Rosebery

Zinc metal in concentrate production for the December quarter was 21,357t, in line with the previous quarter despite a planned mill shutdown. Zinc in concentrate production was 18% higher than for the same period last year while ore treated was 18% higher than the comparative quarter as a result of higher mill runtime and improved ore availability. Lead in concentrate production was 8% higher than the previous quarter and 42% higher than for the same period last year, reflecting higher ore grades and higher tonnes treated. Copper production was lower reflecting the lower recovery rates. Raisebore activity for the Northern Downcast Shaft has been suspended and all equipment was demobilised in January 2009. Feasibility studies on the surface upgrade have ceased and all resource drilling at the site has also ceased. Major capital development works have halted in the mine and operating cost reduction actions are being undertaken across the site.

Surface renewal was deferred resulting in the defferal of capital expenditures of A$125 million. Work on the new tailings storage facility and the underground ventilation upgrade were to continue.

While ore treated was 13% higher than for the comparative quarter, zinc in concentrate production for the September Quarter was down 5% on the previous quarter due to lower ore grades. Lead in concentrate production was 14% higher than the previous quarter and 19% higher than for the same period last year, reflecting higher ore treated and higher metal grades. Copper production was lower reflecting the lower metal grades. Raisebore pilot hole drilling for Stage 1 of the Northern Downcast Shaft to 650m was completed.