OREANDA-NEWS. August 8, 2011. Sesa Goa Limited ("Sesa Goa"), a majority-owned subsidiary of Vedanta Resources plc ("Vedanta"), the London-based FTSE 100 metals and mining group announces that they have signed a definitive Share Purchase & Operation Agreement with Elenilto Minerals & Mining LLC, Delaware ("Elenilto"), under which Sesa Goa has agreed to acquire 51% of the outstanding common shares of WCL (which is the Project Company) for a cash consideration of USD 90 million. WCL is a wholly owned subsidiary of Elenilto which is the winner of a bid for the development of the Western Cluster iron ore deposits pursuant to a tender floated by Government of Liberia ("GOL"). WCL will carry out the development of Project as per the provisions of a Mineral Development Agreement ("MDA") executed with the GOL. Sesa's acquisition of the 51% majority stake in WCL is subject to ratification of the MDA by Legislature of Liberia.

WCL is a logical and strategic fit with Sesa's existing iron ore business and is expected to create significant long term value for all shareholders through:

-  Leveraging Vedanta and Sesa's proven mining and project management skills to develop and optimize WCL's mines and plants;

-  Access to attractive mining assets with long life having potential iron ore resources in excess of 1 billion tonnes together with significant upside opportunity; and

-  Establishing a strong presence in the upcoming iron ore hub catering to seaborne iron ore trade.

"We are highly delighted with this opportunity to consolidate our Iron Ore business. The Western Cluster Project presents an excellent opportunity for developing a large integrated mining operation and establish our presence in Liberia and Africa" said Mr. P.K. Mukherjee, Managing Director, Sesa Goa.