The Errington-Vermillion Project is in the South West corner of the Sudbury basin. The project comprises two distinct sites five kilometers apart. The Errington site contains an estimated 6 million tonnes of ore while the Vermillion site about 3 million tonnes. Both deposits are polymetallic and contain zinc, copper, lead, silver and gold.

Both Errington and Vermillion sites were previously mined. The Errington underground mine began in 1924 and ended in 1928 while Vermillion was mined between 1952 and 1957. From the late 1990’s until 2006 both sites were re-habilitated and managed by Xstrata Zinc. Some of the infrastructure from the original sites will be re-used, such as the shafts for ventilation and lateral headways which will be re-habilitated and used for mining.

The ore produced at both Errington and Vermillion will be trucked to a concentrator that will be built on Xstrata’s property near the Strathcona Complex. The current total capital cost of this project is $350 million CDN and it is expected to create 250 direct jobs. The project is currently at the feasibility stage. If the project proves to be feasible, production could begin by 2016.

Errington-Vermillion ProjectOntario, Canada

FactsSize of orebodiesErrington 5.8MT / Vermillion 2.5MT

ZincErrington 4.16% / Vermillion 4.7%

CopperErrington 1.23% / Vermillion 1.46%

Lead Errington 1.06% / Vermillion 1.46%

Silver Errington 50.53g/t / Vermillion 53.77g/t

Gold Errington 0.73g/t / Vermillion 0.89g/t

Mining rate2900 tonnes/day

Direct employment250 (both mining and milling)

Yearly concentrate productionZinc: 74,800 DMT Copper: 44,500 DMT Lead: 12,150 DMT

Life of mine7–10 years

Headquartered in Madrid, Spain, Xstrata Zinc is one of the world’s largest producers of zinc and one of the commodity business units within the major global diversified mining group Xstrata plc. Xstrata’s zinc and lead operations and exploration projects are located in Australia, Canada, Germany, Peru, Spain and the United Kingdom.

In Canada, operations and exploration projects include the Brunswick zinc-lead mine and lead smelter in New Brunswick; 25% of the CEZinc refinery near Montreal; and the Perseverance & Bracemac-McLeod zinc deposits in Québec and exploration activities in Québec, Ontario and Nunavut.

Around half of all zinc currently consumed is used for galvanizing steel, which is an environmentally friendly method of protecting steel against corrosion. Zinc also finds application in the manufacture of die-cast alloys, brass and the production of zinc oxides and chemicals.

It is the way we do business. Every day we strive to perform better than yesterday, not just in financial terms – which are crucial – but also in the way we contribute to society, the environment and the communities in which we operate.

We are one of the world’s largest mining and metals companies - a major producer of seven commodities used in everything from constructing buildings and delivering electricity to developing jet engines and mobile phones. We operate in more than 20 countries and employ more than 70,000 people globally.

Our mission is simple. It defines our role in society. We deliver natural resources that are at the heart of everyday life and are central to the development of society. We extract these products profitably to create value for our shareholders, efficiently with respect for the environment, and responsibly to leave communities with lasting benefits from our presence – such as infrastructure, improved local skills or thriving new businesses.

We can’t do this alone. Our success depends on the strength of our partnerships with our stakeholders, from our people to our customers to local communities, governments and other mining companies.

About Xstrata

About Xstrata Zinc

Our commitment to sustainable development

Project timeline

2016Production

2013Additional exploration and definition drilling for both deposits

Completion of feasibility for both deposits

Aboriginal consultation

Ongoing community and stakeholder consultation

Permitting Application for Errington

2014Developmentof Errington mine and constructionof Mill

2012Exploration and

definition drilling for both deposits

Started pre-feasibility for both deposits

Community and stakeholder consultation

2015Finalization of

production and beginning of operation

for Errington mine and mill

• Xstratahasleadingstandardsofhealth,safety,environmentalmanagement and community support, together referred to as Sustainable Development.

• Xstrataiscommittedtothedevelopmentofsustainablecommunities where it operates and each year sets aside a minimum of 1% of Group profit before tax each year to fund initiatives that benefit the communities associated with our operations.

• Supportincludesprogramsforcommunitydevelopment,enterprise and job creation, health, education and the environment as well as culture and arts.

• Xstratawasassessedastheminingandmetalssectorleaderinthe Dow Jones Sustainability Index (DJSI) for 5 consecutive years and annually receives an A+ rating from the Global Reporting Initiative (GRI).

• In2012,XstrataZinc’sBrunswickMinenearBathurst,NewBrunswick, was awarded the John T. Ryan Award for being the safest metal mine in Canada.

Vermillion Deposit

Copper Cliff Nickel Refinery

Copper Cliff South Mine

Copper Cliff Smelter

Copper Cliff North Mine Clarabelle Mill

Xstrata Process Support

MinesGrowth projectsProcessing plantsXstrata Process Support

MinesGrowth projectsProcessing plants

Xstrata Nickel

Vale

Sudbury BasinSudbury Smelter

Frood-Stobie Mine

Garson Mine

Coleman / McCreedyEast Mine

Strathcona Mill

Creighton Mine

Totten Mine

Kelly Lake Mine

Nickel Rim South

Blezard

Victor(undeveloped)

Fraser Morgan

Deposits

Xstrata Zinc

69 S

69 N

144

17 E

Errington Deposit

XSTRATA ZINC CANADA100 King Street West, Suite 7000 Toronto, Ontario CanadaM5X 1E3Tel: +1 (416) 775-1500

XSTRATA ZINC CONTACTBrad J. RyderCorporate AffairsTel. +1 (416) 775-1434 bryder@xstratazinc.ca

www.xstratazinc.com

December 2012

Processing plantsProcessing plants

Levack

Onaping

Dowling

OnapingFalls

Windy Lake

Vermillion Lake

Strathcona

Errington

Operations

Projects

Vermillion

144

144

144

12

13

Trucking route

Trucking route