Information for this section will be available as the study work program progresses under the management of Xstrata Copper. The highlights of the Extended Pre-Feasibility and Trade-Off Study are:

In April 2009, the Extended Pre-Feasibility Study on the Tampakan Project was completed. This was supplemented by a Mineral Resource upgrade announced by Xstrata and Indophil on 20 October 2009.

The findings, which are subject to completion of a Final Feasibility Study, indicate the following on a 100% basis:

• Confirmation of a world-class, large-scale project with a 2.4 billion tonnes Mineral Resource base.
  
• A proposed stage one mining and milling rate of 44 million tonnes per annum, leading into a stage two rate of 66 million tonnes per annum after three years. This stage two rate is more than double the rate proposed in the September 2006 Pre-Feasibility Study conducted by Indophil.
  
• Life-of-mine average production of 340,000 tonnes per annum of copper (contained in concentrate) and 350,000 ounces per annum of gold on average, and still undefined but significant production of molybdenum based on a 20 year operation.
  
• An initial milling recovery rate of 83-90% for copper and 60-80% for gold, with scope for improvement.
  
• A concentrate grade of 37-34% copper.
  
• An initial outlay of US$5. billion, including provision for associated infrastructure and a contingency of US$800 million.
  
• Open pit mining with land-based waste rock and tailings storage.
  
• A highly attractive operating strip ratio of 0.75:1 (waste : mill feed).
  
• A C1 operating cost base of less than US46c per pound of copper after gold credits (but still not factoring in molybdenum credits).
  
• Net present value using a copper price of US$2.20 per pound and US$800 per ounce of gold is US$1.2 billion (at a post-tax discount rate of 10%) or US$2.2 billion (at a post-tax discount rate of 8%).

Following completion of the extended pre-feasibility study, the Final Feasibility Study commenced in 2009.

Bechtel, a global engineering and construction company, was engaged as the lead engineer for this study under the global alliance with Xstrata Copper. This study is due for completion in the second quarter 2010.