Mineral Resources Reserves - Glencore · Reserves Xstrata Zinc”, Version 21 January 2008. The...

Mineral Resources & Ore Reservesas at 31 December 2011

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Xstrata | Reserves and

Resources as at 31 Decem

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Contents

For more informationVisit our corporate website: www.xstrata.com

2. Alloys 4

3. Coal 11

4. Copper 22

5. Iron Ore 32

6. Nickel 35

7. Zinc 38

We report our resources and reserves in accordance with the 2004 edition of the Australian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code), the South African Code for Reporting of Mineral Resources and Mineral Reserves (SAMREC) Code and the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Definitions Standards on Mineral Resources and Reserves. Together these Codes are considered to be best practice for reporting exploration results, mineral resources and ore reserves.

The resources and reserves data in the following tables are as at 31 December 2011, unless otherwise noted. For comparison purposes, data for 2010 has been included. Metric units are used throughout.

All data is presented on a 100% asset basis, with the Xstrata attributable percentage shown against each asset.

All tonnage information has been rounded to reflect the relative uncertainty in the estimates; there may therefore be small differences in the totals.

The Measured and Indicated Mineral Resources are reported inclusive of those resources modified to produce reserves, unless otherwise noted.

Commodity prices and exchange rates used to estimate the economic viability of reserves are based on long term forecasts applied at the time the estimate was calculated.

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CopperXstrata Copper has adopted the 2004 Australasian Code for Reporting Exploration Results, Mineral Resources and Ore Reserves (the JORC Code) as its standard for all public reports of its exploration results, mineral resources and ore reserves.

The Mineral Resource and Ore Reserve Statement is consistent with the JORC Code and is based on the Guidelines for “The Estimation and Public Reporting of Exploration Results, Mineral Resources and Ore Reserves Xstrata Copper”

The resources and reserves estimates are compiled and verified by Neal O’Connor Xstrata Copper.

Iron OreIron ore resources and reserves are presented in accordance with the 2004 Australasian Code for Reporting Exploration Results, Mineral Resources and Ore Reserves (the JORC Code) prepared by the Joint Ore Reserves Committee of the Australasian Institute of Mining and Metallurgy, Australian Institute of Geoscientists and Minerals Council of Australia.

The resources and reserves estimates are compiled and verified by Jonathan Romcke, Xstrata Iron Ore.

NickelThe majority of the resources and reserves estimates are prepared in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Definition Standards on Mineral Resources and Mineral Reserves, adopted by CIM Council on 11 December 2005, and the CIM Estimation of Mineral Resources and Mineral Reserves Best Practice Guidelines, adopted by CIM Council on 23 November 2003, using geostatistical and/or classical methods, plus economic and mining parameters appropriate to each project.

The resources and reserves estimates at Xstrata Nickel Australasia (Cosmos, Sinclair) have been prepared in compliance with the 2004 Australasian Code for Reporting Exploration Results, Mineral Resources and Ore Reserves (the JORC Code), December 2004.

The resources and reserves estimates are compiled and verified by Chester Moore, P. Eng., P. Geo., consultant with Scott Wilson Roscoe Postle Associates an external auditor for Xstrata Nickel.

AlloysSouth African chromite, vanadium and PGM’s (platinum group metals) resources and reserves in this report are reported in accordance with the 2004 Australasian Code for Reporting Exploration Results, Mineral Resources and Ore Reserves (the JORC Code), December 2004.

The Chromite, Vanadium and PGM’s Mineral Resource and Ore Reserve Statement at 31 December 2011 is consistent with the JORC code and is based on the Xstrata Alloys “Procedure for the Estimation of Mineral Resources and Ore Reserves”, reference No. 10000027570. Definitions of all the terms used in this report can be found in the relevant code.

The resource and reserve statements have been reviewed and the relevant data extracted and compiled by Pieter-Jan Gräbe, Xstrata Alloys (SACNASP).

CoalAustralian coal resources and reserves are estimated and presented in accordance with the JORC Code.

South African and Colombian coal resources and reserves are estimated and presented in accordance with the SAMREC Code and the JORC Code.

Canadian coal resources and reserves have been prepared in CIM Definition Standards and with reference to GSA Paper 88-21, A Standardised Coal Resource/Reserve Reporting System for Canada.

The Coal Reserve and Coal Resource Statement at 31 December 2011 is consistent with these Codes and is based on the Xstrata Coal Resource and Reserve Estimation and Reporting Standard, Version 30/06/2010.

Coal resources have been estimated for potentially mineable seams within mining leases or exploration licenses and are limited by major cadastral, geological and economical boundaries.

Coal resources exclude areas where the seam has been affected by igneous bodies, extracted by mining and areas where coal has been sterilised by mining to 31 December 2011. Minor heat affected coal resources (low volume) are included at a number of Queensland coal projects.

Resources do not include out-of-seam dilution. Underground resources are typically reported on a full seam or working section basis, and may contain a small amount of intra-seam partings material.

The resource and reserve estimates are compiled and verified by Raymond Howard, Xstrata Coal.

Mineral Resources and Ore Reserves“ We report our resources and reserves in accordance with the 2004 edition of the Australian Code for reporting Exploration Results, Mineral Resources and Ore Reserves (JORC Code), the South African Code for Reporting of Mineral Resources and Mineral Reserves (SAMREC) Code and the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Standards on Mineral Resources and Reserves.”

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DefinitionsThroughout this report, the following abbreviations and definitions have been used:

APEGBC (Association of Professional Engineers and Geoscientists of BC)

APEGGA (Association of Professional Engineers Geologists and Geophysicists of Al berta)

APEGNB = Association of Professional Engineers and Geoscientists of New Brunswick

APGO = Association of Professional Geoscientist of Ontario

AusIMM = Australasian Institute of Mining and Metallurgy

CIM = Canadian Institute of Mining

CV (kcal/kg) = Calorific Value, kilo calories per kilogramme

ICOG-EurGeol = Ilustre Colegio Oficial de Geólogos – European Geologist

JORC = Joint Ore Reserves Committee

OC = Opencast or Opencut

OGQ = Ordre des Géologues du Québec

OIQ = Ordre des Ingénieurs du Québec

MR = Mineral Resource

Mt = Million tonnes

OR = Ore Reserve

ROM = Run of Mine

SACNASP = The South African Council for Natural Scientific Professions

SAMREC = South African Code for Reporting of Mineral Resources and Mineral Reserves

UG = Underground

Marketable Coal Reserves represent beneficiated or otherwise enhanced coal product where modifications due to mining, dilution and processing have been considered.

Saleable Coal Reserve is the tonnage and coal quality that will be available for sale, either in the raw ROM state at a specific moisture content or after beneficiation of the ROM coal reserve has produced materials at specified qualities, moisture contents and size ranges.

Definitions of all the terms used in this report can be found in the relevant codes.

ZincThe Xstrata Zinc Mineral Resource and Ore Reserve Statement at 31 December 2011 is consistent with the JORC Code and it is based on the Guidelines for “The Estimation and Public Reporting of Exploration Results, Mineral Resources and Ore Reserves Xstrata Zinc”, Version 21 January 2008.

The term ‘Ore Reserves’, as defined in Clause 28 of the JORC Code, has the same meaning as ‘Mineral Reserves’ as defined in The Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Definition Standards for Mineral Resources and Mineral Reserves.

This statement has been compiled and verified by Ignacio Seebold, Manager Mining Operations Xstrata Zinc (ICOG-EurGeol).

Competent PersonsResource and reserve estimates are based on information compiled by Competent Persons (as defined by the JORC, SAMREC and CIM Codes).

Each of the Competent Persons has the appropriate professional membership and the relevant experience in relation to the Mineral Resources and/or Ore Reserves being reported by them to qualify as a Competent Person as defined in the code. The Competent Persons have consented to the inclusion in the report of the matters based on their information in the form and context in which it appears.

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Alloys

Chrome Mineral Resources

Name of operation Attributable

interest Mining

method Commodity

Measured Mineral Resources

Indicated Mineral Resources

Measured and Indicated Mineral

Resources

Inferred Mineral Resources Competent

Person31.12.11 30.06.10 31.12.11 30.06.10 31.12.11 30.06.10 31.12.11 30.06.10

Operating mines Waterval Mine 79.5% UG Ore (Mt) 16.530 16.157 1.36 1.90 17.89 18.06 0.6 0.3 NM/DR Cr2O3(%) 41.20 41.26 42.5 42.4 41.3 41.4 43 43Marikana West 74.0% UG Ore (Mt) 3.217 3.733 2.06 1.51 5.27 5.24 – – NM/DR Cr2O3 (%) 42.34 42.36 42.7 42.7 42.5 42.5 – –Kroondal Mine 79.5% UG/

OC Ore (Mt) 9.995 10.378 1.89 2.50 11.89 12.87 – – NM/DR Cr2O3 (%) 42.91 42.65 42.6 42.6 42.9 42.6 – –Kroondal Gemini

50.0% UG/OC Ore (Mt) 9.846 11.163 7.76 6.04 17.61 17.21 0.2 0.9 NM/DR

Cr2O3 (%) 42.98 42.93 42.4 42.4 42.7 42.8 42 42Marikana East 74.0% UG Ore (Mt) 3.874 5.242 1.21 1.11 5.08 6.35 0.3 0.3 NM/DR Cr2O3 (%) 42.41 42.62 42.3 42.1 42.4 42.5 42 42Horizon Mine 79.5% UG/

OC Ore (Mt) 4.023 0.066 10.09 14.47 14.11 14.53 8.8 8.8 NM/DR Cr2O3 (%) 44.99 41.80 44.0 44.4 44.3 44.4 45 44Boshoek Mine 79.5% OC/

UG Ore (Mt) 0.739 1.413 16.87 15.93 17.61 17.34 – – PJG/DR Cr2O3 (%) 40.38 40.28 40.4 40.2 40.4 40.2 – –Thorncliffe Mine 79.5% UG/

OC Ore (Mt) 41.322 40.510 12.51 12.13 53.83 52.64 13.6 16.3 BS/DR Cr2O3 (%) 40.46 40.47 40.9 40.6 40.6 40.5 41 41Helena Mine 79.5% UG/

OC Ore (Mt) 18.744 19.736 9.06 8.25 27.81 27.99 56.8 56.2 BS/DR Cr2O3 (%) 40.53 40.35 39.5 39.1 40.2 40.0 39 39Subtotal

Chrome Ore

(Mt) 108.289 108.398 62.81 63.83 171.10 172.23 80.4 82.8

Cr2O3

(%) 41.33 41.20 41.4 41.5 41.4 41.3 40 40

Projects Wonderkop 79.5% UG Ore (Mt) 0.452 – 6.84 5.87 7.29 5.87 – 2.2 PJG/DR Cr2O3 (%) 40.20 – 40.5 40.5 40.5 40.5 – 40Extension9 79.5% UG Ore (Mt) – – 12.61 14.96 12.61 14.96 – – PJG/DR Cr2O3 (%) – – 40.8 41.7 40.8 41.7 – –De Grooteboom 79.5% UG/

OC Ore (Mt) 0.808 0.804 0.66 0.65 1.47 1.46 – – BS/DR Cr2O3 (%) 40.28 40.33 40.3 40.3 40.3 40.3 – –Klipfontein/ 79.5% UG Ore (Mt) 4.476 5.868 15.78 14.20 20.26 20.07 123.4 123.6 NM/DRWaterval Cr2O3 (%) 42.82 42.61 42.6 42.5 42.7 42.5 42 42Subtotal

Chrome Ore

(Mt) 5.735 6.672 35.90 35.68 41.64 42.36 123.4 125.8 Cr2O3 (%) 42.26 42.34 41.5 41.8 41.6 41.9 42 42 Total

Chrome Ore

(Mt) 114.024 115.070 98.71 99.52 212.73 214.59 203.8 208.6 Cr2O3 (%) 41.38 41.26 41.5 41.6 41.4 41.4 42 41

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Chrome Ore Reserves


interest Mining

method CommodityProved Ore Reserves Probable Ore Reserves

Total Ore Reserves Competent

Person31.12.11 30.06.10 31.12.11 30.06.10 31.12.11 30.06.10

Operating mines Waterval Mine 79.5% UG Ore (Mt) 10.253 9.881 1.23 1.51 11.48 11.39 NM/DR Cr2O3 (%) 31.35 31.18 26.5 26.0 30.8 30.5 Marikana West 74.0% UG Ore (Mt) 0.973 – – – 0.97 – NM/DR Cr2O3 (%) 28.65 – – – 28.7 – Kroondal Mine 79.5% UG/OC Ore (Mt) 3.227 3.040 1.66 2.00 4.89 5.04 NM/DR Cr2O3 (%) 28.28 28.73 27.8 27.8 28.1 28.4 Kroondal Gemini 50.0% UG/OC Ore (Mt) 6.288 6.935 6.94 4.94 13.23 11.88 NM/DR Cr2O3 (%) 31.49 31.14 28.7 28.6 30.0 30.1 Marikana East 74.0% UG Ore (Mt) 0.726 1.201 0.02 0.05 0.74 1.25 NM/DR Cr2O3 (%) 28.71 28.95 27.3 29.0 28.7 29.0 Horizon Mine 79.5% UG Ore (Mt) 1.743 – 0.069 – 1.18 – NM/DR Cr2O3 (%) 34.08 – 28.49 – 33.9 – Thorncliffe Mine 79.5% UG/OC Ore (Mt) 25.660 26.039 6.56 5.43 32.22 31.47 BS/DR Cr2O3 (%) 37.90 38.60 39.1 39.1 38.2 38.7 Helena Mine 79.5% UG/OC Ore (Mt) 4.131 5.644 – 0.10 4.13 5.74 BS/DR Cr2O3 (%) 34.96 34.31 – 31.5 35.0 34.3 Total Chrome Ore (Mt) 52.999 52.740 16.48 14.03 69.48 66.77 Cr2O3 (%) 34.64 34.98 32.6 32.3 34.2 34.2 Definitions OC = Opencast UG = Underground

Notes Tonnages are quoted as million metric tonnes

Grades are quoted as %Cr2O3

The Measured and Indicated Mineral Resources are inclusive of those Mineral Resources modified to produce Ore Reserves.

Xstrata Alloy's chrome mining operations are all mining the chromitite deposits developed within the world renowned Bushveld Complex of South Africa. The 2060Ma year old Bushveld Complex is the largest known deposit of chrome, vanadium and platinum group elements (PGE’s) ore in the world. The chrome ore is mined from shallow dipping (10o - 14o) tabular ore bodies. Although there are numerous chromitite layers developed in the Bushveld Complex, the layers targeted mostly for economic exploitation are the LG6/LG6A Chromitite Layer package and the MG1 Chromitite Layer.

No cut-off grades are applied to the chromitite layers currently being mined because of the exceptional regional grade consistency and continuity. A minimum mining cut of 1.7m is applied to the Ore Reserve tonnage because of the mechanized mining equipment employed by the underground mining operations.

The chromitite layers are mined mainly underground using trackless mechanized mining methods on a board-and-pillar mine lay-out design.

The Mineral Resources are estimated as chromitite tonnages and grades to reflect the grades of the various individual chromitite layers. Both the LG6 and MG1 Chromitite Layers which Xstrata is currently mining, is discrete solid chromitite layers.

Changes in the year on year Mineral Resource tonnage and grade estimates are mainly due to mining depletion and changes due to additional geological information gained through exploration. Thorncliffe had a net tonnage movement of 0.99Mt due to re-estimation and structural re-interpretation, after mining depletion. Helena had a net tonnage movement of 1.86Mt due to structural re-interpretation, river boundary correction and re-estimation, after mining depletion. Wonderkop has not been mined and had a net tonnage movement of -1.22Mt due to the re-estimation process, correction of the Mining Right boundary, and structural losses. The Extension 9 Mineral Resource was block modelled for the first time during 2010 and had a net tonnage movement of -2.34Mt compared to the previous estimation.

The underground Ore Reserves is reported at a minimum mining cut, which is related to the mining method and the mining equipment used. External waste is included to make up the minimum cut where applicable.

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Alloys continued

Changes in the year on year Ore Reserves tonnage and grade estimates are mainly due to mining depletion and changes due to additional geological information gained through exploration. Kroondal Gemini had a net change in Ore Reserves of 1.66Mt due to Inferred Mineral Resources upgraded to Indicated Mineral Resources and subsequently modified to Probable Ore Reserves and a revised mining extraction rate, after mining depletion. The Ore Reserves of Marikana West had been declared for the first time with the construction of appropriate mine plans. The same applies to Horizon Mine. Thorncliffe had a net Ore Reserve change of 2.80Mt due to the conversion of Inferred Mineral Resources to Indicated Mineral Resources and subsequently modified to Probable Ore Reserves and tonnage movement due to re-estimation, after mining depletion.

The tonnage and grade estimations are done by geostatistical analysis of the exploration drill hole data. This confirms the high degree of continuity of grade and thickness of the chromitite layers and derives the most appropriate parameters for the construction of block models for the various ore-bodies (LG6 and MG1). Block model estimates are verified using geostatistical parameters such as Kriging Efficiency and others to test the stability of the variograms used and the suitability of the selected

cell sizes. Tonnages and grades are reported from these block models for each mine and project. There is a high degree of confidence in the tonnage and grade estimations derived from the block models. This is confirmed by the monthly and yearly reconciliation between the block model estimates and the actual on mine production done for each operating mine.

Competent Persons PJG – Pieter-Jan Gräbe, Xstrata Alloys, (SACNASP). Overall Responsibility for Resources and Reserves.

BS – Brian Smith, Xstrata Alloys, (PLATO). Overall Responsibility for Resources and Reserves. Brian Smith has since left the employment of Xstrata Alloys.

NM – Nathi Mntungwa, Xstrata Alloys, (SACNASP). Overall Responsibility for Resources and Reserves. Nathi Mntungwa has since left the employment of Xstrata Alloys.

DR – Dean Richards, Obsidian Consulting Services (SACNASP). Responsible for geostatistical analysis of data, Mineral Resource classification and construction of tonnage and grade block models and reporting of tonnage and grades from block models.

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Vanadium Mineral Resources

Name of operation

Attributable interest

Mining method Commodity



Measured and Indicated Resources


Person31.12.11 30.06.10 31.12.11 30.06.10 31.12.11 30.06.10 31.12.11 30.06.10

Operating mines Rhovan 74.0%

OC Magnetite

Ore (Mt) 27.773 21.712 44.52 41.26 72.30 62.98 84 90 DR/PJG V2O5 (%) 0.54 0.54 0.5 0.5 0.5 0.5 0.5 0.5Total

Magnetite

Ore (Mt) 27.773 21.712 44.52 41.26 72.30 62.98 84 90 V2O5 (%) 0.54 0.54 0.5 0.5 0.5 0.5 0.5 0.5

Vanadium Ore Reserves


interest Mining

method CommodityProved Ore Reserves Probable Ore Reserves Total Ore Reserves Competent

Person31.12.11 30.06.10 31.12.11 30.06.10 31.12.11 30.06.10

Operating mines Rhovan 74.0%

OC Magnetite

Ore (Mt) 16.173 11.502 28.66 28.41 44.84 39.91 AvW/PJG V2O5 (%) 0.51 0.51 0.5 0.5 0.5 0.5 Total

Magnetite

Ore (Mt) 16.173 11.502 28.66 28.41 44.84 39.91 V2O5 (%) 0.51 0.51 0.5 0.5 0.5 0.5 Definitions OC = Opencast

UG = Underground


Grades are quoted as %V2O5


Xstrata Alloy's vanadium mining operations are mining the vanadiferous magnetite deposits developed within the Bushveld Complex, South Africa. The 2060Ma year old Bushveld Complex is the largest known deposit of chrome, vanadium and platinum group elements (PGE’s) ore in the world.

The magnetite ore is mined from shallow dipping (6o – 25o) stratified magnetite ore bodies. Various ore zones have been identified in the ore-body. The ore zones are defined based on their magnetite and vanadium content. The ore zones form the basis for the estimated Mineral Resources. Portions of the ore body where the magnetite content is less than 15% were not considered in the Mineral Resource estimation.

The magnetite ore is mined through opencast mining methods.

Changes in the year on year tonnage and grade estimates are mainly due to mining depletion, re-classification and changes in the Mineral Resource and Ore Reserve tonnages and grades due to additional geological information gained through exploration.

There was a net gain of 4.88Mt in the total Mineral Resource estimate due to the addition of new areas brought about by exploration drilling on strike next to and down-dip of the existing pits, after mining depletion.

The Ore Reserves had a net increased of 6.16Mt due to the upgrading of Inferred Mineral Resources to Indicated Mineral Resource and subsequent modification to Probable Ore Reserves, new pit designs for Pit 1 and Pit 6 and new areas being drilled, after mining depletion.

Obsidian Consulting Services has estimated the Mineral Resources for Pit 1 (previously referred to as Pit 1, 2, 3 and the Leeupen area) and Pit 6 (previously referred to as Pit 4, Pit 6 and Pit 6W). An updated structural and grade block model was constructed during August and September 2011, following exploration drilling during the 2010 – 2011 reporting period.

A&B Global Mining has estimated the Ore Reserves for Pit 1 and Pit 6. The Ore Reserve estimation was preceded by an open pit optimization exercise for Pit 1 and Pit6W. The optimization study was done to determine the economic pit depths with current economic input parameters. Newly constructed pit lay-outs and mining schedules were designed within the optimized pit shells.

The tonnage and grade estimations are done by geostatistical analysis of the exploration drill hole data during which the most appropriate parameters are derived for the construction of block models for the various ore zones in Pit 1 and Pit 6. The block model estimates are verified using geostatistical parameters such as Kriging Efficiency and others to test the stability of the variograms used and the suitability of the selected cell sizes. Tonnages and grades are reported from the block models for each ore zone and composited for the various open pits. The degree of confidence in the tonnage and grade estimations derived from the block models is reflected in the classified resource classes.

Competent Person PJG – Pieter-Jan Gräbe, Xstrata Alloys, (SACNASP). Overall Responsibility for Resources and Reserves.

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Alloys continued

DR – Dean Richards, Obsidian Consulting Services, (SACNASP). Responsible for data validation, geostatistical analysis of data, construction of tonnage and grade block models and reporting of tonnage and grades from block models for Mineral Resource estimates.

AvW – Anton von Wielligh, A & B Global Mining, (Pr. Eng.). Responsible for pit optimization, pit design and scheduling and the Ore Reserves estimation.

PGM Mineral Resources

Name of operation



Measured Mineral

Resources Indicated Mineral

Resources Measured and

Indicated Resources Inferred Mineral

Resources Competent Person 31.12.11 30.06.10 31.12.11 30.06.10 31.12.11 30.06.10 31.12.11 30.06.10

Operating mines/projects Mototolo JV 37% UG/

OC UG2 Ore

(Mt) 19.532 23.159 12.98 15.45 32.56 38.61 9.9 10.0 BS/DR/CL

3PGE + Au (g/t) 4.01 4.02 4.7 4.6 4.3 4.3 4.1 4.1

Eland Platinum

73.99% UG/ OC

UG2 Ore(Mt) 44.666 33.956 31.71 41.06 76.37 75.01 76.5 78.1 DN/DR/CL

3PGE + Au (g/t) 4.42 4.37 4.0 4.1 4.2 4.2 4.5 4.4

Zilkaatsnek 100% UG/ OC

UG2 Ore(Mt) – – 3.39 4.24 3.39 4.24 0.1 0.1 DN/DR/CL

3PGE + Au (g/t) – – 2.5 2.5 2.5 2.5 2.4 2.4

Schietfontein 70% UG/ OC

UG2 Ore(Mt) – – 1.50 1.20 1.50 1.20 21.2 21.7 DN/DR/CL

3PGE + Au (g/t) – – 2.2 2.1 2.2 2.1 2.3 2.3

Total UG2 Ore (Mt) 64.198 57.115 49.57 61.95 113.82 119.06 107.8 109.9 3PGE + Au (g/t) 4.30 4.23 4.0 4.1 4.2 4.1 4.0 4.0

PGM Ore Reserves


interest Mining


Person31.12.11 30.06.10 31.12.11 30.06.10 31.12.11 30.06.10

Operating mines/projects Mototolo JV 37% UG/OC UG2 Ore

(Mt) 11.877 13.850 1.21 1.92 13.08 15.77 BS/DR

3PGE +

Au (g/t) 3.47 3.78 3.78 4.1 3.5 3.8 Eland Platinum 73.99% UG/OC UG2 Ore

(Mt) 9.978 8.435 6.03 6.23 16.01 14.67 DN/DR 3PGE +

Au (g/t) 3.16 3.37 2.68 2.8 3.0 3.1 Zilkaatsnek 100% UG/OC UG2 Ore

(Mt) – – 0.03 0.72 0.03 0.72 DN/DR 3PGE +

Au (g/t) – – 1.6 1.5 1.6 1.5 Schietfontein 70% UG/OC UG2 Ore

(Mt) – – – – – – DN/DR

3PGE + Au (g/t) – – – – – –

Total UG2 Ore (Mt) 21.855 22.285 7.27 8.87 29.12 31.16 3PGE + Au (g/t) 3.33 3.62 2.9 3.0 3.2 3.4

Definitions OC = Opencast

UG = Underground

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Grades are quoted as 3PGE + Au (Platinum, Palladium, Rhodium and Gold).


Xstrata Alloy's platinum mining operations are mining the platinum bearing UG2 Chromitite Layer of the Bushveld Complex, South Africa. The 2060 Ma year old Bushveld Complex is the largest known deposit of chrome, vanadium and platinum group elements (PGE’s), ore in the world.

The PGM ore at Mototolo Mine is mined from a shallow dipping (10o - 14 o) tabular ore-body referred to as the UG2 Chromitite Layer. The chromitite layer is mined underground using a trackless mechanized mining method on a board-and-pillar mine lay-out design.

The Eland Platinum Mine is mining the UG2 Chromitite Layer dipping at 20 o. Eland Platinum Mine is employing opencast mining methods to extract the ore and is currently in the process of developing two underground decline shafts.

The Eland Ore Reserves were estimated at a minimum mining cut of 2.10m.

Changes in the year on year tonnage and grade estimates are mainly due to mining depletion, reclassification and changes in the Mineral Resource and Ore Reserve tonnages and grades due to additional geological information gained through exploration.

The tonnage and grade estimations are done by geostatistical analysis of the exploration drill hole data as well as underground channel sample data, where available. This confirms the high degree of continuity of grade and thickness of the PGM hosting layers and derives the most appropriate parameters for the construction of block models for the various ore-bodies. Tonnages and grades are reported from these block models for each mine or project. Confidence limit curves are derived from fitted distributions and used to classify the resources at the 95% confidence level.

Mototolo JV The structural and grade block model was updated with exploration drillhole data drilled during the 2010 -2011 reporting period.

The annual Mineral Resource estimation was conducted by Obsidian Consulting Services on behalf of Xstrata Alloys.

The net change in the year on year Mineral Resources is -2.03Mt, due to the re-interpretation of the Mototolo ore-body structure, after mining depletion. The Ore Reserve changed year on year on a net basis after mining depletion due to the reserve footprint moving, reduced geological losses, an increase in the mining cut, structural re-interpretation and tonnage movement.

Eland Zilkaatsnek and Schietfontein Eland, Zilkaatsnek and Schietfontein are contiguous Mining - and Prospecting Right areas, targeting the same ore-body and together constituting Eland Platinum Mine.

The current Mineral Resource and Ore Reserve estimate contained in this report is based on an updated structural and grade block model.

The Mineral Resources are constrained by lithological facies. The underground Ore Reserves are constrained by a minimum mining cut of 2.1m with an maximum of 3.5m. The opencast Ore Reserves are constrained by the lithological contacts of the UG2 Chromitite Layer or by a 4m mining cut in the case where the Zilkaatsnek facies is developed.

No significant year on year changes in the Mineral Resources was recorded. There was a net change in the Ore Reserves of 3.52Mt due to the increase planned production rate which follow a build-up phase to full steady state production.

Beestkraal Exploration One deep core exploration drill hole was completed on the Beestkraal Prospecting Right area. The detailed information was not available at the time of going to press.

Competent Persons BS – Brian Smith, Xstrata Alloys, (PLATO). Overall Responsible for Resources and Reserves.

DN – Daneal Nieuwoudt, Xstrata Alloys (SACNASP). Overall Responsible for Resources and Reserves.

DR – Dean Richards, Obsidian Consulting Services (SACNASP). Responsible for data validation, construction of tonnage and grade block models and reporting of tonnage and grades from block model.

CL – Carina Lemmer, Geological & Geostatistical Services (SACNASP). Responsible for geostatistical analysis of data and classification of Mineral Resources.

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Silica Mineral Resources

Name of operation



Measured Mineral

Resources Indicated Mineral

Resources Measured and

Indicated Resources Inferred Mineral

Resources Competent Person 31.12.11 30.06.10 31.12.11 30.06.10 31.12.11 30.06.10 31.12.11 30.06.10

Operating mine Rietvly 79.5% OC Quartzite

Ore (Mt) – – 25.18 25.75 25.18 25.75 – – PJG SiO2 (%) – – 91 97 91 97 – – Total

Quartzite Ore (Mt) – – 25.18 25.75 25.18 25.75 – –

SiO2 (%) – – 91 97 91 97 – – Definitions OC = Opencast


Grades are quoted as %SiO2.

Xstrata Alloy's silica mining operation is an opencast mining operation, mining a massive quartzite deposit of the Magaliesberg Formation of the Pretoria Group, Transvaal Super Group of South Africa. The Magaliesberg Formation forms a prominent quartzite ridge striking north – south along the Magaliesberg Mountain Range. The formation is a few hundred meters thick and dips towards the east at over 20o. The Rietvly quartzite ore body is a very pure quartzite with a silica content of over 90% SiO2.

The ore is mined through opencast mining methods and the ROM (Run-of-Mine) ore is crushed, washed and sized on site to produce a final sized and quality graded product. No silica cut-off grades are applied to the Mineral Resource estimation. The quartzite is mined mainly to supply the Xstrata Alloys furnaces with silica.

Changes in the year on year tonnage and grade estimates are mainly due to mining depletion, reclassification of the Mineral Resource categories and changes in the Mineral Resource tonnages and grades due to additional geological information gained through exploration.

No significant changes have been recorded in the year-on-year Mineral Resource estimation. The average grade of the deposit came down by 6% with the analytical results of three core boreholes drilled through the deposit.

Competent Person PJG - Pieter-Jan Gräbe, Xstrata Alloys (SACNASP). Overall Responsibility for Resources.

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Coal

Australia Coal Resources – New South Wales


interest Commodity

Measured Coal Resources

Indicated Coal Resources

Inferred Coal Resources Competent

Person31.12.11 30.06.10 31.12.11 30.06.10 31.12.11 30.06.10

Oakbridge Group Thermal Coal (Mt) 1,235 1,003.8 655 740.6 1,150 1,440 Bulga Complex(a) 68.3% Thermal Coal (Mt) 1,200 966.3 570 654.0 800 1,100 PG CV (kcal/kg) 5,800 5,700 5,750 5,600 Baal Bone 74.1% Thermal Coal (Mt) 15 17.9 15 16.9 150 150 JMB CV (kcal/kg) 5,750 6,200 6,200 6,500 Running Stream 78.0% Thermal Coal (Mt) 20 19.6 70 69.7 200 190 JHB CV (kcal/kg) 5,300 5,300 5,200 5,200 Maquarie Coal Joint Venture 80% Thermal Coal (Mt) 77 74.9 120 136.8 20 20 West Wallsend(d) Thermal Coal (Mt) 75 71.1 25 40.8 – – CFP CV (kcal/kg) 5,700 5,700 5,300 5,300 – – Westside Thermal Coal (Mt) – 1.7 – – – – CFP CV (kcal/kg) – 5,200 – – – – Cardiff Borehole Thermal Coal (Mt) – – 10 12.4 20 20 CFP CV (kcal/kg) – – 5,700 5,700 Teralba Thermal Coal (Mt) 2 2.1 85 83.6 – – CFP CV (kcal/kg) 6,000 6,000 6,000 6,000 – – Mitchells Flat 100% Thermal Coal (Mt) – – 120 120.7 400 400 CFP CV (kcal/kg) – – 5,300 5,300 Liddell(e) 67.5% Thermal Coal (Mt) 100 102.7 200 203.9 400 400 PH CV (kcal/kg) 6,050 6,100 6,150 6,200 Mount Owen Complex 100.0% Thermal Coal (Mt) 210 229.3 110 104.7 170 172 Mount Owen(f) Thermal Coal (Mt) 80 93.3 60 55.7 80 80 RH CV (kcal/kg) 6,500 6,200 6,400 6,300 Ravensworth East(g) Thermal Coal (Mt) 50 51.7 10 11.4 – 2 PH CV (kcal/kg) 5,500 5,500 5,300 5,300 – Glendell(h) Thermal Coal (Mt) 80 84.3 40 37.6 90 90 KJW CV (kcal/kg) 6,000 6,000 6,000 6,000 United(i) 95.0% Thermal Coal (Mt) 250 54.3 220 411.7 600 600 RMD CV (kcal/kg) 6,200 6,700 6,100 6,100 Ulan(l) 90.0% Thermal Coal (Mt) 320 325.6 430 462.7 2,800 2,800 RMD CV (kcal/kg) 6,600 6,600 5,000 4,100 Ravensworth Group Thermal Coal (Mt) 475 469.8 230 232.7 100 110 Narama 100% Thermal Coal (Mt) 30 35.8 – – – – ST CV (kcal/kg) 5,900 5,900 – – – – Ravensworth West(q) 90% Thermal Coal (Mt) 85 75.9 – – – – ST CV (kcal/kg) 5,800 5,800 – – – – Ravensworth North 90% Thermal Coal (Mt) 360 358.1 230 232.7 100 110 ST CV (kcal/kg) 5,900 6,100 6,000 6,100 Mangoola(s) 100.0% Thermal Coal (Mt) 150 155.5 30 31.3 1,300 1,300 ST CV (kcal/kg) 5,250 5,200 5,350 5,300 Tahmoor Complex 100.0% Coking Coal (Mt) 55 59.4 140 111.5 250 300 Tahmoor(t) Coking Coal (Mt) 55 59.4 45 111.5 120 300 BCBargo(u) Coking Coal (Mt) – – 95 – 130 – BCRavensworth UG(v) 70.0% Thermal Coal (Mt) 300 252.9 180 107.3 350 380 PH CV (kcal/kg) 5,850 6,000 5,450 6,000 Resources Subtotal – New South Wales (Mt) 3,172 2,728 2,435 2,664 7,540 7,922

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Coal continued

Australia Coal Resources – Queensland


interest Commodity




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Oaky Creek(w) 55.0% Coking Coal (Mt) 320 319.6 180 150.2 140 108 RJHRedrock EPCs(aa) 75.0% Coking Coal (Mt) – – 6 4.9 20 24 RJHNCA 55.0% Coking/Thermal

Coal (Mt) 450 465.1 445 449.0 965 921 Newlands, Suttor, Eastern (RCM)(bb) Coking Coal (Mt) 10 9.1 10 13.0 20 17 JT Thermal Coal (Mt) 310 319.6 90 87.6 360 370 JT CV (Kcal/Kg) 5,700 5,700 5,750 5,750 Wollombi (MCM)(ee) Coking Coal (Mt) 10 13.2 30 29.3 65 58 JT Thermal Coal (Mt) 20 22.9 60 57.0 95 59 JT CV (kcal/kg) 4,800 4,850 4,700 4,700 Sarum(ff) Coking Coal (Mt) 30 31.5 10 8.7 60 64 JT Thermal Coal (Mt) – – 70 72.9 260 268 JT CV (Kcal/Kg) – – 5,450 5,450 Collinsville(gg) Coking Coal (Mt) 20 21.1 75 68.4 35 28 MB Thermal Coal (Mt) 50 47.7 100 112.1 70 57 MB CV (Kcal/Kg) 5,900 5,850 6,100 6,050 Cook(hh) 100.0% Coking/Thermal

Coal (Mt) – – 105 105.0 940 940 KJWRolleston(ii) 75.0% Thermal Coal (Mt) 170 173.6 285 247.3 265 320 Rolleston ML Thermal Coal (Mt) 155 159.9 65 55.5 15 34 JT CV (kcal/kg) 5,800 5,800 5,700 5,600 Rolleston MDL & EPCs Thermal Coal (Mt) 15 13.7 220 191.8 250 286 JT CV (kcal/kg) 5,800 5,800 5,700 5,700 Togara North(kk) 70.0% Thermal Coal (Mt) 370 303.8 250 376.7 800 460 TP CV (kcal/kg) 6,350 6,350 6,000 6,000 Wandoan(ll) 75.0% Thermal Coal (Mt) 1,252 1,253.5 1,140 728.5 3,550 2,494 Wandoan MDL’s Thermal Coal (Mt) 1,250 1,251 570 630 1,350 1,460 RJ CV (kcal/kg) 5,200 5,020 5,050 4,900 Wandoan EPC’s Thermal Coal (Mt) 2 2.5 570 98.5 2,200 1,034 RJ CV (kcal/kg) 5,300 5,400 5,400 5,350 Resources Subtotal – Queensland (Mt) 2,562 2,515.6 2,411 2,061.6 6,680 5,267 Resources Total – Coal Australia (Mt) 5,734 5,244 4,846 4,726 14,220 13,189

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Australia Coal Reserves – New South Wales


interest Mining

method Coal type

Coal Reserves Marketable

Coal Reserves Total Marketable

Coal Reserves Competent

PersonProved Probable Proved Probable

31.12.11 31.12.11 31.12.11 31.12.11 31.12.11 30.06.10

Oakbridge Group Thermal Coal (Mt) 326 31 221 22 243 250.8Bulga OC(b) 68.3% OC Thermal Coal (Mt) 186 11 127 7 134 145.0 NB CV (kcal/kg) 6,350 6,300 6,350 6,340Bulga UG(c) 68.3% UG Thermal Coal (Mt) 140 21 94 15 109 105.8 NB CV (kcal/kg) 6,840 6,840 6,840 6,840Maquarie Coal Joint Venture 80.0% Thermal Coal (Mt) 10 17 7 12 19 25.3West Wallsend(d) UG Thermal Coal (Mt) 10 17 7 12 19 25.3 JW CV (kcal/kg) 6,150 6,050 6,100 6,100Liddell(e) 67.5% OC Thermal Coal (Mt) 47 22 30 14 44 51.3 NB CV (kcal/kg) 6,600 6,600 6,600 6,600Mount Owen Complex 100.0% Thermal Coal (Mt) 95 8 64 4 68 81.3Mount Owen(f) OC Thermal Coal (Mt) 49 5 32 2 34 40.6 STH CV (kcal/kg) 6,750 6,700 6,750 6,630Ravensworth East(g) OC Thermal Coal (Mt) 6 – 4 – 4 7.1 STH CV (kcal/kg) 6,300 – 6,300 6,250Glendell(h) OC Thermal Coal (Mt) 40 3 28 2 30 33.6 STH CV (kcal/kg) 6,650 6,650 6,650 6,630United 95.0% Thermal Coal (Mt) – 84 – 56 56 53.0United OC(j) OC Thermal Coal (Mt) – 48 – 32 32 28.0 DL CV (kcal/kg) – 6,400 6,400 6,400United A444(k) UG Thermal Coal (Mt) – 36 – 24 24 25.0 NB CV (kcal/kg) – 6,400 6,400 6,400Ulan 90.0% Thermal Coal (Mt) 192 2 178 1 180 177.7Ulan #3 UG(m) UG Thermal Coal (Mt) 77 – 68 – 68 72.4 NB CV (kcal/kg) 6,600 – 6,600 6,740Ulan West UG(n) UG Thermal Coal (Mt) 106 – 104 – 104 105.3 NB CV (kcal/kg) 6,600 – 6,600 6,320Ulan Waratah OC(o) OC Thermal Coal (Mt) 9 2 6 1 8 – DL CV (kcal/kg) 5,750 5,700 5,700 –Ravensworth Group Thermal Coal (Mt) 270 12 189 9 198 188.7Narama(p) 100% OC Thermal Coal (Mt) 7 – 7 – 7 10.8 DT CV (kcal/kg) 5,450 5,450 5,470Ravensworth West(q) 90% OC Thermal Coal (Mt) 38 – 27 – 27 33.8 DT CV (kcal/kg) 5,950 5,950 5,470Ravensworth North(r) 90% OC Thermal Coal (Mt) 225 12 155 9 164 144.1 DT CV (kcal/kg) 5,950 5,950 5,950 5,950Mangoola(s) 100.0% OC Thermal Coal (Mt) 140 12 102 9 111 120.0 MW CV (kcal/kg) 5,650 5,650 5,650 5,650Tahmoor Complex 100.0% 24 25 20 21 41 24.8Tahmoor(t) UG Coking Coal (Mt) 24 3 20 2 22 24.8 REH Ash (%) 8.5 8.5 8.5 8.5Bargo(u) UG Coking Coal (Mt) – 22 – 19 19 – NB Ash (%) – 9.5 9.5 –Ravensworth UG(v) 70.0% UG Thermal Coal (Mt) 48 1 32 1 33 40.0 RSH CV (kcal/kg) 6,000 6,000 6,000 6,370Reserves Subtotal – New South Wales (Mt) 1,152 214 843 149 993 1,013

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Coal continued

Australia Coal Reserves – Queensland


interest Mining

method Coal type

Coal Reserves Marketable

Coal Reserves Total Marketable

Coal Reserves Competent

PersonProved Probable Proved Probable

31.12.11 31.12.11 31.12.11 31.12.11 31.12.11 30.06.10

Oaky Creek 55.0% Coking Coal (Mt) 102 97 73 71 144 112.5 Oaky No. 1(x) UG Coking Coal (Mt) 13 7 10 5 15 16.1 POG Ash (%) 9.5 9.5 9.5 9.5 Oaky North(y) UG Coking Coal (Mt) 89 41 63 27 90 88.1 POG Ash (%) 9.5 9.5 9.5 9.5 Oaky Acacia OC(z) OC Coking Coal (Mt) – 49 – 39 39 8.3 LF Ash (%) 9.5 9.5 9.5 NCA 55.0%

Coking/Thermal

Coal (Mt) 117 92 84 67 151 157.2 Newlands OC(cc) OC Coking Coal (Mt) 19 16 11 10 21 20.6 LF Ash (%) 9.5 10 9.7 9.4 OC Thermal Coal (Mt) 36 30 25 24 49 45.3 LF CV (kcal/kg) 6,300 6,300 6,300 6,050 Newlands UG(dd) UG Thermal Coal (Mt) 15 22 11 15 26 42.0 POG CV (kcal/kg) 6,300 6,300 6,300 6,100 Collinsville OC(gg) OC Coking Coal (Mt) 15 7 10 5 15 13.8 IN Ash (%) 9.3 9.7 9.5 9.7 OC Thermal Coal (Mt) 32 17 27 13 40 35.5 IN CV (kcal/kg) 6,050 5,900 6,000 6,330 Rolleston 75.0% Thermal Coal (Mt) 137 170 137 170 307 302.8 Rolleston(ii) OC Thermal Coal (Mt) 137 34 137 34 171 172.8 RM CV (kcal/kg) 5,750 5,400 5,650 5,670 Rolleston West(jj) OC Thermal Coal (Mt) – 136 – 136 136 130.0 RM CV (kcal/kg) 5,600 5,600 5,650 Togara North(kk) 70.0% OC Thermal Coal (Mt) 140 27 140 22 162 0 SB CV (kcal/kg) 6,400 5,900 6,300 - Wandoan(ll) 75.0% OC Thermal Coal (Mt) 780 240 560 170 730 680.0 PP CV (kcal/kg) 5,900 5,900 5,900 5,800 Reserves Subtotal – Queensland (Mt) 1,276 626 994 500 1,494 1,252 Reserves Total – Coal Australia (Mt) 2,428 840 1,837 649 2,487 2,265 Notes: Unless otherwise stated, the product yields used to estimate Marketable Reserves were derived from the “Resource Mastor” software developed by A&B Mylec. Inputs to this model are coal ply thickness and dilution. The model includes adjustments for plant efficiencies to calculate practical yields. The model is calibrated to historical plant performance and, in some cases, includes the closest large diameter borehole data to each mining block.

Coal Resources are contained within the Sydney Basin (New South Wales), the Bowen Basin (Queensland) and the Surat Basin (Wandoan, Queensland).

Reserves and Marketable Reserves are quoted on an 'as-received' moisture basis.

Resource tonnes have been reported using an appropriate in situ moisture basis for each deposit, ranging from 3% to 10% in situ moisture excluding Wandoan (12% in situ moisture) and Rolleston (18% in situ moisture).

Coal Resource qualities are reported at in situ moisture basis and Coal Reserve qualitiesare reported at a gross as received basis.

Coal Resources have been re-estimated in 2011 for inclusion in this summary table except where otherwise stated. Revision of the totals includes changes to classifications of Resource status due to exploration, geological reinterpretation and remodelling, and changes to lease holdings.

Coal Reserves for Baal Bone and Westside have been depleted and not reported.

Changes and notes relevant to the estimation of Resources and Reserves are listed below for specific projects. Changes reported are exclusive of production from 30 June 2010 to 31 December 2011.

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(a) Bulga Complex: Re-classification and upgrade of resources due to additional drilling and modelling done as part of the Bulga Optimisation project (+175Mt), a change in parameters for seams deeper than 350m reduced resources (-60Mt). Resource depletion due to mining (-19Mt).

(b) Bulga Opencut: Reserve changes due to additional drilling for improved definition of Mount Arthur, Piercefield, Vaux, Broonies, Bayswater and Foybrook seams, following approval of the Bulga Optimisation Pre-Feasibility Study, and a change in tenure status decreasing reserves. (-1.9Mt). Reserve depletion due to mining (-14Mt).

(c) Bulga Underground: Reserve decrease due to mine plan changes to the Blakefield South and North layouts, (-1.5Mt). An upgrade in resource in the Piercefield seam, and changes to the thickness grids due to a new structural model based on the 2010/11 drilling program increased reserves (+9Mt). Reserve depletion due to mining (-4.4Mt).

(d) West Wallsend: Resource decrease due to exploration and remodelling of the western domain area (-5Mt). Resource and Reserve depletion from mining (-4.8Mt).

Reserve decrease in LW41/42 panels from environmental protection, and seam splitting in LW43 panel reducing practical mining height (-2Mt).

(e) Liddell Opencut: Resource increase due to exploration, remodelling and coal quality results, refinement of the Lemington lox/sub-crop (+1.5Mt). Resource and Reserve depletion from mining (-9.6Mt).

Reserves reduced due to mine plan modifications (-3Mt), reserve increase due to geological model update and seam sub-crop refinement (+2Mt).

(f) Mount Owen: Resources increased due to exploration and modelling of deeper seams included in resources (+2Mt). Resource and Reserve depletion from mining (-11.7Mt).

Reserves have increased due to adjustments to the mine plan and additional dilution during mining impacting coal recovery positively (+4.5Mt).

(g) Ravensworth East: Resource increase due to a change in parameters and increasing the Bayswater seam footprint (+1.0Mt). Resource and Reserve depletion from mining (-4.6Mt).

(h) Glendell: Resource increase due to reclassification of areas with additional drilling and change to cut-off parameters (+2Mt). Resource and Reserve depletion from mining (-6Mt).

Reserve increased due to additional dilution during mining to assist coal recovery and reclassification of Reserves (+1Mt).

(i) United: Resource increase due to reclassification from Inferred to Indicated (+15Mt) and additional Inferred tonnes added due to additional exploration and modelling (+10Mt). Geological model modifications around sills & sub-crops (-11Mt).

(j) United Opencut: Reserve increase due to pit design changes and product 2 stage washing (+6Mt).

(k) United A444 Underground: Reserve decrease after additional exploration and modelling of sills & sub-crops during the Feasibility Study phase (-1Mt).

(l) Ulan: Resources decrease with removal of coal tops above longwall panels that have been mined from 30 June 2010 (-7.4Mt), and coal tops above proposed longwall panels between the Echidna and Wombat sills (-18Mt). Resource depletion from mining (-8Mt).

(m) Ulan #3 Underground: Reserve increase as a result of minor changes to longwall panel lengths due to accurate surveys of aboriginal sites above the panels (+0.5Mt). Reserve depletion from mining (-6.5Mt).

(n) Ulan West Underground: Reserve depletion due to mining (-1.5Mt).

(o) Ulan Waratah Opencut: Reserves have been included following additional studies and mine planning during the Pre-feasibility stage of the Ulan West Project (+11Mt).

(p) Narama: Reserve increase due to the Vaux seam added to the mine plan (+1Mt). Reserve depletion from mining (-4.4Mt).

(q) Ravensworth West: Resource increase due to reclassification of resources and an overlap of license boundaries resolved, (+11Mt). Reserves transferred to Ravensworth North pit as part of the Ravensworth North Project (-10Mt). Reserve depletion from mining (-2Mt).

(r) Ravensworth North: Previously reported as Cumnock Other, the Ravensworth North Project increased in reserves with a portion of Ravensworth West (EL7490) transferred to the Ravensworth North pit (+10Mt). Mine plan changes to pit shell batters and benches and removal of the in-pit barrier pillar increased reserves and, minimum mineable thickness changes has resulted in lower parting ash included (+6Mt).

(s) Mangoola: Resource increase after an update of the Geological model in the Life of Mine area for the Great Northern, Fassifern and Upper Pilot seam, revised extents of cindering sterilizing resources (+1.5Mt). Resource and Reserve depletion from mining (-10Mt).

Reserve decrease due to re-interpretation of seam picks in the geophysics changed seam sections (-1Mt).

(t) Tahmoor: Resource increase with additional data modifying thickness and density (+4Mt). Resouces for Tahmoor have been split with Bargo (-63Mt). Resource and Reserve depletion from mining (-3.2Mt).

(u) Bargo: Resources for Bargo where previously included with the Tahmoor Resource statement (+63Mt).

Reserves have been included following additional studies and mine planning during the Pre-feasibility stage of the Bargo Project (+22Mt).

(v) Ravensworth Underground: Resource increase due to reclassification and remodelling of additional exploration data during the 2010/11 drilling program (+123Mt). Resource and Reserve depletion from mining (-4.1Mt).

Reserve decrease due to mine design changes in the Liddell and Pikes Gully seams, and reduction in main heading driveage (-4Mt).

(w) Oaky Creek: Additional resources from exploration and modelling in potential open cut areas, and slight reduction to

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Coal continued

Aquila seam thickness (+47.5Mt). Resource depletion from mining (-19Mt).

(x) Oaky Creek No. 1 Underground: Increase in Reserve with a change in mine layout in Oaky North making panel layout extensions possible in Oaky No. 1 (+2.6Mt). Marketable tonnes have increased with improved techniques of estimating yield using the OakySim model, part of the Oaky Creek North underground project. Reserve depletion from mining (-8Mt).

(y) Oaky Creek North Underground: Increase in Reserve with a change in mine layout as part of the Oaky North Project (+10Mt). Marketable tonnes have increased with improved techniques of estimating yield using the OakySim model, as part of the Oaky Creek North underground project. Reserve depletion from mining (-13Mt).

(z) Oaky Acacia Opencut: Increase in reserves with additional mine planning and inclusion of additional seams with ongoing work during the pre-feasibility phase (+37Mt). Marketable tonnes have increased with improved techniques of estimating yield using the OakySim model.

(aa) RedRock: Resource increase after a review of the eastern edge of the Oaky lease (+1Mt).

(bb) Newlands, Suttor, Eastern (RCM – Rangal Coal Measure): Resource changes due to previously “sterilised” coal in Newlands underground mains pillars reclassified as measured resource (+2Mt). Newlands inferred resource reduced due to a change in modelled thickness with infill drilling and data review (-11Mt). Resource depletion from mining (-13Mt).

(cc) Newlands Opencut: (Newlands, Suttor Creek, Eastern Creek and Wollombi OC) Reserve changes to opencut areas due to pit design changes (+16Mt). Reserve depletion from mining (-9Mt).

(dd) Newlands Underground: (Newlands and Suttor Creek) Longwall panels reduced in length due to the presence of intrusive sills and structure in several panels (-7.5Mt). A structure was identified in the Suttor Creek underground area which affected 2 east-west longwall panels (-9Mt). Reserve depletion from mining (-9Mt).

(ee) Wollombi (MCM – Moranbah Coal Measures): Resource increase with the inclusion of coking coal and low volatile coal in heat affected areas greater than 200m depth, (+44Mt). Resource depletion due to mining (-5Mt).

(ff) Sarum: Resource decrease due to additional drilling and modelling of silled limits (-2Mt).

(gg) Collinsville: Resource increase and upgrade of resources in various seams (+18Mt), and change in modelling method and drilling in deep resource areas decreased resources (-15Mt). Resource and reserve depletion from mining (-6.4Mt).

Reserve increase due to re-classification of resources and confidence in the BLN & BUB pits (+4Mt), tonnage increase due to improved economic outlook and changes to pit limit constraints (+10Mt).

(hh) Cook: Resources are unchanged from 30 June 2010.

(ii) Rolleston: Resource increase due to reclassification of resources from inferred to indicated through exploration and remodelling (+46Mt). Rationalisation of inferred high ash, thin seam (-10Mt). Resource and Reserve depletion from mining (-10Mt).

Reserve changes with the extension of pit limits in Spring Creek and Lagoon’s Creek due to additional exploration and economic viability (+9Mt).

(jj) Rolleston West: Reserve increase due to the inclusion of the southern expansion area south of the existing operations (+6Mt).

(kk) Togara North: Resource changes due to reclassification and reassessment of the area increased resources (+332Mt). A portion of the Castor and Aries2 seams were moved from Indicated to Inferred Resources (-33Mt).

Additional mine planning done during the Pre-Feasibility stage of the Togara North Project has allowed the reporting of reserves (+172Mt).

(ll) Wandoan: Resource increase due to additional exploration, geological reinterpretation and remodelling (+470Mt).

Reserve increase due to an update to the geological model, improved seam correlation resulting in a reduced ash percentage and improved overall yield. Pit limits extended with increase in confidence and removal of Wolleebee Creek, resulting in an overall increase (+16Mt).

Competent Persons: BC = Barry Clark, Technical Services Consultant, Bureau Veritas (AusIMM)

CFP = Charles Parbury, Director, McElroy Bryan Geological Services Pty Ltd, Consulting Geologists (AusIMM)

DL = David Lennard, General Manager Opencast, Palaris (AusIMM)

DT = Darryn Tracy, Senior Mining Engineer, Ravensworth Operations, Xstrata Coal New South Wales (AusIMM)

IN = Ian Neilsen, Principal Mining Engineer, Xstrata Coal Queensland (AusIMM)

JHB = John Bryan, Director, McElroy Bryan Geological Services Pty Ltd, Consulting Geologists (AusIMM)

JMB = Janet Bartolo, Senior Geologist, McElroy Bryan Geological Services Pty Ltd (AusIMM)

JT = John Terrill, Principal Resource Geologist, Xstrata Coal Queensland (AIG)

JW = Jillian Wright, Technical Consultant, Consulting Services NSW (AusIMM)

KJW = Kerry Whitby, Managing Director, McElroy Bryan Geological Services Pty Ltd, Consulting Geologists (AusIMM)

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LF = Lindsay Ford, Technical Services Manager Opencut, Xstrata Coal Queensland, (AusIMM)

MB = Mal Blaik, Principal Consultant, JB Mining Services Pty Ltd. (AusIMM)

MW = Mark Williams, Technical Services Manager Mangoola, Xstrata Coal New South Wales (AusIMM)

NB = Nicole Brook, Group Manager, Technical and Business Development, Xstrata Coal NSW (AUSIMM)

PG = Peter Graham, Senior Geologist, Bulga Coal (AusIMM)

PH = Paul Harrison, Senior Geologist, McElroy Bryan Geological Services Pty Ltd (AusIMM)

POG = Paul O'Grady, Technical Services Manager Underground, Xstrata Coal Queensland (AusIMM)

PP = Philip Price, Wandoan Project Manager - Operations, Xstrata Coal Queensland (AusIMM)

REH = Raymond Howard, Manager Mine Planning & Technical, Xstrata Coal Sydney (AusIMM)

RJH = Richard Hingst, Senior Resource Geologist, Moultrie Group (AusIMM)

RH = Ruth Henwood, Geologist, McElroy Bryan Geological Services Pty Ltd, Consulting Geologists (AusIMM)

RJ = Rowan Johnson, Senior Geologist, McElroy Bryan Geological Services Pty Ltd, Consulting Geologists (AusIMM)

RMD = Robert Dyson, Senior Geologist, McElroy Bryan Geological Services Pty Ltd, Consulting Geologists (AusIMM)

RM = Robert Molan, Senior Mining Engineer, Rolleston, Xstrata Coal Queensland (AusIMM)

RSH = Scott Hobden, Technical Services Manager, Xstrata Ravensworth UG (AusIMM)

SB = Shaun Barker, Senior Mining Engineer, Togara North Project, Xstrata Coal Queensland (AusIMM)

STH = Shane Holmes, Technical Services Manager, Xstrata Mt Owen (AusIMM)

ST = Shaun Tamplin, Principal Consultant, Tamplin Resources (AusIMM)

TP = Toby Prior, Senior Resource Geologist, Togara North Project, Xstrata Coal Queensland (AusIMM)

South Africa Coal Resources


interest Commodity




Person31.12.11 30.06.10 31.12.11 30.06.10 31.12.11 30.06.10

Operations Tweefontein(a) 79.8% Thermal Coal (Mt) 770 772.6 – – 15 15 MS CV (kcal/kg) 5,200 5,150 – – Tweefontein South(b) 79.8% Thermal Coal (Mt) 230 257.5 62 50.8 37 18 MS CV (kcal/kg) 5,200 5,150 4,300 4,300 Goedgevonden Complex(c) 74.0% Thermal Coal (Mt) 580 566.6 24 41.4 – – MS CV (kcal/kg) 4,500 4,790 4,850 4,900 – – iMpunzi North(d) 79.8% Thermal Coal (Mt) 270 276.3 34 0.3 6 3 MS CV (kcal/kg) 5,550 5,520 6,250 6,250 iMpunzi East(e) 79.8% Thermal Coal (Mt) 150 156.0 5 5.2 11 11 MS CV (kcal/kg) 5,350 5,400 5,700 5,500 Resources Subtotal – Current Operations (Mt) 2,000 2,029 125 97.7 69 47 Undeveloped/Projects Oogiesfontein(g) 100.0% Thermal Coal (Mt) 36 35.8 40 40.3 – – MS CV (kcal/kg) 4,700 4,720 4,850 4,840 – – Elandspruit(h) 100.0% Thermal Coal (Mt) 30 30.5 – – – – MS CV (kcal/kg) 5,000 5,020 – – – – Zonnebloem(f) 100.0% Thermal Coal (Mt) 210 136.1 30 20.4 5 6 MS CV (kcal/kg) 5,100 4,860 4,700 4,960 Paardekop(i) 100.0% Thermal Coal (Mt) – – 450 451.0 400 399 MS CV (kcal/kg) – – 5,400 5,390 Undeveloped Resources(j) 100.0% Thermal Coal (Mt) – – 12 15.7 190 190 MS CV (kcal/kg) – – 5,000 5,400 Resources Subtotal – Undeveloped/Projects (Mt) 276 202 532 527.4 595 595.0 Resources Total – Coal South Africa (Mt) 2,276 2,231 657 625 664 642

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Coal continued

South Africa Coal Reserves


interest Mining

method Coal type

Extractable Coal Reserves

Saleable Coal Reserves

Total Saleable Coal Reserves

Competent Person

Proved Probable Proved Probable 31.12.11 31.12.11 31.12.11 31.12.11 31.12.11 30.06.10

Operations Tweefontein North(a) 79.8% UG/OC Thermal (Mt) 182 39 97 29 126 123.1 TH Export (Mt) 69 21 90 91.5 CV (kcal/kg) 5,900 5,900 5,900 5,900 Domestic (Mt) 28 8 36 31.6 CV (kcal/kg) 5,135 5,135 5,135 5,135 Tweefontein South(b) 79.8% UG/OC Thermal (Mt) 11 50 6 29 35 41.4 TH Export (Mt) 5 25 30 34.1 CV (kcal/kg) 6,000 6,000 6,000 6,000 Domestic (Mt) 1 4 5 7.3 CV (kcal/kg) 5,135 5,135 5,135 5,135 Goedgevonden Complex(c) 74.0% OC Thermal (Mt) 273 76 170 28 198 206.2 RR Export (Mt) 106 6 112 116.0 CV (kcal/kg) 6,000 6,000 6,000 6,000 Domestic (Mt) 64 22 86 90.2 CV (kcal/kg) 5,135 5,135 5,135 5,135 iMpunzi North(d) 79.8% OC Thermal (Mt) 78 3 44 1 45 48.7 RR Export (Mt) 40 1 41 44.6 CV (kcal/kg) 5,900 5,900 5,900 5,900 Domestic (Mt) 4 – 4 4.1 CV (kcal/kg) 5,135 – 5,135 5,135 iMpunzi East(e) 79.8% OC Thermal (Mt) 140 3 79 2 81 77.8 RR Export (Mt) 76 2 78 62.5 CV (kcal/kg) 5,900 5,900 5,900 5,900 Domestic (Mt) 3 – 3 15.3 CV (kcal/kg) 5,135 – 5,135 5,135 Zonnebloem(f) 79.8% OC Thermal (Mt) – 143 100 100 – RR Export (Mt) – 57 57 – CV (kcal/kg) – 5,900 5,900 – Domestic (Mt) – 43 43 – CV (kcal/kg) – 5,135 5,135 – Reserves Subtotal – Coal South Africa (Mt) 684 314 396 189 586 497.2 Notes: Product yields used to estimate Saleable Reserves were derived from the “Limn Model” software. Inputs to this model are coal ply and in-seam dilution data, processed in the model. The model takes into account plant efficiencies to calculate practical yields. The model is calibrated to historical plant performance and where applicable, large diameter borehole data is used.

Valid prospecting rights have been issued for all the undeveloped Coal Resources. Some prospecting rights are being renewed, while application has been made for a number of mining rights.

Coal Resources have been re-estimated in 2011 for inclusion in this summary table except where otherwise stated. Revision of the

totals include changes to classifications of Resource status due to exploration, geological reinterpretation and remodelling, and changes to lease holdings.

Coal Resources qualities are reported at an air dried moisture basis and Coal Reserves are reported at a net as received moisture basis.

The Resources and Reserves for the Mpumalanga Complex have been removed from the report due to an agreement having been entered into to sell the operations and resource areas. Completion of sale is subject to government approval. Areas included in the Mpumalanga agreement are: Spitzkop, Tselentis, Consbrey, Mooifontein, Sterkfontein, Bloemfontein and Sara Buffels.

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(a) Tweefontein North: Resource increase with the inclusion of the No. 2 seam pillar resources in Makoupan pit area (+12Mt). Additional drilling in Boschmans, north and south of dyke, redefined sub-outcrop areas, (-6Mt).

Reserve increase with increased confidence in a portion of Klipplaat East pit and BM Southeast pit. Changes made to pit layouts due to refinement of visible OC and UG 2 seam pit boundaries. South 2 pit reserves converted to an underground mine layout (+14Mt).

(b) Tweefontein South: Previously reported as South Stock Complex. Resource changes from additional drilling and remodelling in the No. 2, 4 and 5 seams, modifying the seam footprint and redefining sub-outcrops (+12Mt).

Reserve changes are only minor, with additional mine planning increasing underground panels, but reducing the Klippoortje Opencut area.

(c) Goedgevonden Complex: Resource upgrade after additional drilling and remodelling of the No. 2,4 & 5 seam with minor changes to thickness and density in the Zaaiwater area (+17Mt).

Reserve reclassification with a move from proved to probable in areas in close proximity to the river diversion, CHPP stockpiles, national roads (7Mt), underground workings (4.7Mt) and No. 2 seam upper ply requiring additional product modelling (58Mt).

(d) iMpunzi North: Resource upgrade and increase with additional drilling and remodelling of the No. 1,2,4 & 5 seam resulting in a thickness increase of the No. 2 & 4 seam. Redefinition of seam picks and sub-outcrops added resources. No. 2 seam pillars added to the mine plan increasing resources. No. 5 seam area footprint increased. Re-modelling resulted in slight decreases to sub-outcrops in all seams. Change in Resource (+41Mt).

Reserve increase with re-evaluation of the previously mined (pillar areas) No. 2 upper and lower seam by openpit mining method, resulting in increased recovery and contamination. South pit No. 4 seam uppers added to the mine plan increasing reserves. Atcom office pits increased reserves due to product parameter changes (5800 to 5700). Phoenix pit No. 2 seam pillars removed not practically mineable. Overall change (+6Mt).

(e) iMpunzi East: Resource changes only due to production.

Reserve increase with improved recovery of the No. 2 seam pillar areas reducing mining losses. Pit layout increase due to product parameter changes (5800 to 5700). Overall change in reserves (+11Mt).

(f) Zonnebloem: Resources increased due to the re-evaluation of seam picks in the no.2 uppers seam, and no. 1 and 2 seam thickness cut-off changed from 1m to 0.5m adding resources (+79Mt).

Reserves have been included following additional studies and mine planning during the Pre-feasibility stage of the Zonnebloem Project (+140Mt).

(g) Oogiesfontein: No significant change in the Resource estimation since 30 June 2010.

(h) Elandspruit: No significant change in the Resource estimation since 30 June 2010.

(i) Paardekop: No significant change in the resource estimation since 30 June 2010.

(j) Undeveloped Resources: No significant change in the Resource estimation since 30 June 2010.

Competent Persons: MS = Marius Smith; B Sc. Honours Geology; SACNASP; Group Coal Geologist, Xstrata Coal South Africa (6 years) – Management of entire geological function including production and exploration, geological modelling, Resource estimation and assessment, new business development initiatives including local and Africa. Divisional Geologist, Xstrata Coal South Africa (2 years) – Manage geological function at 8 operating collieries; Senior Project Geologist, Anglo Coal (4 years) – Manage exploration programs and geological modelling.

RR = Rohan Roach; B Com; BTech Mine Engineering; Coal Mine Managers Certificate of Competency, Metalliferous Mine Managers Certificate of Competency; SAIMM, ECSA; Group Mining Engineer, Xstrata Coal South Africa (1.5 years) – Life-of-mine planning and reserve estimation of new projects; Technical Services Manager, Xstrata Coal South Africa (3 years) – Short, medium and life-of-mine planning, reserve estimation and reconciliation; Technical Services Manager & Planning Mine Overseer, BHPBilliton (7 years) – Short, medium and life-of-mine planning, reserve estimation, and reconciliation; Onsetter, Miner, Shiftboss, Mine Overseer, acting Production Manager, Rand Gold, BHPBilliton & Xstrata (6 Years) – Management of production units underground and open pit dragline and minipit truck shovel operations.

TH = Trevor Howard; B Eng. Mining; Coal Mine Managers Certificate of Competency; SAIMM; Group Mining Engineer, Xstrata Coal South Africa (3 years) – Life-of-mine planning for Tweefontein, reserve estimation and reconciliation, element leader for mining related elements of the Tweefontein Project studies; Technical Services Manager, Xstrata Coal South Africa (3.5 years) – Short, medium and life-of-mine planning for underground and opencast, production forecasting, economic consideration of various short term initiatives; Long Term Planning Manager, Sasol Mining (1.5 years) – Short, medium and life-of-mine planning, monthly reconciliations, economic evaluations of options to link up adjacent mine; Miner, Shiftboss, Mine Overseer & Underground Manager, Sasol Mining (5 years) – Management of production units underground coal mining.

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Coal continued

Americas Coal Resources – Colombia


interest Commodity




Person31.12.11 30.06.10 31.12.11 30.06.10 31.12.11 30.06.10

Carbones del Cerrejón(a) 33.3% Thermal Coal (Mt) 3,200 1,737.2 1,150 329.6 800 127 GH CV (kcal/kg) 6,550 6,550 6,550 6,500 Resources Total – Colombia (Mt) 3,200 1,737.2 1,150 329.6 800 127

Americas Coal Reserves – Colombia


interestMining

method Coal type




Competent Person


Carbones del Cerrejón(b)

33.3% OC Thermal Coal (Mt) 720 85 700 80 780 655 GH

CV (kcal/kg) – – 6,200 6,200 6,200 6,200 Reserves Total – Colombia (Mt) 720 85 700 80 780 655

Canada Coal Resources


interest Commodity




Person31.12.11 30.06.10 31.12.11 30.06.10 31.12.11 30.06.10

Donkin Mine(c) 75.0% Coking/Thermal Coal (Mt) – – 230 227 250 254 KJW

CV (kcal/kg) – – 7,400 7,400 Lossan Coal Area(d) 100.0% Coking/Thermal

Coal (Mt) 108 – 77 – 50 – GJResources Total – Canada (Mt) 108 – 307 227 300 254

Canada Coal Reserves


interest Mining

method Coal type




Competent Person


Donkin Mine(c) 75.0% UG Coking/Thermal Coal (Mt) – 58 – 48 48 – LP

CV (kcal/kg) – – – 7,200 7,200 – Reserves Total – Canada (Mt) – 58 – 48 48 –

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Notes: Reserves are ROM (Run of Mine) Reserves – as mined reserves taking into account geological losses, mining losses, contamination and as mined moisture adjustments. Reserves are reported on a ROM moisture basis. Resources are reported on an in situ moisture basis.

Saleable Reserves: As sold basis are Reserves adjusted for yield losses in the preparation plant (if applicable) and converted to a saleable moisture basis. The Coal Resource and Coal Reserve estimates tabulated above are stated on a total mine basis as at 31 December 2011.

Coal Resource qualities are reported at in situ moisture basis and Coal Reserve qualities are reported at a gross as received basis.

Americas (Colombia) Resources are Gross Tons In Situ Resources (GTIS). The Coal Resources include coal for which the continuity, quality and mineability are established but are outside the current life of mine plan. These Resources comply with current and foreseen mining and marketing criteria and have economic potential. The estimates of Coal Resources and Coal Reserves presented in this table for Cerrejón have been prepared in accordance with the SAMREC Code (South African Code for Reporting of Coal Resources and Coal Reserves).

Canada Resources and Reserves are reported in accordance with the CIM Definition Standards on Mineral Resources and Mineral Reserves with reference to Paper 88-21 guidelines.


(a) Cerrejón Mine: An increase in resources due to reclassification of resource areas and inclusion of resources within Measured, Indicated and Inferred areas of the Geo-shell, (+3Bt).

(b) Cerrejón Mine: Reserve increase with additional studies and mine planning done as part of the P40 project with increased production has resulted in an overall increase (+175Mt).

(c) Donkin Mine: Resource unchanged from 30 June 2010.

Reserves have been included following additional studies and mine planning during the Pre-feasibility stage of the Donkin Project (+58Mt).

(d) Lossan Coal Area: Lossan Coal Property acquired by Xstrata Coal effective November 2011.

Competent Persons: GH = German Hernandez; BSc, BHPBilliton Certificate of Competent Person; GSSA; APS Geology Superintendent, Carbones del Cerrejon – Drilling – core, open and reverse circulation drilling; Geophysical – geophysical logging set to coal exploration, magnetic susceptibility, etc, also reflection seismic, airborne magnetic, ground based mag and DC Resistivity profiling; Geological Data Management – Integrated geological database/graphics and modelling packages including Minex Horizon, Mincom GDB, Microstation and in-house software applications; Extensive experience in exploration programmes and mine geology support in Colombia Coal Fields, and feasibility studies programmes in Cerrejon.

GJ = Geoffrey Jordan, Senior Geologist, Norwest Corporation (APEGGA and APEGBC)

KJW = Kerry Whitby, Managing Director, McElroy Bryan Geological Services Pty Ltd, Consulting Geologists (AusIMM)

LP = Lynn Partington, Executive Mining Consultant, Marston and Marston, Inc. (APEGGA and APEGBC).

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Copper

North Queensland Mineral Resources


interest Mining

method Commodity



Measured and Indicated

Resources Inferred Mineral

Resources Competent Person*31.12.11 30.06.10 31.12.11 30.06.10 31.12.11 30.06.10 31.12.11 30.06.10

Ernest Henry 100% Open Cut(a) OC (Mt) – 10 – 7 – 17 – – MC Cu (%) – 1.0 – 0.9 – 1.0 – – Au (g/t) – 0.5 – 0.4 – 0.5 – –

Magnetite

(%) – 23 – 22 – 23 – –Underground(b) UG (Mt) 4 4 71 71 75 76 13 13 MC Cu (%) 1.3 1.3 1.3 1.3 1.3 1.3 1.2 1.2 Au (g/t) 0.7 0.7 0.7 0.7 0.7 0.7 0.6 0.6

Magnetite

(%) 32 32 28 28 28 28 26 26E1(c) OC (Mt) 9 – 25 – 34 – 14 – MC Cu (%) 0.9 – 0.7 – 0.8 – 0.6 – Au (g/t) 0.3 – 0.2 – 0.2 – 0.2 –Monakoff(d) OC (Mt) – – 2 – 2 – 1 – MC Cu (%) – – 1.4 – 1.4 – 1.2 – Au (g/t) – – 0.4 – 0.4 – 0.4 –Mount Isa 100% X41 Mine 1100 & 1900 Orebodies(e) UG (Mt) 44 48 15 18 60 66 8 5 KH Cu (%) 1.9 2.1 1.8 1.8 1.9 2.0 2 2Enterprise Mine 3000 & 3500 Orebodies(f) UG (Mt) 40 46 6 7 45 54 1 1 KH Cu (%) 3.0 3.1 2.5 2.5 3.0 3.0 2 2500 Orebody(g) UG (Mt) – – – 25 – 25 – 50 NB Cu (%) – – – 1.9 – 1.9 – 1Open Pit(h),(i) OC (Mt) – – 150 150 150 150 133 133 NB Cu (%) – – 1.2 1.2 1.2 1.2 1 1 Total – North Queensland (Mt) 97 108 269 278 366 388 170 202

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North Queensland Ore Reserves


interest Mining


Person*31.12.11 30.06.10 31.12.11 30.06.10 31.12.11 30.06.10

Ernest Henry 100% Open Cut(a) OC (Mt) – 10 – 7 – 17 AT Cu (%) – 1.0 – 0.9 – 1.0 Au (g/t) – 0.5 – 0.4 – 0.5

Magnetite

(%) – 23 – 22 – 23 Underground(b) UG (Mt) – – 74 71 74 71 CC Cu (%) – – 0.95 0.95 0.95 0.95 Au (g/t) – – 0.5 0.5 0.5 0.5

Magnetite

(%) – – 23 23 23 23 E1(c) OC (Mt) – – 26 – 26 – AT Cu (%) – – 0.8 – 0.8 – Au (g/t) – – 0.2 – 0.2 – Monakoff(d) OC (Mt) – – 2 – 2 – AT Cu (%) – – 1.4 – 1.4 – Au (g/t) – – 0.4 – 0.4 – Mount Isa 100% X41 Mine 1100 & 1900 Orebodies(e) UG (Mt) 18 22 13 14 31 36 GC Cu (%) 1.9 2.0 1.8 1.8 1.8 1.9 Enterprise Mine 3000 & 3500 Orebodies(f) UG (Mt) 17 21 7 7 24 29 GC Cu (%) 3.3 3.3 2.5 2.7 3.0 3.2 Total – North Queensland (Mt) 35 53 122 99 157 153

Canada Mineral Resources


interest Mining

method Commodity





Person* 31.12.11 30.06.10 31.12.11 30.06.10 31.12.11 30.06.10 31.12.11 30.06.10

Kidd Creek(j) 100% UG (Mt) 19.3 20.6 1.1 2.3 20.4 23.0 4.2 4.5 BD Cu (%) 2.05 2.12 1.35 1.55 2.01 2.07 1.7 1.7 Zn (%) 4.71 4.76 5.56 5.36 4.75 4.82 6.4 6.3 Pb (%) 0.17 0.17 0.10 0.14 0.16 0.17 0.1 0.1 Ag (g/t) 57 57 31 43 56 55 57 57Total – Canada (Mt) 19 21 1 2 20 23 4 5

Canada Ore Reserves


interest Mining


Person*31.12.11 30.06.10 31.12.11 30.06.10 31.12.11 30.06.10

Kidd Creek(j) 100% UG (Mt) 13.3 14.9 2.3 2.5 15.5 17.4 AM Cu (%) 1.89 2.08 1.61 1.38 1.85 1.98 Zn (%) 5.09 4.84 4.53 4.23 5.01 4.75 Pb (%) 0.18 0.16 0.11 0.13 0.17 0.16 Ag (g/t) 62 57 36 37 58 54 Total – Canada (Mt) 13 15 2 3 16 17

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Copper continued

Minera Alumbrera Ore Reserves


interest Mining


Person*31.12.11 30.06.10 31.12.11 30.06.10 31.12.11 30.06.10

Bajo de la Alumbrera(k) 50% OC (Mt) 248 293 8 9 256 302 JBN Cu (%) 0.37 0.39 0.28 0.32 0.37 0.39 Au (g/t) 0.37 0.39 0.24 0.28 0.36 0.39 Mo (%) 0.013 0.013 0.014 0.015 0.013 0.013 Total – Alumbrera (Mt) 248 293 8 9 256 302

Chile Mineral Resources


interest Mining

method Commodity






Collahuasi(l) 44% OC Sulphide (Mt) 378 409 3,266 2,586 3,644 2,995 3,900 4,042 LA Cu (%) 0.92 0.90 0.79 0.80 0.80 0.82 0.8 0.81 Mo (%) 0.02 0.02 0.03 0.02 0.03 0.02 0.02 0.02

OC Oxide & Mixed

(Mt) 33 0.3 16 38 49 38 5 20 LA Cu (%) 0.60 1.60 0.67 0.68 0.62 0.69 0.6 0.72Lomas Bayas 100% Lomas Bayas I(m)

OC Oxide & Mixed (Mt) – – – – – – – – NF

Cu (%) – – – – – – – – Soluble Cu (%) – – – – – – – –Lomas Bayas II(n)

OC Oxide & Mixed (Mt) 344 357 222 224 566 581 77 77 NF

Cu (%) 0.30 0.30 0.21 0.22 0.26 0.27 0.15 0.15 Soluble Cu (%) 0.21 0.21 0.14 0.14 0.18 0.18 0.08 0.08Lomas Bayas III(o) OC Sulphide (Mt) 17.7 17.7 228 228 245.7 245.7 190 190 NFSulphide Zone Cu (%) 0.54 0.54 0.40 0.40 0.41 0.41 0.36 0.36

Oxide and Mixed (Mt) 66.2 66.2 312.9 312.9 379.1 379.1 28 28

Cu (%) 0.35 0.35 0.25 0.25 0.27 0.27 0.21 0.21Total – Chile (Mt) 839 850 4,045 3,389 4,884 4,239 4,200 4,357

Chile Ore Reserves


interest Mining


Person*31.12.11 30.06.10 31.12.11 30.06.10 31.12.11 30.06.10

Collahuasi(l) 44% OC Sulphide (Mt) 285 316 2,575 2,066 2,860 2,381 MQ Cu (%) 1.07 1.08 0.77 0.79 0.80 0.83 Mo (%) 0.03 0.02 0.02 0.02 0.02 0.02 OC Oxide & Mixed (Mt) 21 0 15 32 35 32 MQ Cu (%) 0.59 1.16 0.69 0.74 0.63 0.74 Lomas Bayas 100% Lomas Bayas I(m) OC Oxide & Mixed (Mt) 16 49 25 44 41 93 NF Cu (%) 0.32 0.30 0.28 0.27 0.30 0.29 Soluble Cu (%) 0.21 0.19 0.18 0.17 0.19 0.18 Lomas Bayas II(n) OC Oxide & Mixed (Mt) 310 325.4 163 165.2 473 490.6 NF Cu (%) 0.30 0.30 0.21 0.21 0.27 0.27 Soluble Cu (%) 0.22 0.22 0.14 0.14 0.19 0.19 Total – Chile (Mt) 632 690 2,778 2,307 3,409 2,997

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Peru Mineral Resources


interest Mining

method Commodity






Antamina(p) 33.75% OC Sulphide Cu (Mt) 125 106 749 567 874 673 530 487 LC

Cu (%) 0.89 0.92 0.94 1.00 0.93 0.99 0.8 0.83 Zn (%) 0.15 0.15 0.13 0.16 0.14 0.16 0.1 0.13 Ag (g/t) 7.2 7.5 9.0 9.3 8.7 9.0 9 9.7 Mo (%) 0.034 0.038 0.025 0.029 0.026 0.030 0.02 0.017

Sulphide

Cu-Zn (Mt) 58 43 254 152 312 195 180 93 LC Cu (%) 0.73 0.78 0.84 1.06 0.82 1.00 0.5 0.86 Zn (%) 1.55 1.53 1.96 1.90 1.89 1.82 1.3 1.59 Ag (g/t) 13.5 14.6 14.1 17.2 14.0 16.6 9.7 15.8 Mo (%) 0.011 0.013 0.006 0.008 0.007 0.009 0.003 0.006Tintaya(q) 100% OC (Mt) 50 59 39 46 88 105 – – HB Cu (%) 1.22 1.2 1.10 1.1 1.17 1.16 – – Au (g/t) 0.19 0.2 0.18 0.2 0.18 0.2 – –Antapaccay(r) 100% OC (Mt) 185 185 438 438 623 623 190 194 HB Cu (%) 0.66 0.66 0.54 0.54 0.58 0.58 0.4 0.36 Au (g/t) 0.14 0.14 0.12 0.12 0.13 0.13 0.06 0.06 Ag (g/t) 1.63 1.63 1.43 1.43 1.49 1.5 1.3 1.3 Mo (%) 0.005 0.005 0.005 0.005 0.005 0.005 0.005 0.005Coroccohuayco(s) 100% OC (Mt) – 2 129 30 129 32 190 60 RR Cu (%) – 3.01 1.10 3.20 1.10 3.2 0.8 3.06 Au (g/t) – 0.28 0.12 0.33 0.12 0.33 0.1 0.28 Ag (g/t) – 10.40 3.60 11.90 3.60 11.81 3 13 Mo (%) – 0.012 0.018 0.016 0.018 0.016 0.01 0.013Las Bambas(t) 100% OC Sulphide (Mt) 490 280 720 870 1,210 1,150 500 400 RR Cu (%) 0.64 0.50 0.68 0.70 0.66 0.65 0.5 0.5 Mo (ppm) 174 150 172 172 173 166 149 140 Ag (g/t) 3.0 2.0 3.5 3.5 3.3 3.2 2.4 2.8 Au (g/t) 0.06 0.04 0.05 0.05 0.05 0.05 0.03 0.03Total – Peru (Mt) 908 675 2,329 2,103 3,236 2,778 1,590 1,234

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Copper continued

Peru Ore Reserves


interest Mining


Person*31.12.11 30.06.10 31.12.11 30.06.10 31.12.11 30.06.10

Antamina(p) 33.75% OC Sulphide Cu (Mt) 90 75 476 441 565 516 MM Cu (%) 1.05 1.10 0.95 1.05 0.96 1.06 Zn (%) 0.16 0.17 0.14 0.17 0.15 0.17 Ag (g/t) 8.2 8.6 8.9 9.7 8.8 9.5 Mo (%) 0.033 0.037 0.027 0.031 0.028 0.032

Sulphide Cu -Zn

(Mt) 43 29 177 131 220 160 MM Cu (%) 0.82 0.92 0.83 1.06 0.83 1.03 Zn (%) 1.79 1.84 1.99 1.98 1.95 1.95 Ag (g/t) 15.0 17.0 14.3 17.6 14.5 17.5 Mo (%) 0.006 0.007 0.006 0.008 0.006 0.008 Tintaya(q) 100% OC (Mt) 30 39 19 27 49 66 HB Cu (%) 1.12 1.12 0.84 1.02 1.01 1.08 Au (g/t) 0.14 0.16 0.10 0.15 0.12 0.16 Antapaccay(r) 100% OC (Mt) 176 176 365 365 541 541 HB Cu (%) 0.66 0.66 0.56 0.56 0.59 0.59 Au (g/t) 0.14 0.14 0.12 0.12 0.13 0.13 Ag (g/t) 1.63 1.63 1.45 1.45 1.51 1.51 Mo (%) 0.005 0.005 0.005 0.005 0.005 0.005 Total – Peru (Mt) 339 319 1,037 964 1,375 1,283

Other projects Mineral Resources


interest Mining

method Commodity




Resources Inferred

Mineral Resources Competent Person31.12.11 30.06.10 31.12.11 30.06.10 31.12.11 30.06.10 31.12.11 30.06.10

El Pachon(u) 100% OC (Mt) 430 200 810 690 1,240 890 1,500 900 RR Cu (%) 0.69 0.82 0.51 0.56 0.57 0.62 0.4 0.4 Mo (%) 0.014 0.018 0.011 0.015 0.012 0.016 0.01 0.01 Ag (g/t) 2.4 2.5 2.1 2.1 2.2 2.2 2 2 Tampakan(v) 62.5% OC (Mt) 980 780 1,290 910 2,270 1,690 670 800 RR Cu (%) 0.69 0.71 0.45 0.55 0.55 0.62 0.4 0.4 Au (g/t) 0.28 0.28 0.16 0.19 0.21 0.23 0.1 0.2 Mo (%) 0.008 0.008 0.006 0.007 0.007 0.007 0.005 0.006 Frieda River(w) 81.8% Nena High Sulfidation OC (Mt) – – 37 37 37 37 14 14 RR30-12-08 Cu (%) – – 2.67 2.67 2.67 2.67 1.8 1.8 Au (g/t) – – 0.63 0.63 0.63 0.63 0.4 0.4 H-I-T Porphyry OC (Mt) 780 40 410 460 1,190 500 900 800 Cu (%) 0.51 0.58 0.44 0.52 0.49 0.52 0.4 0.4 Au (g/t) 0.28 0.31 0.2 0.31 0.25 0.31 0.2 0.2 West Wall Copper Project(y) 50% (Mt) – – – – – – 750 750 GL Cu (%) – – – – – – 0.54 0.54 Au (g/t) – – – – – – 0.05 0.05 Mo (%) – – – – – – 0.01 0.01 Total – Other projects (Mt) 2,190 1,020 2,547 2,097 4,737 3,117 3,834 3,264

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Notes: (a) Ernest Henry Open Cut: The Open Cut Ore Reserve and

Mineral Resource were depleted by 17Mt of ore @ 1.0% Cu, 0.5 g/t Au due to mining from the Open Cut since end June 2010, with mining of the Open Cut fully depleting Reserves and Resources by December 2011. Open Cut Ore Reserve and Mineral Resource estimates were based on an Ordinary Kriged block model. Mineral Resource classification was based on geostatistical analysis of data, combined with structural and geological interpretation. A cut-off grade of 0.27% Cu was applied.

(b) Ernest Henry Underground: Copper and gold mineralisation occurred in a breccia comprised of strongly altered and replaced intermediate volcanic fragments in a matrix assemblage of predominantly magnetite, chalcopyrite and carbonate. Copper occurs as chalcopyrite and gold was strongly associated with chalcopyrite. The Mineral Resource estimate is based on a copper equivalent cut-off of 1.15% (CuEq = Cu % + 0.52 x Au g/t). Estimates are derived from an Ordinary Kriged block model after the application of geostatistical analysis of data combined with structural and geological interpretation. The Underground Mineral Resource includes all material outside the final mined pit to the base of current drill testing. The Mineral Resource has been depleted by 1.0Mt by mining from 31/6/10 to 31/12/11, including 0.4Mt of material previously classified outside resource. This update to the Underground Ore Reserve is still based on the Feasibility Study, which is estimated from applying underground mining methods to a mining shape derived from the Mineral Resource. The mining method is a combination of blasting ore remaining in walls above the final pit floor and sub-level caving below the pit floor from RL1625 to RL1200. Dilution and ore losses have been factored into the Ore Reserve utilising flow based dilution modelling. Material changes to the Ore Reserve as at 31 December 2011 include depletion from first production and ore body development (1.0Mt), extensions of ore boundaries from increased ore body knowledge, and adjustments to flow modelling estimations totalling 3.8Mt. Metallurgical testing has confirmed the processing performance expected from the mineralisation including magnetite contained within the mining shape. There is no overlap between the Underground and Open Pit Mineral Resources and Ore Reserves.

(c) E1: Copper and gold mineralisation occurs in three distinct zones all located under a 20m to 50m package of transported cover sediments. E1 North is hosted within a series of variably brecciated meta-volcanics and meta-sediments and is composed of predominately disseminated primary chalcopyrite mineralisation and a zone of supergene mineralisation immediately west of the primary zone. E1 South is composed of disseminated primary chalcopyrite mineralisation hosted within a north plunging synclinal series of stacked folded ironstone lenses. E1 East is composed predominately of disseminated primary chalcopyrite mineralisation and is hosted within a number of steeply dipping magnetite ironstone lenses of variable thickness. Open cut Ore Reserves and Mineral Resource estimates are derived from an Ordinary Kriged block model guided by geological interpretations of host lithologies and resource outlines based on a nominal 0.2% Cu cut-off grade based on

a Feasibility Study conducted in June 2011. A cut off grade of 0.3% Cu was applied.

(d) Monakoff: Copper and gold mineralisation occurs in two distinct locations outcropping at surface. Monakoff is composed of primary chalcopyrite mineralisation in a steeply dipping shear bound tabular ore body hosted in meta-volcanic and meta-sediment packages. Monakoff East is composed of primary chalcopyrite mineralisation replacing meta-dolerite in tabular sheets dipping steeply to the south. Open cut Ore Reserves and Mineral Resource estimates are derived from an Ordinary Kriged block model guided by geological interpretations of host lithologies and resource outlines based on a nominal 0.3% Cu cut-off grade based on a Feasibility Study conducted in June 2011. A cut off grade of 0.5% Cu was applied.

(e) Mount Isa X41 Copper Mine 1100 and 1900 Orebodies: Mineralisation occurs generally as breccia hosted massive to disseminated chalcopyrite in “silica dolomite” altered pyritic dolomitic siltstone. Mineral Resource categorisation is based on assessment of orebody continuity, structural complexity and adequacy of data coverage. Mining depletions and sterilisation to the Mineral Resource amounted to 5.87Mt as a result of continued updates to the mining depletion and sterilisation model. New drilling in the Northern 1100 and Northern 1900 Orebodies resulted in an additional 0.68 Mt of Mineral Resource. Mining depletions and sterilisations amounted to a 3.8Mt reduction in Ore Reserve. Engineering reviews resulted in a further decrease of 0.3Mt to the Ore Reserve. Further work is continuing to evaluate the Measured and Indicated Mineral Resources for conversion to Ore Reserves using differing mining methods and economic parameters.

(f) Enterprise Mine 3000 and 3500 Orebodies: Mineralisation occurs generally as breccia hosted massive to disseminated chalcopyrite in “silica dolomite” altered pyritic dolomitic siltstone. Mineral Resource categorisation is based on assessment of orebody continuity, structural complexity and adequacy of data coverage. Mining depletions and sterilisation amounted to a 10.6Mt reduction in Mineral Resource as a result of continued updates to the mining depletion and sterilisation model. New drilling in the up-dip portion of the 3000 Orebody resulted in an addition to the Mineral Resource; this was partially offset by less successful drilling in the Central 3000 Orebody. Mining depletions and sterilisations amounted to 4.9Mt of Ore Reserve. Engineering reviews resulted in an increase of 0.6Mt to the Ore Reserve. Further work is continuing to evaluate the Measured and Indicated Mineral Resources for conversion to Ore Reserves using differing mining methods and economic parameters.

(g) Mount Isa 500 Orebody: The 500 Orebody was previously reported as an overlap between the Mount Isa underground and open pit copper Mineral Resources. Unlike all other reported resources, the Block Cave resource was calculated exclusive of a cut-off grade, i.e. reported as the total volume tonnage of the designed block. The ‘500 Block Cave’ Resource was removed from the 2011 Mineral Resource. The decision to remove the Block Cave from the reportable resource was a function of improved understanding of the mining potential of the block and removal of ambiguity in Resource reporting. The 75Mt Block Cave (volume tonnage)

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Copper continued

was removed and 2.42Mt @ 1.7% Cu from within the Block Cave design (below Pit46) was added into the 1100 Orebody underground Resource.

(h) Mount Isa Open pit: Mineral Resource categorisation is based on assessment of orebody continuity, structural complexity and adequacy of data coverage. The Mineral Resource estimate is based on a block model with grade interpolation by Ordinary Kriging. The Mineral Resource has been reported inside an optimised pit shell using a cut-off grade of 0.5% Cu. Copper mineralisation occurs generally as breccia hosted massive to disseminated copper minerals in “silica dolomite” altered pyritic dolomitic siltstone. Approximately 60% of the copper Mineral Resource is in primary chalcopyrite, the remainder being oxidised or partially oxidised, with a minor amount of supergene chalcocite mineralisation. A Pre-Feasibility Study is currently underway to determine the viability of commencing a large open cut copper mine within Mount Isa Open Pit.

(i) Underground-Open Pit Overlap: Removed from 2011 Mineral Resource. Refer to (g) for details.

(j) Kidd Creek: Reserves are based on the approved mining plan to 9500ft depth. Resources are inclusive of reserves and extend to 10,200ft depth (within reach of ramp haulage from the existing shaft). Resource and reserve changes are mainly the result of mining drawdown, with adjustments due to drilling conversion, and pricing. July 1, 2010 to Dec. 2011 production totalled 3.6Mt @ 46g/t Ag, 2.08% Cu, and 3.88% Zn. Reserves are estimated using long-term mineral price assumptions and exchange rates. Two major seismic events in 2011 resulted in a suspension of mining on the south end of 68 to 82 levels. Mining of 0.8Mt of reserve will likely be deferred until end of mine life, is now categorized as Probable, and may be exposed to write-down. Approximately 1.8Mt of resource between 82 and 95 levels meets full-cost criteria but has not been converted to reserve pending development of a practical mining plan. Kidd Creek is a Volcanogenic Massive Sulphide Cu-Zn-Ag deposit. Mineralisation occurs within a rhyolitic volcanic/volcaniclastic sequence as massive sulphide lenses of dominantly pyrite-pyrrhotite-sphalerite-galena-rich ores that are underlain by copper (chalcopyrite) stringer zones.

(k) Bajo de La Alumbrera: The Bajo de la Alumbrera copper-gold porphyry deposit is located in the Hualfin district, Belen department of the Catamarca province, in the Northwest region of Argentina The ore body consists of primary sulphide mineralised ore which comprises disseminated, vein and fracture controlled chalcopyrite in altered dacite and andesite host rocks, with minor chalcocite and covellite in the enriched zone that surrounds the major faults. The major variations from the June 30, 2010 published statement are depletion due to mining and processing of 56Mt @ 0.41% Cu, 0.43g/t Au. The Proved Reserves include 41Mt @ 0.28% Cu, 0.32 g/t Au, 0.014% Mo of Medium and Low-Grade material stockpiled and scats, for treatment during the remaining of the life of mine. The increase of 22Mt, due to an adjustment of commodities prices and costs and the update of the recovery model. The decrease of 12Mt, due to changes in the design of pit by geotechnical recommendations. The Ore Reserves and Mineral Resources

figures are obtained from the Resource Block Model (ALUN) which was constructed in May 2008 using Ordinary Kriging interpolation within geological constraints from an assay database comprising some 116,000m of diamond drilling and 15,000m of reverse circulation drilling. Ore Reserves are based on a pit optimisation (Pit 110-11B) performed on the ALUN resource block model, and are reported using an economic 0.22% Cu equivalent cut-off grade. The economic cut-off is based on appropriate dilution factors and metallurgical recoveries, and uses Xstrata Copper long-term commodity gross prices assumptions. The stripping ratio (S.R.) for Pit 110 is 1.64 S.R. is defined as the in-pit tonnes of waste divided by the in-pit tonnes of ore. Mineral Resources are reported exclusive of the Ore Reserves, hence there are no reported Resources.

(l) Collahuasi: The 84Mt ore production for second half 2010 and 2011 are already depleted from the reported Ore Reserve. Ore Reserves include estimates of stockpile material at time of reporting. Rosario, Rosario Oeste, Ujina, Capella, Capella Este, Rosario Sur I, Rosario sur II and Rosario Sur III ( ex Dulcinea, La Borracha y Borracha Oeste) are deposits within the Collahuasi cluster. Collahuasi is mined by open cut methods. The Collahuasi Mineral Resources and Ore Reserves are based on three discrete different Copper-Moly porphyry orebodies, Ujina, Rosario and Rosario West. Primary Chalcopyrite – Bornite and less Chalcosite are the main copper bearing minerals at Ujina and Rosario. At Rosario West Supergene Chalcosite partially to totally replacing Chalcopyrite is the main copper bearing mineralogy. The Rosario orebody is the main source of ore of the current Collahuasi operation. Reserves and Resources have been re-estimated on the basis of new drilling information, updated geological and geostatistical modelling, updated mining parameters and adjustments to the forecast metal prices. Cut-off parameters for the Resources and Reserves vary according to forecast metal prices, expected financial, mining and metallurgical parameters. Mineral Resources are reported within the constraints of optimised pit shells. The Resources for Rosario, Ujina and Capella have been classified into Measured, Indicated and Inferred categories based on minimum search radius constraints and drillhole spacing: Rosario: Measured 50 x 50m (Oxide, Mixed, and Secondary Sulphides) and 70 x 70m (Primary Sulphides); Indicated 100 x 100m (Oxides, Mixed, and Secondary Sulphide) and 150 x 150m (Primary Sulphides); Inferred within 250m in the horizontal and 50 in the vertical. Ujina: Measured 70 x 70m (all mineralisation types); Indicated 100 x 100m (Oxides, Mixed, Secondary Sulphide) and 150 x 150m (Primary Sulphides); Inferred for wider drilling grids and contained within the geological interpretation. The oxides at Capella were drilled on approximate 50 x 50m grid and have been classified in the Indicated category. Ore Reserve estimates are based only on Measured and Indicated Resources, optimised mine plans and meet minimum operational cut-off requirements. Ore Reserve pits for Rosario and Ujina were defined using expected long term prices for copper. However, for Capella East, a more aggressive copper price was used in attention to the short life expected for the deposit. In order to ensure that the stated resources represent mineralisation that have “reasonable prospects for

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eventual economic extraction” (JORC Code), Open pit shells were optimized for the Rosario and Ujina Resources models based on the Lersch-Grossmann algorithm using the Whittle 4X software and long term equilibrium metal prices. Operational pit designs were generated based on the optimised shells. The Ore Reserves include all Proved and Probable Reserves falling above the breakeven cut-off grade. The process of generating the resource model and optimised pit shells incorporated diluting materials; as such no additional dilution factors were required in converting Resources to Reserves. Material included in stockpiles is periodically verified and re-evaluated through drilling, trenching, and sampling. Stockpiles for material from the Rosario deposit indicate a level of uncertainty for the reported grades. This material has been classified as Probable Reserves for inclusion in the Ore Reserve Estimate. All sulphide stockpile Resources reporting to Reserves that have been classified as Measured and fall between 0.34% and operational cut-off grade are downgraded to the Probable Reserve category. Previous statements did not consider this downgrading of the Reserve category.

(m) (o) Lomas Bayas (I) – Lomas Bayas (III): Lomas Bayas is a low grade Cu-Mo-Au deposit resulting from the intrusion of several porphyries and breccias systems that were later exposed to leaching and subsequent supergene enrichment and in situ oxidation. Green copper oxides, copper sulphates in various forms and less partially mixed ores are the main source of ore for the existing SE/EW operation. These copper oxides-sulphates mineralisation is the base of the Lomas Bayas Ore Reserve (Lomas Bayas I).

The deeper primary chalcopyrite mineralisation is now being considered for potential milling and flotation and is now subject of a pre feasibility Study, the project is named Lomas Bayas Sulphides (III) and the resulting resource pit includes all Lomas Bayas Mineral Resources.

Lomas Bayas block model LB09 includes a total of 243,769m of exploration and resource definition drilling and is the base of the Lomas Bayas (I) Ore Reserve and Lomas Bayas (III) Mineral Resources. Mineral Resource and Ore Reserve estimation has been completed by Ordinary Kriging on a 15 x 15 x 15m block model that now extends down to 860m. Ore Reserves are as of 31/12/2011 using projected topography. The Lomas Bayas (I) Ore Reserve estimate results from the LB09 block model; operational pit Lom2010; cut-off grade Heap: 0.16 RCuH and ROM: 0.05% RCuH. The Lomas Bayas (III) Mineral Resource estimates results from the LB09 block model and a pit shell calculated using Measured, Indicated and Inferred Sulfides Resources named PitfinalLBIII; Oxides-Mixed within this pit are also considered resources that will eventually feed the SE/EW operation.

(n) Lomas Bayas (II): Lomas II block model LB06 includes historic drillholes totalling 95,250m and sampled at 2m intervals. Resource and Reserve estimation has been completed by Ordinary Kriging with the block model reporting tonnage and total copper grade estimates to 20 x 20 x 15m blocks. Resource classification is based on sample density, mineralogy and the expected recovery. Resources have been updated with new operational and economic pits. Ore Reserves are as of 31/12/2011, considering: operational pit Lom2010; cut-off grade Heap: 0.16% RCuH and ROM: 0.05%

RCuH. Resources as of 31/12/2011, considers both the operational pit 2010 and economic pit 2010 and cut-off grade Heap: 0.16%, RCuH and ROM: 0.05% RCuH.

(p) Antamina: (Compañia Minera Antamina S.A.): Antamina is a polymetallic (copper, zinc and molybdenum predominate) skarn deposit resulting from complex multiple intrusive events. Copper mineralisation occurs mainly as chalcopyrite except for two areas of bornite, representing approximately 5% of the deposit. Zinc mineralisation generally occurs as sphalerite. Other significant sulphide minerals include molybdenite and pyrite, while trace amounts of numerous silver and bismuth bearing minerals and local areas of galena (lead sulphide) are also found within the deposit. Ore Reserves resulting from the depletion of the Ore Reserves declarations of January 2011 based on the end of year 2011 topography projection from 90 days plan October 2011.The life-of-mine plan used for this declaration has not been updated since January 2011 declaration. The mine plan considers only measured and indicated Mineral Resources and any inferred Mineral Resources has been treats as waste. The cut-off grade for the Ore Reserves estimate varies by year in an effort to maximize the net present value of the pit. The cut-off grades at Antamina are based on the net value before taxes that the material will generate per hour of concentrator operation. The Measured Resources include existing low-grade ore stockpiles. Zinc is not recovered from Copper Ores and molybdenum is not usually recovered from Copper-Zinc Ores or from Copper Ores with high bismuth.

(q) Tintaya: The Tintaya orebody is located 10km northeast of Antapaccay, and together with Coroccohuayco is part of the Tintaya mineralised district. The Tintaya orebody is a copper skarn deposit, which consists of Cretaceous sedimentary rocks intruded by monzonitic plutons, with bornite, chalcopyrite, chalcocite and copper oxides as the main copper bearing minerals. This statement is estimated based on a Resource Block Model which was constructed using Ordinary Kriging interpolation within geological constraints from an historical assay database comprising some 675,000m of diamond and reverse circulation drilling. Identified Mineral Resources are generated from pit optimisation studies using possible future technical and economic scenarios to define mineralisation which might in whole or in part become economically extractable. The major variations from the 30 June 2010 public statement are due to the mining and processing of 17Mt of ore. The ultimate pit slope designs are based on Tintaya’s geotechnical staff recommendations, with inter-ramp slopes angles ranging between 42° and 50°. Tintaya ore stock of 5,622Kt will be treated in Antapaccay Plant, between 2012 and 2013.

(r) Antapaccay: The Antapaccay Orebody is located 10km southwest of Tintaya, and together with Coroccohuayco is part of the Tintaya mineralised district. It is a sulphide mineralised system comprising disseminated, vein and fracture controlled chalcopyrite and bornite in altered quartz-monzonite and diorite in a limestone host rock, with some mineralised exoskarn areas and minor copper oxides and copper carbonates in the upper part of the deposit. Mineral Resource categorisation is based on assessment of orebody and grade continuity, structural complexity, data quality, adequacy of data coverage, and reasonable prospects of

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economical extraction. The Mineral Resource estimation was completed in 2010 and includes more than 162,320 m of diamond and reverses circulation drilling. The estimate is based on a block model with grade interpolation by Ordinary Kriging. Resources are stated at defined internal copper cut-off. It keeps the same amount of reserves and resources executed by June 30, 2010.

(s) Coroccohuayco: The Coroccohuayco copper-gold skarn deposit is located nine kilometres southeast of Tintaya. Together with Tintaya and Antapaccay this orebody is part of the Tintaya mineralised district. The main copper bearing minerals are bornite, chalcopyrite and chalcocite. The Coroccohuayco orebody is defined as a copper skarn deposit, which consists of Cretaceous sedimentary rocks of the Ferrobamba and Mara formation intruded by monzonitic plutons of the Eocene-Oligocene Andahuaylas-Yauri batholiths. The deposit geology model and Resource estimate has been updated in August 2011 using a drill hole database that now includes over than 112,000m of drilling data. The major variations from the 30 June 2010 published Resource statement are due to the inclusion of an Open Pit scenario driven by the additional Mineral Resources found in the upper part of the ore body, previous Mineral Resources published in 2010 included 92Mt with 3%Cu for an underground mining scenario.

(t) Las Bambas: The Las Bambas district is located in the central part of the skarn-porphyry belt in south-central Perú. Skarn-related alteration and mineralisation is associated with a suite of intrusives that are in contact with carbonate rocks. The porphyry style mineralisation occurs in quartz-monzonite to granodiorite rocks. Hypogene copper sulphides are the main copper bearing minerals with minor occurrence of supergene copper oxides and carbonates near surface. During 2010 over 28,000m of infill diamond core were drilled at the main Ferrobamba deposit aiming to increase confidence in the Mineral Resource. The Mineral Resource Estimate of Ferrobamba has been updated to reflect the new available dilling data, as such the geological model, grade estimates and resource classification have been updated in May 2011. The resource classification scheme chosen is a combination of various interpolation parameters designed to reflect data density and the perceived geological continuity of the ore body. The Chalcobamba and Sulfobamba deposits block models remains as per the previous 2010 estimates. The Mineral Resources quoted herein are constrained by the use of an economic pit shell determined using Measured, Indicated and Inferred Resources and long term metal prices and cost assumptions; the ecomonic pits have been updated for the three deposits. The economic cutoff grade remains as at 0.2% TCu, all other modifying factors used on the determination of this Resource pit are the same as those used for the Project Feasibility Study. Numbers may not be exact as they are rounded for tabulation.

(u) El Pachon: Located in the south west of San Juan Province of Argentina the El Pachón orebody is a porphyry copper-molybdenum deposit in which two major stages of sulphide mineralisation contributed to the formation of the orebody. The bulk of the ore takes the form of disseminated Chalcopyrite-Molibdenite primary sulphides on top which an inmature, relatively small copper enrichement blanket has been developed. In this upper part of the deposit Chalcosite and minor Covellite are partially replacing the primary Chalcopyirite ore. Mineral Resources stated herein are based on assay and geology information from 120,000m of mainly diamond drill holes. Over 50,000 of new infill and step out drilling have been included in this Mineral Resource update. Mineral Resources have been classified using a combination of criteria including geological continuity and kriging parameters being the infuential the drill hole data density. Mineral Resources are constrained by the use of an economic pit shell determined using Measured, Indicated and Inferred Resources and current assumption for the economic and technical modifying factors conditioning the Resource pit. Differences in the Mineral Resource in relation to previous statement are due mainly to the incorporation of the new drilling to the geological model and Resource estimate, plus updated modifying factors including long term metal prices, mining and processing cost and metallurgical recovery. Numbers may not be exact as they are rounded for tabulation.

(v) Tampakan: The Tampakan deposit is a copper-gold porphyry with a strong high sulfidation ephithermal mineralising event system developed on top and above the porphyry intrusive. Located in Mindanao, Southern Phillipines the mineralised orebody is hosted by the stratovolcanic Tampakan Andesite sequence. The high sulphidation enargite-chalcocite-bornite-covellite mineralisation assemblage occurring within an advanced argillic blanket is the main source of ore, this locally penetrates down and overprints the underlying porphyry system. After the project Feasibility study and Mineral Resource evaluation completed in 2009, an infill drilling campaign consisting of 54 new drill holes amounting 17.400m of core was completed in 2010 followed by an update of the deposit geology, block grade interpolation and new Mineral Resource estimate. The new geological model now considers an improved definition of the high sulfidation zone based on seven discrete Alteration domains. Block grade interpolation results from the use of Ordinary Kriging in some cases combined with an Indicator Kriging approach that helps to better define the high grade zonation, particularly for the arsenic model. Resource have been classified in Measured, Indicated and Inferred using similar criteria as per previous estimates regarding the amount of drill hole information required for the resource to fall within a particular category. Mineral Resource is now reported using a 0.2% Copper cut off within a pit shell developed using Measured-Indicated and Inferred Resources. Differences in the Resource in relation to previous estimates is mainly due to the incorporation of the new drilling, enhanced definition of the Alteration zones and the change of cut off grade from 0.3 % Copper to current 0.2% Copper. Numbers may not be exact as they are rounded for tabulation.

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(w) Frieda River: The Frieda River Project is located on the border of the Sandaun and East Sepik provinces in Papua New Guinea. The project area hosts a number of copper-gold deposits including the high sulfidation Nena deposit and the HIT porphyry deposit. Xstrata currently holds 81.82% equity and management control with joint venture partners Highlands Pacific (18.18%) with 9.82% of Xstrata’s interest contingent on the completion of a Feasibility Study by 21 December 2012 (see Highlands Pacific press release dated 24 November 2011 http://www.highlandspacific.com. Mineral resources of the main H-I-T deposit have been updated in July 2011 after incorporating results from a major drilling campaign. In relation to the previous 2010 estimate 123 new drill holes amounting 23,000m of drilling have been added. A total of 470 diamond drill holes amounting to 145,000m of core makes up the drill hole database used to model the mineralisation; from this only 139,000m have valid grade assay data. This is the data set that supports block grade interpolation and Resource estimate that has been used for the Project Feasibility Study. The new drilling consists of infill holes directed to improve local confidence on the Resource; the main impact of this drilling resulted on the upgrade of Indicated resources into Measured Resources and also some conversion of Inferred Resources into Indicated. Copper and Gold grades are estimated using Ordinary Kriging for most of the domains. Mineral Resources are classified based on a geometric criterion that incorporates the number of holes and minimum number of composites on the blocks neighbourhood. The increase in the Mineral Resource in relation to the previous Mineral Resource estimate is the results of the combined effect of incorporating new infill drilling and updating the modifying factors used for calculating the Resource pit envelope. Mineral resources related to the high grade, high sulfidation Nena deposit remain unchaged as neither the grade estimates nor the resource pit envelope for this resource have been updated since 2008. Numbers may not be exact as they are rounded for tabulation.

(y) West Wall Project: The West Wall Copper Project is located in central Chile’s Valparaiso Region, 100km northeast of Santiago and 70km north of the Rio Blanco – Los Bronces mineral district. Xstrata Copper and Anglo American each have a 50% interest in the mining company West Wall SCM which holds the project. Porphyry copper style hydrothermal alteration covers a large area of approximately 7 by 3km. Exploration activities have focussed in the south of the prospect at Lagunillas, where drilling has outlined copper sulphide resources associated with porphyry intrusive bodies. The Mineral Resource is reported at a 0.30% copper cut-off grade constrained to a depth of 600m below surface. The Mineral Resource estimate is reported without dilution or ore loss. Due to the uncertainty that may be attached to some Inferred Mineral Resources, it cannot be assumed that all or part of an Inferred Mineral Resource will necessarily be upgraded to an Indicated or Measured Resource after continued exploration. There are no changes on this Resource estimate in relation to the figures published in 2010.

Competent Persons: AM = Adrianus Moerman, Xstrata Copper (Association of Professional Engineers of Ontario)

AT = Andrew Theobald, Xstrata Copper (AusIMM).

BD = Benoit Drolet, Xstrata Copper (Association of Professional Geoscientists of Ontario).

CC = Chris Carr, Xstrata Copper (AusIMM).

GC = Gibson Chitumbura, Xstrata Copper (AusIMM).

GL = Graeme Lyall, Employee of Anglo American (AusIMM)

HB= Heller Bernabe, Employee of Minera Tintaya (AusIMM)

JBN = Julio Bruna Novillo, Xstrata Copper (AusIMM).

KH= Kimberley Head, Employee Mnt Isa Copper (AusIMM)

LA = Luis Aedo, Employee of Compania Minera Dona Ines de Collahuasi (AusIMM).

LC = Lucio Canchis, Employee of Compania Minera Antamina S.A. (AusIMM).

MC = Matt Clifford, Xstrata Copper (AIG).

MM = Marco Maulen, Employee of Compania Minera Antamina S.A. (AusIMM).

MQ = Mario Quiñones, Employee of Compania Minera Dona Ines de Collahuasi (AusIMM).

NB = Nathan Bullock, Xstrata Copper (AusIMM).

NF = Nicolas Fuster, Xstrata Copper (AusIMM).

RR = Raul Roco, Xstrata Copper (AusIMM).

* Competent Person for Ore Reserve / Competent Person for Mineral Resource; where only one set of initials is listed, the same Competent Person is responsible for all categories quoted. Unless otherwise noted all Competent Persons are full time employees of Xstrata PLC subsidiaries.

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Iron Ore

Iron Ore Mineral Resources


interest Commodity




Resources Inferred

Mineral Resources Competent Person31.12.11 30.06.10 31.12.11 30.06.10 31.12.11 30.06.10 31.12.11 30.06.10

El Aouj Mining Company(a) 43.89% Guelb el Aouj East(b) (Mt) 188 188 313 313 501 501 200 200 SK Fe (%) 35.5 35.5 36.8 36.8 36.3 36.3 36.3 36.3 DTC wt (%) 44.1 44.1 46.4 46.4 45.5 45.5 44.3 44.3 DTC Fe (%) 70.1 70.1 70.2 70.2 70.2 70.2 70.2 70.2 Guelb el Aouj Centre(c) (Mt) – – – 225 225 SK Fe (%) – – – 36.0 36.0 DTC wt (%) – – – 45.6 45.6 DTC Fe (%) – – – 70.6 70.6 Sphere Minerals(d) 87.78% Askaf North(e) (Mt) 161 – 129 – 290 – 104 319 AM/SvdM Fe (%) 36.1 – 35.2 – 35.7 – 35.8 34.7 DTC wt (%) 46.1 – 43.1 – 44.7 – 44.3 42.4 DTC Fe (%) 70.2 – 70.1 – 70.1 – 70.1 70.0 Lebtheinia(f) Fresh (Mt) – 2,179 2,179 2,179 2,179 354 354 AM/SvdM Fe (%) – 32.3 32.3 32.3 32.3 32.4 32.4 DTC wt (%) – 27.5 27.5 27.5 27.5 27.2 27.2 DTC Fe (%) – 68.6 68.6 68.6 68.6 68.1 68.1 LOX (Mt) – – – 209 209 AM/SvdM Fe (%) – – – 30.7 30.7 Jumelles Limited(g) 50% Zanaga(h) (Mt) 149 2,540 2,689 1,650 JA Fe (%) 38.7 34.1 34.4 31 Total Iron Ore Mineral Resources (Mt) 498 188 5,161 2,492 5,659 2,680 2,967 1,307

Iron Ore Reserves


interest Mining


Person31.12.11 30.06.10 31.12.11 30.06.10 31.12.11 30.06.10

El Aouj Mining Company(a) 43.89% Guelb el Aouj(b) OC (Mt) 152 152 277 277 429 429 RB Fe (%) 35.9 35.9 36.5 36.5 36.3 36.3 DTC wt (%) 44.6 44.6 43.6 43.6 44.0 44.0 DTC Fe (%) 70.8 70.8 70.6 70.6 70.7 70.7 Sphere Minerals(d) 87.78% Askaf North(e) OC (Mt) 146 – 100 – 246 – RB Fe (%) 35.5 33.9 34.8 DTC wt (%) 46.3 43.3 45.1 DTC Fe (%) 70.2 70.1 70.1 Total Iron Ore Reserves (Mt) 298 152 377 277 675 429

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Notes: DTC wt (%) – Davis Tube Concentrate mass recovery.

DTC Fe (%) – Davis Tube Concentrate assay %Fe.

Davis Tube test work has been conducted at a grind size of 95% passing 80 micron.

(a) El Aouj Mining Company: Sphere Minerals holds a 50% interest in the El Aouj Mining Company through a Joint Venture arrangement with SNIM.

(b) Guelb el Aouj East: The “Guelb” deposits are hosted in Banded Iron Formations (BIF) within the Dorsale Reguibat, an uplifted part of the Archaean West African Craton, which dominates the northern third of Mauritania’s surface geology. Recrystalisation and aggregation of the magnetite grains in BIF has resulted in the partial to total destruction of the original banded (bedding) texture to produce the Guelb el Aouj magnetite-quartzite (MQ) deposits. The Guelb el Aouj East Resource Statement for Iron Ore is unchanged since 30 June 2010. Resources shown are those below the base of oxidation at 20% Fe cut-off grade.

The Guelb el Aouj East Reserve Statement for Iron Ore is unchanged since 30 June 2010, using a 20% Fe DTC cut-off.

(c) Guelb el Aouj Centre: The el Aouj Centre magnetite-quartzite deposit is a highly metamorphosed banded iron-formation (‘meta-BIF’) unit 100-200m thick, in which the original bedding has been partially to completely obliterated by recrystallisation, resulting in a coarse-grained texture with aggregated magnetite grains. The deposit has a leptinite footwall and a hanging wall of amphibolitic garnetiferous gneiss, locally magnetite-rich. The south west limb is characterised locally by the presence of thin (mostly <6m) concordant granite intrusions within the main magnetite-quartzite unit, particularly in its upper part. This unit contains occasional lenses of lower grade magnetite-bearing quartzite (QMM). Two near-vertical dolerite dykes and one large, north block down normal fault (the Central Fault) were mapped in 2003 and cross-cut the deposit. The geological sequence is overprinted by a reasonably uniform, 30-40m thick weathered zone in which much of the magnetite has oxidised to hematite (as martite). The weathered zone is not included in the Mineral Resource estimate. The Guelb el Aouj Centre Resource Statement for Iron Ore Ore is unchanged since 30 June 2010. Resources shown are those below the base of oxidation at 20% Fe cut-off grade.

(d) Sphere Minerals: Following the closure of the Xstrata takeover offer for Sphere Minerals Ltd and subsequent equity rights issue, Xstrata interest in Sphere Minerals stands at 87.78% as at 13 November 2011.

(e) Askaf North: Askaf North Deposit is an east-west striking synformal structure defined by a Magnetite-Quartzite (MQ) unit that ranges in true thickness from approximately 140m in the western hinge zone to approximately 30m along the eastern part of the southern limb. The synformal axis plunges at between 20° - 30° towards the east in the western part of the synform, and at about 35° - 45° towards the west at the eastern fold closure, producing a double plunging synform. A dolerite dyke has been emplaced along an east-west fault zone that displaces the northern part of the deposit in a dextral shear sense. The disruption and emplacement of the dolerite along the northern limb of the synform has not affected the quality of the mineralisation. The MQ unit represents a metamorphosed banded iron-formation (BIF). The precursor BIF was subjected to high-grade metamorphic conditions during the Archaean, which resulted in complete recrystallisation of the original fine-grained BIF. In most cases the primary textures have been destroyed by the recrystallisation. Coarse-grained (>1mm) MQ is produced as a result, with good Davis Tube liberation characteristics and concentrate grades at a relatively coarse grain size (95% passing 80 micron).

The Askaf North Resource Statement was updated in 2011 and Sphere reported this to the ASX on 4 May 2011. This Resource is reported at 20% Davis Tube mass recovery cut-off, using Davis Tube testwork at low intensity (1 Amp) setting conducted on 3m drill samples pulverized to a liberation grind size of 95% passing 80 micron (0.080mm).

The Askaf North Reserve Statement for Iron Ore was prepared by Golder Associates as part of a Pre-feasibility study undertaken for Sphere in 2011, using a 20% DTC cut-off, to produce a coarse concentrate from a dry magnetic separation plant, grading at 65%Fe. The Pre-feasibility study included mine planning and additional investigations to assess the factors required for a successful iron ore mine development in Mauritania.

(f) Lebtheinia: The magnetite-rich banded iron-formations (BIF) at Lebtheinia form part of the Archaean Lebzenea Group. Archaean BIF units in EL264 are exposed over a total strike length of approximately 24km at Lebtheinia. The BIF units do not form prominent topographical features and the terrain is gentle in comparison with the more rugged inselberg (guelb) terrain of the Guelb el Aouj region. Parts of the main BIF unit at Lebtheinia Centre are covered by laterite and colluvium consisting mostly of BIF fragments. The lateritic cover caps the most elevated parts of the terrain. The magnetite-BIF at Lebtheinia Centre is essentially a thinly bedded (banded) unit averaging about 240m thick (although intersections up to 320m thick have been experienced). The BIF is characterised

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by a well defined banding pattern, with individual bands (“mesobands”) averaging 5-10mm thick. The exposed BIF appears to be reasonably homogeneous along the entire strike length, a characteristic confirmed by the 2008 drilling. The drilling at Lebtheinia Centre shows that mineralisation extends to at least 400m vertically below the natural surface and is open at depth. Lebtheinia Centre comprises a hanging wall of (variously) quartzite, amphibolite, rhyolite, clay/saprolite (altered amphibolite) and a footwall of quartzite or amphibolite. The depth of weathering (oxidation) of the BIF is variable, averaging approximately 50m. Within this zone the degree of oxidation is variable. Generally, in the lower two thirds or so of the oxidised zone (the Lower Oxidised Zone, “LOX”) the degree of oxidation is less, as reflected by the higher magnetic susceptibility values recorded, compared with the more oxidised upper third. It is the LOX material that is the subject of the LOX resource estimate. The main mineralised BIF unit splits in the southern part of Lebtheinia Centre and forms two discrete BIF units separated by a relatively thin (~25m) internal waste zone comprising grey quartzite and a leucocratic quartz feldspar schist/mylonite. A series of sub-vertical dolerite dykes, striking NE-SW to NNE-SSW and crosscutting the BIF were mapped at surface and their presence was confirmed during the 2008 drilling. The Lebtheinia Resource Statement for Fresh Iron Ore is unchanged since 30 June 2010. It is reported at 20% Davis Tube mass recovery cut-off, using Davis Tube testwork at low intensity (1 Amp) setting conducted on 3m drill samples pulverized to a liberation grind size of 95% passing 80 micron (0.080mm). The Lebtheinia Resource Statement for the Oxidised Iron Ore was originally published by Sphere Minerals on 22 October 2009. A cut-off of 14 SI x 10-3 units of magnetic susceptibility, measured on RC drill cuttings, was used to define the LOX mineralisation envelope. The LOX resource has been defined as all mineralisation within the envelope with effectively no block grade cut-off applied.

(g) Jumelles: Following exercise of its call option in February 2011, Xstrata owns 50% plus one share in Jumelles Limited being the ultimate parent company of MPD Congo SA the holder of the Zanaga exploration licences in the Republic of Congo.

(h) Zanaga Project: Zanaga Project is owned 100% by Jumelles Limited. The Zanaga ELs are located within a north-south oriented greenstone belt which extends for over 47 km in length, and vary between 0.5 to 3 km in width. The mineralisation is hosted by metamorphosed volcano-sedimentary itabirites, and is interbedded with amphibolites and mafic schists. The contact with the crystalline basement is typically faulted and sheared. The principal ore lithologies consist of itabirites, interbedded with basic lavas, which are later altered to amphibolites. Typically, the itabirites consist of layers of iron-rich and quartz rich meta-sediments, on a millimetre to centimetre scale. The orebody lithologies are crosscut by late intrusions and dolerite dykes, oriented NE-SW. The deposit comprises a sequence of weathering domains, which overlay an un-weathered “proto” ore comprising itabirite. The weathered sequence observed at Zanaga is typical of iron ore deposits, where the surficial material demonstrates enrichment in iron above the proto ore due to a mass reduction and associated leaching of the silicate layers.

Competent Persons: AM = Alan Miller, Golder Associates Pty Ltd (MAusIMM (CP)). Mr Miller is the Competent Person responsible for the construction of the geological block model, the grade interpolation and the Mineral Resource estimation (tonnage and grade) and classification.

JA = John Arthur, SRK Consulting (UK) Limited, (MIoM3)

RB = Ross Bertinshaw, Golder Associates Pty Ltd (FAusIMM (CP))

SvdM = Dr Schalk van der Merwe, Sphere Minerals (SACNSP). Dr van der Merwe is the Competent Person responsible for the geological interpretation for the Mineral Resource estimation (wireframe model), and the drill hole data set used in these resource estimation.

SK = Dr Sia Khosrowshahi, Golder Associates Pty Ltd (MAusIMM (CP))

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Nickel

Nickel Mineral Resources


interest Mining

method Commodity



Measured & Indicated Resources


Person*31.12.11 30.06.10 31.12.11 30.06.10 31.12.11 30.06.10 31.12.11 30.06.10

Cosmos(a) 100% UG (Mt) 13.6 13.9 33.8 29.1 47.4 43.0 12.7 13 TM Ni (%) 0.79 0.91 0.91 0.67 0.87 0.75 0.6 0.7 Falcondo(b) 85.3% OC (Mt) 40.2 39.7 34.5 34.5 74.7 74.2 4.9 4.9 ED Ni (%) 1.45 1.55 1.56 1.56 1.50 1.55 1.4 1.4 Koniambo(c) 49% OC (Mt) 21.2 21.2 54.4 54.4 75.6 75.6 83 83 GB Ni (%) 2.54 2.54 2.45 2.45 2.47 2.47 2.5 2.5 Raglan(d) 100% UG (Mt) 4.01 5.06 10.5 11.5 14.6 16.5 17.9 15 KS Ni (%) 2.47 2.35 3.49 3.45 3.21 3.11 3.0 2.8 Cu (%) 0.72 0.67 0.97 0.97 0.89 0.88 0.9 0.9 Co (%) 0.05 0.05 0.08 0.08 0.07 0.07 0.07 0.1 Sinclair(a) 100% UG (Mt) 0.55 0.10 0.49 0.83 1.04 0.92 0.3 0.7 TM Ni (%) 2.87 3.88 2.56 2.50 2.72 2.66 2.2 2.1 Sudbury(e) 100% UG (Mt) 12.85 11.09 22.34 25.16 35.19 36.25 15.6 16.3 SK Ni (%) 1.78 1.91 2.27 2.18 2.09 2.10 1.7 1.7 Cu (%) 2.05 1.44 1.67 2.19 1.81 1.96 1.9 1.8 Co (%) 0.05 0.05 0.05 0.05 0.05 0.05 0.1 0.1 Araguaia(f) 100% OC (Mt) 16.1 16.1 89.0 89.0 105.1 105.1 18 18 SB Ni (%) 1.44 1.44 1.31 1.31 1.33 1.33 1.3 1.3 Kabanga(g) 50% UG (Mt) 13.8 13.8 23.4 23.4 37.2 37.2 21 21 RK Ni (%) 2.49 2.49 2.72 2.72 2.63 2.63 2.6 2.6 Cu (%) 0.34 0.34 0.36 0.36 0.35 0.35 0.3 0.3 Co (%) 0.21 0.21 0.19 0.19 0.20 0.20 0.2 0.2 Pt (g/t) 0.16 0.16 0.42 0.42 0.32 0.32 0.3 0.3 Pd (g/t) 0.19 0.19 0.28 0.28 0.25 0.25 0.3 0.3 Total (Mt) 122 121 269 268 391 388 173 171

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Nickel Ore Reserves


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Person*31.12.11 30.06.10 31.12.11 30.06.10 31.12.11 30.06.10

Cosmos(a) 100% UG (Mt) 0.04 0.24 0.53 0.14 0.57 0.38 SVDM Ni (%) 2.88 4.45 2.66 3.43 2.68 4.07 Falcondo(b) 85.3% OC (Mt) 44.0 49.6 29.7 29.7 73.7 79.2 ED Ni (%) 1.28 1.21 1.36 1.36 1.31 1.26 Koniambo(c) 49% OC (Mt) 17.2 17.2 45.3 45.3 62.5 62.5 GB Ni (%) 2.50 2.50 2.36 2.36 2.40 2.40 Raglan(d) 100% UG (Mt) 4.13 5.32 5.30 6.26 9.4 11.6 PD Ni (%) 2.22 2.11 3.73 3.50 3.07 2.86 Cu (%) 0.65 0.61 0.88 0.86 0.78 0.75 Co (%) 0.05 0.05 0.08 0.08 0.07 0.06 Sinclair(a) 100% UG (Mt) 0.29 0.09 0.32 0.62 0.61 0.71 JW Ni (%) 2.02 3.48 1.93 2.24 1.97 2.36 Sudbury(e) 100% UG (Mt) 8.66 7.32 9.44 7.47 18.11 14.79 SK Ni (%) 1.39 1.50 1.39 1.14 1.39 1.32 Cu (%) 2.37 1.60 1.74 3.82 2.04 2.72 Co (%) 0.03 0.03 0.04 0.01 0.03 0.02 Total (Mt) 74 80 91 90 165 169 Notes: For the purposes of this statement, the term ‘Ore Reserves’ as defined by the JORC Code 2004 has the same meaning as ‘Mineral Reserves’ as defined in the CIM Standards 2010. The resource totals have been restated in compliance with the JORC Code.

There are no known environmental, permitting, legal, taxation, political or other relevant issues that would materially affect the estimates of the Mineral Reserves.

Depending on when production is scheduled, Mineral Reserves and Resources are calculated using a blend of short, medium, or long term metal price assumptions and exchange rates.

(a) Xstrata Nickel Australasia (XNA): Nickel mineralisation is ultramafic-hosted disseminated and massive sulphides located at two separate operations, Cosmos Nickel Project and Sinclair Nickel Project. Cosmos resources include the AM5, AM6, Odysseus and Mt Goode deposits while the Sinclair resource is contained entirely in one deposit. Mineral resources have been categorised according to drill hole spacing, geological confidence and structural complexity. All resource estimates use 3D block models generated using Ordinary Kriging, after applying geostatistical analysis to domained data sets. Mineral resource estimates apply 1.5% Ni cut off grades for all deposits, except for the large low-grade Mt Goode deposit which uses a 0.4% Ni cut off grade for estimation. The positive variance at Cosmos relates to resource delineation of AM6 and Odysseus (2010 discovery).

(b) Falcondo: Mineralisation consists of nickeliferous laterite deposits developed on a belt of serpentinized peridotites. Mineral resource estimates are established using 3D modeling with ID-Interpolation for all exploited areas. There was no activity at Loma Miranda area and it remains the same. Nearest Neighbour (NN) interpolation was used for this project. Polygons on plan view are used for some areas and for inferred resources. Cut off grade is 1.2% Ni. Falcondo restarted operations in January 2011 after a care and maintenance period since the end of 2008.

(c) Koniambo: Nickel-cobalt rich laterite deposits developed on variably serpentinized dunite and harzburgite. The mineral reserve estimate for the deposit was established as part of the Bankable Feasibility Study. The Koniambo project is currently under construction and the reserve estimate has remained unchanged during the reporting period. Supplementary geological drilling is underway in preparation for exploitation of the deposit.

(d) Raglan: Ni-Cu-Co-PGE mineralisation is located at or near the base of subvolcanic mafic-ultramafic intrusive complexes referred to as the “Raglan Formation”. Economic Ni-Cu-Co-PGE mineralisation is composed of disseminated, net-textured, and massive sulphides contained within more than 145 individual sulphide lenses, extending from surface to a depth of >750m vertical. The size of these high-grade sulphide lenses varies significantly from 0.01Mt to 2.4Mt, averaging 0.2Mt. The total Mineral Reserve decreased from 30 June 2010 as a direct result of mine/mill production of 1.95Mt. The total Mineral Resource increased by 3.0Mt, from 30 June 2010 as a result of exploration discoveries grading 3.1% Ni.

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(e) Sudbury: Sulphide deposits sit on broadly defined trends of mineralisation along basal brecciated rocks of the Sudbury Intrusive Complex as pentlandite-pyrrhotite-chalcopyrite rich concentrations as well as within the underlying footwall in fractured pathways as chalcopyrite dominated polymetallic (Cu, Ni, Au, Ag, Pt, Pd) vein-style sulphides. An increase to the Mineral Reserves, as compared to the 30 June 2010 estimate, was due to the conversion of part of the Mineral Resources at Fraser Morgan based on a positive feasibility study. The increase in Proved Reserves was based on the upgrade of Probable Resources at Ni Rim South. The change in reserve grade was due to production and the addition of Fraser Morgan. The Onaping Depth and Fraser Morgan Mineral Resources are now included within the Sudbury total. Mine Production for the period amounted to 2.27Mt at 1.37%Ni – 3.03%Cu. Cut-off grade calculations are based on a metal equivalent and NSR taking into account all recoverable metals (Ni, Cu, Co, Au, Ag, Pt and Pd).

(f) Araguaia: Mineralisation is comprised of three laterite deposits: Serra do Tapa, Vale dos Sonhos, Pau Preto. Serra do Tapa and Vale dos Sonhos deposits were estimated using 3D models interpolated using Ordinary Kriging and then adjusted for selective mining unit size using Change of Support by Uniform Conditioning. Pau Preto Mineral Resources was estimated using 3D models interpolated using the nearest neighbour technique. No Change of Support was applied. Mineral Resources are reported at 0.90% Ni cut off as per the proposed mine plan for the scoping study.

(g) Kabanga: The current delineated mineral resource is comprised of 88% of contact-style massive sulphide (MSSX) and 12% of ultramafic-hosted disseminated to semi-massive sulphide (UMIN) mineralisation. The ultramafic bodies are hosted in a sequence of metamorphosed pelitic sediments that are overturned, steeply dipping. All resource estimates are done using Ordinary Kriging and are based on block models with appropriate variography. A cut-off grade of 1% Ni-equivalent is used for all resources except UMIN mineralisation at Tembo (1.1% Ni cut-off grade applied). The primary Ni mineral of interest is pentlandite; contribution to the Ni-equivalent value is provided by Cu, Co and PGEs. No further drilling of the resources was done in 2011.

Competent Persons: ED = Edwin Deveaux, Xstrata Nickel, P. Geo. (APGO, Ontario)

GB = Gertjan Bekkers, Koniambo Nickel SAS, Xstrata Nickel, P. Eng., (PEO Ontario)

JW = Jed Whitford, Xstrata Nickel (AusIMM)

KS = Kristan Straub, Xstrata Nickel, P. Geo (APGO, Ontario); OSQ, (OGQ Quebec)

PD = Philemon Desrochers-Gagnon, Xstrata Nickel, P.Eng. (OIQ Quebec)

RK = Ray Kohlsmith, Xstrata Nickel, P.Geo. (APGO, Ontario)

SB = Scott Bruce, Xstrata Nickel, P. Geo (PEGNL, Newfoundland and Labrador); AustIMM

SK = Steve Kormos, Xstrata Nickel, P. Geo. (APGO, Ontario)

SVDM = Shaun Van Der Merwe, Xstrata Nickel (AusIMM)

TM = Terry Mallinson, Xstrata Nickel, P.Geo (OGQ Quebec)

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Zinc

Australia Mineral Resources


interest Mining

method Commodity





Resources Competent Person31.12.11 30.06.10 31.12.11 30.06.10 31.12.11 30.06.10 31.12.11 30.06.10

Mount Isa 100% Black Star Open Cut(a) OC (Mt) 24.0 28.8 6.1 6.7 30.1 35.5 4 3 MS Zn (%) 5.3 5.4 4.2 4.5 5.1 5.2 4 4 Pb (%) 3.5 3.4 2.6 2.6 3.3 3.2 3 3 Ag (g/t) 69 68 52 52 66 65 50 60 Mount Isa Open Pit OC (Mt) 105.9 96.2 95.9 86.4 201.8 182.6 150 130 MSExcl. Black Star(b) Zn (%) 3.8 3.9 3.6 3.7 3.7 3.8 4 4 Pb (%) 3.2 3.2 2.8 3.0 3.0 3.1 3 3 Ag (g/t) 72 74 67 70 70 72 60 60 George Fisher(c) 100% George Fisher South (Hilton) UG (Mt) 33.9 37.8 15.9 14.7 49.8 52.5 23 19 OGOrebodies Zn (%) 8.6 8.9 8.7 8.9 8.6 8.9 8 8 Pb (%) 6.0 6.3 5.7 5.8 5.9 6.2 5 5 Ag (g/t) 128 138 118 116 125 132 113 110 George Fisher North Orebodies UG (Mt) 22.4 20.4 83.8 76.2 106.2 96.6 65 58 OG Zn (%) 9.7 9.9 8.3 8.5 8.6 8.8 8 8 Pb (%) 4.6 4.7 3.5 3.6 3.7 3.8 4 5 Ag (g/t) 82 85 58 61 63 66 69 70 Handlebar Hill Open Cut (primary) OC (Mt) 2.1 3.0 4.8 4.9 6.9 7.9 1 1 MS Zn (%) 7.9 7.9 6.5 6.6 6.9 7.1 5 6 Pb (%) 3.1 3.0 2.6 2.6 2.8 2.8 2 2 Ag (g/t) 49 45 41 42 43 43 30 30 Handlebar Hill Open Cut (oxide) OC (Mt) 0.5 0.5 0.1 0.4 0.6 0.9 – – MS Zn (%) 0.4 0.4 0.4 0.5 0.4 0.4 – – Pb (%) 8.5 8.5 4.0 5.3 7.8 7.1 – – Ag (g/t) 89 89 65 57 85 75 – – Lady Loretta(d) 100% UG (Mt) 7.0 7.5 6.3 5.1 13.3 12.6 2 1 SJ Zn (%) 16.6 17.4 16.2 16.3 16.4 17.0 14 17 Pb (%) 6.5 6.7 4.8 4.7 5.7 5.9 6 5 Ag (g/t) 102 105 84 84 93 97 92 90 McArthur River(e) 100% Open Cut OC (Mt) 118.3 127.1 43.9 39.7 162.2 166.8 – – KG Zn (%) 11.6 11.1 8.1 8.5 10.7 10.5 – – Pb (%) 4.8 4.6 4.5 4.7 4.7 4.6 – – Ag (g/t) 49 46 45 46 48 46 – – Woyzbun South Zone UG (Mt) – – 8.3 8.3 8.3 8.3 – – KG Zn (%) – – 14.2 14.2 14.2 14.2 – – Pb (%) – – 5.6 5.6 5.6 5.6 – – Ag (g/t) – – 58 58 58 58 – – Total Zinc Lead Australia (Mt) 314.1 321.3 265.1 242.4 579.2 563.7 245 212 Zn (%) 8.1 8.2 6.8 7.0 7.5 7.7 6 6 Pb (%) 4.3 4.3 3.6 3.7 4.0 4.1 3 4 Ag (g/t) 70 71 63 65 67 68 67 67

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interest Mining


Person31.12.11 30.06.10 31.12.11 30.06.10 31.12.11 30.06.10

Mount Isa 100% Black Star Open Cut(a) OC (Mt) 16.5 21.4 13.6 14.0 30.1 35.4 BS Zn (%) 4.6 4.8 5.3 5.4 4.9 5.0 Pb (%) 2.5 2.6 4.0 3.9 3.2 3.1 Ag (g/t) 55 55 73 72 63 62 George Fisher(c) 100% George Fisher South (Hilton) Orebodies UG (Mt) 9.1 10.9 10.5 9.1 19.6 20.0 JJG Zn (%) 6.7 7.8 6.4 6.8 6.5 7.3 Pb (%) 4.2 5.1 4.6 5.5 4.4 5.3 Ag (g/t) 86 112 104 125 96 118 George Fisher North Orebodies UG (Mt) 13.4 14.2 48.4 40.4 61.8 54.6 JJG Zn (%) 8.1 8.6 7.4 7.7 7.5 7.9 Pb (%) 4.3 4.1 3.4 3.7 3.6 3.8 Ag (g/t) 77 76 58 64 62 67 Handlebar Hill Open Cut (primary) OC (Mt) 0.7 0.6 1.4 0.4 2.1 1.0 BS Zn (%) 8.4 9.4 7.2 6.3 7.6 8.2 Pb (%) 3.7 3.0 3.3 2.1 3.4 2.6 Ag (g/t) 61 48 51 36 54 43 Handlebar Hill Open Cut (oxide) OC (Mt) 0.5 0.5 – – 0.5 0.5 BS Zn (%) 0.4 0.4 – – 0.4 0.4 Pb (%) 8.5 8.5 – – 8.5 8.5 Ag (g/t) 89 89 – – 89 89 Lady Loretta(d) 100% UG (Mt) 6.7 – 6.0 – 12.7 – LS Zn (%) 14.9 – 13.5 – 14.2 – Pb (%) 5.7 – 3.9 – 4.8 – Ag (g/t) 94 – 72 – 84 – McArthur River(e) 100% OC (Mt) 34.9 38.1 14.7 14.5 49.6 52.7 DH Zn (%) 11.3 10.3 7.9 7.1 10.3 9.4 Pb (%) 4.7 4.4 4.2 3.8 4.6 4.3 Ag (g/t) 48 44 41 36 46 42 Total Zinc Lead Australia (Mt) 81.7 85.7 94.6 78.4 176.4 164.2 Zn (%) 9.1 8.3 7.4 7.1 8.2 7.7 Pb (%) 4.2 4.0 3.7 4.0 4.0 4.0 Ag (g/t) 63 61 63 67 63 64

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Zinc continued

Canada Mineral Resources


interest Mining

method Commodity






Brunswick Mine(f) 100% UG (Mt) 3.9 7.7 – 1.2 3.9 8.9 – – PB Zn (%) 8.3 8.7 – 8.5 8.3 8.7 – – Pb (%) 3.2 3.4 – 3.6 3.2 3.5 – – Cu (%) 0.5 0.4 – 0.4 0.5 0.4 – – Ag (g/t) 103 104 – 98 103 104 – –Perseverance(g) 100% UG (Mt) 1.5 3.2 – – 1.5 3.2 – – PB Zn (%) 13.1 13.8 – – 13.1 13.8 – – Cu (%) 1.2 1.2 – – 1.2 1.2 – – Ag (g/t) 30 30 – – 30 30 – – Au (g/t) 0.4 0.4 – – 0.4 0.4 – –Bracemac-McLeod(h) 65% UG (Mt) 2.7 2.6 1.0 1.0 3.7 3.6 3 2 GR Zn (%) 10.1 11.3 8.9 8.9 9.8 10.6 9 10 Cu (%) 1.6 1.6 1.1 1.1 1.5 1.5 1 1 Ag (g/t) 37 37 21 21 32 32 39 39 Au (g/t) 0.5 0.5 0.6 0.6 0.5 0.5 1.1 1.1PD-1(i) 50% OC/UG (Mt) 0.5 – 1.0 – 1.5 – – – GR Zn (%) 4.2 – 5.0 – 4.7 – – – Cu (%) 0.8 – 1.3 – 1.2 – – – Ag (g/t) 20 – 20 – 20 – – – Au (g/t) 0.1 – – – – – – –Hackett River(j) 100% Open Cut OC (Mt) – – 16.6 – 16.6 – 20 – AC Zn (%) – – 4.6 – 4.6 – 4 – Pb (%) – – 0.6 – 0.6 – 1 – Cu (%) – – 0.5 – 0.5 – 1 – Ag (g/t) – – 131 – 131 – 109 – Au (g/t) – – 0.3 – 0.3 – 0.2 –Underground UG (Mt) – – 3.7 – 3.7 – 21 – AC Zn (%) – – 5.1 – 5.1 – 4 – Pb (%) – – 0.8 – 0.8 – 1 – Cu (%) – – 0.3 – 0.3 – 0 – Ag (g/t) – – 172 – 172 – 165 – Au (g/t) – – 0.3 – 0.3 – 0.2 –Total Zinc Lead Canada (Mt) 8.6 13.5 22.3 2.2 30.9 15.7 44 2 Zn (%) 9.5 10.4 4.9 8.7 6.2 10.1 4 10 Pb (%) 1.5 2.0 0.6 1.9 0.8 2.0 1 – Cu (%) 1.0 0.8 0.5 0.7 0.7 0.8 1 1 Ag (g/t) 65 74 127 62 110 72 131 39

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Canada Ore Reserves


interest Mining


Person31.12.11 30.06.10 31.12.11 30.06.10 31.12.11 30.06.10

Brunswick Mine(f) 100% UG (Mt) 2.4 5.4 1.2 2.2 3.6 7.6 PB/BR* Zn (%) 7.2 8.0 7.7 8.1 7.4 8.0 Pb (%) 2.8 3.2 3.0 3.1 2.8 3.2 Cu (%) 0.5 0.4 0.4 0.3 0.4 0.4 Ag (g/t) 91 98 94 84 92 94 Perseverance(g) 100% UG (Mt) 1.3 3.0 – – 1.3 3.0 PB/FP** Zn (%) 12.4 13.5 – – 12.4 13.5 Cu (%) 1.0 1.1 – – 1.0 1.1 Ag (g/t) 28 28 – – 28 28 Au (g/t) 0.3 0.3 – – 0.3 0.3 Bracemac-McLeod(h) 65% UG (Mt) 2.8 3.7 0.9 0.1 3.7 3.7 AC Zn (%) 9.8 9.6 8.9 6.3 9.6 9.5 Cu (%) 1.4 1.3 0.9 2.4 1.3 1.3 Ag (g/t) 32 28 19 28 28 28 Au (g/t) 0.4 0.4 0.5 0.4 0.4 0.4 Total Zinc Lead Canada (Mt) 6.5 12.0 2.1 2.3 8.6 14.3 Zn (%) 9.4 9.8 8.2 8.0 9.1 9.6 Pb (%) 1.0 1.4 1.7 3.0 1.2 1.7 Cu (%) 1.0 0.8 0.6 0.4 0.9 0.8 Ag (g/t) 53 60 62 82 55 63

Ireland Mineral Resources


interest Mining

method Commodity






Pallas Green(k) 100% UG (Mt) – – – – – – 30 24 AHTobermalug Zone Zn (%) – – – – – – 7 8 Pb (%) – – – – – – 1 1

Total Xstrata Zinc

Commodity




Inferred Mineral Resources

31.12.11 30.06.10 31.12.11 30.06.10 31.12.11 30.06.10 31.12.11 30.06.10

Mineral Resources (Mt) 322.7 334.8 287.4 244.6 610.1 579.4 319 238 Zn (%) 8.1 8.3 6.7 7.0 7.5 7.8 5 6 Pb (%) 4.2 4.2 3.4 3.7 3.8 4.0 3 3 Ag (g/t) 70 71 68 65 69 69 70 60

CommodityProved Ore Reserves Probable Ore Reserves Total Ore Reserves 31-12-11 30-06-10 31-12-11 30-06-10 31-12-11 30-06-10

Ore Reserves (Mt) 88.2 97.7 96.7 80.7 185.0 178.4 Zn (%) 9.1 8.5 7.4 7.1 8.2 7.8 Pb (%) 4.0 3.7 3.7 3.9 3.8 3.8 Ag (g/t) 62 61 63 68 63 64

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Zinc continued

Notes In order to provide consistency across all projects, above tables are presented rounding to one decimal place applied to tonnage and grade figures, with rounding exclusive of decimal places applied in Ag grades and in all cases to Inferred Mineral Resources.

Reserve statements prepared for Xstrata by external parties may be reported to different significant figures.

(a) Black Star Open Cut: Lead-zinc-silver mineralisation occurs in galena and sphalerite-rich bedding parallel horizons in dolomitic and variably carbonaceous pyritic shales and siltstones.

Mineral Resource categorisation is based on assessment of orebody continuity, structural complexity, adequacy of data coverage and geostatistics.

The Black Star Open Cut Resource is additional to the Isa Open Pit Resource.

The Mineral Resource estimate is based on a block model built with grade interpolation by ordinary kriging reporting to blocks with dimensions of 6mE x 15mN x 8mRL.

The resource mineralisation occurs inside a designed Stage 6 pit based on a pit optimisation (in Whittle) utilising Measured and Indicated Resource blocks and is reported above an AUD25.5 per Tonne Net Smelter Return (NSR) cut-off.

The NSR is calculated on a recoverable payable basis, taking lead, zinc and silver grades, metallurgical recoveries, prices and realisation costs into account.

A total of 7.8Mt were depleted from the Ore Reserves in the 18 months to 31 December 2011 due to ongoing mining operations.

(b) Isa Open Pit: Lead-zinc-silver mineralisation occurs in galena and sphalerite-rich bedding parallel horizons in dolomitic and variably carbonaceous pyritic shales and siltstones. Approximately 85% of the lead-zinc-silver resource is primary sulphide, the remainder being considered as transitional (mixed primary sulphide and secondary oxide/carbonate) mineralisation.

The Black Star Open Cut Resource has been removed from the Isa Open Pit and is reported separately.


Pit optimisation was conducted using Measured, Indicated and Inferred Mineral Resources, and a pit shell was generated. Mineral Resources have been reported inside this pit shell using an AUD25.5 per Tonne Net Smelter Return (NSR) cut-off.


The copper resource inside the Isa Open Pit has not been included here, it is reported separately by the Xstrata Copper Business Unit.

(c) George Fisher Mine:

George Fisher North & South Orebodies

Lead-zinc-silver mineralisation occurs in galena- and sphalerite-rich bedding parallel horizons in dolomitic and variably carbonaceous pyritic shales and siltstones.

The Mineral Resource estimate is based on grade interpolated by ordinary kriging using the easting offset method and reporting to blocks 2mE x 5mN x 5mRL.

Mineral Resource is reported for Measured, Indicated and Inferred resource blocks above an AUD83.0 per Tonne Net Smelter Return (NSR) cut-off.

Mine production totalling 4.8Mt at 3.4 % Pb, 7.2% Zn and 68g/t Ag respectively were depleted from the Ore Reserves and Mineral Resources for the period July 2010 to December 2011.

Orebody interpretation, modelling and classification of the Identified Mineral Resources was completed on the basis of additional geological information and operating experience during the year. Classification is based on assessment of orebody continuity, structural complexity and adequacy of data coverage.

Ore Reserves are based on an AUD87.0 per Tonne Net Smelter Return (NSR) cut-off.

The total Ore Reserve tonnage increased by 6.7Mt equivalent to 9.0% driven by economic assumptions, additional drilling, improved resource to reserve conversion and orebody re-interpretation.

2011 Reserve zinc, lead and silver grades are 6%, 11% and 13% respectively lower than 2010 Reserve grades.

Reserve grades represent block model grades unadjusted for any laboratory bias.

Geotechnical and Geological performance of the mined ore sources were monitored continually between 2010 and 2011. Historical benchmarked dilution values in combination with 2011 measured dilution were applied in the resource to reserve conversion process.

Handlebar Hill Open Cut

Lead-zinc-silver mineralisation occurs in galena and sphalerite-rich bedding parallel horizons in dolomitic and variably carbonaceous pyritic shales and siltstones.


The Handlebar Hill Open Cut Resource is up dip of and is additional to the George Fisher South Resource.

The Mineral Resource estimate is based on two blocks models built with grade interpolation by ordinary kriging reporting. Block dimensions for the immediate Handlebar Hill pit area are 2.5mE x 5mN x 4mRL (in areas of dense Reverse Circulation grade control drilling in addition to initial resource/exploration drilling) while block dimensions for estimation surrounding the Handlebar Hill pit area are 5mE x 15mN x 8mRL.

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The resource mineralisation occurs inside a designed Stage 4 pit based on a pit optimisation (in Whittle) utilising Measured, Indicated and Inferred Resource blocks and is reported above an AUD31.2 per Tonne Net Smelter Return (NSR) cut-off.

The Reserve occurs inside a designed Stage 3 pit based on a pit optimisation (in Whittle) utilising Measured and Indicated Resource blocks and is reported above a AUD33.1 per Tonne Net Smelter Return (NSR) cut-off.


Material from the oxidised portion of the mineralisation has been reported as a Mineral Resource and Ore Reserve following confirmation of an achievable treatment path.

A total of 1.1Mt were depleted from the Ore Reserves in the 18 months to 31 December 2011 due to ongoing mining operations and sterilisation. A Feasibility Study added 2.4 Mt to the Ore Reserves at the time of approval.

(d) Lady Loretta Project: Lead-zinc-silver mineralisation occurs in a galena and sphalerite rich massive sulphide lens located in carbonaceous pyritic shales and siltstones. The deposit is structurally complex and consists of a tight syncline dislocated by few major faults. The deeper and high grade portion of the deposit (known as the ‘Keel’ area) reaches 480m below the surface.

Discovered in 1969 by surface diamond drilling, the deposit has been explored from underground in 1986-1988 via a 468 m deep shaft. Extensive additional surface exploration diamond drilling was performed in 1999 and 2000 by Noranda Pacific Pty Ltd in joint venture with Buka Minerals Pty Ltd.

A 3D geological model is based on 246 surface exploration drill holes and 153 underground drill holes. Mineral Resource estimates were completed in 2000 and 2006 on behalf of Noranda Pacific. In 2011, Quantitative Group (QG) completed an update of the estimate on behalf of Xstrata plc with some minor changes to drilling, interpretation and estimation parameters. Estimation was via Ordinary Kriging of 2m fixed length composites using appropriately configured search parameters to deal with the folding. Some small additional high grade domains were added to better constrain some narrow massive sulphide lenses. Resource classification was also revisited.

The Mineral Resources estimate is based on a Net Smelter Return (NSR) cut-off of 88$US. The NSR calculation has been updated to reflect changes in metal price assumptions and costs since the previous one developed in 2000.

The mining method at Lady Loretta is based on a mixture of transverse and longitudinal long hole open stoping with paste fill. Proved and Probable Ore Reserves are defined by designing mining excavations based on a NSR cut-off of 110$US, incorporating planned dilution to achieve final stope designs.

The NSR cut-off for the Ore Reserve estimate covers all on and off site costs including mining, processing, road haulage, sustaining capital and overheads after allowing for metal recovery and the deduction of transport, smelter, refining and Queensland royalty charges.

The Lady Loretta ore is planned to be treated through the Pb-Zn Mount Isa process plant. The estimate incorporates metallurgical recoveries derived from metallurgical test work conducted between 2000 - 2008 including a bulk sample processed through the Pb-Zn Mount Isa plant. The findings of this test work identified that the Lady Loretta material performs in a similar manner to the George Fisher ore.

The Lady Loretta deposit is owned 100% by Noranda Pacific Pty Ltd (wholly owned by Xstrata plc), following the buyout in February 2011 of interest owned by Cape Lambert Lady Loretta Pty Ltd.

(e) McArthur River Mine: Zinc-lead-silver mineralisation occurs predominantly as ultra fine bedding parallel sphalerite and galena rich bands hosted by dolomitic and carbonaceous pyritic siltstones, graded beds and chaotic debris flow breccias.

Resource and Reserve estimates have been based on a block model interpolating grades using ordinary kriging. Parent block sizes are 50mE x 50mN x 24mRL, with sub-blocking down to 10mE x 1mN x 1mRL along dipping contacts. The block model was refined in 2011 after review of the available data, resulting in overall increases to grades and thickness of mineralisation. Measured Resources are classified as primary 2, 2/3, 3, 4 and 5 orebodies based on 15 years of continuous underground and open cut mining, milling and reconciliation of those ore bodies. Indicated Resources include all remaining metallurgically complex transitional 2, 3, 4 and 5 orebodies and primary 6, 7 and 8 orebodies that have a shorter history of mining and treatment.

Pit optimisation for Resources was completed using Measured and Indicated Resources, with dilution and loss applied considering bed width, dip, faulting and underground voids. The basis of the Resource reporting pit shell was a scenario with an ore production rate of 5.5 Mtpa through a primary crusher, followed by processing through a Heavy Media Plant (HMP) and conventional concentrator. It was assumed that concentrate production would be sold into both bulk Zn-Pb concentrate markets, and as feed for refineries based on the Xstrata’s Proprietary Hydrometallurgy Technology Plant, each with specific costs, revenues and payable fractions. A zinc equivalent grade was calculated for each ore group that considered specific information (including recoveries and costs) for that group. An ore group specific zinc equivalent cut-off grade (ranging from 3.8% to 4.5% ZnEq) was then applied, based on long-term Xstrata economic assumptions. Resources that fall outside the Pit Shell, other than Woyzbun South, are not reported.

Woyzbun South Resources are classified as Indicated under the assumption they would be mined at the end of the ultimate pit shell mine life by underground extraction.

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Zinc continued

The Ore Reserves were based on a mine plan crushing approximately 3.3 Mtpa for feed into a HMP, which is under construction. Rejection rates for each ore type (based on laboratory testing) of between 15% and 24% were applied, to result in a milling rate of 2.85 Mtpa. It was assumed that the proportion of concentrate sold as bulk Zn-Pb concentrate would reduce over the next 3 years as a new process for creating a Zn concentrate is ramped up. The process for creating the zinc concentrate is currently at pilot plant scale. Refining using the Xstrata’s Proprietary Hydrometallurgy Technology Plant was not considered. The final pit design was based on pit optimisation in Whittle. Variable cut-off grades from 7.6% to 9.5%ZnEq were applied to optimise the mine plan.

The Reserves and Resources have been depleted by a total of 3.5Mt that were mined during the 1July 2010 to 31 December 2011 reporting period.

(f) Brunswick Mine: The Brunswick orebody is a volcanogenic massive sulphide (VMS) deposit in which lead-zinc-copper-silver mineralisation occurs in complexly deformed massive sulphide lenses hosted in sedimentary and volcanic rocks. The deposit extends from surface to a depth of 1,150 meters.

The mine has been in continuous production since 1964. Historical production as of 31 December 2011 is 133.1Mt at 8.8 %Zn, 3.5 %Pb, 0.4 %Cu and 102 g/t Ag. Current underground mining method is open stoping with delayed paste back fill.

Total mine production from 1 July 2010 to 31 December 2011 was 4.5Mt at 7.8 %Zn, 3.0 %Pb, 0.5 %Cu and 96 g/t Ag. However, the Ore Reserves decreased only by 4.0Mt during the period due to upgrade of Mineral Resources to Ore Reserves and stope design optimisation. During the same period, a total of 8,938 meters of diamond drilling has been performed to better define and delineate additional potential Mineral Resource blocks. The diamond drilling program complemented an extensive engineering study and economical analysis that has been in progress since 2006 in order to identify the most potential Resource blocks among all the mining remnants. The diamond drilling and Resource evaluation is now completed.

Mineral Resources and Ore Reserves are based on a 3-D geological and grade block model derived from 350 surface diamond drill holes, over 9,900 underground diamond drill holes and extensive underground geological mapping. Grade interpolation in the block model is done by Inverse Distance Weighting to the power of 2, with octant search declustering.

Total identified Mineral Resources represent 112 individual blocks of mineralisation located from the 425m level down to the 1,125m level. All blocks are categorized as Measured. Geological confidence categorization is essentially based on 1) the density of diamond drilling information, 2) the availability of geological mapping at the under and/or over cuts and 3) the thickness, continuity and interpreted structural complexities of the mineralisation.

Included in the Mineral Resources, the Ore Reserves consist of 112 individual stopes designed at various levels of

engineering and located in 16 remaining mining zones. Average expected overbreak dilution for stopes is 12.6% while average expected mining recovery is 82.5%. A total of 43 of these 112 stopes consist of Measured Mineral Resources converted to Probable Ore Reserves due to "modifying factors" such as technical risks, sequencing uncertainties ("tail end" stopes) or marginal profitability.

There are 3 geo-metallurgical ore types with different Net Smelter Return (NSR) economic models. Short term NSR parameters (essentially for year 2012), in particular the metal price and exchange rate assumptions provided by Xstrata Group Business Development, were used to individually evaluate for economic viability the Ore Reserve stopes scheduled in the remaining Life of Mine plan.

(g) Perseverance Mine: The Perseverance resource comprises three separate and distinct polymetallic volcanogenic massive sulphide deposits (Perseverance, Equinox and Perseverance West).

The bulk of the zinc-copper-silver mineralisation is present as banded massive sulphides composed predominately of pyrite, sphalerite, chalcopyrite and pyrrhotite. Less abundant sulphides are also present as stringer stockwork in adjacent alteration zones.

A 3-D geological model was re-built from the 2009 and 2001 diamond drill holes totalling 101,196m. A geostatistical analysis and a block model were generated by Xstrata in 2009. Neither the geological models nor the resource block models integrated geological data from the 2001 metallurgical and geotechnical drilling programmes, because the metallurgical and geotechnical drill holes were bulk assayed on a hole-by-hole basis to conserve sample weight, and were drilled after the block models were created.

Total mine production from 1 July 2010 to 31 December 2011 was 1.6Mt at 13.6 %Zn and 1.0 %Cu. Ore Reserves decreased accordingly by 1.6Mt. One low-grade stope at the bottom of the Equinox deposit on mining level 255 has been removed from the Ore Reserves in 2011 (0.03Mt) essentially for ground control conditions, while the crown pillar of the small ‘P2’ lens (0.03Mt) is still under evaluation and is not included yet in the Ore Reserves.

The above mentioned Mineral Resources are based upon a 3.5 %Zn equivalent grade cut-off.

The above mentioned Ore Reserves are based upon a US$72.47 Net Smelter Return (NSR) cut-off. An averaged 95% stope recovery factor has been applied. The Reserves encompass, in average, 10.0% of internal dilution, 7% of external dilution for primary stopes and 12% external dilution for secondary stopes.

(h) Bracemac-Mcleod Project: The Bracemac and McLeod deposits are polymetallic volcanogenic massive sulphide deposits of the same age and derived from the same ore-forming hydrothermal system as the rest of the Matagami camp deposits. They are located 4.5km southeast of Xstrata's Mattagami concentrator and offices.

The Bracemac deposit comprises three stacked lenses; the deepest one, located along the Key Tuffite, is the largest.

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The McLeod deposit consists of a lense located along the Key Tuffite and an underlying sub-parallel copper-rich stringer zone.

The Measured, Indicated and Inferred Mineral Resources for the Bracemac and McLeod deposits were estimated in May and August 2010 using a block model based on Inverse Distance Squared (ID2). The Inferred Resources of the West McLeod zone is based on single-value polygons extending midway between drill holes and are unchanged from the technical report published in February 2009 by Donner Metals Ltd.

The current Ore Reserves estimation is based upon a US$68.50 Net Smelter Return (NSR) cut-off. An average of 95% stope recovery has been applied. The Ore Reserves encompass, on average, 18% of external dilution.

The Bracemac-McLeod project is a Joint Venture 65% Xstrata Canada Corporation and 35% Donner Metals Ltd.

(i) PD-1: The PD1 deposit is a polymetallic volcanogenic massive sulphide deposit of the same age and derived from the same ore-forming hydrothermal system as the rest of the Matagami camp deposits. It is located 40km west of Xstrata's Mattagami concentrator and offices.

The PD1 deposit was discovered in 1974 by Phelps Dodge Corporation of Canada. A total of 50 historical drill holes were drilled between 1974 and 1984. In 2010, Xstrata Zinc drilled 25 additional holes in the upper portion of the deposit above 100m vertical depth, including 3 duplicate holes to validate the historical data. The Measured and Indicated Mineral Resources for the PD1 deposit are based on a 3% Zn equivalent (ZnEq) cut-off grade where %ZnEq = %Zn + 2*%Cu.

The PD1 project is a Joint Venture 50% Xstrata Canada Corporation and 50% Donner Metals Ltd.

(j) Hackett River Project: The Hackett River project is located in Nunavut, Canada, approximately 480km northeast of Yellowknife and 105km south–southwest of the community of Bathurst Inlet, which is located on the Arctic Ocean.

The Hackett River deposits are situated within the Slave Structural Province, a predominantly Archaean granite‐greenstone‐sedimentary terrane that lies between Great Slave Lake and Coronation Gulf. The Slave craton is one of approximately 35 Archean cratons preserved around the world and is considered a major building block of the Canadian Shield. The deposits are typical of volcanogenic massive sulphide (VMS) deposits. Sulphide mineralisation occurs as tabular semi‐massive to massive lenses. Stringer sulphide minerals are developed beneath the lower massive lenses in stratiform to pipe‐like configurations. Stratiform disseminated sulphides envelop the massive sulphide and stringer zones.

The four principal sulphide occurrences from west to east, are the East Cleaver, Boot Lake, Main Zone, and Jo Zone deposits. These deposits have undergone a Preliminary Economic Assessment study, which has defined the technical and economically viable boundaries of open cut mining vs underground mining. Note that the overall ore value was calculated in Ag equivalency using the following formula:

{[(Ag grade (g/t)) x (Ag price in $/oz)) x (% Ag recovery ÷ 100) ÷ (31.10348 (g/oz.))] +[(Au grade (g/t)) x (Au price in $/oz)) x (% Au recovery ÷ 100) ÷ (31.10348 (g/oz))] +[(% Pb grade ÷ 100) x (Pb price in $/lb) x (% Pb recovery ÷ 100) x (2204.623 lb/t)] +[(% Zn grade ÷ 100) x (Zn price in $/lb) x (% Zn recovery ÷ 100) x (2204.623 lb/t)] +[(% Cu grade ÷ 100) x (Cu price in $/lb) x (% Cu recovery ÷ 100) x (2204.623(lb/t)]} ÷[(Ag price in $/oz)) x (% Ag recovery ÷100) ÷ (31.10348 (g/oz)].

(k) Pallas Green Project: The Tobermalug zone consists of 44 subhorizontal, stratiform subzones of Irish-type, breccia-hosted sphalerite-galena-pyrite within a Carboniferous limestone. The lenses occur over an area 3,500 by 3,000m, and from 300 to 600m below surface.

The major sulphide species are, pyrite, sphalerite and galena with minor marcasite. Pyrite occurs as massive banded, plumose and colloform masses, that have commonly been subjected to a series of breccia events. Sphalerite ranges in colour from very pale grey to reddish brown, but the main style is fine grained and very pale brown. The sphalerite occurs as fine disseminations, blebs, angular clasts, massive banded/laminated and colloform laminated.

The Inferred Resource is based on 199,000m of diamond drilling in 435 drill holes completed between 2005 and the present. Drill spacing is nominally 100m but 93 infill drillholes at 50m spacing have been completed, providing partial coverage at half of the zones. Mineraliasation wireframes with a cut-off of 4% Zn + Pb and a minimum 3.0m vertical thickness were built, and constrain interpolation by IDW in a block model.

Step out drilling continues to discover new zones, many of which require basic 100m delineation. Drilling is ongoing with 16 rigs and analyses are not yet available for all intersections. For this reason, visual estimates have been used for 17 intersections which exceed cutoff grade, and which affect 1Mt of the Resource. Long term comparisons between estimates and actual values show good linearity, a consistent low bias, and suggest the final grade for the entire resource would increase by approximately 0.1% Zn and 0.01% Pb when analyses are received, i.e., would not materially affect the Resource.

The Pallas Green project is owned 100% by Xstrata Zinc Ireland Ltd, following the buyout of interest owned by Minco plc in November 2011.

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Zinc continued

Competent Persons MS = Max Shawcross, Project Manager, Xstrata Zinc, (AusIMM).

OG = Osvaldo Gonzalez, George Fisher Mine Geology Superintendant, Xstrata Zinc, (AusIMM).

SJ = Scott Jackson, Principal Consultant Geology, Quantitative Group Pty Ltd, (AusIMM)

KG = Karissa Grenfel, Mining Manager, Xstrata Zinc, (AusIMM).

BS = Bryant Schwengler, GM Open Pit Mining, Xstrata Zinc, (AusIMM).

JJG = Johannes Grobler, Technical Services Manager Xstrata Zinc, (AusIMM).

LS = Lutz Sprengel, Mining Consultant, Minserve Group Pty Ltd, (AusIMM)

DH = Drew Herbert, Consulting Mining Engineer, Australian Mine Design & Development Pty Ltd, (AusIMM).

PB = Pierre Bernard, Chief Mine Geologist, Xstrata Zinc, (APEGNB).

GR = Gilles Roy, Senior Project Geologist, Xstrata Zinc, (OGQ).

FP = François Provonost, Chief Mine Engineer, Xstrata Zinc, (OIQ).

BR = Barbara Rose, Chief Mine Engineer, Xstrata Zinc, (APEGNB).

AC = Aline Côté, Project Manager, Xstrata Zinc, (OGQ).

AH = Allan Huard, Senior Geologist, Xstrata Zinc, (APGO).

Competent Person for Ore Reserve / Competent Person for Mineral Resource; where only one set of initials is listed, the same Competent Person is responsible for all categories quoted. Unless otherwise noted all Competent Persons are full time employees of Xstrata PLC subsidiaries.

* Competent Persons for Brunswick Ore Reserves estimate are Barbara Rose who is responsible for stope design, economic analysis and all mine planning activities, and Pierre Bernard who is responsible for compiling the Reserve estimate, assigning confidence classification, preparing the technical report and disclosure.

** Competent Persons for Perseverance Ore Reserves estimate are François Provonost who is responsible for stope design, economic analysis and all mine planning activities, and Pierre Bernard who is responsible for compiling the Reserve estimate, assigning confidence classification, preparing the technical report and disclosure.

Xstrata plc Bahnhofstrasse 2 PO Box 102 6301 Zug Switzerland Tel: +41 41 726 6070 Fax: +41 41 726 6089

www.xstrata.com

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