OREANDA-NEWS. August 3, 2011. With reference to media reports regarding Sesa Goa Limited ("Sesa Goa" or the "Company") being named in the [Karnataka] Lokayukta report, the company wishes to clarify its stand and state the following.

The Company's name is referred in the Lokayukta report at three instances:

On Page No 25 of the report, serial no 16 & 25, it has been alleged that Sesa Goa exported 60,500 tonnes and 15,000 tonnes through two different vessels post the export ban. The names of the vessels mentioned in the report are not correct. These two quantities refer to two shipping bills which were part of the vessel MV Panamax 4. Against the shipping bill dated 10 August 2010 of 60,500 tonnes which was the loadable quantity of the ship, the actual quantity loaded was 45,500 tonnes and a short shipment of 15,000 tonnes was duly recorded by the customs against the said shipping bill. This quantity of 45,500 was from Sesa Goa mines, and processed through its EOU (Export Oriented Unit) plant. As there was insufficient quantity to load the ship fully (in view of the ban on transportation for export), Sesa bought 15,000 tonnes from the stockpile of another exporter after verifying all permit documents, filed a new shipping bill dated 13 August 2010 and then loaded that quantity onto the ship. Against this specific query, Sesa Goa has submitted all the relevant documents to the government months back.

On page 308, the report refers to a court case wherein Sesa Goa had filed a writ petition against the Union of India contesting an allotment of a mining lease to some other miner, which it believed should have been allotted to Sesa Goa on merit.

In the past, the company has made some shipments through Belikeri port and page 416 refers to the list of companies, suppliers and the stacks whose material is lying in Belikeri port. The list is for all ore lying in Belikeri port and Sesa Goa's ore lying at Belikeri port has been duly listed as having been transported from Sesa Goa's mines. The stack is lying intact, and has been reconciled against all valid transport documents duly verified by the authorities.

We reiterate that all our transactions are legally compliant, and will fully cooperate with the authorities for any further clarification required, if any.