Operations Communities Xstrata Nickel Australasia AUSTRALIA Indian Ocean Perth Xstrata Nickel Australasia Cosmos Sinclair Xst r a t a N i c k e l A u st r al a si a Australia – W ester n Australia Rebecca O’Dea (Graduate Geologist) and Chad Moloney (Under gr ound Manager) tagging on befor e heading under gr ound at our Sinclair Nickel Operation. Xstrata Nickel Australasia (XNA), based in Perth, W ester n Australia owns and operates the Cosmos and Sinclair Nickel Operations, which ar e located in the heart of Australia’ s pr oductive Leinster -Mt Keith nickel sulphide district. Cosmos Nickel Operation Our operations include the Cosmos under gr ound mine and a concentrator with a capacity of tr eating 460,000 tonnes of or e per year . W e frst began development of the Cosmos open pit mine in 1999 and achieved the frst pr oduction of nickel concentrate in 2000. At Cosmos, we upgrade the or e to appr oximately 18% nickel concentrate using a conventional nickel sulphide fotation plant. Our investment in W ester n Australia mining has thus far had gr eat r etur ns: to date, fve deposits have been discover ed within the vicinity of the Cosmos Nickel Operation, namely Cosmos, Cosmos Deeps, Alec Mairs, Pr osper o, and the T apinos deposits. The newly discover ed AM6 and Odysseus deposits ar e cr eating new potential for futur e mining. Sinclair Nickel Operation In 2005, we discover ed a signifcant or e bed located 70 kilometer es northeast of Leonora, Austalia. W e immediately got to work and began open pit mining at Sinclair in 2007 and completed our concentrator in 2008. Open pit mining was completed in late 2009 and, after a short delay due to market conditions, the Phoenix portal was established in the pit wall for under gr ound mining to commence. Our Sinclair operation can now pr oduce 350,000 tonnes of or e per year . The concentrate we pr oduce fr om the Cosmos and Sinclair Operations is trucked to the Esperance Port and shipped to our Xstrata Nickel Smelter in Sudbury , Ontario. A partner in the community W e believe in being an engaged and positive partner in the communities in which we live and work. One of our highest priorities is developing and maintaining good r elations based on a philosophy of mutual r espect and active participation. W e ar e a signifcant supporter of W ester n Australia’ s indigenous people and a major fnancial backer for pr ograms dedicated to incr easing indigenous cultural awar eness, work experience, and the development of pr ograms for talented aboriginal youth in education and sport. Employees XNA employs appr oximately 200 full-time people and 400 contractors. 2011 Pr oduction Rates • 17,034 tonnes nickel-in-concentrate • 881 tonnes copper -in-concentrate • 396 tonnes cobalt-in-concentrate Mineral Reserves As at December 31, 2011 COSMOS MINE Pr oven: 0.04 million tonnes grading 2.88% nickel Pr obable: 0.53 million tonnes grading 2.66% nickel SINCLAIR MINE Pr oven: 0.29 million tonnes grading 2.02% nickel Pr obable: 0.32 million tonnes grading 1.93% nickel Mineral Resour ces As at December 31, 2011 Inclusive of Reserves COSMOS MINE Measur ed: 13.6 million tonnes grading 0.79% nickel Indicated: 33.8 million tonnes grading 0.91% nickel Inferr ed: 12.7 million tonnes grading 0.6% nickel SINCLAIR MINE Measur ed: 0.55 million tonnes grading 2.87% nickel Indicated: 0.49 million tonnes grading 2.56% nickel Inferr ed: 0.3 million tonnes grading 2.2% nickel