EKATI

BHP Billiton’s second labor contract at Canada’s Ekati Diamond Mine proved far less rancorous than first contract negotiations when workers went on strike for three months in 2006

Announced that diamond production increased by 26% in 2007 due to processing of higher grade ore containing lower value diamonds.

Approved the development of the third underground mine (Koala). In addition to the mine development, the investment provides for mine ventilation systems, an underground conveyor connecting to the existing Panda underground conveyor and minor surface infrastructure and mobile equipment. The project will deliver a total of 7.1 million dry tonnes of ore to the process plant and recover 6.5 million carats of high-quality Koala diamonds. Total project life is expected to be 11 years. Total development costs are estimated at US$250 million (our share US$200 million). First production is expected in the third quarter of calendar 2007. On the Buffer Zone property the total number of kimberlite pipes is 28 (Apr/99) and include the Gazelle and Piranha pipes. The Phoenix pipe is located in the Core Zone and is a satellite pipe to the Point Lake kimberlite pipe.