Tenke Fungurume A Remarkable Achievement

Project History

1996 TF Holdings Ltd (TFH), subsidiary of Lundin Group, acquires majority interest through public tender process.

2002 FCX acquires option and mining convention negotiations commence to align Tenke development terms with the new DRC mining code.

2005 Agreement reached on mining convention amendments. FCX exercises

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2005 Agreement reached on mining convention amendments. FCX exercises option. Study update commenced.

2007 Construction started on phase one production.

2009 First copper in March, 2009. Full production levels reached by year end.

Third quarter 2009 cobalt plant and sulphuric acid plant commissioned. Full production levels expected in 2010.

Fourth quarter 2009 expansion study commenced.

2010 Optimization and expansion planning.

Ownership Structure

FCX(U.S.)

FCX(U.S.)

Lundin Mining Corp.(Canada)

Lundin Mining Corp.(Canada)

70%* 30%*

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TF Holdings Ltd.(Bermuda)

TF Holdings Ltd.(Bermuda)

Gécamines(DRC)

Gécamines(DRC)

Tenke Fungurume Mining (SARL)(DRC)

Tenke Fungurume Mining (SARL)(DRC)

82.5% 17.5%Beneficial Ownership

FCX 57.75%

Lundin 24.75%

Gécamines 17.50%* ownership through various subsidiaries

A World-Class Project

• Largest Foreign Investment in DRC

• World-Class Design and Construction

• Significant Infrastructure Upgrades

• Expanding Social & Community ProgramsWorkers install a liner for the Tailings Workers install a liner for the Tailings

Storage Facility

• Project Provides Important Benefits:

• Employment

• Local Services

• Taxes

• Royalties

• Dividend PaymentsChildren use one of the additional potable water wells at Fungurume

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Project Location

Kolwezi

Likasi

Ruashi

Kakanda

Kambove

KOV

KamotoDikuluwe

Democratic Republic Of Congo(Katanga)

DEPOSITDEPOSITDEPOSITTOWNTOWNRAILWAYRAILWAY

TENKE FUNGURUME

Nchanga

Lubumbashi

ChambishiNkana

Kitwe

Luanshya

Mufulira

Sakania

Ndola

Ruashi

EtoileKipushi

KansanshiKinsenda

Musoshi

NorthKonkola

Zambia

Zambia0 100 Km

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Tenke Fungurume

Plan Area

Tenke FungurumeConcessions

TenkeVillage

Tailings Pond

Overburden Storage

Processing Facility

Power Substation

Airstrip

Construction Village

Fwaulu Deposits Kwatebala Deposit

A Mining District

5 kmFacilities

Copper Deposits

National Road

Rail Line

220 kV Power Line

120 kV Power Line

Pumpi Deposits

Village

Fungurume Village

CampDipeta SynclineExploration

Dipeta Syncline ExplorationTenke Deposits

40 years of oxides from just these 3 deposits

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• Only half the concession has

F 005 N F 104 NF 103 N F 112 N

Sulfide Ore

Mixed Ore

Oxide Ore

Exploration

• Only half the concession has been explored

• Expansion feasibility studies now commencing

Sulfide Ore Bearing

BedsAt Depth

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Key Data• High-grade Copper-Cobalt Deposits – Preliminary Reserves at 12/31/09

• 135 million tonnes at 3.13% Cu & 0.33% Co• 8.4 billion lbs Cu and 0.8 billion lbs Co• Expected to continue to increase

• Open Pit Mine. Oxide ores with metal recovered by an agitated-leach Process. Producing copper cathode metal and cobalt hydroxide.Process. Producing copper cathode metal and cobalt hydroxide.

• Production• 115,000 t Cu and 8,000 t Co per year (phase one)• First copper in March 2009• Produced 70,000 t copper cathode in 2009

• Cash cost expected to be less than 50¢/lb at $10 Cobalt*

* Targeted cash costs once design capacity in copper and cobalt circuits have been reached. Each $2.00/lb change in average prices of cobalt would impact unit net cash costs by 12¢/lb of copper.

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A Remarkable Achievement

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First Copperin March 2009

Operations Overview

Ore

PurchasedSulphur

Acid

InfrastructurePower, Water, Roads

InfrastructurePower, Water, Roads

Open PitMine(mined &stockpiled)

SulphuricAcidPlant

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Electrowinning(EW)

Tailings toStorage Facility Copper

CathodeCobalt

Grinding(SAG Mill)

Leaching& CCDLeaching& CCD

Cobalt Plant

SolventExtraction

(SX)

SolventExtraction

(SX)

Ground

Slurry

PLS Rich

Electrolyte

A Well Run Operation

KwatebalaKwatebala

Surface Miner Loading

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SAG Mill

Feeder Fedby LoadersFeeder Fedby Loaders

OreOre

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SAGSAG

Sulphuric Acid Plant

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Leaching & Counter – Current Decantation (CCD)Leach Tanks

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Thickeners & CCD CircuitThickeners & CCD Circuit

Tailings Storage Facility

Tailings Storage Facility(First Phase)

Tailings Storage Facility(First Phase)

Return WaterDam

Return WaterDam

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Workers install a liner for the Tailings Storage FacilityWorkers install a liner for the Tailings Storage Facility

InfrastructureRoad UpgradesTurbine GeneratorTurbine Generator

N’zilo Dam*N’zilo Dam*

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* reservoir that stores & regulates the water to N’seke Power Plant* reservoir that stores & regulates the water to N’seke Power Plant

Logistics

Lobito

SITEDilolo

NdolaKasumbalesa

Tunduma

New Kapiri Mposhi

Katimo Malimo

Livingstone

Chirundu

Dar esSalaam

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1,000 km1,000 km

Maputo

Durban and Richards Bay

Walvis Bay

Groblersburg

Beitbridge

Johannesburg

Komatipoort

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DRC

Ndola (Zambia) 290 milesJohannesburg (RSA) 1,600 milesDar es Salaam (Tanzania) 1,555 milesWalvis Bay (Namibia) 1,845 milesRichards Bay (RSA) 1,875 milesDurban (RSA) 1,975 miles

Benefits to the DRC

• Taxes, royalties and dividends

• Through December 2009, TFM has paid more than US $200 million in taxes, duties, and other payments to the Government since construction began in 2006.

• US $80 million of Transfer Bonus Payments have already been • US $80 million of Transfer Bonus Payments have already been made to Gecamines and an additional $20 million are scheduled

• Provision of local services

• Large local employer – aggregate annual salary of $30 million

• Infrastructure investments: power and roads

• Best in class standards for environmental and social

• Freeport/Lundin committed to partnering for sustainable benefits to the DRC

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43%

Direct Benefits

TF Holdings

57% of Direct Benefits stay within DRC

Tenke – Distribution of Benefits

• Tenke agreements fair, equitable, comply with Congolese laws, and enforceable without modifications

46%

43%

11%

$2 copper and $10 cobalt

DRCGovernment

DRCGovernment

Gécamines • Dialogue continues with DRC authorities to reach resolution

• Tenke investments in social programs and infrastructure rebuilding are unprecedented in scale and quality

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Social Commitments

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43 Water Wells for Rural Communities43 Water Wells for Rural Communities

Resettlement HousingTeaching in a TFM School

800T of corn produced with improved seeds for consumption by TFM

800T of corn produced with improved seeds for consumption by TFM

> 10 women’s micro-savings groups

Economic Development

• Small & Medium Enterprise (SME) Development

• 3,000 SME employment opportunities created for local residents

Local SMELocal SME

• Agricultural Development

• In 2009 local supported farmers will meet 30% of region’s maize requirements – potential for growth

• 61 local vegetable producers to serve TFM and local markets

Local SMELocal SME

AgricultureAgriculture

WORTH GroupWORTH Group

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Education

• Constructed 6 elementary schools

• In 2009-2011 - 2 high schools being constructed

• Focus on improving quality of instruction (not only access to instruction (not only access to schools)

• Provides educational opportunities for an additional 7,200 students

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Community Health

• Clean water and sanitation

• Malaria control

• HIV/AIDS training

Distribution & installation of bednetsDistribution & installation of bednets

Potable water wellPotable water well

Indoor residual sprayingIndoor residual spraying

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Social InvestmentsConstruction Phase Social, Environmental

and Infrastructure Investments

Village Resettlement $12 million

Environmental Protection $4 million

Community Development $9 million

Community Infrastructure Initiatives $1 millionCommunity Infrastructure Initiatives $1 million

Malaria Control Program $2 million

Infrastructure (Power, Roads) $51 million

TOTAL: $79 million

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Ongoing Commitment

• TFM allocating 0.3% of annual net revenue to community development

• Urban growth management plan

• Supply chain development of local suppliers

• Agri-business and food security• Agri-business and food security

• Urban water distribution systems in Tenke and Fungurume

• National and secondary road maintenance

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Tenke – A Truly Remarkable Achievement

Priorities:

• Optimizing existing facilities

• Continue concession wide exploration

With Sustainable Economic and Social Benefits to the DRC

• Expansion feasibility study - Q2/10

• Increase current capacity by at least 50%

• Exploration and infrastructure development drive future expansions

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Thank You

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