Mumbai: Sesa Goa to acquire 20% of the issued share capital of Cairn India under an open offer. Acquisition of a strategic stake in a world class asset with significant growth
Potential.

P.K. Mukherjee, Managing Director of Sesa Goa said: “The proposed strategic investment provides Sesa Goa an opportunity to earn superior returns in an investment which will benefit from value creation as part of the Vedanta Group whilst providing the protection of participating in a controlling interest ”

Sesa Goa announces it will acquire a 20% strategic stake in Cairn India under an Open
Offer. If there is insufficient take up in the Open Offer, Sesa Goa will acquire the balance
as part of the Vedanta Group’s acquisition of a 51%-60% stake in Cairn India. The total
cash consideration for the shares to be acquired is circa US$3 billion.

India imports over two thirds of its oil needs and India’s economic growth continues to
drive a strong demand for oil. Cairn India is a unique oil and gas exploration and production platform with the third largest oil reserves in India. Cairn India has a proven
management team and low-cost production.

Cairn India’s principal asset is a circa 70% stake in the Rajasthan oil development project
(the “Project”). The development has been largely de-risked with the first phase of
development now complete and a circa 600 km heated pipeline in place. Currently Cairn
India is producing approximately 125,000 barrels of crude oil per day. The Project
represents a significant potential resource base with estimated oil in place in excess of
6.5 billion barrels.

The Sesa Goa Board believes that the strategic Investment delivers significant financial
value to the company. Cairn India is a world class asset. It is India’s second largest
private sector upstream oil company (by reserves). Its key producing asset, representing
25% of India’s total oil production, has been substantially de-risked. It is a low
operating cost, long life asset with the ability to increase its production plateau.
Overview of Cairn India

Cairn India was listed on the Bombay Stock Exchange and the National Stock Exchange
of India in January 2007. On the last trading day prior to this announcement it had a
market capitalisation in excess of US$14 billion and is the fourth largest oil and gas
company in India. Cairn India has interests in 11 blocks in India and Sri Lanka. Cairn
Energy holds a circa 62.4% interest in Cairn India.

Assets Summary
• A circa 70 %. working interest in development areas totalling circa 3,111 km2 in the
Rajasthan Block. The main Development Area (circa 1,858 km2), which includes
Mangala, Aishwariya, Raageshwari and Saraswati is shared between Cairn India
and ONGC, with Cairn India holding circa 70% and ONGC having exercised their
back in right for 30%. Further Development Areas (circa 430 km2), including the
Bhagyam and Shakti fields and (circa 822 km2) comprising of the Kaameshwari West
Development Area, is also shared between Cairn India and ONGC in the same
proportion. Current production is in excess of 120,000 barrels of crude oil a day from
the Mangala field via a circa 600 km heated export pipeline;
• Operated interests in producing fields at Ravva in Block PKGM-1 in the Krishna-
Godavari Basin offshore eastern India (a circa 22.5% working interest) and at
Lakshmi and Gauri in Block CB/OS-2 in the Cambay Basin offshore western India (a
circa 40% working interest). Crude oil and natural gas production from Ravva
commenced in 1993. Production of natural gas commenced from Lakshmi in 2002
and from Gauri in 2004. Production of commingled crude oil from Gauri commenced
in 2005;
• Equity interests in eight blocks where there is currently no production or
development but which are in various stages of exploration. The three main basins
where the Indian Business is currently actively involved in exploring comprise the
Cambay, Krishna-Godavari and Mannar Basins.

As at 31 December 2009, the gross assets of Cairn India were circa US$3,073.5 million.
For the 12 months ended 31 December 2009 the profit before tax was US$(29.1) million.

Implementation of the Proposed Investment
Full details of the steps to be taken to effect the Proposed Investment are set out in
Vedanta’s separate press release issued today, attached as Appendix to this press release.

Financing

Sesa Goa will fund the Proposed Investment primarily through the company’s cash
balances.

Timetable
The Proposed Transaction is expected to close by year end.