Tampakan Copper-Gold Project: An Unprecedented Opportunity

for the Philippines

7th Annual Asia Mining CongressMarina Bay Sands, Singapore

6 April 2011

SMI’s Tampakan Copper-Gold Project

• One of the world’s largest undeveloped copper-gold deposits

• If approved, it would be the largest mine in the Philippines and has the potential to be one of the largest copper mines in the world

• Has the potential to create significant benefits for the Philippines

Project Proponents

• Sagittarius Mines, Inc.

•Filipino company

•Philippine Government’s contractor for the exploration, development, and operation of the Tampakan Copper-Gold Project

• Xstrata Copper

•Provides the technical and managerial resources for the Project

•4th largest global copper producer

60%

TAMPAKAN GROUP OF

COMPANIES

(non-managing)

XSTRATA

COPPER

INDOPHIL

RESOURCE

S40% MANAGEMENT

CONTROL

SMI Shareholders

A responsible track record

•SMI

•Presidential Mineral Industry Environment Award (2010, 2009 and 2006)

•Best Mining Forest Program Award (2008-2010)

•Safest Mines Award (Exploration) (2010)

•Communications Anvil Award of Excellence (2010)

•Xstrata

•A global reputation for social responsibility

•Xstrata plc - Sector Leader, Dow Jones Sustainability Index for fourth consecutive year

What makes up this project?

• If developed, the Project would involve a large-scale, open pit copper-gold mine and associated infrastructure, including:

• Concentrator and employee village

• Fresh water dam

• Waste storage facilities

• A 500 MW power station, port and concentrate dewatering facility

• A copper-gold concentrate pipeline and power transmission line

Project Status

• On-going review of Feasibility Study by the Philippine government

• Currently in the consultation, design and approvals phase

• Requires approval by DENR of SMI’s Declaration of Mining Feasibility

• Requires community, government and shareholder approvals

Already contributing to the Philippine economy

In 2010, contributed USD54 million to the Philippine economy

• employment

• annual wages

• government taxes

• purchase of goods and

services

• community partnerships

Providing real, long-term benefits to host communities

In 2010, invested USD3 million in community programs:

• 15,000 benefited from basic health services

• 19,000 students benefited from educational support

• 2,000 households benefited Enterprise Development Programs

Potential for a significant economic contribution

• Revenue stream to the Philippine economy is estimated at USD37Bn over the life of the mine

• If developed, the project could potentially contribute:

– Additional 1% (average) of Philippines GDP each year

– USD 7.2 billion (nominal) to Philippine government in taxes/duties

– Royalty payments and direct contributions in excess of USD830 million (nominal) to host communities and local indigenous groups

Current areas of focus

• Public consultation on our environmental impact assessments

• Developing Resettlement Action Plans with the affected communities

• Obtaining Consent from host IP communities

• Seeking endorsement from affected LGUs

Making this project a reality

• We require positive collaboration with our stakeholders.

• We have established, and continue to build upon, relationships.

• We work openly with all stakeholders in relation to their concerns.

• We needs endorsement our host communities and government before we can move forward.

Making this project a reality

• SMI is working toward enabling a better future for southern Mindanao and the Philippines.

• Through collaboration with all of our stakeholders we are committed to making the Tampakan Project a blueprint for responsible modern mineral development in the Philippines, including best-practice in:

• resettlement programs

• indigenous consultation

• environmental and social impact assessments.

• Provides the opportunity for a step-change toward sustainable economic growth in southern Philippines.

THANK YOU