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Agua Rica Project

Michael Holmes General Manager Minera Alumbrera


Dave Dicaire - General Manager Studies, Project Development South America
18 September 2011
Minera Alumbrera Overview

Xstrata is the major shareholder (50%) and operator of Minera Alumbrera


Largest copper mine in Argentina
Safety improvements: LTIFR improved from 3.62 to 0 (June 2003
present)
6 consecutive years of CAT 5 Star Rating for mine haul truck fleet
contamination control (unique in Global Mining Industry)
Strong community programs have consolidated reputation in region
5 consecutive years of extension to ore reserves
218 million tonnes of additional reserves, 6 years added to mine
life
Plant continuous improvement
Ore milled from 34Mtpa to 38.5Mtpa, targeting 40Mtpa
Molybdenum concentrate plant commissioned in 2008
First quartile C1 cash cost position with continuous improvement culture
The Agua Rica Project

Located 35km from Minera


Alumbrera
Signed an exclusive four year
option with Yamana Gold Inc. for
the acquisition of Agua Rica
property
Deposit is a large copper-gold-
moly porphyry
Minera Alumbrera will manage
and fund the Feasibility Study
and, if approved, the
development costs
Part of companys long term
growth strategy
Attractive opportunity to expand
production and extend the
current mine life by 25+ years
Agua Rica Overview

Copper in resource Description


10 Mt Cu Location: Province of Catamarca,
Argentina
8
Inferred
Indicated
Mineral Resource: 1,750Mt @ 0.42%
6
Measured Cu using a 0.20% Cu Cut-off
4 Concentrator: three lines - 105ktpd
2 Estimated production: 250ktpa Cu for
first five years, average over LOM
0
MAA Agua Rica Agua Rica + MAA 150ktpa Cu, significant Au + Mo credits
LOM: 26 years

Project Status
Feasibility Study stage
Resource definition drilling program
starting Oct 2011 30,000 metres
Fluor Canada conducting Feasibility
Study
World class materials handling
Agua Rica Site expertise on Study
Agua Rica:
Key strategic benefits

Extend Minera Alumbreras Production Profile


operations from 2018 to 2041 300
Kt Cu in concentrate
250
Expand current contained copper 200
production by 40% compared to 150
remaining life of mine average 100

Significant synergy benefits with 50

Minera Alumbrera operations and 0

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020
people
Leverage Sustainable Development
achievements of Minera Alumbrera
Integration case and stand-alone
case being studied
Benefits from utilization of
Alumbrera facilities (financial,
schedule, permitting and
Sustainable Development)
Proximity to Minera Alumbrera
Agua Rica:
Potential Integration with Alumbrera with Ore
Conveyor route from Agua Rica

Conveyor route to Minera Alumbrera

0M 5.000 M 10.000 M

Minera Alumbrera site map Tunnel Profile


Central Office
Warehouse

Stock Pile

Moly Plant

TIE-IN TO STOCK PILE

Concentrator

Truck shop
Agua Rica Preliminary Pit Design

3630
3270 3420

2895

2700
The Agua Rica Project Management

Xstrata Copper & MAAs disciplined approach to project


development through study and execution phases
Leverage recent major project development experience from
Xstrata Coppers Project Development South America Division and
other sites

Indicative Development Timeline


Activity 1H11 2H11 1H12 2H12 1H13 2H13 1H14 2H14 1H15 2H15 1H16 2H16
Complete Transaction with Yamana

Feasibility Study

Approval Decision to Proceed

Prepare and Submit IIA

IIA Approval Provess

Detailed Engineering and Procurement

Construction Phase

Transfer to Mining Phase at Agua Rica


Supported by Sustainable Development

Strategic Objectives focusing on Sustainable Minera Alumbrera Safety


Development Performance
Total recordable Injury Frequency Rate
Injury-Free, Safe Work Places 9 8,22
8

Million worked Hours


6,81
6,29
Leadership in Environmental Performance 7
6
5 3,95
Reputation for Social Responsibility 4
2,47
3
1,54
Realization of the full potential of our 2
1
people 0
2006 2007 2008 2009 2010 2011

Catamarca Maternity Hospital School No 33 El Paso Amaicha Hualfin Vineyard and Winery
Conclusions

Signed exclusive four year option for the


acquisition of Agua Rica property
Opportunity to extend current Minera
Alumbrera mine life by 25+ years
Close proximity to operating Minera
Alumbrera facilities
Commencement of Feasibility Study Minera Alumbrera Concentrator

strong technical knowledge with Fluor


and Minera Alumbrera
strong social knowledge from
operating in area for 14 years
Leveraging opportunities
Option/investment decision targeted for
H1 2013 with possible production in 2016
Agua Rica Site and Exploration Camp
Questions?