El Pachón Greenfield Project

Xavier Ochoa, El Pachón General Manager 18 September 2011

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Project is 100% Xstrata Copper Argentinean company holds free-title mineral, land and water rights

required for project in Argentina Chilean company holds land and easement rights for development of

concentrate handling facilities in Chile

El Pachón Project

Ore body located fully in Argentina, San Juan province, 5km from Chilean border − Mining-friendly province − Only current road

access from Argentina via a 160km gravel road

− 1 hour helicopter flight from Santiago, Chile

− Short distance downhill to Chilean coastline and nearby ports

El Pachón Project

Bi-national setting – Bi-national Integration Treaty is

Applicable – Access to Chilean infrastructure

for concentrate exports – Dual stakeholder populations

Uninhabited site location – Nearest populations:

o In Chile 45km o In Argentina 160km

El Pachón Community Relations

Community and Social Involvement programs active since 2006 – Calingasta Valley in Argentina – Choapa Province in Chile

Very good rapport with communities – Conducting Townhall meetings in all localities since 2007 – No present day community opposition to project development – Working openly in joint state-private partnerships with community

involvement – Focus on education, health and local productive activities

Strong local, regional / provincial government support

Mining Industry recognition– Argentina Mining 2010 RSE Award

El Pachón Project: Summer field drill programs

description

Site

Fully equipped state-of-art camp facilities designed to support drilling operations El Pachón

Description Mineral Resource: 1.790Bt @ 0.51% Cu

(Dec 10) Largest ever on-property exploration

drilling campaign during summer of 2010/11 – 58,914 metres

Resource sampling density increased significantly

Target of +85% measured and indicated resource categorization in 5-yr pit

Resource open at depth

El Pachón Mineral Resource

Copper in resource

El Pachón drill collar locations Core logging – Barreal facilities El Pachón Resource categories

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2008 2009 2010

Measured Indicated Inferred

Mt Cu

ESIA Process - two separate but correlated impact assessments: – Argentina (Mine, Plant, Infrastructure) – Chile (Concentrate transportation, filter plant & shipping)

Supported by key specialist consultants for acid rock drainage, snow & crioforms

Baselines completed

ESIA development underway integrated with Feasibility Study

Process: Environmental and Social Impact Assessment

Local community water sampling Automated river gauging station

Feasibility Study conducted with Bechtel – 5th Feasibility Study under the Xstrata -

Bechtel Strategic Alliance Study advancing as per plan

– Standard Concentrator applied – Key project elements designed – Thickened tailings disposal development – Infrastructure design - tradeoffs underway

for offsite infrastructure o Power supply o Chile inland concentrate shipping o Seaport

Metallurgical development nearly complete

– Flotation pilot plant confirmatory results obtained at G&T Labs in Canada

– Mini pit bulk ore sample collected for grinding pilot tests – now underway at CIM Labs in Chile

El Pachón Feasibility Study status

Bulk Sampling Mini Open Pit

El Pachón Project particulars

Mine and Concentrator in separate valleys linked by tunnels Thickened tailings disposal solution Concentrates will be exported via Chile to a commercial Pacific Coast port

Standard Concentrator: 2 grinding lines 160ktpd throughput Production:

– 400ktpa Cu for first five full years – average over LOM 280ktpa Cu – Resource supports 30-yr operation

El Pachón Project particulars

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2015 2016 2017 2018 2019 2020

Indicative El Pachón production to 2020 Standard concentrator design

Kt Cu in concentrate

El Pachón Project synergies

Project will be the third Standard Concentrator application and benefit from the replication of Antapaccay and Las Bambas concentrators

– Engineering – Procurement – Execution – Commissioning

Retention of Project Teams – XCu & Bechtel Engineering and Procurement Teams to move across in

2012 from Las Bambas project to El Pachón to advance engineering – Potential for Execution Teams at Antapaccay, following project

commissioning in 2012, to move across as well to El Pachón

Operational Expertise – Operational expertise in Peru & Argentina (MAA) available to leverage

Pachón workforce, advance training and provide leadership

Project will utilise mostly Argentine construction labour skills – Not competing with the large number of large-scale Chilean projects – Will benefit from labour development in other in-country projects

Conclusions

World class and large scale new project that will benefit from synergies with Antapaccay and Las Bambas and in-country (MAA) operational expertise

The final feasibility study will be complete in early 2012

Additional exploration drilling during summer of 2011-2012 will improve certainty of Mineral Resource

The ESIA process will be complete in early 2012 with EIA documents ready to be lodged in Argentina and Chile in H1 2012

Project engineering will start in 2012 with Las Bambas Team

Subject to approvals: – 34 month construction program – Could start commercial concentrate production in 2016

Questions?

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Agenda Introduction Copper market update Xstrata Copper overview South American Operations Project Development South America Antamina and Collahuasi expansions

Antapaccay Project Las Bambas Project El Pachón Project Agua Rica Project Conclusions

Coffee break