Errington-Vermillion Project

Ontario, Canada

The Errington-Vermillion Project is in the South West corner of the Sudbury basin. The project comprises two distinct sites five kilometers apart. The Errington site contains an estimated 6 million tonnes of ore while the Vermillion site about 3 million tonnes. Both deposits are polymetallic and contain zinc, copper, lead, silver and gold. Both Errington and Vermillion sites were previously mined. The Errington underground mine began in 1924 and ended in 1928 while Vermillion was mined between 1952 and 1957. From the late 1990s until 2006 both sites were re-habilitated and managed by Xstrata Zinc. Some of the infrastructure from the original sites will be re-used, such as the shafts for ventilation and lateral headways which will be re-habilitated and used for mining. The ore produced at both Errington and Vermillion will be trucked to a concentrator that will be built on Xstratas property near the Strathcona Complex. The current total capital cost of this project is $350 million CDN and it is expected to create 250 direct jobs. The project is currently at the feasibility stage. If the project proves to be feasible, production could begin by 2016.

Facts
Size of orebodies
Errington 5.8MT / Vermillion 2.5MT

Mining rate
2900 tonnes/day

Zinc
Errington 4.16% / Vermillion 4.7%

Direct employment
250 (both mining and milling)

Copper
Errington 1.23% / Vermillion 1.46%

Yearly concentrate production

Zinc: 74,800 DMT Copper: 44,500 DMT Lead: 12,150 DMT

Lead
Errington 1.06% / Vermillion 1.46%

Silver
Errington 50.53g/t / Vermillion 53.77g/t

Life of mine
710 years

Gold
Errington 0.73g/t / Vermillion 0.89g/t

About Xstrata
We are one of the worlds largest mining and metals companies - a major producer of seven commodities used in everything from constructing buildings and delivering electricity to developing jet engines and mobile phones. We operate in more than 20 countries and employ more than 70,000 people globally. Our mission is simple. It defines our role in society. We deliver natural resources that are at the heart of everyday life and are central to the development of society. We extract these products profitably to create value for our shareholders, efficiently with respect for the environment, and responsibly to leave communities with lasting benefits from our presence such as infrastructure, improved local skills or thriving new businesses. We cant do this alone. Our success depends on the strength of our partnerships with our stakeholders, from our people to our customers to local communities, governments and other mining companies.

It is the way we do business. Every day we strive to perform better than yesterday, not just in financial terms which are crucial but also in the way we contribute to society, the environment and the communities in which we operate.

About Xstrata Zinc

Headquartered in Madrid, Spain, Xstrata Zinc is one of the worlds largest producers of zinc and one of the commodity business units within the major global diversified mining group Xstrata plc. Xstratas zinc and lead operations and exploration projects are located in Australia, Canada, Germany, Peru, Spain and the United Kingdom. In Canada, operations and exploration projects include the Brunswick zinc-lead mine and lead smelter in New Brunswick; 25% of the CEZinc refinery near Montreal; and the Perseverance & Bracemac-McLeod zinc deposits in Qubec and exploration activities in Qubec, Ontario and Nunavut. Around half of all zinc currently consumed is used for galvanizing steel, which is an environmentally friendly method of protecting steel against corrosion. Zinc also finds application in the manufacture of die-cast alloys, brass and the production of zinc oxides and chemicals.

Our commitment to sustainable development

Xstrata has leading standards of health, safety, environmental management and community support, together referred to as Sustainable Development. Xstrata is committed to the development of sustainable communities where it operates and each year sets aside a minimum of 1% of Group profit before tax each year to fund initiatives that benefit the communities associated with our operations. Support includes programs for community development, enterprise and job creation, health, education and the environment as well as culture and arts. Xstrata was assessed as the mining and metals sector leader in the Dow Jones Sustainability Index (DJSI) for 5 consecutive years and annually receives an A+ rating from the Global Reporting Initiative (GRI). In 2012, Xstrata Zincs Brunswick Mine near Bathurst, New Brunswick, was awarded the John T. Ryan Award for being the safest metal mine in Canada.

Project timeline

2013

Additional exploration and definition drilling for both deposits Completion of feasibility for both deposits Aboriginal consultation Ongoing community and stakeholder consultation Permitting Application for Errington

2012
Exploration and definition drilling for both deposits Started pre-feasibility for both deposits Community and stakeholder consultation

2014

Development of Errington mine and construction of Mill

2016 2015

Production

Finalization of production and beginning of operation for Errington mine and mill

Strathcona Mill

Coleman / McCreedy East Mine Fraser Morgan

69 N

(undeveloped)

Victor

Nickel Rim South

144

Garson Mine Blezard

Sudbury Smelter Xstrata Process Support

Sudbury Basin Xstrata Zinc

Deposits

Errington Deposit Vermillion Deposit Copper Cliff North Mine

Frood-Stobie Mine Clarabelle Mill

17 E

Xstrata Nickel
Mines Growth projects Processing plants Xstrata Process Support

Copper Cliff Smelter Creighton Mine Copper Cliff South Mine Copper Cliff Nickel Refiner y Kel Totten Mine

ly Lake Mine

69 S

Vale
Mines Growth projects Processing plants

XSTRATA ZINC CANADA

100 King Street West, Suite 7000 Toronto, Ontario Canada M5X 1E3 Tel: +1 (416) 775-1500
144

Levack

Strathcona
Trucking route Operations

Onaping

Trucking route

Projects

XSTRATA ZINC CONTACT

Brad J. Ryder Corporate Affairs Tel. +1 (416) 775-1434 bryder@xstratazinc.ca

Windy Lake

Onaping Falls Dowling

144 144

www.xstratazinc.com
12

13

December 2012
Errington

Vermillion Lake

Vermillion