Tampakan Copper-Gold Project: An Unprecedented Opportunity for the Philippines 7th Annual Asia Mining Congress Marina Bay Sands, Singapore 6 April 2011

1. Tampakan Copper-Gold Project:
An Unprecedented Opportunity
for the Philippines
7th Annual Asia Mining Congress
Marina Bay Sands, Singapore
6 April 2011

2. SMI’s Tampakan Copper-
Gold Project
• One of the world’s largest
undeveloped copper-gold
deposits
• If approved, it would be the
largest mine in the Philippines
and has the potential to be
one of the largest copper
mines in the world
• Has the potential to create
significant benefits for the
Philippines

3. Project Proponents
• Sagittarius Mines, Inc. SMI Shareholders
• Filipino company
• Philippine Government’s contractor
for the exploration, development, 60%
and operation of the Tampakan TAMPAKAN GROUP OF
Copper-Gold Project
COMPANIES
(non-managing)
• Xstrata Copper INDOPHIL
RESOURCE
S
• Provides the technical and 40% MANAGEMENT
CONTROL
managerial resources for the Project
XSTRATA
• 4th largest global copper producer COPPER

4. A responsible track record
•SMI
• Presidential Mineral Industry Environment
Award (2010, 2009 and 2006)
• Best Mining Forest Program Award (2008-
2010)
• Safest Mines Award (Exploration) (2010)
• Communications Anvil Award of Excellence
(2010)
•Xstrata
• A global reputation for social responsibility
• Xstrata plc - Sector Leader, Dow Jones
Sustainability Index for fourth consecutive
year

5. What makes up this
project?
• If developed, the Project would involve a large-
scale, open pit copper-gold mine and
associated infrastructure, including:
• Concentrator and employee village
• Fresh water dam
• Waste storage facilities
• A 500 MW power station, port and concentrate
dewatering facility
• A copper-gold concentrate pipeline and power
transmission line

6. Project Status
• On-going review of Feasibility Study by the
Philippine government
• Currently in the consultation, design and
approvals phase
• Requires approval by DENR of SMI’s
Declaration of Mining Feasibility
• Requires community, government and
shareholder approvals

7. Already contributing to the
Philippine economy
In 2010, contributed
USD54 million to the
Philippine economy
• employment
• annual wages
• government taxes
• purchase of goods and
services
• community partnerships

8. Providing real, long-term
benefits to host communities
In 2010, invested USD3
million in community
programs:
• 15,000 benefited from
basic health services
• 19,000 students
benefited from
educational support
• 2,000 households
benefited Enterprise
Development Programs

9. Potential for a significant
economic contribution
• Revenue stream to the Philippine economy is
estimated at USD37Bn over the life of the mine
• If developed, the project could potentially
contribute:
– Additional 1% (average) of Philippines GDP each
year
– USD 7.2 billion (nominal) to Philippine government
in taxes/duties
– Royalty payments and direct contributions in
excess of USD830 million (nominal) to host
communities and local indigenous groups

10. Current areas of focus
• Public consultation on our
environmental impact
assessments
• Developing Resettlement
Action Plans with the
affected communities
• Obtaining Consent from
host IP communities
• Seeking endorsement
from affected LGUs

11. Making this project a reality
• We require positive collaboration with our
stakeholders.
• We have established, and continue to build
upon, relationships.
• We work openly with all stakeholders in relation
to their concerns.
• We needs endorsement our host communities
and government before we can move forward.

12. Making this project a reality
• SMI is working toward enabling a better future for
southern Mindanao and the Philippines.
• Through collaboration with all of our stakeholders
we are committed to making the Tampakan Project
a blueprint for responsible modern mineral
development in the Philippines, including best-
practice in:
• resettlement programs
• indigenous consultation
• environmental and social impact assessments.
• Provides the opportunity for a step-change toward
sustainable economic growth in southern
Philippines.

13. THANK YOU