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Building an InternationalMining Company
TSX: FM LSE: FQM
September 2008
2
Cautionary Note Concerning Forward-Looking Statements
Some of the statements contained in the following material are forward-looking statements and not statement of facts. Such statements are based on the current beliefs of management, as well as assumptions based on management information currently available.Forward-looking statements are subject to various risks, uncertainties and other factors that could cause actual results to differ materially from expected results. Readers must rely on their own evaluation of these uncertainties.
Note: all dollar amounts in US dollars unless otherwise indicated
3
Agenda
The company today
2008 � Growth & diversification
Growth beyond 2008
4
Building an International Mining Company
Core Strength
Discovering, developing andoperating base metal mines efficiently and cost-effectively
5
New Mines $/lb of Capex per Annual Copper Production
6
Delivering Impressive Results
Growth in CopperProduction000�s tonnes
Growth inEarnings$ millions
Growth in OperatingCash Flow
$ millions
3042
119
183
227
�03 �04 �05 �06 �07
528
155
399
520
�03 �04 �05 �06 �07
18 46
237
564
772
�03 �04 �05 �06 �07
7
2008 � Impressive Results Continue
Q2 2008 vs. Q2 2007 Increase
Copper production ↑ 62%
Copper sales
Revenue
Net earnings
Operating cash flow
↑ 85%
↑ 86%
↑ 69%
↑ 73%
8
2008 � Strong Outlook
Operating Targets
� Copper production forecast to increase >35%
� Average cash cost of production between $1.20 - $1.25
30 42
119
183
227
310
�03 �04 �05 �06 �07 �08F
Growth inCopper Production
000�s tonnes
9
Agenda
The company today
2008 � Growth & diversification� new acquisition� existing operations
Growth beyond 2008
10
2008 � A Year of Growth and Diversification
Corporate Developments
� Geographic and commodity diversification
� Acquired 100% of Scandinavian Minerals for approximately $280M� main asset � Kevitsa project (100%)� located 142 kilometres north
of Rovaniemi, the capital of Finnish Lapland
FINLAND
SWEDEN
NORWAY
ESTONIA
Vaasa
Helsinki
Barents Sea
Gulf ofBothnia
White Sea
RUSSIA
Rovaniemi
Kevitsa
Mauritania
DRC
Zambia
11
Kevitsa � One of the World�s Largest Undeveloped Sulphide Nickel Deposits
� Plus important copper, cobalt and platinum by-product credits
0.120.090.090.010.460.292910.2
0.090.080.070.010.320.225440.1
Inferred
0.280.180.120.010.420.301410.2
0.200.130.090.010.290.222870.1
Measured and Indicated
0.250.160.110.010.440.30510.2
0.180.110.080.010.300.221020.1
Indicated
0.300.190.130.010.420.31900.2
0.210.130.090.010.290.221850.1
Measured
grams/tonne%MillionTonnesNi cutoff %
PtPdAuCoCuNi
Resources(to 1,000 metres)
12
Kevitsa: Pre-Feasibility Results Very Positive
� Estimated operating cost $1.48/lb (pre-feasibility study), net of by-product credits (at �1 = US$1.4)
� Planned mining rate of 5M tonnes of ore per year
� Possible bigger pit and higher tonnage
Open Pit Mineral Reserve(Pre-feasibility)
Mine reserve @ 0.18% Ni cutoff
Co
grams/tonne%MillionTonnes
0.3030.1960.1410.0140.4270.29566.8 Total
0.2670.1710.1420.0150.4920.29510.6 Probable
0.3100.2010.1410.0140.4150.29556.2 Proven
PtPdAuCuNi
13
Kevitsa � Short Timeframe to Production
2008 2009 2010
Further drill results
Permitting &feasibility study
Construction
Production
� Senior technical team in place
� Engineering review underway
14
Kevitsa�s Competitive Advantages
� Large, undeveloped sulphide nickel deposit
� Suitable for low cost, open pit mining
� Ideal location � Finland� political and economic stability� mining-friendly� clear security of title� attractive tax & investment regime� well developed infrastructure� highly productive, skilled workforce
An excellentfit with
First Quantum
15
Mauritania
DRC
Zambia
2008
Growthfrom
existingoperations�
KANSANSHI FRONTIER GUELB MOGHREIN
16
Kansanshi Copper-Gold Mine: A Foundation Asset
� 80% owned, in Zambia
� Located in the North Western Province
� Achieved commercial production in 2005
� Long-life operation with a 25+ year mine life Zambia
17
Kansanshi: Targeting 10% Growth in 2008
2008 Targets
� 10% increase in copper production to 185,000 tonnes
� sulphide throughput expansion project to 12M tpy completed inQ2 2008
� electrowinning capacity expansion to 140,000 tpy of copper cathode on track for completion in Q3 2008
0
50
100
150
200
2005 2006 2007 2008F
Production(000�s tonnes)
18
Frontier Copper Mine:Newest Producing Mine
� 95% owned, in DRC
� Located within 2 km of the Zambian border
� Achieved commercial production in Q4 2007
� Open pit mine with a 20-year mine life
DRC
19
Frontier: 2008 Production Ramping Up
0
25
50
75
100
2007 2008F
Copper Production000�s tonnes
2008 Targets
� Increase copper production to 84,000 tonnes
� full year of production� process optimization
� Prepare site to minimize effect of next wet season
� Significantly reduce copper concentrate inventories
20
Guelb Moghrein Copper-Gold Mine:2007 First Full Production Year
� 80% owned, in Mauritania
� Located in the northeast region
� Achieved commercial production in 2006
� Open pit mine with a 15-year mine life
Mauritania
21
Guelb Moghrein Copper-Gold Mine:Targeting 15% Growth in 2008
0
10
20
30
40
2006 2007 2008F
Copper Production000�s tonnes
2008 Targets
� 15% increase in copper production to 33,000 tonnes� process optimization
� Finalize study for capacity expansion to 45,000 tpy
� Complete construction and begin commissioning of gold flotation circuit and power station expansion
22
Agenda
The company today
2008 � A year of growth
Growth beyond 2008
23
Growth Beyond 2008
0
100
200
300
400
500
�04 �05 �06 �07 �08F �09F �10F �11F
Copper Production Growth Profile000�s tonnes
Kansanshi
Guelb Moghrein
Frontier
Kolwezi
Kashime
Note: Chart does not include projections for Kevitsa
24
Growth Beyond 2008
Capital Expenditures 000's millions
0
100
200
300
400
500
600
2007A 2008E 2009E 2010E
25
Growth from Kolwezi Copper-Cobalt Project (65%), DRC
� Located in the Katanga province
� Estimated capital investment of $553M
� Initial annual capacity of 35,000 tonnes of copper and 7,000 tonnes of cobalt hydroxide
� Commercial production targeted for Q1 2010
� Designed and constructed to double capacity at minimal cost
� 22-year mine life at expanded capacity
26
Kolwezi Copper-Cobalt Project:Moving Forward
� Engineering approximately 80% complete
� $213M of the budget committed
� Infrastructure construction underway:� process plant construction� concrete works � onsite tankage� first delivery of structural steel
27
Growth Drivers Beyond 2008
� Expansions at existing operations
� Kolwezi copper-cobalt project
� Kevitsa nickel-copper-PGE project
� Kashime copper deposit
� Exploration
� Acquisitions
Note: Chart does not include projections for Kevitsa
0
100
200
300
400
500
�04 �05 �06 �07 �08F �09F �10F �11F
Copper ProductionGrowth Profile
28
Strong Balance Sheet andCash Flows to Fund Growth
As at June 30, 2008
Cash on hand $393M
Product inventory
Net debt / net debt + capital
Cash flow generated, before working capital changes6 months to June 30, 2008
Capital expenditures estimate � full year 2008
$200M
11%
$575M
$500M
29
Addressing Challenges
Scarcity of qualified, experienced personnel
Strained infrastructure� power supply� smelter constraints
Long lead delivery times for capital items
Inflation
Commodity price variations
Local political issues and impacts
30
Corporate and Social Responsibility:Investing in the Communities
� Focused mainly on education and health
� Malaria and HIV/Aids programs
� Rehabilitation of hospital wards and clinics
� Construction of classrooms
� University scholarship programs
� Provide access to clean water supply
31
Building an International Mining Company
� Unmatched copper production growth profile� from 40K tonnes in 2004 to over 400K tonnes by 2010
� Geographic and commodity diversification strategy taking hold� adding nickel to the commodity mix
� Proven track record� developing and operating projects efficiently and cost effectively� development and operations team among the best in the industry
Building an InternationalMining Company
Additional Information
33
Corporate Profile
Average daily trading volume - shares
Market capitalization � C$ millions
Recent share price � September 15, 2008
Dividend policy
52-week share price range
Geographic breakdown of institutional shareholders
Fully diluted
Shares issued and outstanding
Stock exchange listings & symbols � (S&P/TSX 60 Index)
600,000
$3.5 billion
$51.00
10% of annual profit
$103.93-$45.77
NA=46%; Eur=44%; other=10%
69.7 million
68.7 million
TSX: FM LSE: FQM
34
Financial Summary
Three months ended June 30, 2008
Investing activities
Financing activities
Cash flow before working capital movements
Cash flow per share after working capital movements
Basic earnings per share
Cash and equivalents � as at June 30, 2008
Net earnings
Cost of sales
Total revenues
$403M
$211M
$303M
$4.45
$3.06
$393M
$208M
$200M
$652M
Average shares outstanding for the period 68.0M
35
Financial Summary
Six months ended June 30, 2008
Investing activities
Financing activities
Cash flow before working capital movements
Cash flow per share after working capital movements
Basic earnings per share
Cash and equivalents � as at June 30, 2008
Net earnings
Cost of sales
Total revenues
$503M
$237M
$576M
$6.76
$5.74
$393M
$390M
$326M
$1,164M
Average shares outstanding for the period 67.9M
36
Operating Summary
Three months ended June 30, 2008
Realized copper price � (per lb)
Total cost � (per lb)
Cash cost � (per lb)
Realized gold price � (per oz)
Copper in concentrate inventory � (tonnes)
Gold sold � (ozs)
Copper sold � (tonnes)
Copper produced � (tonnes)
$3.38
$1.87
$1.18
$982
28,738
26,797
84,007
80,977
37
Operating Summary
Six months ended June 30, 2008
Realized copper price � (per lb)
Total cost � (per lb)
Cash cost � (per lb)
Realized gold price � (per oz)
Copper in concentrate inventory � (tonnes)
Gold sold � (ozs)
Copper sold � (tonnes)
Copper produced � (tonnes)
$3.44
$1.57
$1.09
$922
28,738
55,868
146,810
156,593
Building an InternationalMining Company
September 2008