Tala Hamza - a world class zinc project

PresentationDecember 2006

Tala Hamza 238metres above sealevel

Tala Hamza history

Location : 270 kilometres east of Algiers

10 kilometres south of Bejaia

(deep water port, international airport

and city of 150,000 plus)

History : ORGM exploration 1980s extensive exploration

Centrale du massif discovered 1987

Deposit delineated 1990 - 1994 (40 holes)

Terramin first discussions with ENOF 2004

Western Mediterranean Zinc formed 2006

Tala Hazma summary

Existing resource

• 40 holes 17,000 metres

• Vulcan estimate 50 million tonnes 5.3%Zn 1.4%Pb

• Average thickness 98 metres

• High grade 8 million tonnes 10.1%Zn 3.4%Pb

Oued Amizour is a stratiform ore body, hosted within the lower volcanicand plutonic complex.

Tala Hamza orebody

Whole deposit50.1 million tonnes @ 5.3% Zn

& 1.4% Pb

includingHigh grade core7.8 million tonnes @ 10.1% Zn

& 3.4% Pb

Tala Hamza potential

S-63 stopped short in high grade mineralisation

to the south

XS24

100m

100m

6 High Grade Core

Hole Metres Zn% Pb%

5 5 2 4 7 . 6 0 . 7

6 4 4 8 12.1 2 . 1

6 6 1 8 12.0 1 . 8

6 8 7 8 10.3 3 . 5

7 9 3 6 13.8 3 . 5

9 5 4 1 9 . 5 1 . 3

1 0 0 2 9 9 . 4 3 . 4

1 0 2 1 1 9 11.2 4 . 1 … company estimate 7.8Mt at 10.1% Zn and 3.4% Pb

S-29

S-28

S-27 S-26

S-33

S-31

S-49S-48 S-45

S-50

S-42

S-56

S-51

S-43

S-47

S-52

S-69 S-64

S-63

S-53

S-79

S-68

S-76

S-78S-77

S-66

S-61

S-57

S-73

S-72

S-55

SH-1 S-71

S-74

S-70

S-75

S-47S-67

S-40

S-39

S-38

S-32

S-30

S-37

S-60S-65

S-46

S-41

S-44

S-36

S-35

S-18

S-9,16

1/93

2/93

2/93

3/93

1/93

4/93 5/936/93

7/93

3/93

Wider potential

These VHMS deposits generally come in clusters

EW structure:Part of a family creatinghorsts and grabens inthe region

NW-SEstructure

Nait Larbi FZBouzenan FZ

8 First five months

Objective: Confirm geology and investigate metallurgy

• ORGM Longyear drilling rig

• Drilled three holes

• Spektra rig on way to site

• Mobilize geological team (multi-lingual)

• Dispatched Hole 2 core to Australia

• Categorise mineralogy

• Mineral processing testwork at Optimet

• Commenced geotechnical review with Golders

• Scoping study with Worley Parsons Komax

Resource definition program

Regional exploration

End

10

Current Drilling - Hole 1

11Mineralisation

12 Mineral processingOre mined and treated tonne 1,200,000pa 3,000,000paHead GradeZinc %Zn 9.3 7.7

Lead %Pb 3.2 2.3Silver g/tAg 6 6

RecoveryZinc to Zn concentrate %Zn 85 80Lead to Pb concentrate %Pb 75 70Silver to Ag concentrate %Ag 70 70

Zinc concentrate produced tonne 193,000 368,000Concentrate grade %Zn 50 50

Lead concentrate produced tonne 44,000 74,000Concentrate grade %Pb 65 65Concentrate grade g/tAg 114 170

Smelter Returns (NSR)Zinc concentrate US$/t concentrate 703 703Lead concentrate US$/t concentrate 417 417

Annual Smelter Revenue US$M 154 290

Metal price forecast (2008) Zn $2204/t; Pb $882/t; Ag 7.00/oz Treatment Charges: Zn $110/t $0.14pp; Pb $140/t $0.10pp; Ag $10/kg

Bankable Feasibility PhasedProcess

2010EPC (M?)5

2008BFS +/- 10% to 15%4

2008Pre-Feasibility Study +/- 20%3

2007Conceptual Study +/- 30%2

2007Desk Top1

CompletionTitlePhase

14Project Feasibility CostUS$M

Confirmation

•Mobilisation, permits & 2 hole program 0.5

Scoping

•In-fill & expansion drilling 3

•Preliminary metallurgical testwork 0.15

•Engineering study 0.85

Pre-feasibilty

•Expansion & near mine drilling 6

•Orebody variability analysis 4

•Engineering study4

Feasibility

•Engineering, permitting, financing 6

15

Mining - Indicative Ore body

OreBody (indicitive)Tonnage Volume PbZn Zn Pb

Above -120RL 3,885,669 1,050,181 6.0 5.3 0.8Production From - 210L 21,205,331 5,731,171 8.0 6.3 1.6Production From - 300L 17,124,629 4,628,278 9.6 7.4 2.2Below -300RL 1,284,756 347,231 6.4 1.3 5.0

43,500,385 11,756,861 8.4 6.5 1.9