Slide 1: Tenke Fungurume - Site Visit
Tenke Fungurume - Site Visit October 3, 2008
Slide 2: A Diversified Base Metals Producer
A Diversified Base Metals Producer • Copper, lead, zinc and nickel • Five operating mines - Europe • High quality project pipeline – Lombador - Zinc (FS) – Neves Corvo – Zinc Expansion - EPCM – Zinkgruvan - Copper - EPCM – Tenke Fungurume – Copper/Cobalt - EPCM • Outstanding exploration potential ne
Slide 3: Production Diversification
Production Diversification 2008 Year to Date - Revenue Distribution Zinc 16% Copper 65% Nickel 8% Lead other 9% 2% 2008 Production Forecast 181,000t zinc 96,000t copper 45,000t lead 7,000t nickel
Slide 4: A Major Investor in Africa
A Major Investor in Expl. ele Sc Asmara Project ; ma are Africa 5G gt =) ) 4. és ee f P : f 4 “Wi SNU - Eritrean Expl. 5 aera | 2 4, Equator (yy 3 , ae 10° sf +e h aie? E Al 20° = C Tropic of 14 Capricom 30° 0
Slide 5: Tenke Fungurume
Tenke Fungurume “…one of the largest/highest grade copper/cobalt resource in the world”
Slide 6: Ownership and Funding
Ownership and Funding • 17.5% Gecamines (carried interest) • 24.75% • 57.75% (operator) • 70:30 Freeport/Lundin funding obligations
Slide 7: Project History
Project History •Fungurume Exploration - early 1900’s •SMTF (Anglo) mid-1970’s •Tenke Mining Corp – 1996 Convention •Project disrupted 1999 – 2005 by civil conflict •Freeport (Phelps Dodge) partners since 2000 •Amended Convention – November 2005 •Site infrastructure construction started late 2006 •F
Slide 8: Historic Photos from Fungurume
Historic Photos from Fungurume
Slide 9: A World Class Copper District
A World Class Copper District
Slide 10: Copper Clearings
Copper Clearings
Slide 11: Mineral Resources
Mineral Resources Measured and Indicated: 235 million tonnes 3.01% copper / 0.31% cobalt Inferred: 264 million tonnes 2.60% copper / 0.19% cobalt *NI 43-101 June 2006, Mintec and Nilsson Mine Services
Slide 12: The Mine Series
High Low Softer Harder Copper content Youngest beds SD. Upper Dolomite. Dolomite and dolomitic siltstone. Three pyritic black Cobalt content shale horizons. Algal laminae with de- gasification textures. SD SDB. Basal Dolomitic Siltstone/Shale. SD Thin platy, laminar, sericitic-hematitic. 30-100 m Ve
Slide 13: Typical Katangan Series
Typical Katangan Series South North SDB - Upper Ore Body RSC - Middle Ore Body RSF - Lower Ore Body
Slide 14: Mine Plan and Resource Expansion
Mine Plan and Resource Expansion • 40 year mine plan • Kwatebala, Fwaulu and Goma deposits developed first • Open pit - low strip ratio • First 10 years grade + 4 % copper and 0.40% cobalt • Prove up new high grade for expansions with aggressive drilling > 100,000 m/year
Slide 15: Exploration priorities
Exploration priorities ~~ (8) Ditoma O Priority Drill Targets O Oxide Target Zone i Copper Deposits Sefu Fwaulu Kwatebala S i co a Mwandinkomba Pa-@S @ Shinku —_— ) rungurume *® Kansalawile it t—— ee a e Cg East Mambilima inal SP wee — ——— Sie > 7 j7 ~1*% Pumpi 5 km
Slide 16: Development Plan
Development Plan • Initial phase – 115,000 tpa Cu cathode / 8,000 tpa Co • Construction in progress – direct cost $US1.75 million • Production start-up - second half 2009 • Cash costs in lowest quartile • Objective to expand to + 400,000 tpa copper in 5 – 7 years from startup
Slide 17: Current Development Activities
Current Development Activities • Design and Procurement substantially complete • Overall project > 50 % complete • Civil works, concrete, platework, steel and tank erection well advanced. Mech/piping/electrical installation started. • Pre-stripping of Kwatebala deposit well advanced
Slide 18: Mining Method
ining Method M I
Slide 19: Kwatebala Prestripping
Kwatebala:Prestripping
Slide 20: Process
Process Process Copper / Cobalt Ore From Mine Grinding Whole Ore Agitated Leaching Thickening and First and Second Tailings Neutralization Counter Current Stage Impurity Residue to disposal Decantation Removal Intermediate Cobalt Hydroxide Solvent Extraction product to Precipitation Market Electrowi
Slide 21: Kwatebala Plant Site
PLAGLNTS TORE iF RLLOFF DAMNG1 GOSALT REFINERY Sica SeRVICRa. oHUSUN Kwatebala Plant Site
Slide 22: Kwatebala Site Layout
Kwatebala Site Layout NORTH WASTE EAST DUMP LOW GRADE STOCKPILE TAILINGS RETURN WATER DAM TAILINGS PLANT SITE STORAGE DAM PLANT SITE WEST LOW GRADE STOCKPILE HIGH GRADE STOCKPILE KWATEBALA MINE 0 1km
Slide 23: Regional Infrastructure
Regional Infrastructure Construction Airstrip Plant Village Access Road Waste Dump Tailings Pond 220 KV Power Line Fwalu Pits Kwatebala SNEL Pit Power Substation TFM Camp Goma Pits SNCC Railway 150 KV Power Line National Road Each grid line = 2km 23
Slide 24: DRC's Latent Power Supply
DRC’s Latent Power Supply • Four hydro generating plants • Surplus power being exported at low rates • Investing in reliability • Restarting latent capacity
Slide 25: Transportation – A key Issue
Transportation — A key Issue Pax Cameroon Namibia Madageasc Botswana
Slide 26: Corporate Social Responsibility
Corporate Social Responsibility • Safely run project and operations • Equator Principles • Voluntary Principles - Security and Human Rights • Applicable IFC guidelines • Freeport/PD high corporate standards • Extractive Industries Transparency Initiative • Social programs managed by NGO’s Tenke Fung
Slide 27: Key Social Issues
Key Social Issues • Villager Resettlement • Community Development • DRC contract review Community Meeting in Mulumbu • Employment/Economic Opportunities • A sustainable future New Fungurume School
Slide 28: DRC Contract Review
DRC Contract Review •Complex political process – very different issues between contracts •Tenke agreements arrived at after several years of transparent negotiations with all parties - legally sound and equitable •Tenke Agreements - DRC Mining Code terms + additional financial, project and social co
Slide 29: Social/Regional Commitments
Social/Regional Commitments • Village re-settlement to high standards • Environmental protection • Education, agriculture, water supply, public health programs • Micro enterprise development for sustainable indirect employment • National highway improvements • Renovation of Kasumbalesa border crossi
Slide 30: Tenke Fungurume – one of the World's Largest New Copper Mines
Tenke Fungurume – one of the World’s Largest New Copper Mines • Superb, experienced development team on site (Freeport Indonesia construction/logistics, SXEW operations) • Freeport making excellent progress with several major milestones now achieved • Concrete and tailings area finished prior to rai
Slide 31: For Lundin Mining Shareholders
For Lundin Mining Shareholders • 24.75% of a world class copper project • Strong project economics • Low cash operating costs • Extraordinary upside potential • Freeport as Operator • Stepping stone to additional Lundin investments
Slide 32: Tenke Fungurume
Tenke Fungurume
Slide 33: Cautionary Statements
Cautionary Statements Caution Regarding Forward Looking Statements This presentation contains forward-looking statements. These forward-looking statements are not based on historical facts, but rather on current expectations and projections about future events. These forward- looking statements are