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Vedanta Resources (VED)

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Wednesday 15 August, 2007

Vedanta Resources

Disposal

Vedanta Resources PLC
15 August 2007


                                                                  15 August 2007


                    VEDANTA RESOURCES PLC ANNOUNCES SALE OF
                    CONTROLLING INTEREST IN STERLITE GOLD LTD
                                        

Vedanta Resources plc ('Vedanta' or 'the Vedanta Group') announced today that it
has entered into an agreement to sell its 84.2% interest (the 'Sterlite Gold
Shares') in Sterlite Gold Ltd. (TSX: SGD) ('Sterlite Gold').

Vedanta has agreed to tender its Sterlite Gold Shares to an all-cash offer for
Sterlite Gold to be made by GeoProMining Ltd. ('GeoProMining'), parent company
of Georgian mining Joint Stock Company Madneuli, at a price of US$0.3845 per
Sterlite Gold common share (the 'Offer'), for a total consideration to Vedanta
of $86 million (before expenses).  In addition, GeoProMining has agreed that, in
connection with the acquisition, the debt of Sterlite Gold to the Vedanta Group
amounting to approximately $25 million will be repaid. The carrying value of
Vedanta's investment in Sterlite Gold was US$83 million at 30 June 2007.

The Offer represents a premium for Vedanta's controlling interest in Sterlite
Gold.

GeoProMining has agreed to extend its Offer to all shareholders of Sterlite Gold
under the laws of Canada and has placed funds in escrow to allow for the
completion of the Offer, which is expected to occur by the end of September
2007.

Vedanta has been advised on the transaction by Ernst & Young LLP and Blake,
Cassels & Graydon LLP.


For further information, please contact:
Sumanth Cidambi                          sumanth.cidambi@vedanta.co.in
Associate Director - Investor Relations  Tel: +44 20 7659 4732 / +91 22 6646 1531
Vedanta Resources plc

Faeth Birch                              Tel:  +44 20 7251 3801
Robin Walker
Finsbury



About Vedanta Resources plc

Vedanta Resources plc is a London listed diversified metals and mining group.
Its principal operations are located throughout India, with further operations
in Zambia, Australia and Armenia. The major metals produced are aluminium,
copper, zinc, lead and gold. For further information, please visit
www.vedantaresources.com.


Disclaimer

This press release contains 'forward-looking statements' - that is, statements
related to future, not past, events. In this context, forward-looking statements
often address our expected future business and financial performance, and often
contain words such as 'expects,' 'anticipates,' 'intends,' 'plans,' 'believes,'
'seeks,' 'should' or 'will.' Forward-looking statements by their nature address
matters that are, to different degrees, uncertain. For us, uncertainties arise
from the behaviour of financial and metals markets including the London Metal
Exchange, fluctuations in interest and or exchange rates and metal prices; from
future integration of acquired businesses; and from numerous other matters of
national, regional and global scale, including those of a political, economic,
business, competitive or regulatory nature. These uncertainties may cause our
actual future results to be materially different than those expressed in our
forward-looking statements. We do not undertake to update our forward-looking
statements.




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