ONT ARIO QUEBEC Quebec Montreal Ottawa T or onto Sudbury Operations Communities Xstrata Nickel Canada S u dbu r y O per a t ions Canada – Sudbury , Ontario T apping matte fr om the electric fur nace at our Sudbury Smelter . Sudbury , Ontario, Canada is one of the most geologically rich ar eas of the world. This norther n city in the Canadian Shield boasts a 60 kilometer -long for mation called the Sudbury basin which is brimming with nickel, copper , cobalt, gold, silver , platinum and palladium deposits. It’ s also been home to Xstrata Nickel since 1929. Our Sudbury operations include under gr ound mines, a mill, and a smelter , all located in this basin. Mining W e have two under gr ound nickel-copper mines in Sudbury: Fraser and Nickel Rim South. Fraser Mine, was launched in the late 1960s and played a major r ole in the gr owth and pr osperity of the city of Sudbury , attracting people to the ar ea whose families still live and work ther e today . While the Fraser Mine started out as a nickel pr oduction facility , we expanded our operations to include copper pr oduction in the 1980s. Opportunity fr om the Fraser Mine r emains r obust, with our development of the Fraser Mor gan zones beginning in early 2012. Our Nickel Rim South mine, discover ed in 2001 is our newest mine in the basin. W e br ought the C$920 million Nickel Rim South pr oject fully online in 2010 – on schedule and within budget. It is now Sudbury’ s lar gest mining operation, delivering appr oximately 18,000 tonnes of nickel and signifcant amounts of copper and pr ecious metals with an expected high-yield output of 15 years. Milling Our Strathcona concentrator r eceives or e fr om the two Sudbury mines as well as fr om thir d-party operations. W e pr oduce a nickel-copper concentrate that we dir ect to the Sudbury Smelter for further extraction and a copper concentrate that goes to Xstrata Copper for smelting and r efning. Our team at the mill runs a tight and effcient operation, outputting an impr essive maximum capacity of appr oximately 2.75 million tonnes of or e per year . Smelter The Sudbury Smelter curr ently extracts nickel-copper concentrate fr om our Sudbury (Ontario), Raglan (Quebec), and XNA (Australia) operations and pr ocesses these materials into mor e r efned concentrates and secondary pr oducts. Once the smelting pr ocess is complete, the matte gets sent by rail to lar ge port facilities in Quebec City wher e they ar e shipped to our Xstrata Nickel r efnery in Nikkelverk, Norway . Our Sudbury Smelter works year -r ound and is capable of pr oducing 95,000 tonnes of nickel, copper , and cobalt matte annually . Employees 1,200 people work at our Sudbury operations on a per manent basis. 2011 Pr oduction Rates SUDBUR Y MINES / MILL • 22,716 tonnes nickel-in-concentrate • 49,887 tonnes copper -in-concentrate • 473 tonnes cobalt-in-concentrate SUDBUR Y SMEL TER • 69,459 tonnes nickel-in-matte • 20,041 tonnes copper -in-matte • 2,209 tonnes cobalt-in-matte Mineral Reserves As at December 31, 2011 SUDBUR Y MINES Pr oven: 8.66 million tonnes grading 1.39% nickel and 2.37% copper Pr obable: 9.44 million tonnes grading 1.39% nickel and 1.74% copper Mineral Resour ces As at December 31, 2011 Inclusive of r eserves SUDBUR Y MINES Measur ed: 12.85 million tonnes grading 1.78% nickel and 2.05% copper Indicated: 22.34 million tonnes grading 2.27% nickel and 1.67% copper Inferr ed: 15.6 million tonnes grading 1.7% nickel and 1.9% copper