Stock Code: 3993

2008 H1Results Presentation

20082008 H1H1Results PresentationResults Presentation

2

This presentation may contain forward-looking statements. Any such forward-looking statements are based on a number of assumptions about the operations of the China Molybdenum Co., Ltd. (the “Company”) and factors beyond the Company's control and are subject to significant risks and uncertainties, and accordingly, actual results may differ materially from these forward-looking statements. The Company undertakes no obligation to update these forward-looking statements for events or circumstances that occur subsequent to such dates. The information in this presentation should be considered in the context of the circumstances prevailing at the time of its presentation and has not been, and will not be, updated to reflect material developments which may occur after the date of this presentation. The slides forming part of this presentation have been prepared solely as a support for oral discussion about background information about the Company. This presentation also contains information and statistics relating to the China and molybdenum industry. The Company has derived such information and data from unofficial sources, without independent verification. The Company cannot ensure that these sources have compiled such data and information on the same basis or with the same degree of accuracy or completeness as are found in other industries. You should not place undue reliance on statements in this presentation regarding the molybdenum industry. No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of any information or opinion contained herein. It should not be regarded by recipients as a substitute for the exercise of their own judgment. Information and opinion contained in this presentation may be based on or derived from the judgment and opinion of the management of the Company. Such information is not always capable of verification or validation. None of the Company or financial adviser of the Company, or any of their respective directors, officers, employees, agents or advisers shall be in any way responsible for the contents hereof, or shall be liable for any loss arising from use of the information contained in this presentation or otherwise arising in connection therewith. This presentation does not take into consideration the investment objectives, financial situation or particular needs of any particular investor. It shall not to be construed as a solicitation or an offer or invitation to buy or sell any securities or related financial instruments. No part of it shall form the basis of or be relied upon in connection with any contract or commitment whatsoever. This presentation may not be copied or otherwise reproduced.

© 2008 China Molybdenum Co., Ltd. All rights reserved.

Disclaimer

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Agenda

2008 H1 Accomplishments2008 H1 Accomplishments1

Business ReviewBusiness Review2

Market ReviewMarket Review3

Financial ReviewFinancial Review4

OutlookOutlook5

Q&AQ&A6

2008 H1 Accomplishments

5

2008 H1 Accomplishments

1. Strong Growth in Production Volume– Molybdenum concentrate production was 16,754 tons, up 16.6 %,

molybdenum oxide production was 13,022 tons, up 28.0% , while ferromolybdenum production was 7,869 tons, up 20.0% yoy

2. Strong Growth in Revenue & Profit– Revenue grew by 15.4% yoy to RMB3,326m, while net profit grew by

12.5% yoy to RMB1,242m – EPS is RMB 0.26

3. Stable ASP and Operating Cash Cost– ASP for molybdenum concentrate was RMB165,901/t, up 6% yoy, ASP

for molybdenum oxide was RMB241,850/t, up 16% yoy, ASP for ferromolybdenum was RMB 238,850/t, down 2% yoy

– Operating cash cost (excluding tax) for molybdenum concentrate was RMB30,937/t, equals US$4.41/lb

Business Review

7

Strong Growth in Production Volume

Production of molybdenum products (ton)

Production of molybdenum products (ton)

Note:1. Grade of molybdenum concentrate, molybdenum

oxide and ferromolybdenum are 45%, 51％ and 60％

Production of other products (ton)Production of other products (ton)

1

Note:1. Grade of Wo03 is 65%

16,754

30,753

14,37213,022

10,173

21,035

13,309

6,5587,869

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

2007 2007H1 2008H1Mo Conc Mo Oxide FerroMo

1,606

9,746

872 4940

2,000

4,000

6,000

8,000

10,000

12,000

2008H1

Scheelite(ton) Gold(kg)Silver(kg) Sulphur(ton)

8

Sales and Marketing Analysis

Sales (ton)Sales (ton)

Realized ASP (RMB/ton)Realized ASP (RMB/ton)

Breakdown (geography)Breakdown (geography)

2008H1

Breakdown (customers)Breakdown (customers)

1,4294,483

2,533 3,061

13,134

6,609 7,5685,362

2,559

02,0004,0006,0008,000

10,00012,00014,000

2007 2007H1 2008H1Mo Conc Mo Oxide FerroMo

156,458 165,901

195,943 196,137

245,475236,428

310,773

210,055234,657

276,960

2007H1 Domestic Sales

2007H1Exports

2008H1Domestic Sales

2008H1Exports

Mo Conc Mo Oxide FerroMo

Domestic69%

Overseas31%

Top 477%

Top 5-1018%

Others5%

9

♦ As of June 30, 2008, Luoning Gold Mine project has achieved 15,947 meter drilling, 40 medium-length holes and 6,580-meter tunnel engineering. The exploration is in smooth progress and is satisfactory. Meanwhile, Company had started construction of Qiliping gold/silver processing plant with a capacity of 250 tonnes/day, and construction of 80,000 tonnes per year gold lead silver smelting plant project

♦ Construction of the 40,000 ton molybdenum roasting and smelting plant started on March 20, 2008, as scheduled. Currently, construction of the main building and experiment building structures has completed, 30% of the overall construction work has achieved and 70% of equipment procurement has been done.

Progress of New Projects♦ The scheelite project, with a capacity of 6000 tons/day,

began commercial production in June 2008 after a 4-month trial. While recovering scheelite, this project is also able to recover molybdenum concentrates and sulphurconcentrates.

♦ The other scheelite project, with a capacity of 9000 tons/day, is currently commissioning equipment. As sulphurconcentrates and molybdenum concentrates recovery facilities are added to this project, trial production is expected to start in September.

10

Domestic Acquisitions & Resources Consolidation

Henan

SanMenXia

LuoYang

NanYang

PingDingShan

JiYuanJiaoZuo

ZhengZhouKaiFeng

XinXiang

AnYangHeBi PuYang

ShangQiu

ZhouKou

XuChang

LuoHeZhuMaDian

XinYang

♦ China Moly will actively assist local government to push forward consolidations which is currently in plan by Henan and Luoyang governments

♦ Initiated a consolidation trial project with local Zhenping county government

♦ Reached minerals exploration & development agreement with Henan Provincial Non-Ferrous Metals Bureau

♦ Takeover of nearby 3,000 ton/day plant to process China Moly’s low-grade ores mined

♦ Evaluated and discussed acquisitions of several molybdenum and specialty and precious metals cooperation projects within Henan province and in Inner Mongolia, Xinjiang, Northeastern China and Hunan regions

11

Overseas Acquisitions

♦ Our company set up a special team with former senior executives of large overseas mining corporations, to develop China Moly’s overseas development & acquisition strategies

♦ Our targeted regions are mature and politically stable, including Canada, USA and Australia

♦ Our targets are large and medium-sized high-quality projects of specialty or precious metals

♦ We will focus on projects in the production and development stages, and explorations projects with great potential

♦ Overseas-work team has inspected, evaluated and held discussion on several projects

Australia

North America

Market Review

13

Molybdenum Price – Strength remained

Domestic PricesDomestic Prices International PricesInternational Prices

20

22

24

26

28

30

32

34

36

Jan-08 Feb-08Mar-08 Apr-08May-08Jun-08M

o C

onc/

Mo

Oxi

de P

rices

(US$

/lb)

40

45

50

55

60

65

70

75

80

85

FerroMo Prices(U

S$/kg)

Mo Oxide FerroMo

2,000

2,500

3,000

3,500

4,000

4,500

Jan-08 Feb-08 Mar-08 Apr-08 May-08 Jun-08

Mo

Con

c/M

o O

xide

P

rices

(RM

B/to

n)

100

150

200

250

300

350

FerroMo P

rices(RM

B '000/ton)

Mo Conc Mo Oxide FerroMo

14

Comparison - Domestic and International Prices

Notes：1. Average price for MW US 57% and MB EU 57%2. Average price for MB Rotterdam spot 60% ferromolybdenum,

MB EU 65% ferromolybdenum and MB US prices

Molybdenum OxideMolybdenum Oxide

FerromolybdenumFerromolybdenum

Mo Oxide

Domestic (RMB/mtu)

Equivalent to (US$/lb)

MW US (US$/lb)

Difference (%)

2008H1 4,382.00 28.12 33.11 -15% 2007H2 4,479.90 27.13 32.00 -15%

Ferro Mo

Domestic (RMB’0,000/t)

Equivalent to(US$/kg)

Rotterdam (US$/kg)

Difference (%)

2008H1 28.16 66.41 78.22 -15%2007H2 28.79 63.99 72.21 -11%

15

3047

66

31 39

186 186200

101 102

0

50

100

150

200

250

2005 2006 2007 2007H1 2008H1

1000

tons

, Mo

China World

Molybdenum Supply in China & World

♦ China’s molybdenum concentrate produced in 2008 H1 can recover 39,000 tons of molybdenum Mo, up 26% yoy

♦ Molybdenum supply is 225m lb in the world in 2008 H1, up about 1.1% yoy

Molybdenum SupplyMolybdenum Supply

26,300 tonsChina molybdenum announced exports quota in 2008 (Mo metal)

33,929 tonsChina molybdenum exports in 2007 (Mo metal)

16

191202

103

2918 22

34

0

50

100

150

200

250

2006 2007 2007H1 E urope US A China Others

19

2326

41

16

28

0

5

10

15

20

25

30

35

40

45

2004 2005 2006 2007 2007H1 2008H1

Molybdenum Consumption in China & World

China Domestic ConsumptionChina Domestic ConsumptionUnit: Kt, Mo

World Consumption World Consumption

CAGR：148.2%

Unit: Kt, Mo

2008H1

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2008 H1 Global Production2008 H1 Global Production

Large Potential Demand from China

10,000 T 2007H1 2008H1 Growth%China Stainless Steel 251 243 -3.3%

KT 2007H1 2008H1 Growth%EU 108,376 108,468 0.10%US 48,478 50,755 4.70%

Japan 59419 61,897 4.20%China 240,123 263,195 9.60%Total 658,217 696,055 5.70%

Steel Products

KT 2007Q1 2008Q1 Growth%EU/Africa 2,546 2,426 -4.70%

Other Europe 101 96 -5.40%America 749 702 -6.30%

Asia 4,188 4,139 -1.20%Total 7,584 7,363 -2.90%

Stainless Steel

Financial Review

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Robust Revenue Growth & Stable Profit Margins

Sales RevenueSales Revenue Gross Profit & Gross MarginGross Profit & Gross Margin

EBITDA1 & EBITDA MarginEBITDA1 & EBITDA Margin Net Profit2 & Net MarginNet Profit2 & Net Margin

Notes: 1. EBITDA = Gross profit – SG&A + Restructuring charge + D&A2. Net profit attributable to equity holders only

(RMB m)

5,898

2,882 3,326

0

2,000

4,000

6,000

8,000

2007 2007H1 2008H1

GR: 15.4%

3,620

1,809 1,976

62.8%61.4% 59.4%

0

2,000

4,000

6,000

2007 2007H1 2008H10%

20%

40%

60%

1,104 1,242

2,241 38.3% 37.3%

38.0%

0500

1,0001,5002,0002,500

2007 2007H1 2008H120%

25%

30%

35%

40%3,574

1,755 1,952

60.9% 58.7%

60.6%

0

1,000

2,000

3,000

4,000

2007 2007H1 2008H130%

40%

50%

60%

70%

20

1,770 1,875

7834

72.2%

12.9%18.1%

68.8%

0200400600800

1,0001,2001,4001,6001,8002,000

Self-producedMoly products

Processingmolybdenum &

tungsten

Self-producedMoly products

Processingmolybdenum &

tungsten

0%

10%

20%

30%

40%

50%

60%

70%

80%

Gross profit Gross margin

Analysis on Gross Margins by Product

Gross Margins (RMB m)Gross Margins (RMB m)

Gross margins for self-produced Molyproducts remain between 68-72%

Gross margins for self-produced Molyproducts remain between 68-72%

Gross M

argins

2008H12007H1

21

1,161

3

1,391

1

74.9%

3.0% 2.4%

71.2%

0

200

400

600

800

1,000

1,200

1,400

1,600

Self-produced

Externally-sourced

Self-produced

Externally-sourced

2007H1 2008H1

0%

10%

20%

30%

40%

50%

60%

70%

80%

Self-production & External-sourcing Gross Margin and Domestic & Overseas Gross Margin Analysis

Self-production & External-sourcing Gross Margins

Self-production & External-sourcing Gross Margins

(RMB m)

Gross margin of domestic sales remains stable

Gross margin of exports decreases due to export

taxes

Gross margin for self-produced Mo

products remained stable

1,164

608

1,392

485

70.8%

67.6%

69.2%

62.7%

0

200

400

600

800

1,000

1,200

1,400

1,600

Domestic Overseas Domestic Overseas

2007H1 2008H1

58%

60%

62%

64%

66%

68%

70%

72%

Domestic & Overseas Gross Margins

Domestic & Overseas Gross Margins

22

Cash Production Costs Control

Source: Company DataNote: 1. Only include ore mining and flotation costs, does not include depreciation or tax

Molybdenum Concentrate Cash Production Costs (RMB/t) 1

Molybdenum Concentrate Cash Production Costs (RMB/t) 1

The Company has effectively controlled its costs and maintained sustainable development, despite larger expenditure on environmental

protection, raw materials, energy and labor costs, etc.

Molybdenum Concentrate Cash Production Costs (US$/lb) 1

Molybdenum Concentrate Cash Production Costs (US$/lb) 1

31,363 30,937

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

2007 2008H1

4.164.41

0.00.51.01.52.02.53.03.54.04.55.0

2007 2008H1R

MB

/US

$ FX changes

23

Solid Balance Sheet

Net Debt1 / Total AssetsNet Debt1 / Total Assets Net Debt / Equity2Net Debt / Equity2

Notes：1. Debt = LT debt + ST debt – Bank balances and cash2. Shareholders’ equity excluding minority interests

-46.6%

-57.3%-63.4%-70%

-60%

-50%

-40%

-30%

-20%

-10%

0%

2007 2007H1 2008H1

-53.3%

-69.1%

-47.0%

-80%

-70%

-60%

-50%

-40%

-30%

-20%

-10%

0%

2007 2007H1 2008H1

Outlook

25

16,754

H1

17,000

H2

13,022

H1

12,000

H2

7,869

H1

7,200

H2

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

2007 20082007 2008

30,753

21,035

13,309

33,754

25,022

15,069

2008 H2 Production Forecast

2007 Actual vs 2008 Production Forecast (ton)2007 Actual vs 2008 Production Forecast (ton)

Note: Grades of molybdenum concentrate, molybdenum oxide and ferromolybdenum are 45%, 51％ and 60％.

10,2604,1883961,5002008H2 Forecast

9,7461,6064948722008H1

Sulphur (ton)Silver (kg)Gold (kg)Scheelite (ton)

Mo Conc Mo Oxide FerroMo

26

Project Development

♦ 40,000-ton/year molybdenum roasting and smelting project (Phase 1: 20,000-ton/year)– the No 2. ferromolybdenum part is projected to start equipment installment on Sept 1 2008

and trial production to commence by end of December– The roasting and smelting part will be ready for trial at the end of November, and the

sulphur facility will commence trial production by the end of March 2009– Construction of the entire first phase (20,000-ton/year) project is expected to complete on

May 1, 2009

♦ Tungsten– The 9,000tpd scheelite recovery project will start trial production in Sep 2008

♦ Luoning Gold Mine project is expected to achieve 30,100-meter drilling and 10,090-meter tunnel engineering during 2008 H2, and plans to submit the gold resources evaluation proposal by the year-end

♦ Construction of Qiliping project is expected to complete at mid-Sep 2008 and commence commercial production; the construction of 80,000tpa gold-lead-silver smelting plant is on schedule

♦ To start the application procedure for the exploration rights of the deeper resources

27

Molybdenum Market Outlook

♦ In 2008 H2, there will be uncertainties on the world economy, but we believe China and other emerging and developing economies will maintain high economic growth. At the same time, wealth from oil will stimulate local economies to grow further in oil-exporting countries and Middle East countries

♦ According to estimates from International Iron & Steel Institute, the consumption of steel products in 2008 will reach 1,279mt globally, up 6.8% from 2007. Out of the total, stainless steel production will reach 30.43mt in 2008, up 6.2% yoy. Besides, Chinese steel products are rapidly transforming from low-end to high-end, which will boost the development of special steel industry

♦ Based on this, we believe the stainless steel industry is experiencing a recovery and the growth of special steel and catalyze sectors will remain strong, which will increase the demand for molybdenum. Molybdenum supply tends to remain tight, since there are no new large molybdenum projects coming into operation internationally and the production growth in domestic Chinese market is offset by its strong demand. China’s exports quotas policy on molybdenum products will help to stabilize both Chinese and overseas markets

♦ Taking into consideration the supply and demand situations in the first half, we estimate that there will be a shortage of about 2,000 tons in molybdenum supply, which will make its price linger at high levels

28

Our Strategies & Visions

A leading global specialty and precious metal producer

1. Further consolidate our leading position in molybdenum industry1. Further consolidate our leading position in molybdenum industry

2. Take full advantage of tungsten reserves

3. Explore acquisition opportunities,expand product portfolio

3. Explore acquisition opportunities,expand product portfolio

4. Upgrade production technologies & operation efficiency

5. Enhance and expand customer relationships & profitability

5. Enhance and expand customer relationships & profitability

6. Enhance production safety & environmental protection

Q & A

Reference

31

20

40

60

80

100

120

Jan-08 Feb-08 Mar-08 Apr-08 May-08 Jun-08 Jul-08 Aug-08

Pric

es re

set t

o 10

0

Hang Seng Index China Moly Hunan NonferrousAluminum Corp of China Xinjiang Xinxin Mining Jiangxi CopperTompson Creek Metals

2008 H1 Stock Price Performance

32

50

60

70

80

90

100

110

120

130

140

Jan-08 Feb-08 Mar-08 Apr-08 May-08 Jun-08 Jul-08 Aug-08

Pric

es a

re re

set t

o 10

0

Gold Copper Nickel Molybdenum Silver Tungsten

2008 H1 Metal Prices