QUEBEC Kangiqsujuaq Operations Communities Xstrata Nickel Canada Salluit Raglan Mine Ra g lan Canada – Nunavik, Quebec Luc Belanger , Senior Coor dinator Food & Accommodation at Raglan, a fy-in/fy-out site. Xstrata Nickel’ s Raglan pr operty , located in Quebec’ s Far North, includes several high-grade or e deposits. Our Raglan pr operty str etches 70 kilometers fr om east to west, with a series of high-grade or e deposits scatter ed along its length. Our site includes four under gr ound mines, a concentrator , a power plant, accommodation and administration buildings, a fr esh water supply , and fuel storage tanks. The mine is linked by all-weather r oads to an airstrip at Donaldson and to the storage and ship-loading facilities at Deception Bay . Mining W e have four under gr ound mines curr ently in operation: Katinniq, Mine 2 and Mine 3, and Kikialik. Our expansion is key to the ar ea and is rapidly underway , including a $530 million investment to construct the Qakimajur q Mine and extend the depth of Mine 2. Milling The or e we gather fr om the Raglan mines is crushed, gr ound, and tr eated on site to pr oduce a nickel-copper concentrate. Our team trucks the concentrate to Deception Bay wher e the nickel-copper is then shipped to Quebec City a minimum of six times over the course of the eight month Ar ctic shipping season. Fr om ther e, we send the concentrate by rail to Xstrata Nickel’ s Sudbury Smelter . The smelted matte material is r etur ned by rail to Quebec City , and then shipped overseas to Xstrata Nickel’ s Norwegian r efnery to be pr ocessed into pur e metals. A partner in the community Our Raglan operations ar e located in Nunavik, an ar ea of the Canadian Ar ctic populated by the Inuit, a unique people indigenous to the r egion. They ar e a cultur e we admir e and they ar e also our business partners. Xstrata Nickel and the Makivik Corporation (which oversees the political, social, and economic development of the Nunavik territory) signed an agr eement in 1995 that includes pr oft-sharing and guaranteed contributions to the Inuit of Nunavik. Along with the economic spin-of fs that r esult fr om mine activities and the infux of people working in the r egion, the people living in the villages of Salluit and Kangiqsujuaq have r eceived mor e than C$100 million fr om this pr oft sharing agr eement since 2004. Employees Raglan employs appr oximately 850 full-time people. 2011 Pr oduction Rates • 27,274 tonnes nickel-in-concentrate • 7,215 tonnes copper -in-concentrate • 561 tonnes cobalt-in-concentrate Mineral Reserves As at December 31, 2011 Pr oven: 4.13 million tonnes grading 2.22% nickel and 0.65% copper Pr obable: 5.30 million tonnes grading 3.73 % nickel and 0.88% copper Mineral Resour ces As at December 31, 2011 Inclusive of r eserves Measur ed: 4.01 million tonnes grading 2.47% nickel and 0.72% copper Indicated: 10.5 million tonnes grading 3.49% nickel and 0.97% copper Inferr ed: 17.9 million tonnes grading 3.0% nickel and 0.9% copper