ZHEZKAZGAN COMPLEX

Kazakhmys PLC produced 320 kt of copper cathode equivalent (343 kt in 2008) from its own ore during the year ended December 31, 2009 compared to the company's own prediction of 300 kt for the year. During the year, the company suspended four of its highest cost copper operations. The reduction in ore extraction was offset by improved productivity at continuing operations and the use of stockpiled material. The Nurkazgan West underground mine commissioning was completed at the end of the period. The company produced 150 thousand tonnes of zinc in concentrate. Kazakhmys PLC remains one of the top ten largest silver producers in the world (17 million ounces produced in 2009). Kazakhmys Gold, which acquired Eurasia Gold Inc in July 2007, produced 180 thousand ounces of gold in 2009. The most significant reduction in ore and copper metal output arose from the suspension of operations at the high grade Akbastau mine in the Karaganda region, which produced around 2,363 kt of ore and 13% of total metal in ore output in 2008. In 2009, the Taskora open pit (part of the North mine in the Zhezkazgan complex), was exhausted in the fourth quarter. Extensive stripping work will be carried out at North mine during the first half of 2010. Production should restart in Q2 and increase during the second half of the year.

Kazakhmys reported 6% less ore extracted at the Zhezkazgan complex in Q1 2009, with output of 5,908 kt, compared to 6,252 kt in Q4 2008. This reduction was in line with the production plan established at the start of the year. The main reduction was at West mine, where some operations were suspended due to their high operating cost. South and East mines have benefited with the transfer of some operations from West mine. The complex also benefited from increased output at the Stepnoy mine following the commissioning of a conveyer, which significantly improved the transportation of ore. Output was 2% higher than Q1 2008 as the reduction in output at West mine was offset by higher output at South and Stepnoy mines. The grade improved slightly in Q1 2009, compared to the previous periods, mainly due to higher grades at Zhomart. The production of copper in concentrate at the complex generally reflects the changes in ore output and grade. Cathode production from own concentrate at Zhezkazgan decreased in Q1 2009 by 35% compared to Q4 2008. This reduction was due to the planned maintenance being carried out at one of the two smelter furnaces, which is likely to remain non operational until ore volumes are returned to previous levels.

Ore extraction at the Zhezkazgan complex in Q4 2008 increased by 7% compared to Q3 2008. This increase was largely due to increased output at the South mine, which flooded in Q4 2007. South mine is gradually increasing output as it undergoes maintenance work, but remains below full capacity. Overall ore production for the full year was slightly lower than in 2007. This decrease did not impact metal output due to increased extraction at higher grade mines, principally at the Zhomart mine and the new Taskura mine (part of the North group of mines). The average copper grade in Q4 2008 decreased from Q3 2008 due to lower grades at the Annensky mine and as production increased at the relatively low grade South mine. The increase in production of copper in concentrate quarter-on-quarter at the Zhezkazgan complex reflects the increase in metal in ore extracted.