix

Appendix: Dealing with related party aspectsof the valuation• 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 requiredAcquisition of Sterlite Gold Ltd14© 2006, Vedanta Resources plc

Appendix: AGRC structureAGRC was set up in 1998 and today holds the Zod mine, Meghradzor deposit andArarat processing plantSterlite Gold100%AGRCunitunitunitMeghradzor Zod AraratAcquisition of Sterlite Gold Ltd15© 2006, Vedanta Resources plc

Appendix: Current flow sheetsZod mineExplorationEstablishing Gold depositPlanning and designingPlanning of pit limits andproduction planning &schedulingProduction DrillingDrilling holes up to 175mmBlastingLoading of holes withexplosives and blastingMucking and LoadingLoading of blasted muckinto TrucksHaulingTransporting material tostock pile or waste dumpTransportation ofore to plantAcquisition of Sterlite Gold Ltd16© 2006, Vedanta Resources plc

Appendix: Current flow sheetsArarat plantRailwaysOre transport to Araratfrom Zod mineTippers & BinsOre unloaded to conveyorbeltMill BuildingGrinding of ore passing0.074mm 80%Dam Tailingsby RepulperCILLeaching of grinded ore slurry withNaCN at 10.5 -11 PHTails to Thickener,Tailing DamBarronCarbonElution BuildingStripping of Gold from loaded carbonGold RoomElectro winning of Gold from Eludedsolution and SmeltingDore toShipmentAcquisition of Sterlite Gold Ltd17© 2006, Vedanta Resources plc