Resolution of the capital reduction of MUSA

An extraordinary shareholders’ meeting of Mineração Usiminas S.A. (MUSA), of which Sumitomo Corporation owns 30% shares, was held on January 10^th (Brazil Time), in order to resolve the capital reduction of BRL1.0Billion. Sumitomo Corporation, after due analysis and consideration of MUSA’s current situation and potential new scenarios, understood that such capital reduction does not meet MUSA’s interest and then exercised its Veto right. Despite that, Usiminas, the 70% shareholder of MUSA, made public Material Fact, in which it claimed that exercise of Veto right by Sumitomo Corporation was abusive and it is to seek invalidation through legal means. Sumitomo Corporation exercised this Veto exclusively considering MUSA´s interests and properly in accordance with the relevant provision of the shareholders agreement of MUSA and of the applicable Brazilian Law provisions. As a result, Sumitomo Corporation is sure that the exercise of the Veto right by Sumitomo Corporation cannot be considered abusive.