Iron Ore Northern System Sossego The Royalty terms, on a 100% basis, provide for a 1.8% (0.264% The Royalty also provides for a 2.5% (0.367% attributable) net sales attributable) net sales royalty on iron ore sales from the Northern royalty on certain copper and gold assets. The Royalty applies on a 50% System mines. basis (i.e. 1.25% of net sales, 0.183% attributable) to Sossego, reflecting Vale’s ownership at the time of issuance. Sossego is located in Carajas, The Northern System located in Carajas, Para state, Brazil is a fully Para state, Brazil and is an open pit operation with nominal capacity of integrated operation inclusive of mines, railroad, maritime facilities and approximately 93 kt per year of copper in concentrate. a port. The Northern System includes the Serra Sul (i.e. S11A-D), Serra Norte and Serra Leste mines and represents one of the largest mining Sossego produced 43.2 kt of copper in 2022, impacted by extended mill complexes globally with long-life reserves and excellent potential for maintenance in H1 2022. The Royalty further covers certain adjacent mine life extensions. The Northern System has been in operation since satellite deposits to Sossego which are being studied by Vale as 1984 with the most recent development of the Serra Sul (S11D) mine replacement/life extensions for the operation. in 2016. The current reserve life at the complex supports multi-decades of mining. Other The Northern System produced 172 Mt of premium high-grade iron ore Additionally, the Royalty provides for a 1% (0.147% attributable) net sales in 2022. Production is expected by Vale to be c.180 Mt in 2023 and to royalty on all other minerals (specified mining rights include prospective gradually increase to +220 Mt long term through the approved expansion deposits for other minerals including zinc, manganese, amongst others), of Serra Sul and other growth projects. subject to certain thresholds. A 1% rate (0.147% attributable) applies to net proceeds in the event of an underlying asset sale. In total, the Royalty 2 Southeastern System covers approximately 15,000 km of prospective geology. The Royalty terms, on a 100% basis, provide for a 1.8% (0.264% World class iron ore mines producing high quality attributable) net sales royalty on iron ore sales from the portion of iron ore for low emission steel production covered by the Royalty in the Southeastern System. The Southeastern System located in the Iron Quadrangle of Minas Gerais, Strong potential for growth and multi-decade Brazil is a key global producer of pellet feed and is a fully integrated mine lives complex with rail, maritime facilities and a port. Contributions to the Fully integrated production provides Royalty will start once a cumulative sales threshold of 1.7 Bt of iron ore has been reached, expected by Vale in 2025, adding approximately 25% cost advantage to 30% volume attributable to the Royalty. The Royalty provides partial coverage of the three Southeastern System mining complexes. 2 Large land package of approximately 15,000 km The primary complexes within the Royalty area are: Itabira, Minas Centrais (Brucutu mine), Mariana (Fazendao and, to a lesser extent, Capanema mines). We estimate attributable production of c.60 Mtpa from these complexes over the medium to long term (or approximately 70% of system capacity). Vale now expects a more moderate ramp up of production from the Southeastern System over the long term. M iner al R esour c es and M iner al R eser v es A dditional I nf orma tion Vale, Brazil TSX / NYSE: FNV Franco-Nevada Corporation 91