CADIA VALLEY OPERATIONS

Analyst Site Visit3 December 2007

General Manager –

Tony McPaul

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●

Telfer

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Gosowong

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Cadia Valley

● Cracow

347.8 koz

116.7 koz

560.7 koz / 61.1 kt

627.1 koz / 27.8 kt

2006/2007 Gold & Copper Production

Newcrest Operations & Projects

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Cadia Valley’s History of Mining Dates Back to 1851

Newcrest key milestones:

1990 Commenced activities in the Cadia Valley

1992 Cadia Hill discovered

1995 Cadia East discovered

1996 Ridgeway discovered

1998 Cadia Hill open pit mine commissioned

2002 Ridgeway underground mine commissioned

2007 Ridgeway Deeps development approved(A$545M)

Cadia Valley History

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• 2006/2007 Production 560,700 Oz Au & 61,100t Cu

• One Open Pit Mine

• One Underground Sublevel Cave Mine

• Underground Mine will Transition to Block Cave in 2010

• Process in Excess of 20Mt of Ore per Annum

Cadia Valley Operations

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Total Cadia Valley• Mineral Resource: 31.0 Moz Au & 4.6 Mt Cu

• Ore Reserves: 16.0 Moz Au & 2.2 Mt Cu

Cadia East Projects• Mineral Resource: 21.4 Moz Au & 3.7 Mt Cu

• Ore Reserves: 10.8 Moz Au & 1.7 Mt Cu

Reserves and Resources as at 30 June 2007

Cadia Valley Reserves and Resources

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• Owner Operated Fleet– Conventional truck/shovel operation– Modular Mining Despatch System– Life-of-fleet vendor maintenance contracts

• Drill & Blast 15 metre benches– Contract bulk explosives (Dyno)– Conventional grade control –

blast hole sampling

Cadia Hill Open Pit

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Cadia Hill Open Pit

• 21 Cat 793C Haul Trucks• 2 Komatsu Demag H655

Face Shovels• 1 Cat 994 Loader• 2 Komatsu WA 1200

Loader• 3 Drill rigs• 2 Dozers & 2 Wheel Dozers• 2 Graders• 1 Grid Roller and 1 Impact

Roller• 3 Water carts• 1 EX1100 Excavator• 1 PC800 Rock Hammer

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• Blind transverse SLC

• Large ore body footprint

• Ore pass system to transfer level and underground gyratory crusher

• Conveyor to surface

Ridgeway Mine

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Ridgeway Cave Zone

Area approximately 27 Acres

Ridgeway Underground Mine

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• Target Zero continuing– Revised Safety Toolbox

• Wellness for Life Program• In-house training conducted to improve

standardisation – Safe Behaviour Observation (SBO)– First Aid– OHS Consultation

• DuPont study trip• Introduction of Post Induction Training

covering:– Action Employees Can Take (AECT– See Stop Control– Target Zero– Newcrest Values & Business Improvement– JSEA

Cadia Valley Safety Initiatives

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Security of Future Water Supply

• Recycle ±

80% of all site water

• Make-up water 18 -

20 ML/day

• ±

10ML/day treated effluent from Orange, Blayney & Millthorpe

Cadia Valley Operations

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Security of Future Water Supply

• Sufficient water for current operations until April 2008 (if no further rain)

• A range of options being pursued:– Brown’s Creek mine– Bathurst grey water– Spring Terrace farm agreement– Enhanced management of on-site water storages

Cadia Valley Operations

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Cadia Valley Development Projects

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Sublevel Caving

• The orebody is developed, drilled and blasted in progressive levels from the top down

• Rock above caves upwards progressively as ore drawn out

• Suitable for steeply dipping orebodies with reasonably strong orebody rock enclosed by weaker overlying and wall rocks. (Logan 2002)

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• Low mine operating costs, equivalent to many pits

• Lower environmental impacts than pits

• Rock caves progressively upwards due to the undercutting and drawing of the broken, caved ore beneath

Air gap

Crown Pillar

Air gap

Crown Pillar

Block Caving

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• A form of cave mining in which the orebody is undercut and caved progressively in a series of usually parallel panels

• The draw rate is variable across the panel

• Applied to larger ore bodies than block caving

• Low mine operating costs

• Lower establishment costs compared with block caving due to progressive panel approach

Panel Caving

Crown pillar

Cave back

Cave ore

Surface

Next panel

Undercut advance

Drawpoints

Crown pillar

Cave back

Cave ore

Surface

Next panel

Undercut advance

Drawpoints

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Panel & Block Caving (PC)Sublevel Caving (SLC)Sublevel Stoping (SLS)

Reducing Underground Mining Costs

1/2 1/2

Underground Bulk Mining Methods

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Ridgeway Deeps

Cadia Hill Pit

Cadia East Pit

Cadia East Panel Cave

Ridgeway

Cadia Valley Development Projects

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• Capital expenditure of A$545M largely over the next two financial years

• Full production in 2010

• Project cash cost A$111/oz after by-product credits (at average copper price of US$1.43/lb)

• Proforma production profile– Gold ~

180,000 oz pa

– Copper ~ 22,000 t pa– Over 8 years

SLC

BC

Ridgeway Deeps Block Cave Project

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Ridgeway Deeps Development

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Ridgeway Deeps Progress to Date

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RW Subsidence

Cadia Hill

Plant

Cadia East Ore body

Cadia Extended

Cadia East Orebody Location

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• Proforma production profile

@ 14 Mtpa – Gold 140,000 –

150,000 oz

– Copper 50,000 –

60,000 t

10 year life

Cadia East Open Pit Project

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• Conventional Load & Haul highest NPV– Large Electric Shovel > 40m3

– Ultra-Class Trucks > 300t

• Eliminated– Truck Hoist: high capital, capacity limits– IPCC: capacity limits, insufficient tonnes

• Watching emerging technologies Bucyrus 495 loading Komatsu 930E (300t)

Truck Hoist SystemIn Pit Crush and Conveying System

CEP Mining Options

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• Panel Caving mining method

• Proforma production profile

@ 24 Mtpa – Gold 450,000 –

600,000 oz

– Copper 60,000 –

80,000 t

30 year life

Current

Cadia East Underground Project

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Mine Location Nominal Production Rate Mtpa

Projects Proposed Cadia East Panel Cave NSW, Australia 24

Current Operations Northparkes NSW, Australia 5 Ridgeway NSW, Australia 5.5 Mount Isa (Copper) Qld., Australia 6.5 Olympic Dam S.A., Australia 9 Palabora South Africa 11 Salvador Chile 12 Henderson Colorado, USA 14 Grasberg Papua, Indonesia 15 Andina Chile 17 Kiruna Northern Sweden 25 El Teniente Chile 51

Cadia East Underground Project

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Cadia East Decline Development

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First Ore Exposed Cadia East: 31 October 2007

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• Currently assessing a range of project options for the Cadia Valley

• Focusing on developing a profile of growth going forward

• Principally relate to the timing of Cadia East developments

Project Outlook

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• Other potential opportunities subject of early stage assessment

• Longer term, processing rates in the Cadia Valley expected to exceed 24Mtpa

• Currently a work-in-progress

• Expect to provide a better idea of timing in January or February 2008

Project Outlook

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Resource 1. CE Eastern Cu Zone

2. CE West

Reserve 3. RW Deeps Lift 2

Growth 4. RW Extension – NW

5. RW Extension – S

6. CQ West

7. Northern Corridor

9. Big Cadia / Skarn

10. CQ Deeps / High Grade Lodes

11. RW High Grade / UR333

Infrastructure 8. Wire Gully

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4

2

6

3

1

5

9

10

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Province Development Prospects

Location of Targets

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Big Cadia Model

Looking NW

Big Cadia• Grow resource -

Unclassified to Inferred

• 3000m drill program• U/G access via RW north decline?

Little Cadia• Recognising strike extension

>1.4km• System not understood• Potential for high grade –

needs defining

Cadia Skarns Prospect –

Big & Little Cadia

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Uplift Opportunity• Currently re-modelling SLC option• Two drill holes designed to validate high grade lode potential• Further encouraging mineralisation to west –

follow up drilling FYE08• Underground access via development (off RW North decline)

Cadia Quarry Prospect

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Main Decline

Conveyor InclineSLC

Block Cave

Cave Outline

Surface

RW Deeps Lift 2

• Extension and Infrastructure• Lift 2 concept Inferred only• Possible repeat of Lift 1 (BC)

Ridgeway Deeps Lift 2 Prospect

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Conceptual Targets (no Resource conversion FYE08)

• Wire Gully

• Northern Corridor

• Cadia West Lodes

• RW North West

• RW South

Other Prospects

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• Cadia Valley will continue to be a major element in Newcrest’s asset portfolio for some decades to come

• Newcrest is likely to spend in excess of A$2 billion on project development in the Cadia Valley

• Focusing on developing a profile of growth going forward

Conclusions