arthur ditto, president & ceo june 18,...

© 2008 Katanga Mining Limited Trading symbol: KAT.TO

Arthur Ditto, President & CEO June 18, 2008

2

This management presentation contains “forward-looking statements”, within the meaning of the United States Private Securities Litigation Reform Act of 1995 and similar Canadian legislation, concerning the business, operations and financial performance and condition of Katanga. Forward-looking statements include, but are not limited to, statements with respect to anticipated developments in Katanga’s operations in future periods; planned exploration activities; the adequacy of Katanga’s financial resources and other events or conditions that may occur in the future; estimated production and synergies; the ability of Katanga to become a significant low cost copper/cobalt company; the ability of Katanga to continue to create value for its shareholders; the ability of Katanga to meet expected financing requirements; the future price of copper and cobalt; the estimation of mineral reserves and resources; the realization of mineral reserve estimates; the timing and amount of estimated future production; costs of production; capital expenditures; permitting time lines and permitting, mining or processing issues; currency exchange rate fluctuations; government regulation of mining operations; information concerning the interpretation of drill results; success of exploration activities; environmental risks; unanticipated reclamation expenses; title disputes or claims; and limitations on insurance coverage. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might”, “will” or “will be taken”, “occur” or “be achieved”. Forward looking statements are based on the opinions and estimates of management as of the date such statements are made, and they are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Katanga to be materially different from those expressed or implied by such forward-looking statements, including but not limited to risks related to: unexpected events during construction, expansion and start-up; variations in ore grade, tonnes mined; delay or failure to receive board or government approvals; timing and availability of external financing on acceptable terms; risks related to international operations; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; future prices of copper and cobalt; possible variations in ore reserves, grade or recovery rates; failure of plant, equipment or processes to operate as anticipated; political unrest and insurrection; acts of terrorism; accidents, labour disputes and other risks of the mining industry; delays in the completion of development or construction activities, as well as those factors discussed in or referred to in the current annual Management’s Discussion and Analysis and current Annual Information Form of Katanga filed with the securities regulatory authorities in Canada and available at www.sedar.com. Although management of Katanga has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Katanga does not undertakes to update any forward-looking statements that are incorporated herein, except in accordance with applicable securities laws.

Cautionary and Forward-Looking Statements

3

10 Years Invested in the DRC

Council of Ministers and Presidential

approval of JV

Kamoto JV Agreement entered into

after 12 months of negotiation

New Mining Code published

Findings of DRC mining contract review received

Democratic Presidential

elections

Katanga milestones DRC milestones

First contact made with DRC

to explore opportunities

Kinross Forrest Limited JV

formed

JV assumes site mgmt; initial

financing & path to Phase I

Phase I completed and

first copper produced

1997 Oct 2001 Jul 2002 Feb 2004 Jul/Aug 2005 Jul 2006 Nov 2006 Dec 2007 Jan 2008 Feb 2008

Merger with Nikanor

completed

4

From Mine to Metal

Underground Mining

Cobalt metal

Milling

Flotation

Open Pit Mining

Copper cathode

5

Company Highlights

Major single-site operation in the DRC

Producing refined copper cathode and cobalt metal

Strong financial position; generating operating cash flow

239Mt M&I resource @ 4.45% Cu and 0.44% Co

Target >300ktpa Cu and >30ktpa Co production in 2011

Mine life 40+ years

75-25 joint venture with Gécamines (state-owned mining company)

6

0% 1% 2% 3% 4% 5% 6%

KatangaTenke

Mount IsaTaimyr Peninsula

AntaminaOlympic Dam

OK TediCollahuasiGrasberg

EscondidaEl Teniente

Codelco NorteLos Pelambres

Bingham CanyonLos Bronces

AlumbreraBatu HijauToquepala

Morenci

Ore Grade - % M&I Contained Copper0 500 1,000 1,500

EscondidaGrasberg

Codelco NorteMount IsaAntaminaKatanga

CollahuasiEl Teniente

Bingham CanyonMorenci

Los PelambresTaimyr Peninsula

Batu HijauAlumbrera

Olympic DamOK Tedi

Los BroncesToquepala

Tenke

Copper Equivalent Production (Kt)

Leading Global Mines by Production1

…Ranked by Grade2,3

1. Based on 2007 production, except Katanga, Tenke and Taimyr Peninsula (2011 forecasts: 300 Kt Cu and 30 Kt Co, 115kt Cu and 8Kt Co, 2006 figures respectively). Price assumptions used to convert production to copper equivalent: Cu $1.60/lb, Co $10.00/lb, Zn $0.75/lb, Ag $11.00/Oz, Au $700/Oz, Mo $12.00/lb.

2. Katanga figure includes all deposits.3. Based on reported Measured and Indicated resource copper grades. Source: CIBC World Markets

World-Scale Producer

Katanga

Katanga

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Low Cost Producer

(0.49)Co credit

Kamoto Project Life of Mine average costs1 US$/lb Cu

Site cost 0.74

Site cost after Co credit 0.25

Transportation 0.25

Royalties 0.07

Total Cash Costs 0.57

Capital 0.14

Total Costs 0.711. Based on 2008 estimates; production ramping up to 150ktpa Cu and 8ktpa Co; analyst consensus long term metal price forecasts of $1.59/lb Cu and $10.00/lb Co.

Combined Kamoto & KOV production costs will be determined by expansion feasibility study (Sept 2008)

8

High-Grade Reserves & Resources

Reported under Canadian NI 43-101 standards of disclosure for mineral projects. Sources: Katanga June 2006 Feasibility Study & NI 43-101 and press release dated 22/02/07; Nikanor November 2007 Revised Independent Technical Report.

400

0.38

740

0.43

CoCuProven and Probable Mineral Reserves

310

0.48

107,000Ore Tonnes (’000s)

66,000Ore Tonnes (’000s)

3.3Contained Metal Grade %

3,500Contained Metal Tonnes (000s)



Measured and Indicated Mineral Resources

172,000Ore Tonnes (000s)



Inferred Mineral Resources

9

Site Overview

Key Assets Other Mines& Plants

Concession Area= 184km2

10

SX/EW module 2

Leach tanks

Roaster

High voltage yard

Acid plant

Cobalt area

Existing Luilu Refinery

Greenfield SX/EW

More than doubles production capacity

Higher grade refined metal produced

Increased Cu & Co recoveries

Phased modular approach

SX/EW module 1

1 Module ~ 80ktpa Cu

11

Key Project Milestones*

* Based on scoping study. Feasibility study will finalize schedule.1. Current estimate of accelerated capex schedule for Kamoto project.

Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1

2008 2009 2010Task Name 2011

Kamoto phase II 1

Kamoto phase III 1

Kamoto phase IV 1

Feasibility Study

Module 1 SX/EW Construction

Mining of KOV Begins

Acid Plant Construction

New Cobalt Plant Construction

Module 2 SX/EW Construction

Est. Capex $136 m

Est. Capex $124 m

Est. Capex $64 m

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Phased Production Growth

0

50

100

150

200

250

300

350

2008 2009 2010 2011

Tonn

es C

oppe

r ('0

00s) Copper - new refinery

Copper - refurbished plant

0

5

10

15

20

25

30

35

2008 2009 2010 2011

Tonn

es C

obal

t ('0

00s) Cobalt - new refinery

Cobalt - refurbished plant

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2008 Expected Quarterly Production

12,670

10,520

6,200

4,115

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

Q1 Q2 Q3 Q4

Tonn

es C

oppe

r

Payable Copper in ConcentrateCopper Cathode

1,1101,000

660

135

0

200

400

600

800

1,000

1,200

Q1 Q2 Q3 Q4

Tonn

es C

obal

t

Payable Cobalt in ConcentrateCobalt Metal

Copper cathode production commenced December 2007

Cobalt metal production commenced May 2008

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2008 Expected Production

2.8 million

6.5 millionPayable copper (pounds)

Payable cobalt (pounds)

43,500KZC Cobalt Concentrate (tonnes)

133,000KTC Copper Concentrate (tonnes) – feed to Luilu

73.5 millionTotal Payable copper (pounds)

6.4 millionTotal Payable cobalt (pounds)

3.6 millionCobalt metal (pounds)

67 millionCopper cathode (pounds)

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2008 Expected Production Costs

$(1.73)$(2.31)$(2.88)

Credit (US$/lb)

$0.42$(0.16)$(0.73)

Net Cost (US$/lb)

@ $30

Copper Cathode Operating Cost AnalysisCobalt (US$/lb)

@ $50@ $40

$2,015KZC Cobalt Concentrate total costs (US$/tonne)

$(1.73)Cobalt credit (US$/lb)$0.42Operating costs after Cobalt credit (US$/lb)

$2.15Operating costs before Cobalt credit (US$/lb)Copper Cathode Production Costs

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Strong Financial Position

2009+ GlencoreMarket pricing90% payable on leaving site

2009 onwards capex spend to be determined by feasibility study (Sept 2008)

100% Offtake agreements in place

2008 LN Metals

Capital expenditure

US$150m Glencore convertible loan

US$125m in corporate debentures

Low debt level

US$463m at March 31, 2008

Strong cash position

First draw planned in 1H 2009

Close expected by 2008 year-end

Facility currently under discussion:up to $550 million

Future needs offset by:Current operating cash flowMetal prices remaining strong

Financial scope to be determined after feasibility study (Sept 2008)

Financing initiative

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Benefits

Now employing some 4,000 DRC nationals

Local payroll now exceeding US$3.5m per month

Supporting up to 15,000 jobs in the regional economy

Benefits to the DRC to date: US$251m

Returns over 20 years from 2011: US$7.3bn

Substantial Benefits to DRC

Policy

Open & active engagement with local stakeholdersWork in partnership to create sustainable livelihoodsLong-term improvements to living standardsGuided by international standards

Education/Training &Enterprise

Health

Agriculture

Infrastructure

Returns to DRC figure based on $1.25/lb Cu and $10.00/lb Co & excludes capital expenditure

Programs

18

Mining Lease & Contract Review

Process currently underway:

Transfer of two open pit deposits to Gécamines

Transfer of Mining Lease from Gécamines to Joint Venture

Consolidation of Joint Ventures

Completion of Mining Contract Review

19

External Challenges: Infrastructure

RailImports – rail already used for importing suppliesExports – current route to DurbanMaputo and Dar-es-Salaam operational but not practicalRoute to Lobito: shorter with only one border crossing; upgrade expected to be completed by 2009.

RoadExports – direct route from Kolwezi to DurbanImports – over 600 loads transported for Phase I – transit as short as 7 days from JohannesburgLubumbashi to Kolwezi road – upgrade being financed by World Bank

20

External Challenges: Power

Short term

Unaffected by recent load shedding on 220kV network

Our installations are fed from 120kV substation

SNEL guaranteed 82MW by June 2008 – sufficient power until end 2009

Long term

Private sector refurbishment of Inga II will add 850 MW by 2011

Plans to secure financing to refurbish Zongo, Koni and Mwadingusha

Working closely with SNEL on future needs – 2011 requirement approx. 300MW

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Goals for 2008

Strengthen management team

Complete Phase II construction at current Kamoto project

Ramp up production of refined copper cathode and cobalt metal

Consolidate Joint Ventures & complete DRC mining contract review process

Start mining at KOV open pit expansion project

Complete expansion project feasibility study by end of September

Preparation for LSE listing in 2009

Generate earnings and positive cash flow from operations

22

Overview

Targeting over 300,000 tonnes Cu and over 30,000 tonnes Co by 2011

Potential to be Africa’s largest Cu producer & world’s largest Co producer

Now generating operational cash flow

Genuine commitment tosustainable development

Globally significant integratedsingle-site operation

Proven management teamand track record

Large-scale, low-cost andlong-life producer

23

1Q Operations

24

1Q 2008 Production and Sales

Copper Cathode

0200400600800

1,0001,2001,4001,600

Jan Feb Mar

Tonn

es Production Sales

Concentrate

01,0002,0003,0004,0005,0006,0007,0008,000

Jan Feb Mar

Tonn

es

Production Sales

Extensive maintenance undertaken throughout the Kolwezi Concentrator plant during first quarter

25

Open Pit Mining

T17Total ore mined consistently exceeding plan

Copper grades improving

High grade cobalt ore stockpiled to process through cobalt circuit at Luilu

TilwezembeWaste stripping continued through first quarter and April

Ore mining and ore haulage to KZC resumed in April

0.70%

2.52%

33,624

Copper ore

0.71%Cu grade

0.90%Co grade

61,431Ore mined (mt)

Cobalt ore1Q 2008

1.30%Cu grade

1.39%Co grade

50,718Ore mined (mt)

1Q 2008

26

Kamoto Underground Mining

April ore development exceeded forecast

Exhaust ventilation capacity doubled during the quarter

Dewatering and servicing of areas 8 and 9 doubled areas available for mining starting in May

Improved setup and organization of working faces yielding improved productivity

752Development meters

0.37%Co grade

4.08%Cu grade

117,948Ore hoisted (mt)

1Q 2008

27

Concentrators

Kamoto (KTC) ConcentratorNo material issues at current rate of operation

Metallurgist hired to improve quality control and help to refine performance

Kolwezi (KZC) ConcentratorExtensive maintenance undertaken throughout the plant during first quarter

Crushing to stockpile resumed March 12 and concentrator resumed operation April 9

Expected 4,500t/month of concentrate production for remainder of 2008

Sulphide

KZCKTC

3.79%

40.0%

13,147

7.03%

11.5%

3,009

Oxide

1Q 2008

1.81%Concentrate Co grade

17.1%Concentrate Cu grade

10,639Concentrate (DMT)

Oxide

28

Luilu Metallurgical Plant

Copper cathode production increased each month during the first quarter and April

Copper production bottlenecks being removed

Copper residue belt filter complete and commissioning at end of April

Cobalt electrowinning started April 28 with first cathode harvested May 3

Process Director hired and arrived at start of May

3,946Cu Cathode (mt)

1Q 2008

29

1Q Financials

30

Balance Sheet – March 31, 2008

Actual ActualAs of As of

31-Mar-08 31-Dec-07$m $m

AssetsCash 463.4 100.7Other current assets 148.7 27.8Total current assets 612.1 128.5

Property, plant and equipment 2,428.7 298.3Other assets 3.1 22.0Total assets 3,043.9 448.8

LiabilitiesCurrent liabilities 110.2 67.1Long term debt 266.4 267.5Other long term liabilities 554.5 0.0Total shareholders' equity 2,112.8 114.2 Total liabilities and shareholders' equity 3,043.9 448.8

31

Summary Financial Table

2008 2007$000 $000

Revenues 90,156 0Operating loss (14,796) (3,858)Net loss (17,396) (5,435)Loss per share ($ per share) (0.10) (0.07)

Average Common Shares Outstanding 179,123 78,038

First Quarter

32

Technical

33

Kolwezi Klippe Deposits

T17

KOV

Mashamba East

Kamoto U/G

0 5km

R1 Argillaceous Siltstones / Sandstones

R2.1 Kamoto Group (OBI, RSC & OBS)

R2.2 Dolomitic Shales

R3 Dolomites w/ Interbedded Siltstones

34

Kamoto Underground

2007 Reserve Extraction Plan

35

KOV and Kamoto East Pits

0 1000 2000

1400

1000

Kamoto pit Kov pit

S N

Cut 3Cut 7

Geotechnical units, Cut 3 and Cut 7

LEGEND:

RGSCMNSDSOREBDYRSCRATL

35

36

KOV Dewatering Plan

1275

Lining a Decant Pond

Silt Dam

Pumping starts fourth quarter 2008

37

Current Production Process

Sulphide OreKamoto U/G

Oxide OreT17, KOV, Mashamba East Kamoto

Concentrator

CopperCathode

Copper Extraction

Cobalt Extraction


Cobalt Metal

Kolwezi ConcentratorTilwezembe Ore copper/cobalt concentrate

Existing Product

38

CopperCathode

Planned Production Process

All Sulphide OreKamoto U/G

Kamoto Concentrator

Copper Extraction


CopperCathode

Optimized production – 2011

All Oxide OreT17, KOV, Mashamba East

Copper/cobalt Extraction

Module 2

Copper/cobalt Extraction

Module 1

New SX/EW Plant

Cobalt Metal

Existing facilities Planned facilitiesProduct

Cobalt Salt

Cobalt solution

39

Kamoto Phase II Rehabilitation Program

Scope essentially unchanged from Feasibility Study

$136 million capex budget based on advanced engineering of the Roaster,

known costs from Phase I and escalation factors

Kamoto U/G – expand production fleet to allow for 120ktpm production &

continue upgrade of facilities

Kamoto Concentrator – 3rd Cascade Mill, 58 float cells, three additional

delivery lines to Luilu

Luilu – new roaster, 14 tanks, 54 electro-winning cells

Mashamba East – dewatering deferred

Tailings Structures – two additional ponds at Luilu

40

Expansion Feasibility Study

Scheduled for completion by end September 2008

Mineral resource evaluation update to comply with NI 43-101

New optimized mine plan for Kamoto and KOV being developed

Project capital and operating costs update

Assessment of the environmental issues related to the combined operations

sufficient to complete a revised EIS/EMPP

arthur ditto, president & ceo june 18,...

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