SEPON

OZ Minerals reported on copper and gold operations at Sepon for the three months ended March 31, 2009. During the quarter the second autoclave was successfully commissioned and was operating at design capacity. The second autoclave will improve the reliability and throughput capacity of the plant. There was some down time experienced with the installation of the autoclave but production was strong at 17,217 tonnes. Total cash costs were more than 20% lower than the previous quarter. Mining costs returned to average levels having been lower in the previous quarter due to the deferral of costs related to the Khanong cut-back. Gold ore mined was higher during the quarter and throughput was strong. Reported production was, however, slightly lower at 26,422oz due to gold in circuit at the end of the quarter. Total cash costs were 20% lower than the previous quarter due to site wide cost reduction programs.

OZ Minerals reported that in the March 2009 Quarter at Sepon Copper, the second autoclave was successfully commissioned and was operating at design capacity. The second autoclave will improve the reliability and throughput capacity of the plant. There was some down time experienced with the installation of the autoclave but production was strong at 17,217 tonnes. Total cash costs were more than 20% lower than the previous quarter. Mining costs returned to average levels having been lower in the previous quarter due to the deferral of costs related to the Khanong cut-back. Other direct costs fell with cost reductions in supply management, maintenance and administration. Marketing and transport costs were lower due to a decrease in fuel costs. Production guidance for the year remains unchanged.

Sepon Copper was affected by an unusually long wet season which had a minor impact on planned ore mined at 339,836t. Ore milled and final copper production were both down from the September quarter’s record, primarily due to the previously advised mill shutdown. Mining costs for the quarter were lower due to the deferral of some costs related to the Khanong cut back. Despite this, the record total production (stripped tonnes) of 64,075t for the year was at the high end of production guidance. Excellent milling and recovery rates resulted in 27,551oz of gold produced for the quarter. Total annual production of 93,072oz was also at the high end of production guidance. Resource definition drilling programs continue to increase resource confidence and better define zones of higher grade supergene mineralisation at Thengkham South. Intersections returned during the quarter include 47 m of 4.4% Cu and 0.3 g/t Au from 11 m in hole TKM564.