mineral resources & ore reserves - glencore

Mineral Resources & Ore Reservesas at 31 December 2012

1

Xstrata | Reserves and

Resources as at 31 Decem

ber 2012

ContentsAbout this report 2

Alloys 4

Coal 11

Copper 27

Iron Ore 37

Nickel 40

Zinc 43

We report our resources and reserves in accordance with the 2004 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code), the 2007 edition (as amended July 2009) of the South African Code for Reporting of Mineral Resources and Mineral Reserves (SAMREC), and the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Standards on Mineral Resources and Reserves (2010 edition). Together these codes are considered to be best practice for reporting exploration results, mineral resources and ore reserves.

The mineral resource and ore reserve data in the following tables are as at 31 December 2012, unless otherwise noted. For comparison purposes, data for 2011 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 establish the economic viability of reserves are based on long-term forecasts applied at the time the reserve was estimated.

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

The Mineral Resources and Ore Reserves Statement has been compiled in accordance 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 Mineral Resources and Ore Reserves statements have been reviewed and the relevant data extracted and compiled by Neal O’Connor, Xstrata Copper.

Iron OreIron ore resources and reserves have been compiled in accordance with the 2004 Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code), December 2004, unless otherwise stated in the notes for a particular resource and reserve.

The Mineral Resource and Ore Reserve statements have been reviewed and the relevant data extracted and compiled by Nick Brett, 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 27 November 2010, 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 accordance with the 2004 Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code), December 2004.

The Mineral Resource and Ore Reserve estimates are compiled and verified by Chester Moore, P. Eng., P. Geo., consultant with 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 were prepared in accordance with the 2004 Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code), December 2004.

The Chromite, Vanadium and PGM’s Mineral Resource and Ore Reserve Statement at 31 December 2012 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 Mineral Resource and Ore Reserve statements have been reviewed and the relevant data extracted and compiled by Pieter-Jan Gräbe, Xstrata Alloys (SACNASP).

CoalAustralian coal resources and reserves have been prepared in accordance with the 2004 Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code), December 2004.

South African and Colombian coal resources and reserves have been prepared in accordance with 2007 edition (as amended July 2009) of the South African Code for Reporting of Mineral Resources and Mineral Reserves (SAMREC).

Canadian coal resources and reserves have been prepared in accordance with Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Definition Standards on Mineral Resources and Mineral Reserves, adopted by CIM Council on 27 November 2010 and with reference to GSA Paper 88-21, A Standardised Coal Resource/Reserve Reporting System for Canada.

The Coal Reserve and Coal Resource Statement as at 31 December 2012 conforms with the requirements of these Codes and is consistent with Xstrata Coal’s internal Resource and Reserve Estimation and Reporting Standard.

Coal resources have been estimated for all coal seams within mining leases or exploration licences that have reasonable prospects for eventual economic extraction by open cut or underground mining methods. In general, coal resources are reported within a geoshell; i.e. there is very little inclusion of coal resources extrapolated beyond the extent of the geological data. Resources are excluded from those areas where the seam has been extracted or sterilised by mining.

Resources do not include out-of-seam dilution. Underground resources are typically reported on a full seam or working section basis, and therefore may contain thin stone bands within the seam. Resources are reported on an in situ moisture basis

The Mineral Resource and Ore Reserve statements have been reviewed and the relevant data extracted and compiled by Shellie Robinson, Xstrata Coal.

About this report

“ We report our resources and reserves in accordance with the 2004 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code), the 2007 edition (as amended July 2009) of the South African Code for Reporting of Mineral Resources and Mineral Reserves (SAMREC), and the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Standards on Mineral Resources and Reserves (2010 edition).”

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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 Alberta)

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

ECSA = Engineering Council of South Africa

GEOSHELL = broad envelope limited by the depth and areal extent of geological data points (primarily drill holes).

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

JORC = Joint Ore Reserves Committee

LOM = Life of Mine

OC = Opencast or Opencut

OGQ = Ordre des Géologues du Québec

OIQ = Ordre des Ingénieurs du Québec

MR = Mineral Resources

Mt = Million tonnes

NSR = Net Smelter Return

OR = Ore Reserves

PLATO = South African Council for Professional and Technical Surveyors

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 (CIM and JORC) and Saleable Coal Reserves (SAMREC) are 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 2012 has been compiled in accordance with the 2004 Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code), December 2004 and 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.

The Mineral Resource and Ore Reserve statements have been reviewed and the relevant data extracted and compiled by Ignacio Seebold, Xstrata Zinc (ICOG-EurGeol).

Competent/Qualified PersonsMineral Resource and Ore Reserve estimates are based on information compiled by Competent Persons (as defined by the JORC, SAMREC Codes) and Qualified Persons (as defined by CIM Definition Standards for Mineral Resources and Mineral Reserves).

Each of the Competent/Qualified 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 or Qualified Person as defined in the relevant code or standard. Each has consented to the inclusion of their resource and reserve estimates in the form and context in which it appears in this report.

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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

Person31.12.12 31.12.11 31.12.12 31.12.11 31.12.12 31.12.11 31.12.12 31.12.11

Operating mines Waterval Mine 79.5% UG (Mt) 16.609 16.530 0.98 1.36 17.59 17.89 0.6 0.6 DR/PJG Cr2O3 (%) 41.29 41.20 42.6 42.5 41.4 41.3 43 43Marikana West 79.5% UG (Mt) 3.53 3.217 1.59 2.06 5.12 5.27 – – DR/PJG Cr2O3 (%) 42.38 42.34 42.4 42.7 42.5 42.5 – –Kroondal Mine 79.5% UG/OC (Mt) 9.811 9.995 1.82 1.89 11.64 11.89 0.1 – DR/PJG Cr2O3 (%) 42.87 42.91 42.4 42.6 42.8 42.9 42 –Kroondal Gemini 79.5% UG/OC (Mt) 10.854 9.846 6.47 7.76 17.33 17.61 0.2 0.2 DR/PJG Cr2O3 (%) 42.83 42.98 42.2 42.4 42.6 42.7 42 42Marikana East 79.5% UG (Mt) 4.485 3.874 0.49 1.21 4.97 5.08 0.3 0.3 DR/PJG Cr2O3 (%) 42.35 42.41 42.3 42.3 42.3 42.4 42 42Horizon Mine 79.5% UG/OC (Mt) 4.080 4.023 9.74 10.09 13.82 14.11 9.1 8.8 DR/PJG Cr2O3 (%) 44.78 44.99 43.9 44.0 44.1 44.3 44 45Boshoek Mine 79.5% OC/UG (Mt) 0.350 0.739 16.87 16.87 17.22 17.61 – – DR/PJG Cr2O3 (%) 39.43 40.38 40.4 40.4 40.4 40.4 – –Thorncliffe Mine(a) 79.5% UG/OC (Mt) 44.382 41.322 9.70 12.51 54.09 53.83 35.7 13.6 DR/SV Cr2O3 (%) 40.58 40.46 40.8 40.9 40.6 40.6 40 41Helena Mine(b) 79.5% UG/OC (Mt) 19.673 18.744 7.49 9.06 27.17 27.81 88.0 56.8 DR/SV Cr2O3 (%) 40.48 40.53 39.5 39.5 40.2 40.2 39 39Subtotal (Mt) 113.773 108.289 55.17 62.81 168.94 171.10 133.9 80.4 Cr2O3 (%) 41.35 41.33 41.4 41.4 41.36 41.4 40 40Projects

Wonderkop 79.5% UG (Mt) – 0.452 7.05 6.84 7.05 7.29 – – DR/PJG Cr2O3 (%) – 40.20 40.6 40.5 40.6 40.5 – –Extension 9 79.5% UG (Mt) – – 13.89 12.61 13.89 12.61 – – DR/PJG Cr2O3 (%) – – 41.0 40.8 41.0 40.8 – –De Grooteboom 79.5% UG/OC (Mt) 0.802 0.808 0.65 0.66 1.45 1.47 – – DR/SV Cr2O3 (%) 40.28 40.28 40.3 40.3 40.3 40.3 – –Klipfontein/ 79.5% UG (Mt) 8.277 4.476 13.81 15.78 22.09 20.26 121.6 123.4 DR/PJGWaterval Cr2O3 (%) 42.35 42.82 42.5 42.6 42.4 42.7 42 42Subtotal (Mt) 9.080 5.735 35.80 35.90 44.48 41.64 121.6 123.4 Cr2O3 (%) 42.17 42.26 41.5 41.5 41.6 41.6 42 42

Total (Mt) 122.853 114.024 90.57 98.71 213.42 212.28 255.5 203.8 Cr2O3 (%) 41.41 41.38 41.4 41.5 41.4 41.4 41 42

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Chrome Ore Reserves


interest Mining

method Commodity

Proved Ore Reserves Probable Ore Reserves Total Ore Reserves Competent Person31.12.12 31.12.11 31.12.12 31.12.11 31.12.12 31.12.11

Operating mines Waterval Mine(d) 79.5% UG (Mt) 11.044 10.253 0.91 1.23 11.95 11.48 DR/PJG Cr2O3 (%) 30.84 31.35 26.0 26.5 30.5 30.8 Marikana West 79.5% UG (Mt) 1.077 0.973 – – 1.08 0.97 DR/PJG Cr2O3 (%) 28.59 28.65 – – 28.6 28.7 Kroondal Mine(c) 79.5% UG/OC (Mt) 3.113 3.227 1.69 1.66 4.80 4.89 DR/PJG Cr2O3 (%) 28.76 28.28 28.6 27.8 28.7 28.1 Kroondal Gemini 79.5% UG/OC (Mt) 7.507 6.288 6.15 6.94 13.66 13.23 DR/PJG Cr2O3 (%) 31.22 31.49 28.5 28.7 30.0 30.0 Marikana East 79.5% UG (Mt) 1.203 0.726 – 0.02 1.20 0.74 DR/PJG Cr2O3 (%) 28.14 28.71 – 27.3 28.1 28.7 Horizon Mine 79.5% UG (Mt) 2.314 1.743 0.15 0.07 2.46 1.18 DR/PJG Cr2O3 (%) 25.51 34.08 25.2 28.5 25.5 33.9 Boshoek Mine 79.5% UG/OC (Mt) – – 0.45 – 0.45 – DR/PJG Cr2O3 (%) – – 23.1 – 23.1 – Thorncliffe Mine(e) 79.5% UG/OC (Mt) 27.788 25.660 4.76 6.56 32.55 32.22 DR/SV Cr2O3 (%) 37.25 37.90 37.9 39.1 37.3 38.2 Helena Mine(f) 79.5% UG/OC (Mt) 4.588 4.131 – – 4.59 4.13 DR/SV Cr2O3 (%) 35.14 34.96 – – 35.10 35.00 Total (Mt) 58.632 52.999 14.11 16.48 72.74 69.48 Cr2O3 (%) 33.85 34.64 31.3 32.6 33.4 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.

The chromitite assets include those owned by Xstrata Alloys and Merafe in different ownership percentages, the attributable interest in such assets remain as reflected.

All Xstrata Alloys' chrome operations mine the chromitite deposits developed within the world renowned Bushveld Complex of South Africa. The 2060 Ma year-old Bushveld Complex is the largest known deposit of chrome, vanadium and platinum group elements (PGEs) in the world. The Bushveld Complex stretches 350km east-west and 450km north-south. The chrome ore is mined from shallow dipping (10o – 14o) tabular orebodies. Although there are numerous chromitite layers developed in the Bushveld Complex, the chromitite layers targeted 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.

The chromitite layers are mainly mined underground using trackless mechanised mining methods on a bord and pillar mine layout 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 currently mines are discrete solid chromitite layers with sharp contacts.

Changes in the year on year mineral resource tonnage and grade estimates are mainly due to mining depletion and changes in additional geological information gained through exploration, which then reflects in the tonnage and grade reports from the grade block models.

(a) The Thorncliffe property had a net increase in tonnage of 24.662Mt mainly due to the introduction of the MG2A Chromitite Layer into the mineral resource estimate. Mining depletions have been excluded.

(b) The Helena property had a net tonnage increase of 31.580Mt, of which the introduction of the MG2A Chromitite Layer into the mineral resource estimate, contributed 29.738Mt. Mining depletions have been excluded.

The underground ore reserves are reported above a minimum mining cut of 1.8m. This cut is related to the mining method and the underground mining equipment. External waste is included to make up the minimum cut where applicable.

Changes in the year on year ore reserves tonnage and grade estimates are mainly due to mining depletion, changes in the mining parameters and changes due to additional geological information gained through exploration. The most significant changes are:

(c) Waterval had a similar increase in Ore Reserves of 0.358Mt due to an increase of 3% in the mining extraction rate. Mining depletions have been excluded.

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Alloys continued

(d) Kroondal Gemini had an increase in the mining extraction rate of 3% which added an amount of 0.409Mt to the Ore Reserves. Mining depletions have been excluded.

(e) The Thorncliffe Ore Reserves increased as a result of an increase in the mining rate with the build-up of Magareng Mine. This increase amounts to 0.870Mt. An increase in the minimum anticipated mining cut has added an additional 0.570Mt. Mining depletions have been excluded.

(f) The minimum mining height at Helena Mine was adjusted from 1.7m to 1.8m which contributed an additional 0.950Mt to the Helena Ore Reserves. Mining depletions have been excluded.

The tonnage and grade estimations are initiated by the geostatistical analysis of the exploration drill hole data. The outcomes of this analysis are used in the construction of block models for each and every mine and project area. The analysis of the chromitite data indicates a high degree of continuity of grade and thickness of the chromitite layers. The block model estimates are verified using geostatistical parameters such as Kriging Efficiency to test the stability of the variograms used and the suitability of the selected cell sizes and Kriging parameters. 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, the monthly survey measurements and the actual mine production for each operating mine.

The LOM for the operating mines vary between 2 years and 11 years based on the declared ore reserves. The LOM periods for the various operating mines, based on all the mineral resources converted to ore reserves vary between 19 years and 76 years. The Mining Right expiry dates vary from 2022 to 2039 for the operating mines. All the chrome mining rights were granted for an initial period of 30 years. The production rates vary from 30kt ROM per month to 103kt ROM per month.

The Prospecting Rights are granted for an initial period of 5 years, extendable for an additional 3 years. The project areas are mostly covered by Prospecting Rights and the current Prospecting Right periods vary from 1 year to 5 years. The Klipfontein/Waterval Prospecting Right is currently being converted to a Mining Right. The Extension 9 Prospecting Right is being extended for an additional 3 years.

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

SV – Solly Vaid, Xstrata Alloys, (PLATO). Overall Responsibility for Resources and Reserves.

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


interest Mining

method Commodity



Measured and Indicated Resources

Inferred Mineral Resources

Competent Person

31.12.12 31.12.11 31.12.12 31.12.11 31.12.12 31.12.11 31.12.12 31.12.11

Operating mines Rhovan(g) 74.0% OC (Mt) 34.24 27.77 27.9 44.5 62.2 72.3 81 84 DR/PJG V2O5 (%) 0.54 0.54 0.5 0.5 0.5 0.5 0.5 0.5Total (Mt) 34.24 27.77 27.9 44.5 62.2 72.3 81 84 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

Person31.12.12 31.12.11 31.12.12 31.12.11 31.12.12 31.12.11

Operating mines

Rhovan(h) 74.0% OC (Mt) 21.02 16.17 12.2 28.7 33.2 44.8AvW/

PJG V2O5 (%) 0.53 0.51 0.5 0.5 0.5 0.5Total (Mt) 21.02 16.17 12.2 28.7 33.2 44.8 V2O5 (%) 0.53 0.51 0.5 0.5 0.5 0.5 Definitions OC = Opencast UG = Underground


Grades are quoted as %V2O5.


Xstrata Alloys' vanadium mining operations mine the vanadiferous magnetite deposits developed within 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) in the world.

The magnetite ore is mined from shallow dipping (6o – 25o) stratified magnetite orebodies. Various ore zones with varying grades can be identified in the orebody. The ore zones are defined based on their magnetite and vanadium content.

The magnetite ore is mined using opencast mining methods.

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.

(g) There was a net decrease of 10.291Mt in the total Mineral Resource estimate after mining depletion. This was mainly due to the introduction of an adjusted cut-off grade for both the magnetite and vanadium grade. In addition new areas were brought into the Mineral Resource as a result of exploration drilling on strike next to and down-dip of the existing pits.

(h) The Ore Reserves had a net decrease of 9.449Mt after mining depletion mainly due to the adjustment of the 2011 cut-off grades.

Obsidian Consulting Services has estimated the Mineral Resources for Pit 1 and Pit 6. An updated grade block model was constructed during August and September 2012, following exploration drilling during the 2011 – 2012 reporting period.

A&B Global Mining has estimated the Ore Reserves for Pit 1 and Pit 6. The ore reserve estimation was complimented by an economic viability analysis for Pit 1 and Pit 6. The viability analysis was conducted to confirm the economic pit limits with current 2012 economic input parameters. Newly constructed pit layouts and mining schedules were designed within the optimised pit shells.

The tonnage and grade estimations were done using geostatistical analysis of the exploration drill hole data. From this analysis the most appropriate parameters for the construction of block models for the various pits were derived. The block model estimates are verified using geostatistical parameters such as Kriging Efficiency 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 pit. The degree of confidence in the tonnage and grade estimations derived from the block models is reflected in the classified resource classes.

The Rhovan LOM based on the declared ore reserves is 15 years. The LOM based on all the mineral resources converted to ore reserves is 56 years. Rhovan is mining from various opencast pits at a mining rate averaging 200kt of ROM per month. The Mining Right expiry date is 2027.

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

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, (ECSA). Responsible for pit optimisation, pit design and scheduling and the Ore Reserves estimation.

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Alloys continued

PGM Mineral Resources


interest Mining

method Commodity





Person31.12.12 31.12.11 31.12.12 31.12.11 31.12.12 31.12.11 31.12.12 31.12.11

Operating mines/projects Mototolo JV(i) 37% UG/OC (Mt) 28.783 19.532 8.99 12.98 37.77 32.56 3.7 9.9 CL/DR/FF

3PGE + Au (g/t) 4.16 4.01 4.4 4.7 4.2 4.3 4.5 4.1

Eland Platinum(k) 73.99% UG/OC (Mt) 57.845 44.666 16.60 31.71 74.45 76.37 76.3 76.5 CL/DR/DN

3PGE + Au (g/t) 4.49 4.42 3.5 4.0 4.3 4.2 4.5 4.5

Zilkaatsnek 100% UG/OC (Mt) – – 3.68 3.39 3.68 3.39 – 0.1 CL/DR/DN

3PGE + Au (g/t) – – 2.9 2.5 2.9 2.5 – 2.4

Schietfontein 70% UG/OC (Mt) – – 6.42 1.50 6.42 1.50 17.2 21.2 CL/DR/DN

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

Total (Mt) 86.628 64.198 35.69 49.57 122.32 113.82 97.1 107.8 3PGE + Au (g/t) 4.38 4.30 3.4 4.0 4.1 4.2 4.1 4.0

PGM Ore Reserves


interest Mining

method CommodityProved Ore Reserves

Probable Ore Reserves Total Ore Reserves Competent

Person31.12.12 31.12.11 31.12.12 31.12.11 31.12.12 31.12.11

Operating mines/projects

Mototolo JV(j) 37% UG/OC (Mt) 13.040 11.877 0.51 1.21 13.55 13.08 FF/DR

3PGE + Au (g/t) 3.65 3.47 3.7 3.8 3.7 3.5

Eland Platinum(l) 73.99% UG/OC (Mt) 11.197 9.978 6.94 6.03 18.14 16.01 DN/DR

3PGE + Au (g/t) 2.88 3.16 2.6 2.7 2.8 3.0

Zilkaatsnek 100% UG/OC (Mt) – – – 0.03 – 0.03 DN/DR

3PGE + Au (g/t) – – – 1.6 – 1.6

Schietfontein 70% UG/OC (Mt) – – – – – – DN/DR

3PGE + Au (g/t) – – – – – –

Total (Mt) 24.237 21.855 7.46 7.27 31.69 29.12 3PGE + Au (g/t) 3.29 3.33 2.6 2.9 3.1 3.2

Definitions OC = Opencast

UG = Underground


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


Xstrata Alloys' platinum mining operations mine 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 (PGEs), in the world.

The PGE ore at Mototolo Mine is mined from a shallow dipping (10o – 14o) tabular orebody referred to as the UG2 Chromitite

Layer. The chromitite layer is mined underground using a trackless mechanised mining method on a board and pillar mine layout design.

The Eland Platinum Mine mines the UG2 Chromitite Layer dipping at 20o. Eland Platinum Mine is currently in the process of developing two decline shafts to access the underground ore.

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 made using geostatistical analysis of the exploration drill hole data as well as underground channel sample data, where available. From this analysis the most

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appropriate parameters are derived for the construction of block models for the various orebodies. Tonnages and grades are reported from these block models for each mine and project. Confidence limit curves are derived from fitted distributions and used to classify the resources at various confidence levels.

Mototolo JV The structural and grade block model was updated with exploration drillhole data drilled during the 2011 – 2012 reporting period.

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

(i) The net change in the year on year Mineral Resources is –1.293Mt, mainly due to the re-estimation of the tonnages and grades, after the mining depletion has been discounted.

(j) The Ore Reserve changed year on year on a net basis after mining depletion by 0.470Mt. The change was mainly due to an increase in the planned production and a correction for previous undercalculation of the footwall waste.

The LOM period for Mototolo Platinum Mine is 6.1 years based on the declared ore reserves. The LOM period based on all the mineral resources converted to ore reserves is 13.1 years. The Mining Right expiry date is 2039. The production rate is 203kt ROM per month.

Eland, Zilkaatsnek and Schietfontein Eland, Zilkaatsnek and Schietfontein are contiguous Mining and Prospecting Right areas, targeting the same orebody 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, completed during the 2012 reporting period.

The Mineral Resources are constrained by lithological facies. The underground Ore Reserves are constrained by a minimum mining cut of 2.15m with a maximum of 2.65m. The opencast Ore Reserves are constrained by the lithological contacts of the UG2 Chromitite Layer or by a 4m mining cut where the Zilkaatsnek facies is developed.

(k) No significant year on year changes in the Mineral Resources were recorded.

(l) There was a net change in the Ore Reserves of 3.078Mt due to the increase planned production rate which follow a build-up phase to full steady state production.

The LOM for Eland Platinum Mine is 13.1 years based on the declared ore reserves. The LOM based on all the mineral resources converted to ore reserves is 20 years. The Mining Right expiry date is 2039. The current planned production rate is 187kt ROM per month.

Competent Persons FF – Frikkie Fensham, Xstrata Alloys, (SACNASP). 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.

10



ber 2012

Alloys continued

Silica Mineral Resources

Name of operation

Attributable interest

Mining method Commodity

Measured Mineral

Resources Indicated Mineral

Resources Measured and

Indicated Resources Inferred Mineral

Resources Competent Person 31.12.12 31.12.11 31.12.12 31.12.11 31.12.12 31.12.11 31.12.12 31.12.11

Operating mine Rietvly 79.5% OC (Mt) – – 25.12 25.18 25.12 25.18 – – PJG SiO2 (%) – – 91 91 91 91 – – Total (Mt) – – 25.12 25.18 25.12 25.18 – – SiO2 (%) – – 91 91 91 91 – –

Silica Ore Reserves


Portion

Mining method

Proved Ore Reserves Probable Ore

Reserves Total Ore Reserves

Commodity 31.12.12 31.12.11 31.12.12 31.12.11 31.12.12 31.12.11 Competent

Person

Operating mines Rietvly 79.5% OC (Kt) – – 89.4 – 89.4 – PJG SiO2 (%) – – 91 – 91 –

Total (Kt) – – 89.4 – 89.4 – SiO2 (%) – – 91 – 91 – Definitions OC = Opencast

Notes Tonnages are quoted as thousand metric tonnes.

Grades are quoted as %SiO2.

Xstrata Alloys' 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 orebody is a very pure quartzite with a silica content of over 90% SiO2.

The ore is mined through opencast mining methods and the ROM 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 mainly mined to supply the Xstrata Alloys furnaces with silica.

No significant changes have been recorded in the year on year mineral resource estimation.

Ore Reserves for Rietvley Silica where declared for the first time with the introduction of bench mine plans for the opencast.

The LOM for Rietvly Silica Mine is 4 months based on the declared ore reserves and a production rate of 27kt ROM per month. The LOM period based on all the mineral resources converted to ore reserves is 75 years. The Mining Right expiry date is 2037.

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

11



ber 2012

Coal

Australia Coal Resources – New South Wales


interest

Commodity

Measured Coal Resources

Indicated Coal Resources

Inferred Coal Resources Competent

PersonMining h d

31.12.12 31.12.11 31.12.12 31.12.11 31.12.12 31.12.11

Oakbridge Group Thermal Coal (Mt) 1,235 1,235 665 655 1,040 1,150Bulga Complex(a) 68.3% OC/UG Thermal Coal (Mt) 1,200 1,200 590 570 800 800 PG CV (kcal/kg) 5,800 5,800 5,800 5,750 5,600 –Baal Bone(d) 74.1% OC/UG Thermal Coal (Mt) 15 15 15 15 90 150 JMB CV (kcal/kg) 5,750 5,750 6,200 6,200 5,300 –Running Stream(e) 78% OC/UG Thermal Coal (Mt) 20 20 60 70 150 200 JHB CV (kcal/kg) 5,100 5,300 5,000 5,200 4,950 –Maquarie Coal Joint Venture 80% Thermal Coal (Mt) 70 77 120 120 20 20West Wallsend(f) UG Thermal Coal (Mt) 70 75 25 25 – – CFP CV (kcal/kg) 5,700 5,700 5,300 5,300 – – Cardiff Borehole(g) UG Thermal Coal (Mt) – – 10 10 20 20 CFP CV (kcal/kg) – – 5,700 5,700 5,700 –Teralba(h) UG Thermal Coal (Mt) – 2 85 85 – – CFP CV (kcal/kg) – 6,000 6,000 6,000 – – Mitchells Flat(i) 100% OC/UG Thermal Coal (Mt) – – 120 120 400 400 CFP CV (kcal/kg) – – 5,300 5,300 5,000 –Liddell(j) 67.5% OC/UG Thermal Coal (Mt) 100 100 210 200 350 400 PH CV (kcal/kg) 6,000 6,050 6,200 6,150 6,450 –Mount Owen Complex 100% Thermal Coal (Mt) 245 210 135 110 180 170Mount Owen(k) OC Thermal Coal (Mt) 75 80 55 60 80 80 RH CV (kcal/kg) 6,200 6,500 6,200 6,400 6,100 –Ravensworth East(l) OC Thermal Coal (Mt) 80 50 45 10 20 – PH CV (kcal/kg) 5,700 5,500 5,800 5,300 6,000 – Glendell(m) OC Thermal Coal (Mt) 90 80 35 40 80 90 KJW CV (kcal/kg) 5,950 6,000 5,900 6,000 5,900 –United(n) 95% OC/UG Thermal Coal (Mt) 250 250 220 220 600 600 RMD CV (kcal/kg) 6,200 6,200 6,100 6,100 6,000 –Ulan(q) 90% OC/UG Thermal Coal (Mt) 320 320 420 430 1,200 2,800 RMD CV (kcal/kg) 6,400 6,600 5,300 5,000 3,600 –Ravensworth Group Thermal Coal (Mt) 470 475 230 230 100 100Narama(u) 100% OC Thermal Coal (Mt) 30 30 – – – – ST CV (kcal/kg) 5,900 5,900 – – – – Ravensworth North(v) 90% OC Thermal Coal (Mt) 440 445 230 230 100 100 ST CV (kcal/kg) 5,900 5,900 5,900 6,000 5,850 –Mangoola(w) 100% OC/UG Thermal Coal (Mt) 140 150 30 30 1,300 1,300 ST CV (kcal/kg) 5,300 5,250 5,350 5,350 4,300 –Tahmoor Complex 100% Coking Coal (Mt) 75 55 205 140 250 250Tahmoor North(x) UG Coking Coal (Mt) 75 55 55 45 80 120 PMTahmoor South(y) UG Coking Coal (Mt) – – 150 95 170 130 KJWRavensworth UG(z) 70% OC/UG Thermal Coal (Mt) 300 300 180 180 350 350 PH CV (kcal/kg) 5,850 5,850 5,450 5,450 5,550 –Resources Subtotal – New South Wales (Mt) 3,205 3,172 2,535 2,435 5,790 7,540

12



ber 2012

Coal continued

Australia Coal Resources – Queensland


interest Mining

Commodity




PersonMethod 31.12.12 31.12.11 31.12.12 31.12.11 31.12.12 31.12.11

Oaky Creek(aa) 55% OC/UG Coking Coal (Mt) 450 320 160 180 90 140 KJWRed Rock EPCs(ee) 75% OC/UG Coking/Thermal Coal (Mt) – – – 6 250 20 RJ CV (Kcal/Kg) – – – – 6,350 –NCA 55% Coking/Thermal Coal (Mt) 470 450 445 445 920 965Newlands, Suttor, Eastern (RCM)(ff)

OC/UG Coking Coal (Mt) 15 10 10 10 10 20 JT

Thermal Coal (Mt) 320 310 95 90 350 360 JT CV (Kcal/Kg) 5,700 5,700 5,500 5,750 5,400 –Wollombi (MCM)(ii) OC/UG Coking Coal (Mt) 10 10 30 30 70 65 JT Thermal Coal (Mt) 20 20 60 60 90 95 JT CV (kcal/kg) 4,800 4,800 4,700 4,700 4,550 –Sarum(jj) OC/UG Coking Coal (Mt) 30 30 10 10 60 60 JT Thermal Coal (Mt) – – 70 70 250 260 JT CV (Kcal/Kg) – – 5,450 5,450 4,650 –Collinsville(kk) OC/UG Coking Coal (Mt) 30 20 70 75 30 35 MB Thermal Coal (Mt) 45 50 100 100 60 70 MB CV (Kcal/Kg) 5,850 5,900 6,200 6,100 5,850 –Cook(ll) 100% OC/UG Coking/Thermal Coal (Mt) – – 100 105 900 940 KJW CV (kcal/kg) – – 6750 – 6700 –Rolleston(mm) 75% OC Thermal Coal (Mt) 185 170 225 285 310 265Rolleston ML Thermal Coal (Mt) 160 155 55 65 10 15 JT CV (kcal/kg) 5,800 5,800 5,700 5,700 5,350 –Rolleston MDL & EPCs

Thermal Coal (Mt) 25 15 170 220 300 250 JT

CV (kcal/kg) 5,700 5,800 5,700 5,700 5,650 –Togara North(nn) 70% OC/UG Thermal Coal (Mt) 370 370 250 250 800 800 TP CV (kcal/kg) 6.350 6,350 6,000 6,000 6,000 –Wandoan(oo) 75% OC/UG Thermal Coal (Mt) 1,520 1,252 1,670 1,140 4,400 3,550Wandoan MDL’s Thermal Coal (Mt) 1,300 1,250 570 570 1,300 1,350 RJ CV (kcal/kg) 5,200 5,200 5,050 5,050 5,000 –Wandoan EPC’s Thermal Coal (Mt) 220 2 1,100 570 3,100 2,200 RJ CV (kcal/kg) 5,150 5,300 5,200 5,400 5,250 –Milray(pp) 75% OC/UG Thermal Coal (Mt) 0 0 0 0 600 0 RJ CV (kcal/kg) – – – – 4,900 –Pentland(qq) 75% OC/UG Thermal Coal (Mt) 65 0 15 0 20 0 RJ CV (kcal/kg) 4,450 – 4,100 – 4,300 –Resources Subtotal – Queensland (Mt) 3,060 2,562 2,865 2,411 8,290 6,680 Resources Total – Coal Australia (Mt) 6,265 5,734 5,400 4,846 14,080 14,220

13



ber 2012

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

31.12.12 31.12.12 31.12.12 31.12.12 31.12.12 31.12.11

Oakbridge Group 68.3% Thermal Coal (Mt) 320 40 218 27 250 243 Bulga OC(b) OC Thermal Coal (Mt) 180 11 120 7.4 130 134 NB CV (kcal/kg) 6,350 6,300 6,350 6,350 Bulga UG(c) UG Thermal Coal (Mt) 140 29 98 20 120 109 NB CV (kcal/kg) 6,550 6,550 6,550 6,840 Maquarie Coal Joint Venture

80.0% Thermal Coal (Mt) 9.3 11 7.3 7.7 15 19

West Wallsend(f) UG Thermal Coal (Mt) 9.3 11 7.3 7.7 15 19 REH CV (kcal/kg) 5,950 5,950 5,950 6,100 Liddell(j) 67.5% OC Thermal Coal (Mt) 39 26 24 16 40 44 NB CV (kcal/kg) 6,050 5,650 5,900 6,600 Mount Owen Complex

100.0% Thermal Coal (Mt) 82 9.7 60 5 65 68

Mount Owen(k) OC Thermal Coal (Mt) 40 5 27 2 29 34 STH CV (kcal/kg) 6,750 6,700 6,750 6,750 Ravensworth East(l) OC Thermal Coal (Mt) 7 1.4 6.5 0.9 7.4 4 STH CV (kcal/kg) 6,300 6,300 6,300 6,300 Glendell(m) OC Thermal Coal (Mt) 35 3.3 27 2.1 29 30 STH CV (kcal/kg) 6,650 6,650 6,650 6,650 United 95.0% Thermal Coal (Mt) – 84 – 56 56 56 United OC(o) OC Thermal Coal (Mt) – 48 – 32 32 32 NB CV (kcal/kg) – 6,400 6,400 6,400 United A444(p) UG Thermal Coal (Mt) – 36 – 24 24 24 NB CV (kcal/kg) – 6,400 6,400 6,400 Ulan 90.0% Thermal Coal (Mt) 187 6.4 166 5.4 171 180 Ulan #3 UG(r) UG Thermal Coal (Mt) 68 5.3 60 4.7 65 68 ROB CV (kcal/kg) 6,600 6,600 6,600 6,600 Ulan West UG(s) UG Thermal Coal (Mt) 110 – 100 – 100 104 ROB CV (kcal/kg) 6,300 – 6,300 6,600 Ulan Waratah OC(t) OC Thermal Coal (Mt) 8.9 1.1 5.7 0.7 6.4 8 SR CV (kcal/kg) – – – 5,700 Ravensworth Group Thermal Coal (Mt) 264 13 174 7.6 184 198 Narama(u) 100% OC Thermal Coal (Mt) 4 – 4 – 4 7 DC CV (kcal/kg) 4,900 – 4,900 5,450 Ravensworth North(v) 90% OC Thermal Coal (Mt) 260 13 170 7.6 180 191 DC CV (kcal/kg) 6,500 6,500 6,500 5,950 Mangoola(w) 100.0% OC Thermal Coal (Mt) 130 12 100 8.9 110 111 MW CV (kcal/kg) 5,500 5,500 5,500 5,650 Tahmoor Complex 100.0% Coking Coal (Mt) 22 32 18 25 43 41 Tahmoor North(x) UG Coking Coal (Mt) 22 3 18 2.3 20 22 REH Ash (%) 8.5 8.5 8.5 – Tahmoor South(y) UG Coking Coal (Mt) – 29 – 23 23 19 REH Ash (%) – 9.5 9.5 – Ravensworth UG(z) 70.0% UG Thermal Coal (Mt) 45 0.6 29 0.4 29 33 RSH CV (kcal/kg) 5,900 5,800 5,900 – Reserves Subtotal – New South Wales (Mt) 1,098 235 796 159 963 993

14



ber 2012

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

31.12.12 31.12.12 31.12.12 31.12.12 31.12.12 31.12.11

Oaky Creek 55% Coking Coal (Mt) 95 103 60 68 128 144 Oaky No. 1(bb) UG Coking Coal (Mt) 11 8.7 7.5 5.1 13 15 POG Ash (%) 9.4 9.4 9.4 – Oaky North(cc) UG Coking Coal (Mt) 84 45 52 24 76 90 POG Ash (%) 9.4 9.4 9.4 – Oaky Acacia OC(dd) OC Coking Coal (Mt) – 49 – 39 39 39 LF Ash (%) – 9 9 – NCA 55% Coking/Thermal

Coal (Mt)126 59 101 44 145 151

Newlands OC(gg) OC Coking Coal (Mt) 16 8.4 12 5.9 18 21 PP Ash (%) 8.5 8.6 8.5 – OC Thermal Coal (Mt) 36 18 27 13 40 49 PP CV (kcal/kg) 6,300 6,400 6,350 6,300 Newlands UG(hh) UG Thermal Coal (Mt) 9.2 – 6.7 – 6.7 26 POG CV (kcal/kg) 6,300 – 6,300 6,300 Collinsville OC(kk) OC Coking Coal (Mt) 29 17 21 11 32 15 PP Ash (%) 10 10 10 – OC Thermal Coal (Mt) 36 16 34 14 48 40 PP CV (kcal/kg) 6,100 6,100 6,100 6,000 Rolleston(mm) 75% OC Thermal Coal (Mt) 160 100 160 100 270 307 SB CV (kcal/kg) 5,750 5,600 5,700 5,650 Togara North(nn) 70% OC Thermal Coal (Mt) 150 27 140 22 160 162 SB CV (kcal/kg) 6,400 5,900 6,300 6,300 Wandoan(oo) 75% OC Thermal Coal (Mt) 780 240 560 170 730 730 PP CV (kcal/kg) 5,900 5,900 5,900 5,900 Reserves Subtotal – Queensland (Mt) 1,311 529 1,021 404 1,433 1,494 Reserves Total – Coal Australia (Mt) 2,409 764 1,817 563 2,396 2,487 Notes: Tonnages are quoted as million metric tonnes.

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

Resource tonnes have been reported on an in situ moisture basis while Coal Reserves are reported on an as received moisture basis. Coal Resources are reported inclusive of Coal Reserves.

Coal Resources have been re-estimated in 2012 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.

Thermal Coal Resource qualities are reported at an in situ moisture basis and Thermal Coal Reserve qualities are reported on a gross as received basis. Coal Resource qualities for coking coal are not reported, however Coking Coal Reserve qualities are reported on an air dried basis.

Unless otherwise stated, the product yields used to estimate Marketable Coal Reserves are derived from a simulation package applied to sizing and washability data from each deposit, commonly the "Resource Mastor" software developed by

A&B Mylec (unless otherwise stated in the footnotes below). The simulation package in each case is benchmarked to meet historical plant performance by making adjustments for plant inefficiencies.

Changes and issues material to the estimation of resources and reserves are noted below for specific projects. Reference to production changes between 31 December 2011 and 31 December 2012 are detailed for each producing mine site.

Coal Resource and Coal Reserve totals are rounded to appropriate levels of accuracy in accordance with the 2004 JORC Code and the Xstrata Coal rounding procedures. In summary, Measured and Indicated Resources are rounded to two significant figures when greater than 100Mt whilst all reserves are rounded to two significant figures. Rounding of figures may lead to computational discrepancies.

15



ber 2012

(a) Bulga Complex: Resource increase due to the acquisition of ML1674 beneath Commonwealth Land (+17Mt). Resource depletion due to mining (–15Mt).

The Bulga complex consists of resources suitable for both potential opencut and underground mining methods. Seams with a thickness greater than 0.3m to a depth of 350m were estimated for potential opencut extraction whilst seams with a thickness greater than 1.8m have been estimated to a maximum depth of 500m for potential underground extraction. Resources with potential limitation on recovery were estimated and reported separately, i.e. affected by overlying surface alluvium or faulting. Tenements for the Bulga Complex expire between April 2013 and March 2033. Some tenements have expired but renewal applications have been submitted.

(b) Bulga Opencut: No significant change in the reserve estimation since 31 December 2011. Reserve depletion due to mining (–10Mt). Coal Reserves for Bulga opencut operations are sufficient to support a mine life of 23 years.

(c) Bulga Underground: Reserve increase due to mine plan changes to the Blakefield South and North layouts (+6.1Mt) and reclassification of Commonwealth Land (+7.1Mt). Reserve depletion due to mining (–5Mt).

Mine plan changes for extraction of the Blakefield Seam included removal of longwall 6, extensions to longwall 7 and 8, change to northern reserves access resulting in reduced development tonnes (now via the opencut highwall), removed cross-fault development, removal of the requirement for ventilation shafts and associated development roadways, ROM tonne calculation change whereby stone dilution was removed from the working section calculation, and the minimum longwall extraction height was increased. Coal Reserves for Bulga underground operations are sufficient to support a mine life of 29 years.

(d) Baal Bone: Resource decrease due to opencut extraction limitations applied to the Glen Davis Seam (irregular and banded in nature) which was previously assumed extractable by underground methods (–69Mt).

Extraction of the remaining Lithgoe Seam and Irondale Seam resources expected to be by underground methods except where the Lithgow, Irondale and Glen Davis Seams are potentially extractable by opencut methods. Tenements for Baal Bone expire between February 2013 and August 2032.

(e) Running Stream: Running Stream is an undeveloped thermal coal project.

Resource decrease due to opencut extraction limitations applied to the Glen Davis Seam (irregular and banded in nature) which was previously assumed extractable by underground methods (–48Mt).

Potential mining methods would be opencut for the shallow resources (in the order of less than 50m depth of cover due to steep topography beyond this limit) and underground for resources in excess of approximately 50m. There is no mine plan current for this deposit.

(f) West Wallsend: Resource increase due to exploration and remodelling of the western domain area (+1.3Mt). Resource and reserve depletion due to mining (–4Mt). The remaining

underground resources in the West Borehole Seam will support the LOM plan.

Reserve decrease due to environmental sensitivity restrictions including protection of surface features from subsidence (–1.7Mt). Also due to longwall panel changes due to seam splitting and thinning (–1.2Mt). West Wallsend uses the MacSim model to determine practical yields. Changes in the marketable coal energy and ash % from 21.5% to 22.5% increased yield and salable tonnes by 4%, however resulted in a lower CV product.

Tenements for the West Wallsend, Cardiff Borehole and Teralba expire between February 2014 and March 2024. Some tenements have expired but renewal applications have been submitted.

Coal Reserves for West Wallsend underground operations are sufficient to support a mine life of 6 years.

(g) Cardiff Borehole: Due to rounding, no Measured Coal Resources have been reported (–2Mt). No other change in the resource estimation since 31 December 2011. There is currently no mine plan at Cardiff Borehole.

Cardiff Borehole is a potential underground coal resource possibly accessible via the existing Teralba Colliery infrastructure.

(h) Teralba: Due to rounding, no Measured Coal Resources have been reported (–2Mt). No other change in the resource estimation since 31 December 2011. There is currently no mine plan at Teralba.

Teralba was a longwall underground that ceased operations in 2001. The resource remains suitable for a potential underground mine.

(i) Mitchells Flat: No change in the resource estimation since 31 December 2011. There is currently no mine plan at Mitchells Flat, however, there is potential to extract these resources by a combination of open cut and underground methods.

(j) Liddell Opencut: Elevation of resource classification status from Inferred to Measured and Indicated after additional exploration (+26Mt). Resource and reserve depletion due to mining (–7Mt).

The majority of Measured and Indicated Resources have opencut potential with many coal seams of variable thickness and quality contributing to the average CV of approximately 6,100kcal/kg. The Inferred Resources are primarily deeper and on average are higher quality thick seams (CV average of 6,450kcal/kg and thicknesses greater than 1.8m) suitable for underground extraction.

Reserve increase due to changes in mine plan through Entrance pit extension towards the south (+2.8Mt). Further exploration and marketing studies will determine whether mining below the Pikes Gully floor in the southern extension will be economically viable in the future.

Tenements for the Liddell expire between October 2023 and November 2028.

Coal Reserves for Liddell operations are sufficient to support a mine life of 10 years.

16



ber 2012

Coal continued

(k) Mount Owen: Resource increase due to inclusion of tonnes omitted from 2011 estimate through an error in surface clipping (+3.1Mt). Resource and reserve depletion due to mining (–8.4Mt).

The majority of estimated resources have the potential for opencut extraction with many seams of varying thickness and quality contributing to an average CV of 6,250kcal/kg. No thickness limitations were applied and minimal extrapolation (<500m to lease boundary) of Inferred Resources beyond drill hole data was used in the estimation.

Reserve decrease due to mine plan changes allowing for potential instability associated with the Hebden Thrust (–1.2Mt).

Tenements for the Mt Owen expire between July 2013 and March 2030. Some tenements have expired but renewal applications have been submitted.

Coal Reserves for Mt Owen Complex operations (including Mt Owen, Glendell and Ravensworth East) are sufficient to support a mine life of 10 years.

(l) Ravensworth East: Resource increase due to exploration extending classification within Tailings Pit No. 2 and South Mt Owen (+58Mt) and Tailings Pit No. 2 project included in LOM plan (+9Mt). Update of the geological model following exploration resulted in an increased in the average CV. Resource and reserve depletion due to mining (–2.9Mt).

Reserve increase due to addition of Tailings Pit No. 2 pit expansion (+5.7Mt).

Tenements for the Ravensworth East expire between January 2024 and March 2029.

(m) Glendell: Resource increase due to reclassification from Inferred to Measured and Indicated due to exploration drilling in the southeast and northwest of lease (+10Mt). Resource and reserve depletion due to mining (–4.2Mt).

Seams between the Lemington and Hebden Seams have been identified as potentially extractable via opencut methods. The thicknesses range from 0.4 to 4m and are potentially marketable as medium to low ash thermal coals. Some coals have the potential for semi-soft or PCI products.

Reserve decrease due to southern pit boundary relocation allowing for creek diversion (–1.1Mt).

Tenements for the Glendell expire between July 2020 and March 2032.

(n) United: No significant change in the resource estimation since 31 December 2011.

Resources within the proposed opencut pit shell total 82Mt (CCL775). Within A444, underground mining is proposed in the Blakefield (33Mt) and Woodlands Hill (12Mt) Seams despite the presence of high carbon dioxide contents in both seams.

Resources occur in seams above and below the Blakefield and Woodlands Hill Seams within A444. Although there are no plans to mine these seams at present, extraction is considered likely within approximately 50 years.

Tenements for the United expired in December 2012 but renewal applications have been submitted.

(o) United Opencut: No significant change in the reserve estimation since 31 December 2011.

Coal Reserves for United Opencut operations are sufficient to support a mine life for 13 years.

(p) United A444 Underground: No significant change in the reserve estimation since 31 December 2011.

Coal Reserves for United A444 Underground operations are sufficient to support a mine life for 15 years.

(q) Ulan: Resource decrease due to the exclusion of stone partings from Inferred Resource estimate as a result of re-evaluation of geophysical logs within the highly banded seams overlying the Ulan Seam (–1,600Mt). There are no plans to mine these seams at present, however, they are considered to have potential for opencut and/or underground mining within a 50 year time frame.

Resources within Ulan #3 mine plan (Ulan Seam mining section) total 90Mt and within Ulan West mine plan, resources total 130Mt. These resource totals are of Measured status. Longwall top coal caving (LTCC) has been considered as a mining method for Ulan Seam coal top resources (380Mt).

Tenements for the Ulan expire between August 2014 and March 2032. Some tenements have expired but renewal applications have been submitted.

(r) Ulan #3 Underground: Reserve increase due to mine plan changes to allow for adequate ventilation (+1.8Mt). Reserve depletion due to mining (–4Mt).

Coal Reserves for Ulan #3 underground operations are sufficient to support a mine life of 12 years.

(s) Ulan West Underground: Reserve decrease due an extra set of gate roads included in mine plan as a result of narrowing of and length change to the first four longwalls (–0.5Mt). Reserve depletion due to mining (–0.3Mt).

Coal Reserves for Ulan West underground operations are sufficient to support a mine life of 15 years.

(t) Ulan Waratah Opencut: No significant change in the reserves estimation since 31 December 2011. Reserves depletion due to mining (–1.4Mt).

Coal Reserves for Ulan Opencut operations are sufficient to support a mine life of 6 years.

(u) Narama: No significant change in the resource and reserve estimation since 31 December 2011. Resource and reserve depletion due to mining (–2.8Mt).

All coal resources have been reported as extractable via opencut methods, specifically in the Vaux, Broonie and Bayswater Seams. Linear strip ratios are generally less than 8:1 down to the basal Bayswater Seam. Opencut resources are typically less than 130m in depth.

Tenements for the Narama expire between August 2015 and January 2024.

17



ber 2012

All remaining reserves are classified as Proved.

Coal Reserves for Narama operations are sufficient to support a mine life of 2 years.

(v) Ravensworth North: In 2011, Ravenworth North and Ravensworth West were reported separately however in 2012, resource and reserve estimations are reported as Ravensworth North. Resource increase due to the transfer of Ravensworth West to Ravensworth North (+85Mt) and update to quality model (+1.7Mt). Resource and reserve depletion due to mining (–3Mt).

Remaining resources have opencut potential and include the underground pillars from the Upper Liddell, Barrett and Lower Pikes Gully workings. Coal quality has the potential to supply export semi-soft coking and thermal coal markets. All opencut resources have been adjusted to account for historic underground and opencut operations based on the most recent surveys of pillars and extraction limits.

Resources and reserves were excluded from a zone 30m zone each side of the Hunter Valley Dyke.

Marketable Coal Reserve increase due to the transfer of Ravensworth West to Ravensworth North (+27Mt). Marketable Coal Reserve decrease due to 2011 marketable tonnes correction (–9.1Mt), whereby Marketable Reserve tonnes were quoted to the entire Ravensworth North ROM basis and not the Proved + Probable basis.

Tenements for the Ravensworth North expire between June 2013 and February 2033. Some tenements have expired but renewal applications have been submitted.

Coal Reserves for Ravensworth North operations are sufficient to support a mine life of 22 years.

(w) Mangoola: Resource increase after an update of the geological model in the LOM area for the Great Northern and Fassifern Seams, and revised extents of cindering sterilizing resources (+2.7Mt). Resource and reserve depletion due to mining (–9.3Mt).

Upper seams within the Newcastle Coal Measures have the potential for opencut extraction, producing a thermal product between 20% – 30% ash. Deeper seams (Whybrow to Blakefield) occurring within the upper portions of the Wittingham Coal Measures, are highly banded with ash ranging from 25% to 50%. These seams have both opencut and underground potential.

Reserve increase due to changes in mine plan driven by market demand for high ash coal (+2.9Mt). Mining of this Upper Pilot B Seam was not included previously. Marketable Coal Reserves also increased due to the strategy of bypassing some ROM coals (+6.7Mt), however, overall product quality has reduced as a result.

Product yields used to estimate Marketable Coal Reserves were derived from a “simulator” developed for the deposit by CGP Resources Pty Ltd (formerly Downer EDI Engineering). Inputs to this model are slim core washability data in conjunction with a procedure to determine practical yield-ash. To enable the theoretical bore core data to be converted to practical results, practical offsets were determined based on the relationships between the base

+0mm data and the simulated data from large diameter (LD) cores. It should be noted that the modelled slim core float-sink data has been combined into working sections inclusive of dilution, and therefore the practical yields interpolated can be applied to the full ROM tonnage.

Tenements for the Mangoola expire between November 2014 and November 2029.

Coal Reserves for Mangoola operations are sufficient to support a mine life of 12 years.

(x) Tahmoor North: Resources and reserves were reported as Tahmoor in 2011. Resource increase due to reclassification of new areas within Bulli and Lower Wongawilli Seams (+8.5Mt), reclassification of pillars from sterile to measured (+17Mt), and conversion applied to 2011 moisture parameters (+5.4Mt). Inferred Resources for Tahmoor North have been split with Tahmoor South (–46.7Mt). Resource and reserve depletion due to mining (–1.7Mt).

The Bulli Seam is the target seam for underground mining at Tahmoor North. The Wongawilli Seam has the potential for underground extraction in the southern half of the lease within a 50 year time frame, however, no mine plan has yet been developed. The lower section of the Wongawilli Seam contains the most likely working section, ranging in thickness between 0.55m to 3.13m.

No significant change in the reserve estimation since 31 December 2011.

Tenements for the Tahmoor North expire between March 2014 and August 2031. Some tenements have expired but renewal applications have been submitted.

Coal Reserves for Tahmoor North underground operations are sufficient to support a mine life of 9 years.

(y) Tahmoor South: Project name change – 2011 Resources and reserves were reported as Bargo. Resource increase due to additional exploration data expanding the resource area by more than 6km2 (+36.4Mt) and improved confidence in the Lower Wongawilli Seam Resources due to additional drilling and coal quality data (+19.5Mt).

The Bulli Seam is the main target seam for underground mining at Tahmoor South. The Wongawilli Seam has the potential for underground extraction, however, no mine plan has yet been developed. The Wongawilli Seam is thicker than the Bulli, however it contains a number of thin stone bands primarily in the upper section, and a 1m tuff band which splits the seam into upper and lower sections. Only the lower section has been included in the resource estimate. Part of the Tahmoor South lease underlies the historic township of Bargo.

Reserve increase due to reclassification of resources from Inferred to Indicated allowing tonnes to be reported as Probable Reserves and change to mine plan layout during Pre-Feasibility stage (+7.1Mt).

Tenements for the Tahmoor South expire in 2025.

Coal Reserves for Tahmoor South operations are sufficient to support a mine life of 17 years.

18



ber 2012

Coal continued

(z) Ravensworth Underground: No significant change in the resource estimation since 31 December 2011. Resource and reserve depletion due to mining (–2.6Mt).

Coal resources are estimated for Ravensworth Underground from the Lemington N Seam down to the Hebden Seam. The Pikes Gully Seam is currently mined by underground longwall retreat and produces a semi-soft coking coal for the export market. Feasibility studies to extend underground mining to the Upper and Middle Liddell Seams are complete and inter seam drift works from Pikes Gully to the Upper Liddell are well advanced. Lemington LCB is being examined as another seam with potential for longwall extraction. All resources have potential to be utilised as thermal products, with some seams, including the currently mined Pikes Gully and Upper Liddell Seams, being able to achieve coking coal specification after beneficiation.

Reserve decrease due to shortening longwall 7 within Pikes Gully layout as a result of western seam split, Pikes Gully Seam thickness decrease and Pikes Gully and Liddell Seam yield reduction (–1.2Mt).

Tenements for the Ravensworth Underground expire between April 2018 and November 2029. Some tenements have expired but renewal applications have been submitted.

Coal Reserves for Ravensworth Underground operations are sufficient to support a mine life of 10 years.

(aa) Oaky Creek: Resource increase due to reclassification and inclusion of additional Pleiades 3, Tieri 1, Tieri 2, Corvus 1 and in some places German Creek Seams (+116Mt) due to the concept of potential large scale opencut extraction down to depths in excess of 200m. Increase also due to inclusion of resources previously reported with Red Rock EPC713 (+4Mt). Resource and reserve depletion due to mining (–10Mt). XCQ has a 75% interest in EPC713.

Resources within the German Creek Working Section have been reported as extractable via underground methods (208Mt). Of this, approximately 135Mt Measured and Indicated Resources are within the 2013 LOM Plan for underground operations (Oaky Creek No.1 and Oaky Creek North).

Tenements for the Oaky Creek Complex expire between August 2014 and July 2027. Some tenements have expired but renewal applications have been submitted.

(bb) Oaky Creek No. 1: No significant change in the reserve estimation since 31 December 2011. Reserve depletion due to mining (–2Mt). Reserves do not include remanent pillars such as longwall barrier and chain pillars.

Coal Reserves are sufficient to support a mine life to 2017.

(cc) Oaky Creek North: Reserve decrease due to mine plan changes where longwall panels were shortened (–3.1Mt). Reserve depletion due to mining (–8.5Mt). Reserves do not include remanent pillars such as longwall barrier and chain pillars.


(dd) Oaky Acacia Opencut: No change in the reserve estimation since 31 December 2011.

(ee) Red Rock: Inferred Resource increase due to initial resource estimate for two project areas – Kestrel East: underground coking coal resource within German Creek Formation (+100Mt), and Ensham North: opencut thermal coal resource within the Rangal Coal Measures (+110Mt). Resource decrease due to change in tenure status where tonnes are now reported in Oaky Creek Complex (–4Mt).

The remaining Inferred Resource (20Mt) is an underground coking coal resource in the German Creek Formation. Inferred Resources for Liskeard Seam reported in 2011 were excluded in 2012 as further investigation confirmed the seam is too thin to have any economic significance.

Tenements for Red Rock expire between September 2013 and June 2014.

(ff) Newlands, Suttor, Eastern (RCM – Rangal Coal Measure): Newlands Coal Resource increase due to reclassification and exploration to the south and east of Northern Underground extended area (+21Mt). Eastern Creek decrease due to reclassification and removal of deeper Inferred Resources in areas of limited drilling near silled and heat affected zones (–23Mt). Resource depletion due to mining (–8.4Mt).

Suttor Creek and Newlands resources have been estimated for the extraction of the Upper Newlands Seam (UNS) via opencut and/or underground methods, however no underground operations currently exists for Suttor Creek. Newlands resource estimations were limited to the East, due to the presence of the Burton Range Thrust Fault and intrusions. These features also separate the Newlands deposit from the Eastern Creek deposit. Coal seams are present above and below the UNS at Suttor Creek and Newlands, however, are considered to be uneconomic and therefore not included in the resource estimate. Eastern Creek resources have been estimated for the extraction of the Eastern Creek EB Seam (equivalent to the UNS) via opencut and/or underground methods. Current LOM plan area only identifies potential for opencut methods. Coal Seams above and below the EB Seam are not considered to be of economic significance with the exception of the Lower Newlands Seam at Eastern Creek North.

Tenements for the Newlands Complex expire between August 2016 and December 2032.

(gg) Newlands Opencut: (Newlands, Suttor Creek, Eastern Creek and Wollombi OC). The product yields used to estimate Marketable Reserves were derived from plant simulation models developed by Xstrata Coal QLD Coal Technology Group for each mining area. Inputs to the plant simulation models include washability data, ply thickness and dilution assumptions. The simulation models include adjustments for plant efficiencies to calculate practical yields. The models are calibrated to historical plant performance, batch wash and large diameter core data. Reserve decrease due to mine plan changes and revised loss and dilution assumptions appropriate to mining conditions (–7.7Mt Thermal and –8.1Mt Coking). Reserve depletion due to mining (–6Mt).

19



ber 2012

Coal Reserves for Newlands Opencut operations are sufficient to support a mine life of 9 years.

(hh) Newlands Underground: (Newlands and Suttor Creek) Decrease in Northern Underground reserves due to re-interpretation of geological structures resulting in panel P7 being removed and design changes to panels P8 and P9 (–4.3Mt). Newlands reserve depletion due to mining (–4.7Mt).


Suttor Creek Underground reserves have been depleted due to the project not being considered currently economically viable nor likely to become economically viable in the future (–22Mt).

(ii) Wollombi (MCM – Moranbah Coal Measures): No significant change in the resource estimation since 31 December 2011. Resource depletion due to mining (–3.4Mt).

(jj) Sarum: Due to rounding, there is a thermal Inferred Coal Resource decrease of 10Mt.

Tenements for Sarum expired in November 2012, renewal applications have been submitted. Current tenements remain valid while renewal application is processed.

(kk) Collinsville: Resource increase due to reclassification of areas with additional drilling and geology model update (+7Mt). Decrease in Inferred Resources due to modelling changes and new drilling around intrusions (–12Mt). Resource depletion due to mining (–3.4Mt).

Total resources have been reported as extractable via either opencut and/or underground methods, however, all resources within the current mine plan are considered extractable by opencut methods only (70Mt). The resource has the potential to produce coking, thermal and/or low volatile coal.

Reserve increase due to revised loss and dilution assumptions appropriate to mining conditions, revised ash-yield regression data and adjustments made to reserve areas based on current economic limits (+32Mt). Reserve depletion due to mining (–5Mt).

Tenements for Collinsville expire between September 2014 and May 2032. Coal Reserves at Collinsville are sufficient to support a mine life for 18 years.

(ll) Cook (Blackrock): Due to rounding, there is an Indicated Coal Resource decrease of 5Mt and an Inferred Coal Resource decrease of 40Mt.

Tenements for Cook expire between February 2015 and September 2028.

(mm)Rolleston: Resource decrease due to reclassification of resources from Indicated to Inferred and a loss of Inferred Resources through modelling changes and detailed Tertiary interpretations (–43Mt). Resource increase due to remodelling of A Seam splits as a result of additional drilling indicating better continuity between the A Seam and A1 seam split (A1 was not reported in the 2011 estimation) (+5.6Mt). Resource depletion due to mining (–12.2Mt).

Coal Reserve estimation includes Rolleston West which was reported separately in 2011. Reserve decrease due

to reclassification of resource status from Measured and Indicated to Inferred (–7.7Mt). Changes to Spring Creek, Rolleston West 2, Gibbs Gully and Rolleston South Pit mine plans to allow for water infrastructure (–21.3Mt). 2011 Reserves not economically viable at 2012 long-term pricing (–1.9Mt). Reserve depletion due to mining (–9.2Mt).

Tenements for Rolleston expire between April 2015 and May 2033.

Coal Reserves for Rolleston are sufficient to support a LOM through for 23 years.

(nn) Togara North: No change in the resource estimation since 2011, however, due to rounding, there is an apparent reserve increase of 10Mt.

Tenements for Togara North expire between March 2014 and December 2046.

Coal Reserves are sufficient to support a mine life for 26 years.

(oo) Wandoan: Due to rounding, there is a Measured Coal Resource increase for MDLs of 50Mt. No change in resource estimations for EPC788 (Taroom East), EPC791 (Juandah East), EPC838 (Wandoan East) and EPC1028 (Cowangah). Initial resource estimate for EPC787 (Wandoan North), EPC792 (Wandoan South) and EPC1143 (Wandoan Extra) due to exploration. Revised estimate for EPC859 (Bimbadeen) due to additional exploration. Therefore total Measured and Indicated Resources increased by 765Mt. Inferred Resources also increased due to initial estimations (+903Mt).

No significant change in the reserve estimation since 31 December 2011.

Tenements for Wandoan expire between August 2014 and August 2017. Coal Reserves for Wandoan are sufficient to support a mine life of 33 years.

(pp) Milray: Initial resource estimate Inferred Resources 610Mt.

Tenements for Milray expired in January 2013, renewal application has been submitted.

(qq) Pentland: Initial resource estimate Measured and Indicated Resources totalling 79Mt.

Tenement for Pentland expires in October 2014.

Competent Persons: CFP = Charles Parbury, Director, McElroy Bryan Geological Services Pty Ltd (AusIMM).

DC = David Cahill, Technical Services Superintendent, Ravensworth Operations (AusIMM).

DL = Dave Lennard, General Manager Opencast, Palaris (AusIMM).

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

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

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

20



ber 2012

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

LF = Lindsay Ford, Technical Services Manager, Xstrata Coal QLD (AusIMM).

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

MW = Mark Williams, Technical Services Manager, Mangoola (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).

PM = Paul Maddocks, Technical Services Manager, Tahmoor Coal (AusIMM).

POG = Paul O'Grady, Group Manager – Mine Planning, Xstrata Coal QLD (AusIMM).

PP = Philip Price, Wandoan Project Manager – Operations, Xstrata Coal QLD (AusIMM).

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

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

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

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

ROB= Raelene O’Brien, Manager Technical Services, Xstrata Coal NSW (AusIMM).

RSH = Scott Hobden, Technical Services Manager, Ravensworth Underground (AusIMM).

SB = Shaun Barker, Senior Mining Engineer, Xstrata Coal QLD (AusIMM).

SR = Simon Rock, Principal Mining Engineer, Palaris Mining (AusIMM).

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

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

TP = Toby Prior, Principal Geologist, Xstrata Coal QLD (AusIMM).

Coal continued

21



ber 2012

South Africa Coal Resources


interestMining

Method Commodity




Person31.12.12 31.12.11 31.12.12 31.12.11 31.12.12 31.12.11

Operations Tweefontein North(a) 79.8% OC/UG Thermal Coal (Mt) 760 770 – – 20 15 MS CV (kcal/kg) 5,250 5,200 – – 5,500 Tweefontein South(b) 79.8% OC/UG Thermal Coal (Mt) 220 230 65 62 30 37 MS CV (kcal/kg) 5,350 5,200 4,350 4,300 4,600 Goedgevonden Complex(c) 74.0% OC/UG Thermal Coal (Mt) 550 580 25 24 – – MS CV (kcal/kg) 4,800 4,500 5,000 4,850 – – iMpunzi North(d) 79.8% OC Thermal Coal (Mt) 300 270 5 34 – 6 MS CV (kcal/kg) 5,250 5,550 5,550 6,250 – iMpunzi East(e) 79.8% OC Thermal Coal (Mt) 150 150 10 5 – 11 MS CV (kcal/kg) 5,400 5,350 5,250 5,700 – Resources Subtotal – Current Operations (Mt) 1,980 2,000 105 125 50 69 Undeveloped/Projects Oogiesfontein(g) 100.0% UG Thermal Coal (Mt) 60 36 20 40 – – MS CV (kcal/kg) 4,950 4,700 4,950 4,850 – – Elandspruit(h) 100.0% OC Thermal Coal (Mt) 30 30 – – – – MS CV (kcal/kg) 5,000 5,000 – – – – Zonnebloem(f) 100.0% OC Thermal Coal (Mt) 200 210 35 30 5 5 MS CV (kcal/kg) 5,150 5,100 4,850 4,700 5,400 Paardekop(i) 100.0% UG Thermal Coal (Mt) 130 – 640 450 90 400 MS CV (kcal/kg) 5,350 – 5,400 5,400 5,350 Undeveloped Resources(j) 100.0% OC/UG Thermal Coal (Mt) – – 15 12 250 190 MS CV (kcal/kg) – – 4,750 5,000 5,400 Resources Subtotal – Undeveloped/Projects (Mt) 420 276 710 532 345 595 Resources Total – Coal South Africa (Mt) 2,400 2,276 815 657 395 664

22



ber 2012

South Africa Coal Reserves


interestMining

method Coal type

Extractable Coal Reserves

Saleable Coal Reserves

Total Saleable Coal Reserves

CompetentPerson

Proved Probable Proved Probable 31.12.12 31.12.12 31.12.12 31.12.12 31.12.12 31.12.11

Operations Tweefontein North(a) 79.8% UG/OC Thermal (Mt) 200 91 110 48 160 126 TH Export (Mt) 87 37 120 90 CV (kcal/kg) 5,900 5,900 5,900 5,900 Domestic (Mt) 28 11 39 36 CV (kcal/kg) 5,100 5,100 5,100 5,135 Tweefontein South(b) 79.8% UG/OC Thermal (Mt) 18 11 13 6.1 19 35 TH Export (Mt) 11 6.1 17 30 CV (kcal/kg) 6,000 6,000 6,000 6,000 Domestic (Mt) 2 – 2 5 CV (kcal/kg) 5,100 – 5,100 5,135 Goedgevonden Complex(c)

74.0% OC Thermal (Mt) 280 68 180 25 200 198 RR

Export (Mt) 83 12 90 112 CV (kcal/kg) 6,000 6,000 6,000 6,000 Domestic (Mt) 92 13 110 86 CV (kcal/kg) 5,100 5,100 5,100 5,135 iMpunzi North(d) 79.8% OC Thermal (Mt) 73 2.9 42 0.9 43 45 RR Export (Mt) 39 0.8 40 41 CV (kcal/kg) 5,700 5,700 5,700 5,900 Domestic (Mt) 3.4 0.1 3.5 4 CV (kcal/kg) 5,300 5,300 5,300 5,135 iMpunzi East(e) 79.8% OC Thermal (Mt) 130 2.9 75 2.2 77 81 RR Export (Mt) 73 2.1 75 78 CV (kcal/kg) 5,700 5,700 5,700 5,900 Domestic (Mt) 2.3 0.1 2.4 3 CV (kcal/kg) 5,300 5,300 5,300 5,135 Zonnebloem(f) 100% OC Thermal (Mt) – 170 – 110 110 100 RR Export (Mt) – 63 63 57 CV (kcal/kg) – 5,800 5,800 5,900 Domestic (Mt) – 50 50 43 CV (kcal/kg) – 5,100 5,100 5,135 Reserves Total – Coal South Africa (Mt) 701 346 420 192 609 586 Notes: 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 2012 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 resources and reserve qualities are reported at an air dried moisture basis and Saleable Reserves are reported at a net as received moisture basis. Coal Reserves are reported inclusive of resources.

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.

Changes and notes relevant to the estimation of resources and reserves are listed below for specific projects. Changes reported are exclusive of production from 31 December 2011 to 31 December 2012.

Resource and reserve totals are rounded to appropriate levels of accuracy in accordance with the 2007 SAMREC Code and the Xstrata Coal rounding process. In summary, Measured and Indicated Resources are rounded to two significant figures if greater than 100Mt whilst all reserves are rounded to two significant figures. Rounding of figures may lead to computational discrepancies.

(a) Tweefontein North: Resource decrease due to cut-off applied to No. 2 Seam thickness in Waterpan Pit and additional exploration redefining coal seam outcrop in

Coal continued

23



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Boschmans North Opencut (–4Mt). Resource and reserve depletion due to mining (–7.1Mt).

The Tweefontein North development includes all five seams present in the Vryheid Formation, however, only the No.1, No. 2, No. 4 and No. 5 Seams form part of the mineable and economic resources. The resources have the potential to be extracted via both opencast truck and shovel and underground board and pillar mining methods.

Reserve increase with the approval of Tweefontein optimisation project (+58Mt) and changes to the mine plan including increased confidence in a portion of Klipplaat East, West pit, BM North and Central pits, inclusion of UG reserves to BM North and Central pits where strip ratio does not allow for opencut mining (+22Mt).

Mining Tenement for the Tweefontein North expire in August 2020. Coal Reserves for Tweefontein North are sufficient to support a mine life of 24 years.

(b) Tweefontein South: Resource decrease due to seam thickness and density reassessment on No. 2 Seam (–5.9Mt cumulative for Measured, Indicated and Inferred estimations) and reassessment of No. 4 Seam stooping vs. pillar boundaries (–6Mt). Resource increase due to additional exploration expanding potential footprint for ADDCAR blocks (+8.7Mt). Resource and reserve depletion due to mining (–4.7Mt).

Tweefontein South Complex is contained in the Tavistock and Klippoortje old order mining authorisations, situated within the Witbank Coalfield. The complex development includes all five seams, however, only the No.1, No. 2, No. 4 and No. 5 Seams form part of the potentially mineable and economic resources.

Reserve decrease due to environmental sensitivity restrictions mainly impacting the No. 5 Seam and re-evaluation of No. 4 Seam stooping reserves (–42.9Mt). Reserve increase due to changes to No. 5 Seam mining method, mining height and boxcut development (+15Mt).

Tenements for the Tweefontein South expire between August 2024 and August 2040. Coal Reserves for Tweefontein South are sufficient to support a mine life of 10 years.

(c) Goedgevonden Complex: Resource decrease due to removal of all resources under central river diversion (–24Mt). Resource increase due to reassessment of pillar boundary (+2.8Mt), and drilling and remodelling resulted in No. 4 Seam gain which was previously excluded by estimated weathering profile (+10.7Mt). Resource and reserve depletion due to mining (–14.4Mt).

The Goedgevonden Complex is situated within the Witbank coal field. Opencast dragline mining operations in the area are extracting the No.2, No. 4 and No. 5 Seams. The No. 3 Seam is too thin for practical and economic extraction and the No.1 Seam is not considered an economic resource in the area.

ROM Reserve increase due to inventory as at December 2012 and extra Eskom product (+6.9Mt). Product Reserve increase due to rejects moving from Probable to Proved,

2012 gain due to bypass at 100% and extra Eskom product (+9.5Mt).

Tenements for the Goedgevonden expire between February 2038 and May 2038. Coal Reserves for Goedgevonden are sufficient to support a mine life of 26 years.

(d) iMpunzi North: Resource increase due to exploration allowing upgrade of previously Inferred Resources to Measured, whilst also redefining the coal seam outcrop and thus adding additional resources (+2.1Mt). No Inferred Resources reported due to application of rounding. Resource and reserve depletion due to mining (–5.2Mt).

iMpunzi consists of iMpunzi Opencast (opencast dragline and truck and shovel operations) and iMpunzi Minipits (truck and shovel operations). The Opencast resources include the No.1, No. 2 and No. 4 Seams, whilst the Minipit includes only the No. 4 Seam.

Reserve increase due to mining of barrier pillar in Butterfly pit (1.7Mt) and change in opencut north and opencut south pit mine plan after re-evaluation of historical pit boundary (+1.2Mt).

Mining Tenement for iMpunzi North expires in August 2040.

Coal Reserves for iMpunzi North and East are sufficient to support a mine life of 25 years.

(e) iMpunzi East: Resource reclassification due to exploration upgrading 11Mt of Inferred Resources to Measured. Resource decrease due to removal of pillared resources as per reassessment of extent of underground workings and boundary buffer to be left between XCSA and BECSA (–7.4Mt). Resource and reserve depletion due to mining (–3.1Mt).

A large portion of No. 2 Seam and a small area of No. 4 Seam have been previously mined via underground board and pillars method. The full seam will be extracted through opencast mining methods – the lower zone previously via by underground methods and the upper zone which remains completely intact.

Reserve decrease due to removal of coal in boundary buffer left between XCSA and BECSA and an increase in the barrier pillar between the underground and opencut operations (–4.7Mt). Coal Reserves will support a mine life of approximately 23 years.

(f) Zonnebloem: Resource increase due to exploration enlarging footprint whilst adapted mining practices reduced No. 1 and 2 Seam thickness cut-off from 1m to 0.75m (+3.1Mt).

Zonnebloem resources have been considered economic for opencast extraction.

Reserve increase due to mining composite seams, reduced mineable seam and reduced yield (+23Mt).

Mining Tenement for Zonnebloem expires in September 2039. Coal Reserves for Zonnebloem are sufficient to support a mine life of 24 years.

(g) Oogiesfontein: Resource increase due to additional exploration and subsequent geology model update (+2.4Mt). There is currently no mine plan at Oogiesfontein.

Mining Tenement for Oogiesfontein expires in October 2018.

24



ber 2012

(h) Elandspruit: No significant change in the resource estimation since 31 December 2011. There is currently no mine plan at Elandspruit.

Mining Tenement for Elandspruit expires in October 2026.

(i) Paardekop: Resource reclassification from Inferred to Indicated as a result of additional exploration and airborne magnetics (+193Mt), whilst additional exploration and a geology model update resulted in a net increase of Indicated Resources (+122Mt). Inferred Resources decreased not only due to the reclassification to Indicated, but also as the thin southern portion of the deposit was not included due to risk and low potential for eventual economic extraction (–310Mt). There is currently no mine plan at Paardekop.

The only seam of economic importance in Paardekop project area is the Main Seam which contains nearly 95% of the extractable coal. The seam has a mean thickness of 2.51m and is structurally almost flat. The upper zone is of poor CV whilst the lower zone has an average raw CV over 5,300kcal/kg. The project area comprises of underground resources in a single-seam deposit.

Mining Tenement for Paardekop expired in December 2012, renewal application has been submitted.

(j) Undeveloped Resources: The resource estimation includes: Amersfoort (contained in southern portion of the Ermelo Coalfield, Mpumalanga province south-west of Breyton). Estimation for Amersfoort is based on the C Seam which is at a depth of 200m and a thickness of 2.5m; Boschmanspoort (located in the Witbank Coalfield of Mpumalanga south-east of Middleburg). Estimation for Boschmanspoort is based on the No.2 Seam which dips towards the east, therefore allowing some potential opencast resources in the west; and Trichardsfontein (located north of Trichard). Estimation for Trichardsfontein is based on the No. 4 Seam lower at approximately 90m depth. The seam has potential for underground extraction and possesses high raw qualities.

There is currently no mine plan at any of the Undeveloped Resources.

Inferred Resource increase due to additional exploration and geology model update within the Amersfoort Project (+45Mt).

Tenements for the Undeveloped Resources all expired in December 2012, renewal applications have been submitted.

Competent Persons: MS = Marius Smith; B Sc. Honours Geology; SACNASP; Group Coal Geologist, Xstrata Coal South Africa (8 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) – LOM planning and reserve estimation of new projects; Technical Services Manager, Xstrata Coal South Africa (3 years) – Short, medium and LOM planning, reserve estimation and reconciliation; Technical Services Manager & Planning Mine Overseer, BHPBilliton (7 years) – Short, medium and LOM 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 (5 years) – LOM 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 LOM 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 LOM 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.

Coal continued

25



ber 2012

Americas Coal Resources – Colombia


interest Mining

Method Commodity




Person31.12.12 31.12.11 31.12.12 31.12.11 31.12.12 31.12.11

Carbones del Cerrejón(a) 33.3% OC Thermal Coal (Mt) 3,100 3,200 1,100 1,150 700 800 GH CV (kcal/kg) 6,600 6,550 6,550 6,550 6,550 Resources Total – Colombia (Mt) 3,100 3,200 1,100 1,150 700 800

Americas Coal Reserves – Colombia


interest Mining

method Coal type




CompetentPerson


Carbones del Cerrejón(a) 33.3% OC

Thermal Coal (Mt) 670 93 650 90 740 780 GH

CV (kcal/kg) 6,200 6,150 6,200 6,100 6,200 6,200Reserves Total – Colombia (Mt) 670 93 650 90 740 780

Canada Coal Resources


interest Mining

Method Commodity



Inferred Coal Resources Qualified

Person31.12.12 31.12.11 31.12.12 31.12.11 31.12.12 31.12.11

Donkin Mine(b) 75.0% UG Coking/Thermal Coal (Mt) – – 230 230 250 250 KJW CV (kcal/kg) – – 7,400 7,400 7,200 Suska(c) 75.0% OC Coking/Thermal Coal (Mt) 110 108 75 77 50 50 GJ CV (kcal/kg) 6,500 – 6,500 – 6,500 –Sukunka(d) 75.0% UG Coking Coal (Mt) 200 – 35 – 0.3 – GJResources Total – Canada (Mt) 310 108 340 307 300 300

Canada Coal Reserves


interest Mining

method Coal type




Qualified Person


Donkin Mine(b) 75.0% UG Coking/Thermal Coal (Mt) – 58 – 47 47 48 LP CV (kcal/kg) – 7,200 7,200 7,200Reserves Total – Canada (Mt) – 58 – 47 47 48

26



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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 2012.

Coal Resource qualities are reported at an in situ moisture basis and Coal Reserve qualities are reported at a gross as received basis. Coal Reserves are reported inclusive of resources.

Americas (Colombia): Resources are reported as Gross Tons In Situ Resources (GTIS), i.e. without geological losses. The Coal Resources include coal for which the continuity, quality and mineability are established but are outside the current LOM 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 2007 SAMREC Code (South African Code for Reporting of Mineral Resources and Mineral Reserves).

Canada: Resources and reserves are reported in accordance with the 2011 NI 43–101, the CIM Definition Standards on Mineral Resources and Mineral Reserves with reference to Paper 88 – 21 guidelines.

Changes and notes relevant to the estimation of resources and reserves are listed below for specific projects. Changes reported are exclusive of production from 31 December 2011 to 31 December 2012.

Resource and reserve totals are rounded to appropriate levels of accuracy in accordance with the SAMREC Code or NI 43 – 101 and the Xstrata Coal rounding process. In summary, Measured and Indicated Resources are rounded to two significant figures if greater than 100Mt whilst all reserves are rounded to two significant figures. Rounding of figures may lead to computational discrepancies.

(a) Cerrejón Mine: Resource decrease due to exclusion of coal within 1km of major towns or below rivers and creeks where they are not within the 2012 LOM and P500 Phase 2 footprint (–320Mt).

Reserve decrease due to changes to the extraction losses and dilution in the mining model and reclassification of resources (–11Mt). Reserve depletion due to mining (–35Mt).


(b) Donkin Mine: No change in the resource or reserve estimation since 31 December 2011.

Entry tunnels access the Harbour Seam – approximately 110Mt (Indicated and Inferred) of coal occurs in the Harbour Seam within the envelope of drill holes and at a depth less than 600m.

Coal Reserves for Donkin are sufficient to support a mine life of 18 years. The Mining tenement is valid through to 2042.

(c) Suska: Project name change, reported as ‘Lossan Coal Area’ in 2011. JX Nippon Oil has acquired a 25% beneficial interest in the project. No change in the resource estimation since 31 December 2011 due to exploration drilling still in progress. Results are not yet available to include in the report.

(d) Sukunka: Property acquired in March 2012. JX Nippon Oil has acquired a 25% beneficial interest in the project. Initial resource estimation (+234Mt).

Tenements for Sukunka expire in 24 years.

Competent/Qualified 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 = Geoff Jordon P. Geol., Senior Geologist, Norwest Corporation (APEGBC).

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

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

Coal continued

27



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North Queensland Mineral Resources

Name of operation







person*31.12.12 31.12.11 31.12.12 31.12.11 31.12.12 31.12.11 31.12.12 31.12.11

Ernest Henry 100% Underground(a) UG (Mt) 4.8 4 74 71 79 75 13 13 CH Cu (%) 1.40 1.3 1.26 1.3 1.27 1.3 1.1 1.2 Au (g/t) 0.72 0.7 0.67 0.7 0.67 0.7 0.6 0.6 Magnetite (%) 27.8 32 25.4 28 25.5 28 23 26E1(b) OC (Mt) 8.4 9 24 25 33 34 14 14 CH Cu (%) 0.85 0.9 0.71 0.7 0.75 0.8 0.6 0.6 Au (g/t) 0.25 0.3 0.21 0.2 0.22 0.2 0.2 0.2Monakoff(c) OC (Mt) – – 1.5 2 1.5 2 1 1 CH Cu (%) – – 1.39 1.4 1.39 1.4 1.2 1.2 Au (g/t) – – 0.44 0.4 0.44 0.4 0.4 0.4Mount Isa 100% X41 Mine 1100 & 1900 Orebodies(d) UG (Mt) 37 44 15 15 52 60 7 8 KH Cu (%) 1.99 1.9 1.78 1.8 1.93 1.9 1.6 2Enterprise Mine 3000 & 3500 Orebodies(e)

UG (Mt) 37 40 5.2 6 42 45 1 1 KH

Cu (%) 2.96 3.0 2.40 2.5 2.89 3.0 2.1 2500 Orebody(f) UG (Mt) – – – – – – – – KH Cu (%) – – – – – – – –Open Pit(g),(h) OC (Mt) – – 150 150 150 150 130 133 KH Cu (%) – – 1.20 1.2 1.20 1.2 1.0 1 Total – North Queensland (Mt) 87 97 270 269 357 366 170 170

North Queensland Ore Reserves

Name of operation



Proved Ore ReservesProbable Ore

Reserves

Total Ore Reserves Competentperson*31.12.12 31.12.11 31.12.12 31.12.11 31.12.12 31.12.11

Ernest Henry 100% Underground(a) UG (Mt) – – 73 74 73 74 CC Cu (%) – – 0.97 0.95 0.97 0.95 Au (g/t) – – 0.50 0.5 0.50 0.5 Magnetite (%) – – 23 23 23 23E1(b) OC (Mt) – – 25 26 25 26 AT Cu (%) – – 0.78 0.8 0.78 0.8 Au (g/t) – – 0.22 0.2 0.22 0.2Monakoff(c) OC (Mt) – – 2.0 2 2.0 2 AT Cu (%) – – 1.36 1.4 1.36 1.4 Au (g/t) – – 0.44 0.4 0.44 0.4Mount Isa 100% X41 Mine 1100 & 1900 Orebodies(d) UG (Mt) 16 18 14 13 30 31 GC Cu (%) 1.91 1.9 1.75 1.8 1.84 1.8Enterprise Mine 3000 & 3500 Orebodies(e)

UG (Mt) 16 17 6.2 7 23 24 GC

Cu (%) 3.17 3.3 2.48 2.5 2.98 3.0Total – North Queensland

(Mt) 33 35 120 122 153 157

Copper

28



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Copper continued

Canada Mineral Resources

Name of operation







person*31.12.12 31.12.11 31.12.12 31.12.11 31.12.12 31.12.11 31.12.12 31.12.11

Kidd Creek(i) 100% UG (Mt) 19 19.3 1.0 1.1 20 20.4 3 4.2 BD Cu (%) 2.05 2.05 1.22 1.35 2.01 2.01 1.7 1.7 Zn (%) 4.59 4.71 5.90 5.56 4.66 4.75 7.0 6.4 Ag (g/t) 56 57 26 31 54 56 62 57Bell(j) 100% OC (Mt) 57 – 199 – 256 – 100 – BD Cu (%) 0.41 – 0.38 – 0.38 – 0.4 – Au (g/t) 0.18 – 0.16 – 0.17 – 0.1 –Granisle(j) 100% OC (Mt) 18 – 55 – 73 – 20 – BD Cu (%) 0.34 – 0.33 – 0.33 – 0.3 – Au (g/t) 0.11 – 0.11 – 0.11 – 0.1 –Total – Canada (Mt) 94 19 255 1 349 20 120 4

Canada Ore Reserves Name of operation



Proved Ore Reserves Probable Ore Reserves Total Ore Reserves Competent person*31.12.12 31.12.11 31.12.12 31.12.11 31.12.12 31.12.11

Kidd Creek(i) 100% UG (Mt) 11 13.3 4 2.3 15 15.5 AM Cu (%) 1.96 1.89 1.72 1.61 1.90 1.85 Zn (%) 4.38 5.09 5.21 4.53 4.59 5.01 Ag (g/t) 56 62 53 36 55 58Total – Canada (Mt) 11 13 4 2 15 16

Minera Alumbrera Ore Reserves Name of operation




Bajo de la Alumbrera(k)

50% OC (Mt) 210 248 6.7 8 217 256 JBN

Cu (%) 0.36 0.37 0.27 0.28 0.36 0.37 Au (g/t) 0.36 0.37 0.23 0.24 0.35 0.36 Mo (%) 0.013 0.013 0.014 0.014 0.013 0.013Total – Alumbrera

(Mt) 210 248 7 8 217 256

29



ber 2012

Chile Mineral Resources

Name of operation







person*31.12.12 31.12.11 31.12.12 31.12.11 31.12.12 31.12.11 31.12.12 31.12.11

Collahuasi(l) 44% OC Sulphide (Mt) 633 378 3,940 3,266 4,570 3,644 4,400 3,900 LA Cu (%) 0.83 0.92 0.83 0.79 0.83 0.80 0.8 0.8 Mo (%) 0.020 0.02 0.023 0.03 0.022 0.03 0.02 0.02 OC Oxide & Mixed

(Mt) 31 33 13 16 45 49 10 5 LA

Cu (%) 0.59 0.60 0.68 0.67 0.62 0.62 0.6 0.6Lomas Bayas

100%

Lomas Bayas I(m) OC Oxide & Mixed (Mt) 117 – 306 – 423 – 20 – NF Cu (%) 0.37 – 0.25 – 0.28 – 0.2 – Soluble Cu (%) 0.19 – 0.13 – 0.15 – 0.1 –Lomas Bayas II(n) OC Oxide & Mixed (Mt) 219 344 359 222 578 566 60 77 NF Cu (%) 0.33 0.30 0.24 0.21 0.27 0.26 0.1 0.15 Soluble Cu (%) 0.24 0.21 0.15 0.14 0.19 0.18 0.1 0.08Lomas Bayas III(m) OC Sulphide (Mt) 15 17.7 320 228 335 245.7 550 190 NFSulphide Zone Cu (%) 0.54 0.54 0.37 0.40 0.38 0.41 0.3 0.36 Oxide & Mixed (Mt) 11 66.2 160 312.9 171 379.1 40 28 Cu (%) 0.31 0.35 0.22 0.25 0.23 0.27 0.2 0.21Total – Chile (Mt) 1,030 839 5,100 4,045 6,120 4,884 5,100 4,200

Chile Ore Reserves Name of operation



Proved Ore Reserves Probable Ore Reserves Total Ore Reserves Competentperson*31.12.12 31.12.11 31.12.12 31.12.11 31.12.12 31.12.11

Collahuasi(l) 44% OC Sulphide (Mt) 419 285 2,720 2,575 3,140 2,860 MQ Cu (%) 1.00 1.07 0.79 0.77 0.81 0.80 Mo (%) 0.023 0.03 0.019 0.02 0.020 0.02 OC Oxide & Mixed (Mt) 31 21 13 15 44 35 MQ Cu (%) 0.59 0.59 0.70 0.69 0.62 0.63Lomas Bayas 100% Lomas Bayas I(m) OC Oxide & Mixed (Mt) 112 16 211 25 323 41 NF Cu (%) 0.37 0.32 0.26 0.28 0.30 0.30 Soluble Cu (%) 0.19 0.21 0.14 0.18 0.16 0.19Lomas Bayas II(n) OC Oxide & Mixed (Mt) 212 310 274 163 486 473 NF Cu (%) 0.33 0.30 0.24 0.21 0.28 0.27 Soluble Cu (%) 0.24 0.22 0.16 0.14 0.19 0.19Total – Chile (Mt) 774 632 3,220 2,778 3,990 3,409

30



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Peru Mineral Resources

Name of operation







person*31.12.12 31.12.11 31.12.12 31.12.11 31.12.12 31.12.11 31.12.12 31.12.11

Antamina(o) 33.75% OCSulphide Cu

(Mt) 131 125 679 749 810 874 670 530 LC Cu (%) 0.79 0.89 0.88 0.94 0.87 0.93 0.8 0.8 Zn (%) 0.11 0.15 0.097 0.13 0.099 0.14 0.08 0.1 Ag (g/t) 7.69 7.2 8.83 9.0 8.65 8.7 9.1 9 Mo (%) 0.030 0.034 0.026 0.025 0.027 0.026 0.02 0.02

Sulphide Cu –

Zn (Mt) 64 58 272 254 336 312 200 180 LC Cu (%) 0.75 0.73 1.00 0.84 0.95 0.82 0.9 0.5 Zn (%) 1.64 1.55 2.04 1.96 1.96 1.89 1.5 1.3 Ag (g/t) 13.5 13.5 15.3 14.1 15.0 14.0 16 9.7 Mo (%) 0.011 0.011 0.008 0.006 0.009 0.007 0.008 0.003Tintaya(p) 100% OC (Mt) 0 50 0 39 0 88 0 – HB Cu (%) 0 1.22 0 1.10 0 1.17 0 – Au (g/t) 0 0.19 0 0.18 0 0.18 0 –Antapaccay(q) 100% OC (Mt) 230 185 534 438 764 623 260 190 HB Cu (%) 0.64 0.66 0.49 0.54 0.54 0.58 0.4 0.4 Au (g/t) 0.15 0.14 0.10 0.12 0.12 0.13 0.1 0.06 Ag (g/t) 1.56 1.63 1.38 1.43 1.43 1.49 1.0 1.3 Mo (%) 0.005 0.005 0.005 0.005 0.005 0.005 0.005 0.005Coroccohuayco(r) 100% OC (Mt) – – 180 129 180 129 110 190 RR Cu (%) – – 1.17 1.10 1.17 1.10 0.8 0.8 Au (g/t) – – 0.13 0.12 0.13 0.12 0.1 0.1 Ag (g/t) – – 4.07 3.60 4.07 3.60 3.1 3 Mo (ppm) – – 131 180 131 180 100 100Las Bambas(s) 100% OC Sulphide (Mt) 490 490 720 720 1,210 1,210 500 500 RR Cu (%) 0.64 0.64 0.68 0.68 0.66 0.66 0.5 0.5 Mo (ppm) 174 174 172 172 173 173 150 149 Ag (g/t) 3.00 3.0 3.50 3.5 3.30 3.3 2.4 2.4 Au (g/t) 0.060 0.06 0.050 0.05 0.050 0.05 0.03 0.03Total – Peru (Mt) 911 908 2,390 2,329 3,300 3,236 1,700 1,590

Copper continued

31



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Peru Ore Reserves Name of operation




Antamina(o) 33.75% OC Sulphide Cu (Mt) 95 90 417 476 512 565 MM Cu (%) 0.90 1.05 0.93 0.95 0.92 0.96 Zn (%) 0.10 0.16 0.11 0.14 0.11 0.15 Ag (g/t) 8.43 8.2 8.99 8.9 8.89 8.8 Mo (%) 0.027 0.033 0.029 0.027 0.029 0.028 Sulphide Cu – Zn (Mt) 45 43 187 177 232 220 MM Cu (%) 0.88 0.82 0.98 0.83 0.96 0.83 Zn (%) 1.91 1.79 2.13 1.99 2.09 1.95 Ag (g/t) 15.1 15.0 15.3 14.3 15.3 14.5 Mo (%) 0.007 0.006 0.007 0.006 0.007 0.006Tintaya(p) 100% OC (Mt) 0 30 0 19 0 49 HB Cu (%) 0 1.12 0 0.84 0 1.01 Au (g/t) 0 0.14 0 0.10 0 0.12Antapaccay(q) 100% OC (Mt) 176 176 364 365 540 541 HB Cu (%) 0.67 0.66 0.57 0.56 0.6 0.59 Au (g/t) 0.15 0.14 0.12 0.12 0.13 0.13 Ag (g/t) 1.65 1.63 1.45 1.45 1.51 1.51 Mo (%) 0.005 0.005 0.004 0.005 0.005 0.005Total – Peru (Mt) 316 339 968 1,037 1,280 1,375

Other projects Mineral Resources

Name of operation






Resources Inferred Mineral

Resources Competentperson31.12.12 31.12.11 31.12.12 31.12.11 31.12.12 31.12.11 31.12.12 31.12.11

El Pachon(t) 100% OC (Mt) 533 430 1,050 810 1,580 1,240 1,700 1,500 RR Cu (%) 0.67 0.69 0.49 0.51 0.55 0.57 0.4 0.4 Mo (%) 0.013 0.014 0.011 0.011 0.012 0.012 0.01 0.01 Ag (g/t) 2.38 2.4 2.04 2.1 2.16 2.2 1.8 2Tampakan(u) 62.5% OC (Mt) 980 980 1,290 1,290 2,270 2,270 670 670 RR Cu (%) 0.69 0.69 0.45 0.45 0.55 0.55 0.4 0.4

Au (g/t) 0.28 0.28 0.16 0.16 0.21 0.21 0.1 0.1 Mo (%) 0.008 0.008 0.006 0.006 0.007 0.007 0.005 0.005Frieda River(v) 81.8% Nena High Sulfidation

OC

(Mt) – – 37 37 37 37 14 14 RR

30–12–08 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 0.4H-I-T Porphyry OC (Mt) 780 780 410 410 1,190 1,190 900 900 Cu (%) 0.51 0.51 0.44 0.44 0.49 0.49 0.4 0.4 Au (g/t) 0.28 0.28 0.20 0.2 0.25 0.25 0.2 0.2West Wall Copper 50% (Mt) – – 495 – 495 – 970 750 RRProject(w) Cu (%) – – 0.55 – 0.55 – 0.48 0.54 Au (g/t) – – 0.047 – 0.047 – 0.047 0.05 Mo (ppm) – – 90 – 90 – 76 100Total – Other projects (Mt) 2,290 2,190 3,280 2,547 5,570 4,737 4,300 3,834

32



ber 2012

Notes: (a) Ernest Henry Underground: Copper and gold

mineralisation occurs 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 is 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 modeled within the geology interpretation of the mineralised orebody, above the economic cut off of 1.15% Cu Equivalent and outside the areas depleted by both pit and underground mining activities, to the base of current drill testing. The Mineral Resource has been depleted by 1.6Mt by mining from 31 December 2011 to 31 December 2012. However, additional drilling has increased the overall resources by 4.3Mt. This update to 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 Resources. 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 Reserves utilising flow based dilution modelling. Material changes to the Ore Reserves as at 31 December 2012 include depletion from first production and ore body development (1.6Mt), and increases in Ore Reserves due to adjustments to flow modelling estimations totalling 0.4Mt. 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. The current mine life estimate is 14 years (2026) with the tenements due to expire in 4 years (2016) for Mining Lease Ernest Henry 1 and 14 years (2026) for Mining Lease Ernest Henry A to F.

(b) 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 Resources 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. The Mineral Resources have been depleted by 1.7Mt by mining in the North pit only. The

current mine life estimate is 5 years (2017) with the tenements due to expire in 2032 (20 years).

(c) 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 Reserve 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 0.5% Cu was applied. The current mine life estimate is 5 years (2017) with the tenements due to expire in 2033 (21 years).

(d) 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 Resources amounted to 5.76Mt as a result of continued updates to the mining depletion and sterilisation model. Mineral Resources depletions were the result of infill drilling within the 1100 Orebody and 1100 Hangingwall. Mining depletions and sterilisations amounted to a 3.2Mt reduction in Ore Reserves. Engineering reviews resulted in an increase of 1.7Mt to the Ore Reserves. Further work is continuing to evaluate the Measured and Indicated Mineral Resources for conversion to Ore Reserves using differing mining methods and economic parameters.

(e) 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 4.9Mt reduction in Mineral Resources 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 Resources. Mining depletions and sterilisations amounted to 2.9Mt of Ore Reserves. Engineering reviews resulted in an increase of 1.8Mt to the Ore Reserves. 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) Mount Isa 500 Orebody: The 500 Orebody was previously reported as an overlap between the Mount Isa underground and open pit copper Mineral Resources. This is now included in the 1100 and 1900 Orebody Resource.

(g) Mount Isa Open pit: 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 Resources is in primary chalcopyrite, the remainder being oxidised

Copper continued

33



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or partially oxidised, with a minor amount of supergene chalcocite mineralisation. Mineral Resource categorisation is based on assessment of orebody continuity, structural complexity and adequacy of data coverage. The Mineral Resources estimate is based on a block model with grade interpolation by Ordinary Kriging. The Mineral Resources has been reported inside an optimised pit shell using a cut-off grade of 0.5% Cu. A Pre-Feasibility Study is currently underway to determine the viability of commencing a large open cut copper mine within Mount Isa Open Pit.

(h) Underground-Open Pit Overlap: Removed from Mineral Resource in 2011.

(i) Kidd Creek: Ore Reserves are based on the approved mining plan to 9500ft depth. Mineral Resources are inclusive of Ore Reserves. Mineral Resources and Ore Reserves changes are the result of mining drawdown, with adjustments due to drilling conversion, and pricing. January to December 2012 production totaled 2.33Mt @ 51g/t Ag, 1.60% Cu, and 4.11% Zn. Ore Reserves are estimated using long-term mineral price assumptions and exchange rates. Following a review of major seismic events in 2009 and 2011, the mining plan has been modified to defer some higher-risk mining until later in the mine life, and thereby also modulate the behavior of the rock mass. This material has been supplemented with economic low-grade resource to extend the mining plan to 2020 (mine life of 8 years). A lower mining rate and exposure to price fluctuations late in the mine life has resulted in reclassification of this material to Probable Ore Reserves. 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. There are no known land tenure issues that could affect the production plan.

(j) Bell/Granisle: The Mineral Resources are reported at a 0.20 % copper cut-off grade. Bell and Granisle are porphyry copper-gold deposits located at Babine Lake. The Babine deposits are associated with calc-alkaline magmatic rocks. They were formed in the roots of Eocene volcanoes built upon continental crust. Erosion has removed most of the poorly consolidated volcanic piles, exposing the mineral deposits. Recorded past production from the Bell mine from 1972 to 1992 totalled 77.2Mt averaging 0.47 per cent copper with an average waste to ore ratio of 0.95:1. Cut-off grade varied between 0.25 and 0.35 per cent copper. Past production for Granisle from 1966 to 1982 totalled 52.7Mt averaging 0.47 per cent copper with an average waste to ore ratio of 1.37. Cut-off grade varied between 0.20 and 0.35 per cent copper. In 1989 and 1990, an extensive drilling program on the Bell and Granisle mine sites was conducted to determine the mineral resource, with respectively 128 drill holes (37,000m) and 38 drill holes (9,600m). In 2010, an extensive QAQC program on re-assaying rejects from the 1989 – 1990 drill holes, representing 62% of the samples for Bell (>8,000) and 17% of the samples for Granisle (>1,900) has indentified a positive bias in favour of the new assays of +2.6% for Cu. In 2010 an exploration drilling program of 3,405m in 6 holes has been completed. The Babine site is presently the focus of a Pre-Feasibility Study,

with a final report from this exercise due in the first quarter of 2013. A life of mine of 19 years has been estimated, at a processing rate of 50,000 tonnes per day.

(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 31 December 2011 published statement are depletion due to mining and processing of 39.7Mt @ 0.41% Cu, 0.40g/t Au. The Proved Ore Reserves include 29Mt @ 0.28% Cu, 0.32g/t Au, 0.014% Mo of Low-Grade material stockpiled and scats, for treatment during the remaining of the life of mine. The Ore Reserves and Mineral Resources figures are obtained 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, 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.) is 1.64 S.R. is defined as the in-pit tonnes of waste divided by the in-pit tonnes of ore. The life of mine is up to 2018. The concession and permits of the operation/exploration are valid to the end of the life of the mine. There are no Mineral Resources additional to the current Ore Reserves statement.

(l) Collahuasi: The Collahuasi district is located in north Chile´s Tarapacá Region and host a number of large copper-Moly porphyry deposits like 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. The Mineral Resources for Rosario, Ujina and Capella have been classified into Measured, Indicated and Inferred categories based on minimum search radius constraints and drillhole spacing. Mineral Resources are reported within the constraints of optimised pit shells. Collahuasi is mined by open cut methods. Mineral Resources and Ore Reserves have been updated on the basis of new drilling information, updated geological, geostatistical models, mining parameters and adjustments to metal prices forecast. The 74Mt ore production for 2012 is already depleted from the reported Ore Reserves. Ore Reserves estimates are based only on Measured and Indicated Mineral Resources, optimised mine plans and meet minimum operational cut-off requirements. The Ore Reserves include all Proved and Probable Ore 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 Mineral Resources to Ore Reserves. Ore Reserves include estimates of stockpile material at time of reporting. Material included

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in stockpile is periodically verified and re-evaluated through drilling, trenching, and sampling. Stockpile material from the Rosario pit is classified according to the level of perceived uncertainty. These materials have been classified as Probable Ore Reserves. All sulphide stockpile Measured Mineral Resources are downgraded to Probable Ore Reserves; previous statements did not consider this downgrading procedure.

Collahuasi has a life of mine of 69 years ending in 2081 as per current estimates. Permits are valid until the end of the mine life.

(m) Lomas Bayas (I) – Lomas Bayas (III): Lomas Bayas is a low grade Cu-Mo-Au deposit resulting from the intrusion of several porphyry and breccia 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 Reserves (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 Sulphides (or Lomas III) and the resulting resource pit includes all Lomas Bayas Mineral Resources. Lomas Bayas updated block model includes a total of 312,000m of exploration and resource definition drilling and is the base of the Lomas Bayas (I) Ore Reserves and Lomas Bayas (III) Mineral Resources. Mineral Resources and Ore Reserves estimation has been completed by using Ordinary Kriging on a block model that now extends down to 860m. Ore Reserves are as of 31 December 2012 using projected topography. The Lomas Bayas (I) Ore Reserves estimate results from the updated block model; operational pit Lom2013; cut-off grade Heap: 0.16 RCuH and ROM: 0.05% RCuH. The Lomas Bayas (III) Mineral Resources estimates results from the updated block model and a pit shell calculated using Measured, Indicated and Inferred Mineral Resources; Oxides-Mixed within this pit are also considered Mineral Resources that will eventually feed the SE/EW operation.

The SX/EW operation plant has a current life of mine that extends to 2028; permits for the operation are valid to the end of the life of the mine.

(n) Lomas Bayas (II): This low grade Cu deposit is located 2km south of Lomas I pit, in the same district and geological environment than Lomas Bayas deposit. The main difference between both is a larger presence of water soluble copper oxides and lower geotechnical rocks quality. Lomas II block model LB11 includes historic drillholes totaling 95,250m and sampled at 2m intervals. Mineral Resources and Ore Reserves estimation has been completed by using Ordinary Kriging. Mineral Resource classification is based on drill hole spacing in relation to the special continuity of the ore grades; criteria for classifying Measured Mineral Resources have been updated to reflect this, resulting in some material being downgraded to Indicated Mineral Resources. Mineral Resources have been updated with new operational and economic pits. Mineral Resources as of 31 December 2012, considers both the operational pit 2013 and economic

pit 2013 and cut-off grade Heap: 0.16%, RCuH and ROM: 0.05% RCuH. Ore Reserves are as of 31/12/2012, considering: operational pit Lom2013; cut-off grade Heap: 0.16% RCuH and ROM: 0.05% RCuH.

The SX/EW operation plant has a current life of mine that extends to 2028; permits for the operation are valid to the end of the life of the mine.

(o) 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. The resource classification is based on drill hole spacing and Kriging passes, with different criteria for distance and number of composites, depending on the “grade class”, which is derived from Cu, Zn and Mo values. The Antamina deposit is sufficiently well drilled to support the classification criteria. Ore Reserves resulting from the new mine planning process developed during 2012 are based on the end of year 2012 topography projection. The LOM plan used for this statement is based on LOM 2013 considering only Measured and Indicated Mineral Resources, all Inferred Mineral Resources within this pit have been treated as waste. The cut-off grade for the Ore Reserves estimate varies year by year in an effort to maximize the net present value of the LOM pit. Ore Reserves are limited to the current operation tailing dam capacity. The cut-off grades at Antamina are based on the net value before taxes that the material will generate per hour of concentrator operation ($/h). Zinc is not recovered from Copper Ores and molybdenum is not usually recovered from Copper-Zinc Ores or from Copper Ores with high bismuth.

Antamina has an estimated life of mine of 15 years as it is constrained by current tailing capacity. Permits for the operation are valid to the end of the life of the mine.

(p) 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. Remaining material the below the Tintaya pit are now considered inaccessible due to pit walls instabilities, as a results of this, these materials have now been sterilized.

(q) 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

Copper continued

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Resource categorisation is based on assessment of orebody and grade continuity, structural complexity, data quality, adequacy of data coverage, and reasonable prospects of economical extraction. The Mineral Resources estimation was updated in 2012 incorporating over than 52,000m of new drilling data. The estimate is based on a block model with grade interpolation by using Ordinary Kriging. Mineral Resources are stated at defined internal copper cut-off remains as at 0.15% TCu. Ore Reserves are derived from Measured and indicated Mineral Resources after applying economical and technical modifying factors. Ore Reserves have been depleted by 1Mt as the result of the operations start up in October 2012.

Antapaccay has an approved life of mine plan that extends for 21 years ending in 2033. Operation permits are valid until the end of the life of mine.

(r) Coroccohuayco: The Coroccohuayco copper-gold skarn deposit is located 9km 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 Mineral Resources estimate has been updated in March 2012 using a drill hole database that now includes over than 130,000m of drilling data. The major variations from the previous published Mineral Resources statement are due to the inclusion of new infill drilling to the updated geological model and block grade interpolate.

(s) 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 Resources. The Mineral Resource Estimate of Ferrobamba has been updated to reflect the new available drilling data, as such the geological model, grade estimates and resource classification have been updated in May 2011. The Mineral 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 Mineral Resources and long-term metal prices and cost assumptions; the economic pits have been updated for the three deposits. The economic cut-off grade remains as at 0.2% TCu, all other modifying factors used on the determination of this Mineral Resources pit are the same as

those used for the Project Feasibility Study. Numbers may not be exact as they are rounded for tabulation.

The Las Bambas project is under construction, construction permits has been granted, operational permits are being processed.

(t) 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 immature, relatively small copper enrichment 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 126,000m of mainly diamond drill holes. Mineral Resources have been classified using a combination of criteria including geological continuity and Kriging parameters being the influential the drill hole data density. Mineral Resources are constrained by the use of an economic pit shell determined using Measured, Indicated and Inferred Mineral Resources and current assumption for the economic and technical modifying factors conditioning the Resource pit. Differences in the Mineral Resources in relation to previous statement are due to the incorporation of over 6,000m of infill and step out drilling and the updated of the 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.

(u) 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 Philippines 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 Resources 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 Resources estimate. This geological model 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. The Mineral Resources have been classified into 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 Resources are reported using a 0.2% Copper cut off within a pit shell developed using Measured, Indicated and Inferred Mineral Resources. Numbers may not be exact as they are rounded for tabulation.

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(v) 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. Mineral resources of the main H-I-T deposit have been updated in July 2011 after incorporating results from a major drilling campaign. 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 Mineral Resources estimate that has been used for the Project Feasibility Study. 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 Mineral Resource estimate results remains and unchanged since the completion of the project Feasibility study. Mineral Resources related to the high grade, high sulfidation Nena deposit remain unchanged. Numbers may not be exact as they are rounded for tabulation.

(w) West Wall: The West Wall Copper Project is located in central Chile’s Valparaiso Region, 100km north-east 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 7km by 3km. Exploration activities have focused in the south of the prospect at Lagunillas and West Wall North, where drilling has outlined copper sulphide Mineral Resources associated with porphyry intrusive bodies. During the 2011–12 drilling program a total of 24,000m of infill were completed and incorporate to the geological models and Mineral Resource estimate. Mineral Resources have been classified using a combination of criteria including geological continuity and Kriging parameters being the influential the drill hole data density. Mineral Resources are constrained by the use of an economic pit shell, determined using Indicated and Inferred Mineral Resources and current assumption for the economic and technical modifying factors conditioning the limits of the Mineral Resources pit.

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).

CH = Christopher Hy, Xstrata Copper (AIG).

GC = Gibson Chitumbura, Xstrata Copper (AusIMM).

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

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

KH= Kimberley Head, Xstrata 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).

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

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

Copper continued

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Iron Ore

Iron Ore Mineral Resources


interest Commodity




Resources Inferred

Mineral Resources Competent Person31.12.12 31.12.11 31.12.12 31.12.11 31.12.12 31.12.11 31.12.12 31.12.11

El Aouj Mining Company(a) 44.08% Guelb el Aouj East(b) Fresh (Mt) 190 188 310 313 500 501 200 200 SK Fe (%) 36 35.5 37 36.8 36 36.3 36 36.3 DTC wt (%) 44 44.1 46 46.4 46 45.5 44 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) Fresh (Mt) 225 225 SK Fe (%) 36 36.0 DTC wt (%) 46 45.6 DTC Fe (%) 70.6 70.6 Bou Derga(d) Fresh (Mt) 510 AM/SvdM Fe (%) 36 DTC wt (%) 43 DTC Fe (%) 69.7 Oxidised (Mt) 130 AM/SvdM Fe (%) 35 Sphere Minerals(e) Askaf North(f) 79.34% Fresh (Mt) 200 161 160 129 360 290 45 104 AM/SvdM Fe (%) 36 36.1 35 35.2 36 35.7 36 35.8 DTC wt (%) 47 46.1 45 43.1 46 44.7 45 44.3 DTC Fe (%) 69.8 70.2 69.4 70.1 69.6 70.1 69.2 70.1 Oxidised (Mt) 15 30 45 15 AM/SvdM Fe (%) 35 35 35 35 Lebtheinia Centre(g) 88.16% Fresh (Mt) 2,180 2,179 2,180 2,179 350 354 AM/SvdM Fe (%) 32 32.3 32 32.3 32 32.4 DTC wt (%) 27 27.5 27 27.5 27 27.2 DTC Fe (%) 68.6 68.6 68.6 68.6 68.1 68.1 LOX (Mt) 210 209 AM/SvdM Fe (%) 31 30.7 Jumelles Limited(h) 50% Zanaga(i) (Mt) 2,400 149 2,300 2,540 4,700 2,689 2,100 1,650 MT Fe (%) 34 38.7 31 34.1 33 34.4 31 31 Total Iron Ore Mineral Resources (Mt) 2,805 498 4,980 5,161 7,785 5,659 3,785 2,967

Iron Ore Reserves


interest Mining

method CommodityProved Ore Reserves Probable Ore Reserves Total Ore Reserves Competent

Person31.12.12 31.12.11 31.12.12 31.12.11 31.12.12 31.12.11

El Aouj Mining Company(a) 44.08% Guelb el Aouj East(b) OC (Mt) 150 152 280 277 430 429 RB Fe (%) 36 35.9 37 36.5 36 36.3 DTC wt (%) 45 44.6 44 43.6 44 44.0 DTC Fe (%) 70.8 70.8 70.6 70.6 70.7 70.7 Sphere Minerals(e) Askaf North(f) 79.34% OC (Mt) 150 146 100 100 250 246 RB Fe (%) 36 35.5 34 33.9 35 34.8 DTC wt (%) 46 46.3 43 43.3 45 45.1 DTC Fe (%) 70.2 70.2 70.1 70.1 70.1 70.1 Jumelles Limited(h) 50% Zanaga(i) OC (Mt) 2,500 2,500 KB Fe (%) 34 34 Total Iron Ore Reserves (Mt) 300 298 2,880 377 3,180 675

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Notes: All Mineral Resources are considered suitable for opencut extraction.

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.

The rounding used for the 2012 values in this report reflects the confidence in the different levels of resource and reserve classifications. Tonnages are reported to two or three significant figures depending on the resource classification and order of magnitude of the tonnage. Grades are reported to two or three significant figures depending primarily on the variable being estimated. The differences between the 2011 and 2012 numbers for the El Aouj East and Lebtheinia resources, as well as the El Aouj East and Askaf North reserves are the result only of rounding criteria adopted for this report. None of these resources or reserves have been updated during this reporting year.

(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. Recrystallisation 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 geological sequence is overprinted by a reasonably uniform, 80-85m 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. Resources shown are for fresh mineralisation below the base of oxidation at 20% Fe cut-off grade.

The Guelb el Aouj East Reserve Statement uses a 20% Fe DTC wt% cut-off. Based on testwork, adjustments to concentrate grades have been applied to allow for fine grinding to 60μm compared to 80μm for standard DTC tests.

(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. Resources shown are for fresh mineralisation below the base of oxidation at 20% Fe cut-off grade.

(d) Bou Derga: The Bou Derga deposit forms part of a larger scale synformal structure defined by an Archean magnetite-quartzite (MQ) unit that ranges in true thickness from approximately 20m to 200m. The thicker parts of the deposit are considered to be a result of isoclinal folding. Drilling was restricted to the western fold closure. The deposit dips towards the north-east at about 60°. The deposit contains a number of internal waste bands (typically 5m to 50m thick) which have been modelled separately and excluded from the mineral resource estimation. A north-west – south-east trending fault displaces the mineralisation in the southeastern part of the deposit. This resource uses a cut off grade of 20% DTC wt% for fresh (unoxidised) mineralisation and a cut-off grade of 20% head Fe for oxidised mineralisation. All reported concentrate grades were weighted by DTC wt%.

(e) Sphere Minerals: Xstrata interest in Sphere Minerals stands at 88.16% as at 31 October 2012.

(f) 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° to 30° towards the east in the western part of the synform, and at about 35° to 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 liberation grind size of 95% passing 80 micron.

The Askaf North Resource Statement has been prepared in accordance with the 2012 Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code), December 2012.

The Askaf North Resource Statement uses a cut-off grade of 20% DTC wt% for fresh (unoxidised) mineralisation and a cut-off grade of 20% head Fe for oxidised mineralisation. All reported concentrate grades were weighted by DTC wt%.

The resource reported as at 31 December 2011 combined the fresh and oxidised mineralisation. The fresh and oxidised mineralisation has been separated for the reporting as at 31 December 2012.

Iron Ore continued

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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 wt% cut-off, to produce a coarse concentrate from a dry magnetic separation plant, grading at 65% Fe. The Pre-Feasibility Study included opencut mine planning and additional investigations to assess the factors required for a successful iron ore mine development in Mauritania. The reserve statement reported is based on the 2011 resource estimate not the 2012 resource estimate update presented in this report. The timing of the updated 2012 resource estimate precluded the update of the reserve estimate using the 2012 resource update prior to release of this report.

(g) Lebtheinia: The magnetite-rich Banded Iron Formations (BIF) at Lebtheinia form part of the Archaean Lebzena Group. The BIF units in EL264 are exposed over a total strike length of approximately 24km, of which Lebthenia Centre has a strike length of 11.5km. Parts of the main BIF units at Lebtheinia Centre deposit are covered by laterite and colluvium consisting of BIF fragments.

The magnetite-BIF at Lebtheinia Centre averages about 240m thick. The BIF is characterised by a well defined banding pattern, with individual bands ("mesobands") averaging 5-10mm thick. Drilling shows that mineralisation extends to at least 400m vertically below natural surface and is open at depth. The deposit is intruded by a series of sub-vertical dolerite dykes, striking NE-SW to NNE-SSW. Lebtheinia Centre has 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 averages around 50m. In the lower two thirds of the oxidised zone (the Lower Oxidised Zone, "LOX") the degree of oxidation is less than in the more oxidised upper third.

The Lebtheinia Centre Resource Statement for Fresh Ore uses 20% DTC wt% cut-off. For the LOX unit the cut-off is 14 SI x 10-3 units of magnetic susceptibility.

(h) 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.

(i) 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 47km in length, and vary between 0.5km and 3km 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 north-east – south-west. The deposit comprises a sequence of weathering domains, which overlay an un-weathered protore comprising itabirite. The weathered sequence observed at

Zanaga is typical of iron ore deposits, where the surficial material demonstrates enrichment in iron above the protore due to a mass reduction and associated leaching of the silicate layers.

The resource is reported at a 0% Fe cut-off.

The Zanaga Project Reserve Statement for Iron Ore was prepared by CSA Global as part of a Pre-Feasibility Study. The Pre-Feasibility study included mine planning and additional investigations to assess the factors required for a successful opencut iron ore mine development in the Republic of Congo.

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.

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)).

MT = Mr. Malcolm Titley, CSA Global (UK) Ltd (MAusIMM (CP)).

KB = Mr. Kent Bannister, CSA Global Pty Ltd (FAusIMM (CP)).

40



ber 2012

Nickel Mineral Resources

Name of operation

Attributable Interest

Mining Method Commodity



Measured & Indicated Resources


Person*31.12.12 31.12.11 31.12.12 31.12.11 31.12.12 31.12.11 31.12.12 31.12.11

Cosmos(a) 100% UG (Mt) 13.6 13.6 35.1 33.8 49.0 47.4 14 12.7 TM Ni (%) 0.78 0.79 0.99 0.91 0.93 0.87 0.8 0.6

Falcondo(b) 85.3% OC (Mt) 36.7 40.2 31.1 34.5 67.8 74.7 4.9 4.9 ED Ni (%) 1.48 1.45 1.53 1.56 1.50 1.50 1.4 1.4Koniambo(c) 49% OC (Mt) 21.2 21.2 54.4 54.4 75.6 75.6 83 83 NF Ni (%) 2.54 2.54 2.45 2.45 2.47 2.47 2.5 2.5Raglan(d) 100% UG (Mt) 4.41 4.01 9.39 10.5 13.8 14.5 19.3 17.9 KS Ni (%) 3.04 2.47 3.45 3.49 3.32 3.21 3.0 3.0 Cu (%) 0.86 0.72 0.96 0.97 0.93 0.90 0.9 0.9 Co (%) 0.06 0.05 0.07 0.08 0.07 0.07 0.1 0.1 Pt (g/t) 0.83 0.96 0.92 0.9 Pd (g/t) 2.10 2.36 2.28 2.3 Sinclair(a) 100% UG (Mt) 0.51 0.55 0.04 0.49 0.55 1.04 0.3 0.3 TM Ni (%) 2.50 2.87 2.05 2.56 2.47 2.72 2.2 2.2 Cu (%) 0.16 0.08 0.15 0.1 Sudbury(e) 100% UG (Mt) 12.3 12.95 20.6 22.3 33.0 35.19 17 16 SK Ni (%) 1.77 1.78 2.35 2.27 2.13 2.09 1.7 1.7 Cu (%) 1.94 2.05 1.52 1.67 1.68 1.81 1.9 1.9 Co (%) 0.05 0.05 0.06 0.05 0.05 0.05 0.1 0.1 Pt (g/t) 1.05 0.63 0.79 0.8 Pd (g/t) 1.16 0.72 0.89 0.8 Araguaia(f) 100% OC (Mt) 16.1 16.1 89.0 89.0 105.1 105.1 18 18 SK Ni (%) 1.44 1.44 1.31 1.31 1.33 1.33 1.3 1.3Kabanga(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 0.3Total (Mt) 117 122 264 269 382 391 177 173

Nickel

41



ber 2012

Nickel Ore Reserves Name of operation

Attributable Interest

Mining Method Commodity

Proved Ore Reserves Probable Ore Reserves Total Ore Reserves Competent Person*31.12.12 31.12.11 31.12.12 31.12.11 31.12.12 30.12.11

Cosmos(a) 100% UG (Mt) 0.00 0.04 0.00 0.53 0.00 0.57 SVDM Ni (%) 2.88 2.66 2.68Falcondo(b) 85.3% OC (Mt) 44.9 44.0 26.3 29.7 71.2 73.7 ED Ni (%) 1.28 1.28 1.36 1.36 1.31 1.31Koniambo(c) 49% OC (Mt) 17.2 17.2 45.3 45.3 62.5 62.5 JB Ni (%) 2.50 2.50 2.36 2.36 2.40 2.40Raglan(d) 100% UG (Mt) 3.59 4.13 4.13 5.30 7.72 9.4 PD Ni (%) 2.80 2.22 3.49 3.73 3.17 3.07 Cu (%) 0.79 0.65 0.77 0.88 0.78 0.78 Co (%) 0.06 0.04 0.08 0.08 0.07 0.07

Pt (g/t) 0.76 0.88 0.82 Pd (g/t) 1.91 2.00 1.96

Sinclair(a) 100% UG (Mt) 0.25 0.29 0.00 0.32 0.25 0.61 JW Ni (%) 2.02 2.02 1.93 2.02 1.97 Cu (%) 0.13 0.13

Sudbury(e) 100% UG (Mt) 8.35 8.66 8.12 9.44 16.5 18.11 SK Ni (%) 1.36 1.39 1.41 1.39 1.38 1.39 Cu (%) 2.29 2.37 1.53 1.74 1.92 2.04 Co (%) 0.03 0.03 0.04 0.04 0.03 0.03 Pt (g/t) 1.34 0.66 1.01 Pd (g/t) 1.46 0.77 1.12 Total (Mt) 74 74 84 91 158 165

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 the Cosmos and Sinclair operations. Cosmos resources include the AM5, AM6, Odysseus, Odysseus North and Mt Goode deposits, while the Sinclair resource is contained entirely in one deposit. Mineral resource is categorised according to drill hole spacing and geological confidence. Resource estimates apply 1.5% Ni cut off grades for all deposits other than the large low-grade Mt Goode deposit (0.4% Ni cut off applied). All resource estimates use 3D block models generated using Ordinary Kriging, after applying geostatistical analysis to domained data sets. Mineral Resource increase for 2012 relates to additions through exploration drilling at Cosmos (AM6, Odysseus and Odysseus North). Mineral Reserve decrease relates to 2012 production at Cosmos (0.3Mt milled) and Sinclair (0.5Mt milled), and the downgrading of AM5 reserve to resource as Cosmos went into care and maintenance status (3Q12). Sinclair’s reserve base supports production until 1H13.

There are no plans for further exploration or resource conversion to reserve until post 2013. The Cosmos operation is currently on care and maintenance status awaiting the completion of scoping and Feasibility studies, which will assess the viability of the Odysseus project.

(b) Falcondo: Mineralisation consists of nickeliferous laterite deposits developed on a belt of serpentinised peridotites. Mineral resource estimates are established using 3D modelling with ID2 Interpolation for all exploited areas. There was no activity at Loma Miranda area and it remains the same. Nearest Neighbour 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. Previous Resources and Reserves for the Barmac Reject Stockpile estimates were updated with Sonic Drilling boreholes drilled across the deposit from the surface to the bottom. Nearest Neighbour method (NN) interpolation was used for this stockpile. Operations remains at 50% of capacity during the year. The projected mine life is 22 years. The boundaries of the mineralisation are not totally defined and there is potential to increase reserves by more than 10% with further exploration within existing concessions.

(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 (2005). 320kt of reserves have been excavated during construction and pre-production mining in preparation for start-up of the metallurgical plant. The mine reserve covers several mining/concession licenses. The expiry date of relevant mining/property licences range from 19 December 2033 to 31 December 2048, with one

42



ber 2012

concession awaiting the final renewal certificate (as per standard renewal process).

(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 pyrrhotite – pentlandite – chalcopyrite rich sulphides contained within more than 160 individual sulphide lenses, extending from surface to >750m vertical depth. 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 31 December 2011 as a direct result of mine/mill production of 1.3Mt and revised mine plans by 0.4Mt. The total Mineral Resource increased by 0.7Mt, from 31 December 2011 as a result of exploration discoveries grading 3.2% Ni. Remaining life of mine: in excess of 20 years. Expiry date of relevant mining leases and exploration licenses: different for each mine/project, ranging from 3 July 2013 to 17 August 2026.

(e) Sudbury: Sulphide deposits sit on broadly defined trends of mineralisation along basal brecciated rocks of the Sudbury Igneous 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. Inferred resources increased due to the addition of the recently discovered Big Smoke deposit. The total mineral reserve tonnage and grade decreased from 2011 due to production. Production for the period amounted to 1.47Mt at 1.60%Ni –3.71%Cu. Cut-off grades are calculated for each individual mine site or resource based on a metal equivalent or net smelter return value taking into account all recoverable metals (Ni, Cu, Co, Au, Ag, Pt and Pd). The current LOM plan based on reserves extends to the end of 2021. Significant undeveloped mineral resources and exploration potential provide an opportunity to extend mine life well beyond 2021. All Land holdings in Sudbury covering existing mineral reserves and resources are patented and 100% owned by Xstrata with the exception of an area covered by two licences of occupation which are held in perpetuity.

(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. A decision on the development these deposits awaits improved economic conditions. The property is covered by three exploration licenses, namely Vale De Sonhos, Pau Preto and Serro do Tapa, covering 114 square kilometres (11,486 hectares).

(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. The last mineral resource drilling campaign was done in 2009 and the latest resource estimate dates from June, 2010. The current Kabanga mineral resources are sufficient to support a minimum 30 years mine life. Discussions are ongoing with the Tanzanian Ministry of Energy and Minerals regarding a Mining Development Agreement (MDA) and the granting of a Special Mining Licence (SML).

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

JB = Johannes 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; OGQ Quebec).

NF = Nic Fenner, Koniambo Nickel SAS, Xstrata Nickel, P.Geo (APGO, Ontario).

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

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

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).

Nickel continued

43



ber 2012

Australia Mineral Resources


interestMining

method Commodity





Resources Competent Person31.12.12 31.12.11 31.12.12 31.12.11 31.12.12 31.12.11 31.12.12 31.12.11

Mount Isa 100% Black Star Open Cut(a) OC (Mt) 21.9 24.0 6.0 6.1 28 30 1.5 4.0 MS Zn (%) 4.69 5.30 3.5 4.2 4.4 5.1 5 4 Pb (%) 3.24 3.50 2.2 2.6 3.0 3.3 3 3 Ag (g/t) 63.6 69.0 43 52 59 66 60 50Mount Isa Open Pit OC (Mt) 109 106 100 96 209 202 160 150 MSExcl. Black Star(b) Zn (%) 3.82 3.80 3.6 3.6 3.7 3.7 4 4 Pb (%) 3.13 3.20 2.7 2.8 2.9 3.0 2 3 Ag (g/t) 70.5 72.0 65 67 68 70 60 60George Fisher(c) 100% George Fisher South (Hilton) UG (Mt) 26.3 33.9 14 16 40 50 20 23 OGOrebodies Zn (%) 8.43 8.60 8.6 8.7 8.5 8.6 8 8 Pb (%) 5.63 6.00 5.2 5.7 5.5 5.9 5 5 Ag (g/t) 94.9 128 85 120 91 125 80 100George Fisher North Orebodies UG (Mt) 20.9 22.4 76 84 97 106 57 65 OG Zn (%) 9.64 9.70 8.4 8.3 8.7 8.6 7 8 Pb (%) 4.56 4.60 3.4 3.5 3.7 3.7 4 4 Ag (g/t) 66.3 82.0 51 58 54 63 50 70Handlebar Hill Open Cut (primary) OC (Mt) 1.96 2.10 5.1 4.8 7.1 6.9 1.0 1.0 MS Zn (%) 8.09 7.90 6.5 6.5 6.9 6.9 5 5 Pb (%) 2.70 3.10 2.1 2.6 2.3 2.8 2 2 Ag (g/t) 42.9 49.0 37 41 39 43 20 30Handlebar Hill Open Cut (oxide) OC (Mt) 0.49 0.49 0.1 0.1 0.6 0.6 – – MS Zn (%) 0.37 0.37 0.4 0.4 0.4 0.4 – – Pb (%) 8.52 8.52 3.7 3.7 7.7 7.7 – – Ag (g/t) 88.8 88.8 60 60 84 84 – –Lady Loretta(d) 100% UG (Mt) 6.90 7.00 6.1 6.3 13 13 1.8 2.0 SJ Zn (%) 16.7 16.6 16 16 16 16 14 14 Pb (%) 6.60 6.50 4.9 4.8 5.8 5.7 6 6 Ag (g/t) 103 102 86 84 95 93 90 90McArthur River(e) 100% Open Cut OC (Mt) 120 118 43 44 163 162 – – KG Zn (%) 11.5 11.6 8.0 8.1 11 11 – – Pb (%) 4.80 4.80 4.4 4.5 4.7 4.7 – – Ag (g/t) 49.0 49.0 45 45 48 48 – –Woyzbun South Zone UG (Mt) – – 8.3 8.3 8.3 8.3 – – KG Zn (%) – – 14 14 14 14 – – Pb (%) – – 5.6 5.6 5.6 5.6 – – Ag (g/t) – – 58 58 58 58 – –Total Zinc Lead Australia (Mt) 307 314 259 266 566 579 241 245 Zn (%) 7.98 8.09 6.7 6.8 7.4 7.5 5 6 Pb (%) 4.18 4.31 3.4 3.6 3.8 4.0 3 3 Ag (g/t) 64.0 70.4 58 63 61 67 59 66

Zinc

44



ber 2012

Australia Ore Reserves


interest Mining


Person31.12.12 31.12.11 31.12.12 31.12.11 31.12.12 31.12.11

Mount Isa 100% Black Star Open Cut(a) OC (Mt) 13.5 16.5 14 14 28 31 BS Zn (%) 4.34 4.60 4.3 5.3 4.3 4.9 Pb (%) 2.35 2.50 3.3 4.0 2.8 3.2 Ag (g/t) 52.5 55.0 60 73 56 63 George Fisher(c) 100% George Fisher South (Hilton) Orebodies UG (Mt) 12.3 9.08 8.3 11 21 20 JJG Zn (%) 6.74 6.68 6.6 6.4 6.7 6.5 Pb (%) 4.51 4.15 4.4 4.6 4.5 4.4 Ag (g/t) 77.3 86.3 73 100 76 94 George Fisher North Orebodies UG (Mt) 15.9 13.4 46 48 62 61 JJG Zn (%) 7.97 8.08 7.1 7.4 7.3 7.5 Pb (%) 3.74 4.27 3.3 3.4 3.4 3.6 Ag (g/t) 54.4 77.0 54 58 54 62 Handlebar Hill Open Cut (primary) OC (Mt) 0.47 0.70 1.3 1.4 1.8 2.1 BS Zn (%) 11.0 8.40 8.6 7.2 9.2 7.6 Pb (%) 3.75 3.70 3.0 3.3 3.2 3.4 Ag (g/t) 58.2 61.0 50 51 52 54 Handlebar Hill Open Cut (oxide) OC (Mt) 0.49 0.49 – – 0.49 0.49 BS Zn (%) 0.37 0.37 – – 0.37 0.37 Pb (%) 8.52 8.52 – – 8.52 8.52 Ag (g/t) 88.8 88.8 – – 88.8 88.8 Lady Loretta(d) 100% UG (Mt) 6.80 6.70 5.8 6.0 13 13 LS Zn (%) 15.2 14.9 14 14 15 14 Pb (%) 6.00 5.70 4.4 3.9 5.3 4.8 Ag (g/t) 96.7 94.0 80 72 89 84 McArthur River(e) 100% OC (Mt) 75.8 34.9 34 15 110 50 DH Zn (%) 11.7 11.3 7.3 7.9 10 10 Pb (%) 5.00 4.70 4.1 4.2 4.7 4.5 Ag (g/t) 50.0 48.0 41 41 47 46 Total Zinc Lead Australia (Mt) 125 81.8 109 95 235 177 Zn (%) 10.1 9.11 7.1 7.5 8.7 8.2 Pb (%) 4.57 4.22 3.7 3.8 4.2 4.0 Ag (g/t) 56.2 62.5 54 63 55 63

Zinc continued

45



ber 2012

Canada Mineral Resources


interest Mining

method Commodity



Measured and Indicated



Brunswick Mine(f) 100% UG (Mt) 0.79 3.87 – – 0.79 3.87 – – PB Zn (%) 7.94 8.30 – – 7.94 8.30 – – Pb (%) 2.95 3.20 – – 2.95 3.20 – – Cu (%) 0.64 0.50 – – 0.64 0.50 – – Ag (g/t) 105 103 – – 105 103 – –Perseverance(g) 100% UG (Mt) 0.56 1.54 – – 0.56 1.54 – PB Zn (%) 12.2 13.1 – – 12.2 13.1 – Cu (%) 1.08 1.20 – – 1.08 1.20 – Ag (g/t) 24.0 30.0 – – 24.0 30.0 – Au (g/t) 0.40 0.40 – – 0.40 0.40 –Bracemac-McLeod(h) 65% UG (Mt) 2.70 2.70 1.0 1.0 3.7 3.7 2.6 2.6 GR Zn (%) 10.1 10.1 8.9 8.9 9.8 9.8 9 9 Cu (%) 1.58 1.58 1.1 1.1 1.5 1.5 1 1 Ag (g/t) 36.9 36.9 21 21 33 33 40 40 Au (g/t) 0.45 0.45 0.6 0.6 0.5 0.5 1 1PD-1(i) 50% OC/UG (Mt) 0.55 0.55 1.0 1.0 1.6 1.6 – – GR Zn (%) 4.22 4.22 5.0 5.0 4.7 4.7 – – Cu (%) 0.82 0.82 1.3 1.3 1.1 1.1 – – Ag (g/t) 19.7 19.7 20 20 20 20 – – Au (g/t) 0.13 0.13 – – – – – –Errington(j) 100% UG (Mt) – – 4.8 – 4.8 – 2.0 – AC Zn (%) – – 3.8 – 3.8 – 4 – Pb (%) – – 1.0 – 1.0 – 1 – Cu (%) – – 1.2 – 1.2 – 1 – Ag (g/t) – – 49 – 49 – 50 – Au (g/t) – – 0.8 – 0.8 – 0.8 –Vermilion(k) 100% UG (Mt) – – 2.5 – 2.5 – 1.0 – AC Zn (%) – – 4.2 – 4.2 – 5 – Pb (%) – – 1.1 – 1.1 – 1 – Cu (%) – – 1.4 – 1.4 – 1 – Ag (g/t) – – 49 – 49 – 50 – Au (g/t) – – 0.8 – 0.8 – 0.9 –Hackett River(l) 100% OC/UG (Mt) – – 25 20 25 20 57 41 AC Zn (%) – – 4.2 4.7 4.2 4.7 3 4 Pb (%) – – 0.6 0.6 0.6 0.6 0.5 0.6 Cu (%) – – 0.5 0.4 0.5 0.4 0.4 0.4 Ag (g/t) – – 130 140 130 140 100 100 Au (g/t) – – 0.3 0.3 0.3 0.3 0.2 0.2Total Zinc Lead Canada (Mt) 4.60 8.66 34 22 39 31 63 44 Zn (%) 9.28 9.46 4.3 4.9 4.9 6.2 3 4 Pb (%) 0.51 1.43 0.7 0.5 0.6 0.8 0.5 0.6 Cu (%) 1.27 0.98 0.7 0.5 0.8 0.6 0.5 0.4 Ag (g/t) 45.0 64.1 106 129 99 111 95 96

46



ber 2012

Canada Ore Reserves


interest Mining


Person31.12.12 31.12.11 31.12.12 31.12.11 31.12.12 31.12.11

Brunswick Mine(f) 100% UG (Mt) 0.53 2.42 0.2 1.2 0.7 3.6 PB/JG* Zn (%) 6.58 7.20 7.6 7.7 6.9 7.4 Pb (%) 2.36 2.80 3.0 3.0 2.5 2.9 Cu (%) 0.63 0.48 0.3 0.4 0.5 0.4 Ag (g/t) 89.0 91.0 92 94 90 92 Perseverance(g) 100% UG (Mt) 0.38 1.34 – – 0.38 1.34 PB/FP** Zn (%) 10.6 12.4 – – 10.6 12.4 Cu (%) 0.93 1.00 – – 0.93 1.00 Ag (g/t) 19.5 28.0 – – 19.5 28.0 Au (g/t) 0.30 0.30 – – 0.30 0.30 Bracemac-McLeod(h) 65% UG (Mt) 2.80 2.80 0.9 0.9 3.7 3.7 AC Zn (%) 9.80 9.80 8.9 8.9 9.6 9.6 Cu (%) 1.40 1.40 0.9 0.9 1.3 1.3 Ag (g/t) 31.5 31.5 19 19 28 28 Au (g/t) 0.40 0.40 0.5 0.5 0.4 0.4 Total Zinc Lead Canada (Mt) 3.71 6.56 1.1 2.1 4.8 8.7 Zn (%) 9.42 9.37 8.7 8.2 9.2 9.1 Pb (%) 0.34 1.03 0.5 1.7 0.4 1.2 Cu (%) 1.24 0.98 0.8 0.6 1.1 0.9 Ag (g/t) 38.5 52.7 32 62 37 55

Ireland Mineral Resources


interest Mining

method Commodity






Pallas Green(m) 100% UG (Mt) – – – – – – 38 30 AHTobermalug Zone Zn (%) – – – – – – 7 7 Pb (%) – – – – – – 1 1

Total Xstrata Zinc

Commodity




Inferred Mineral Resources

31.12.12 31.12.11 31.12.12 31.12.11 31.12.12 31.12.11 31.12.12 31.12.11

Mineral Resources (Mt) 312 323 293 288 605 610 342 319 Zn (%) 8.00 8.13 6.4 6.7 7.2 7.4 5 5 Pb (%) 4.13 4.23 3.1 3.4 3.6 3.8 2 3 Ag (g/t) 63.7 70.3 64 68 64 69 59 64

CommodityProved Ore Reserves Probable Ore Reserves Total Ore Reserves 31.12.12 31.12.11 31.12.12 31.12.11 31.12.12 31.12.11

Ore Reserves (Mt) 129 88.3 111 98 239 186 Zn (%) 10.1 9.13 7.2 7.5 8.7 8.3 Pb (%) 4.45 3.98 3.7 3.7 4.1 3.9 Ag (g/t) 55.7 61.8 53 63 55 62

Zinc continued

47



ber 2012

Notes (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 7 pit based on a pit optimisation (in Whittle) utilising Measured and Indicated Resource blocks and is reported above a 23.18 AUD per tonne Net Smelter Return 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 4.4Mt at 2.3% Pb, 4.8% Zn and 57g/t were depleted from the Ore Reserves in the 12 months to 31 December 2012 due to ongoing mining operations.

The Black Star Open Cut is located on Mining Lease ML8058 which is expires on 30 November 2036. The current LOM plan predicts the Ore Reserves to expire in Q2, 2019.

(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 a 23.18 AUD per tonne Net Smelter Return 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 a 88.74 AUD per tonne Net Smelter Return cut-off.

Mine production totalling 3.7Mt at 3.3% Pb, 7.4% Zn and 60g/t Ag respectively were depleted from the Ore Reserves and Mineral Resources for the period January 2012 to December 2012.

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 88.74 AUD per tonne Net Smelter Return cut-off.

The total Ore Reserve tonnage increased by 1.1Mt. This is equivalent to 1.4% and is driven by economic assumptions, additional drilling, improved resource to reserve conversion and orebody re-interpretation.

Geotechnical and Geological performance of the mined ore sources were monitored continually between 2011 and 2012. Historical benchmarked dilution values in combination with 2012 measured dilution were applied in the resource to reserve conversion process.

The mine plan results in a mine life to 2032. The mine is located on Mining Lease ML8058 which is expiring 30 November 2036.

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.

The resource mineralisation occurs inside a designed Stage 5 pit based on a pit optimisation (in Whittle) utilising

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Measured, Indicated and Inferred Resource blocks and is reported above a 26.5 AUD per tonne Net Smelter Return cut-off.

The Reserve occurs inside a designed Stage 4 pit based on a pit optimisation (in Whittle) utilising Measured and Indicated Resource blocks and is reported above a 33.1 AUD per tonne Net Smelter Return 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 1.4Mt at 2.4% Pb, 6.1% Zn and 47g/t Ag were depleted from the Ore Reserves in the 12 months to 31 December 2012 due to ongoing mining operations and sterilisation. A Feasibility Study added 1.0Mt to the Ore Reserves at the time of approval.

The Handlebar Hill Open Cut is located on Mining Lease ML8058 which expires on 30 November 2036. The current LOM plan predicts the Ore Reserves to expire in Q2, 2014.

(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 reaches 480m below the surface.

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 cut-off of US$88.

The mining method at Lady Loretta is based on a mixture of transverse and longitudinal long hole open stopping with paste fill. Proved and Probable Ore Reserves are defined by designing mining excavations based on a NSR cut-off of US$110, 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 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 ore has started to be treated through the Pb-Zn Mount Isa process plant, mine production was 51Kt at 6.6% Pb, 10.0% Zn and 90g/t Ag.

The LOM plan for Lady Loretta based on current Reserves extends until 2024. The Mining Lease (ML5568) is current until the 31 January 2026.

(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. The block model was refined in 2011 after review of the available data, resulting in overall increases to grades and thickness of mineralisation. Mineral Resource categorisation is based on assessment of orebody continuity, structural complexity, adequacy of data coverage and geostatistics.

The Open Pit Resources and Reserves are based on the results of the Phase 3 Project Feasibility Study mine plan which increases crushing to approximately 5.0Mtpa. In addition to bulk Zn-Pb concentrate, separate Zn and Pb concentrates will be produced using proprietary treatment processes.

Pit optimisation was completed using Measured and Indicated Resources, with dilution and loss estimates applied considering bed width, dip, and grades. The Open Pit Resources are reported at the breakeven cut-off value for each ore-group within the optimum undiscounted cashflow pit shell. 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.

The reported Ore Reserves are a sub-set of the Mineral Resources. All Ore Reserves are within a designed final pit based on the pit optimisation results. Ore Reserves categories reflect the Mineral Resource categories and consideration of the modifying factors, including metallurgical performance. The large increase in reserves during 2012 was due to the successful completion of the Phase 3 Feasibility Study, which yielded improved project economics through economies of scale and production of some separate zinc and lead concentrates. Pit staging enabled the annual milling throughput targets to be achieved with relatively modest total mine movements in peak years of up to 60Mtpa using conventional open pit mining methods and equipment.

The Reserves and Resources have been depleted by a total of 2.3Mt at 4.5% Pb and 11.9% Zn that were mined during the period of 1 January 2012 to 31 December 2012 that has elapsed since the last annual estimations.

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The updated mine plan results in an extended mine life to 2037. The relevant mining leases for the operations and port are valid until 2043.

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

The mine has been in continuous production since 1964. Historical production as of 31 December 2012 is 135.9Mt at 3.4% Pb, 8.7% Zn, 0.4% Cu and 102g/t Ag. Brunswick Mine has been one of the largest Zn mines in the world.

Total mine production from 1 January 2012 to 31 December 2012 was 2.9Mt at 3.0% Pb, 7.7% Zn, 0.5% Cu and 94g/t Ag. The Ore Reserves decreased accordingly by 2.9Mt during the period, including minor upgrades of Mineral Resources to Ore Reserves, a few Ore Reserves sterilised and some stope design optimisation. There was no diamond drilling performed during the period. 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.

Total Mineral Resources represent 40 individual blocks of mineralisation located from the 575m level down to the 1,125m level. All blocks are categorised as Measured. Geological confidence categorisation 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 33 individual stopes designed and located in 13 remaining active mining zones. Current underground mining method is open stoping with delayed paste back fill. Average expected overbreak dilution for stopes is 14.5% while average expected mining recovery is 84.0%. A total of 15 of these 33 stopes consist of Measured Mineral Resources converted to Probable Ore Reserves due to "modifying factors" such as technical risks and sequencing uncertainties.

There is only one geo-metallurgical ore type left to mine (i.e. the typical ore). Short-term NSR parameters, in particular the metal price and exchange rate assumptions, were used to individually evaluate for economic viability the Ore Reserve stopes scheduled in the remaining LOM plan.

Brunswick Mine will be mined out by the end of Q1 of 2013. The mine is located on a Crown Grant where Xstrata owns surface and mineral rights. There is no expiry date.

(g) Perseverance Mine: The Perseverance resource comprises four separate polymetallic volcanogenic massive sulphide (VMS type) deposits. 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 interpreted from the 2001 (surface) and 2009 (underground) diamond drill programs totalling 101,196m. A geostatistical analysis and a resource block model were generated in 2009. Grade interpolation is done by Ordinary Kriging.

Total mine production from 1 January 2012 to 31 December 2012 was 1.1Mt at 12.5% Zn and 1.1% Cu. Ore Reserves decreased consequently by 1.0Mt, since 0.06Mt of Mineral Resources were upgraded to Ore Reserves and mined out during the period (P2 lens crown pillar).

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

The Ore Reserves are based upon a 72.47 USD Net Smelter Return cut-off. An averaged 95% mining recovery factor has been applied. The Ore Reserves encompass, in average, 10% of internal dilution, 7% of external dilution for primary stopes and 12% external dilution for secondary stopes.

Mining production started in 2008 and is expected to cease in mid Q2 of 2013. The mine is located on Mining Lease BM875 which is expiring 25 June 2028.

(h) Bracemac-McLeod Project: The Bracemac and McLeod deposits comprise a cluster of 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 Matagami concentrator and offices.

The Bracemac-McLeod area comprises two main centres of mineralisation spaced 1.2km apart. The westernmost Bracemac area consists of three stacked lenses. The McLeod area consists of four lenses.

The Measured and Indicated 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 (February 2009) and McLeod Deep (August 2010) zones are based on single-value polygons extending midway between drill holes.

The current Ore Reserves estimation is based upon a 68.50 USD Net Smelter Return cut-off. An average of 95% stope recovery has been applied. The Ore Reserves encompass, on average, 18% of external dilution and are meant to support a 2500t/d production from 2013 to 2017.

The Bracemac-McLeod project is a Joint Venture 65% Xstrata Canada Corporation and 35% Donner Metals Ltd and is contained on mining leases BM 1023 and BM 1024.

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(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 x Cu%.

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

(j) Errington: The Errington deposit is a polymetallic massive sulphide located in the Sudbury Basin, Ontario. The 5 lenses that make up this deposit are hosted by sedimentary rocks of the Vermilion Formation at the contact of the Onaping and Onwatin formations. The deposits formed by replacement of carbonate mounds and carbonaceous tuffs fuelled by heat from the Sudbury Igneous Complex. Additional enrichment and concentration of metals was provided by deformation from the South Range shear zone.

Discovered in the 1920’s, the Errington underground development began in 1924 and ended in1928. A total of 129,713 tonnes of ore were produced from Errington. The site was completely rehabilitated in 2006, with all openings capped, crown pillar fenced and its tailings moved to Xstrata Nickel’s Strathcona tailings site facility.

In 2011 – 2012, a duplication drilling campaign was held in order to confirm our new interpretation of these datum; 13 holes were drilled, confirming both morphology and grade of these historical resources, which had been based on 1,070 historical diamond drill holes. No material evidence, apart from paper logs and geological mapping, remains of these holes.

The wireframe interpretation parameters that were used are defined as follows;

• The Indicated resource modelling involves blocs that were defined by at least 3 drill holes, within a 25m span, with an influence limit of 4 samples coming from the same hole;

• The Inferred resource modelling involves blocs that were defined by at least 2 drill holes, within a 50m span, with an influence limit of 4 samples coming from the same hole;

• The resources are based upon a 6% Zn equivalent cut-off grade where % Zn equivalent= (4 x Cu%) + Zn% + Pb% + (3 x Au g/t) + (0.1 x Ag g/t), and have been interpolated by Inverse Distance Squared (ID2).

Due to the historical nature of the data and absence of remaining core, the interpretation parameters are conservative. These parameters will be reviewed, as the 2012 – 2013 definition drilling program permits access to new and relevant information.

(k) Vermilion: The Vermilion deposit is a polymetallic massive sulphide located in the Sudbury Basin, Ontario. The 17 lenses that make up this deposit are hosted by sedimentary rocks of the Vermilion Formation at the contact of the Onaping and Onwatin formations. The deposits formed by replacement of carbonate mounds and carbonaceous tuffs fuelled by heat from the Sudbury Igneous Complex. Additional enrichment and concentration of metals was provided by deformation from the South Range shear zone.

Although discovered in the 1920’s, the Vermilion underground development only started in the 1950’s; it occurred between 1952 and 1957 and included a 409m shaft and lateral development on 8 sub-levels totalling 5,073m. A total of 22,172 tonnes of ore were hoisted at Vermilion and stockpiled circa since 1958. The stockpile was shipped to Kidd Creek Metallurgical complex for processing, in 1992.

In 2011 – 2012, a duplication drilling campaign was held in order to confirm our new interpretation of these datum; 5 holes were drilled, confirming both morphology and grade of these historical resources, which had been based on 609 historical diamond drill holes. No material evidence, apart from paper logs and geological mapping, remains of these holes.

The wireframe interpretation parameters that were used are defined as follows;

• The Indicated resource modelling involves blocs that were defined by at least 3 drill holes, within a 25m span, with an influence limit of 4 samples coming from the same hole;

• The Inferred resource modelling involves blocs that were defined by at least 2 drill holes, within a 50m span, with an influence limit of 4 samples coming from the same hole;

• The resources are based upon a 6% Zn equivalent cut-off grade where % Zn equivalent= (4 x Cu%) + Zn% + Pb% + (3 x Au g/t) + (0.1 x Ag g/t), and have been interpolated by Inverse Distance Squared (ID2).

Due to the historical nature of the data and absence or remaining core, the interpretation parameters are conservative. These parameters will be reviewed, as the 2012 – 2013 definition drilling program permits access to new and relevant information.

(l) Hackett River Project: The Hackett River project is located in Nunavut, Canada.

The Hackett River deposits are situated within the Slave Structural Province. 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 were defined as economically viable mineable resources, following boundaries of open cut vs underground mining, through a Preliminary Economic Assessment prior to Xstrata’s acquisition (2010). A Pre-

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Feasibility study is now underway and is revisiting both the mining methods and boundaries between open cut and underground; for these reasons the resources are only distinguished through their categories instead of exploitation method.

Following the exploration drilling campaign of 2012, we have undertaken the re-interpretation of an in situ resource using Zn equivalent values instead of considering a block dollar value. The resources are based upon a 2.5% Zn equivalent cut-off grade where %Zn equivalent= (2.88 x Cu%) + Zn% + (0.96 Pb%) + (1.34 Au g/t) + (0.03 x Ag g/t), and have been interpolated by Inverse Distance Squared (ID2).

(m) Pallas Green Project: The Pallas Green project is situated near Limerick in Southwestern Ireland. The Tobermalug zone consists of multiple, subhorizontal, stratiform lenses of Irish-type, breccia-hosted, sphalerite-galena-pyrite within a Carboniferous limestone. The lenses occur over an area 3,500m by 3,500m, and from 300m to 1,100m below surface.

The Inferred Resource is based on 290,000m of diamond drilling in 625 drill holes completed between 2005 and the end of 2012. Drill spacing is nominally 100m but 170 infill drillholes at 50m spacing have been completed. Mineralisation wireframes were built with a cut-off of 4% Zn + Pb and a minimum 3.0m vertical thickness, and constrain interpolation by Inverse Distance Weighting (IDW) in a block model.

Drilling remains ongoing, with much basic delination to do.

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, The Minserve Group Pty Ltd, (AusIMM).

DH = Drew Herbert, Mining Consultant, The Minserve Group Pty Ltd, (AusIMM).

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

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

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

JG = Jean Garant, 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 Jean Garant 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.

mineral resources & ore reserves - glencore

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