OREANDA-NEWS. October 31, 2012. Sesa Goa Limited ("SGL" or the "Company") hereby announces its unaudited consolidated results for the second quarter ("Q2") and six months ("H1") ended 30 September 2012.

Unaudited Consolidated Financial Summary

(in ' crores, except as stated)

Particulars

Quarter ended 30 September 2012

2011

Six months ended 30 September 2012 2011

Net Sales / Income from operations

294

790

2,027

2,899

Net Profit (PAT) Incl. Associate

522

1

1,486

842

Income

Earnings Per Share (')* Basic

6.01

0.01

17.10

9.69

Diluted

5.36

0.01

16.98

9.69

- *Non annualised

Unaudited Consolidated Production & Sales Summary

(in million dry metric tonnes, or as stated)

Particulars

Quarter ended 30 September 2012

2011

Six months ended 30 September 2012 2011

IRON ORE1

Production of Saleable Ore

0.4

1.1

3.7

5.5

Goa

0.4

0.7

3.7

4.6

Karnataka

0.0

0.5

0.0

0.9

Sales

0.2

1.6

3.1

5.8

Goa

0.2

0.8

3.0

4.0

Karnataka2

0.0

0.7

0.1

1.8

Production ('000 tonnes)

Pig Iron

82

63

121

126

Met Coke

83

65

146

128

Sales ('000 tonnes)

Pig Iron

73

65

117

123

Met Coke

80

52

133

112

1 Iron Ore sales include internal sales of 0.18 million tonnes in H1 FY2013 vs. 0.12 million tonnes in H1 FY2012 and 0.12 million tonnes in Q2 FY12-13 vs. 0.05 million tonnes in Q2 FY2012

2 Sales of iron ore from Karnataka were 0.01 million tonnes in Q2 FY2013 and 0.06 million tonnes in H1 FY2013 through court sponsored e-auctions of inventory

Operating Performance

Sales of Iron Ore were 0.2 million tonnes in Q2 and 3.1 million tonnes in H1, as compared to 1.6 million tonnes and 5.8 million tonnes in the corresponding prior periods respectively. Iron ore operations were affected by the mining ban in Karnataka, a temporary restriction on iron ore extraction in Goa and transportation restrictions in South Goa during the monsoons.

Last month, the Supreme Court allowed some mines in Karnataka to resume mining operations, in line with recommendations of the Central Empowered Committee (CEC), and has now commenced the process for other mines including our mine in Karnataka. The CEC has approved our Reclamation and Rehabilitation plan at a provisional production capacity of 2.29 mtpa and we expect to commence mining in Karnataka, subject to receiving the court's approval.

The Goa State Government ordered a temporary suspension on extraction of ore across the State of Goa from 11 September 2012 pending verification of various approval documents, but stated that the ore already mined-out may be transported and sold after inspection and clearance by the State Government. Further, the Central Ministry of Environment and Forests suspended existing environmental clearances of mines across the State from 14 September 2012 and is verifying documents related to environmental clearances. The Company has submitted all the relevant documents as required by the respective authorities.

On 5 October 2012, the Supreme Court of India ordered a suspension on mining activities in Goa, including transportation of mined ore from mines or stockyards, and asked the CEC to file a preliminary report in four weeks.

The Company is working closely with the regulatory authorities to complete the review processes.

Pig Iron & Met Coke

Sales of Pig Iron and Met Coke increased by 12% and 54% in Q2 to 72,650 tonnes and 79,506 tonnes respectively as compared with 64,611 and 51,535 the corresponding prior quarter. Production of Pig Iron and Met Coke also increased by 30% and 28% in Q2 to 81,991 tonnes and 82,920 tonnes respectively as compared with 63,277 and 64,848 of the corresponding prior quarter. The increase is primarily on account of the successful commissioning of new pig iron capacity (of 375 ktpa taking total capacity to 625 ktpa) and the associated metallurgical coke capacity during the quarter.

Further, the company has stopped the operation of the new blast furnace on October 08, 2012 due to low / no availability of iron ore from Karnataka / Goa.

Western Cluster Limited, Liberia

At our Liberia iron ore project, exploration activities are progressing well, with over 31,000 meters of drilling completed till 30 September 2012. We remain on track to deliver the first shipment in FY2014.

Financial Performance

During Q2 and H1, net profit including associate income was at ' 522 crores and ' 1,486 crores including share of profit from Cairn India at ' 464 crores and ' 1,230 crores respectively.

Net Profit before associate income for Q2 was higher at ' 58 crores compared to ' 1 crores in the corresponding prior quarter. Net Profit for H1 before associate income was at ' 256 crores, a decline of 70% as compared with the corresponding prior period. The profits declined due to lower sales volume on account of suspension of mining operations, transportation restrictions in Goa and continued mining suspension in Karnataka operations which was offset by foreign exchange gains during Q2.

Scheme of Amalgamation and Arrangement (Sesa-Sterlite Merger)

Further to the approval received from the stock exchanges, the Competition Commission of India, Foreign Investment Promotion Board and the equity shareholders during Q1, approval of the Supreme Court of Mauritius for merger of Ekaterina Limited with the Company was obtained during Q2. The petitions for merger have been filed with and admitted by the High Court of Bombay, at Goa, and High Court of Madras in respect of which hearings have commenced.