Delivering GrowthIan Pearce Chief Executive Xstrata Nickel

11

Ian Pearce - Chief Executive, Xstrata NickelRBC Capital Markets ConferenceJune 21, 2011 – Toronto, Canada

Disclaimer:

This presentation and its contents are confidential and may not be reproduced, redistributed or passed on, directly or indirectly, to any other person or published, in whole or in part, forany purpose without the written consent of Xstrata plc (“Xstrata”).This presentation does not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for any securities, or a proposal tomake a takeover bid in any jurisdiction. Neither this document nor the fact of its distribution nor the making of the presentation constitutes a recommendation regarding any securities.This presentation is being provided to you for information purposes only.

C t i t t t b li f d i i t i d i thi t ti ti l l th di th ibl d f t fi i l th f f X t t i d tCertain statements, beliefs and opinions contained in this presentation, particularly those regarding the possible or assumed future financial or other performance of Xstrata, industrygrowth or other trend projections are or may be forward looking statements. Forward-looking statements can be identified by the use of forward-looking terminology, including the terms“believes”, “estimates”, “anticipates”, “expects”, “intends”, “plans”, “goal”, “target”, “aim”, “may”, “will”, “would”, “could” or “should” or, in each case, their negative or other variationsor comparable terminology. These forward-looking statements include all matters that are not historical facts. By their nature, forward-looking statements involve risks and uncertaintiesbecause they relate to events and depend on circumstances that may or may not occur in the future and may be beyond Xstrata’s ability to control or predict. Forward-lookingstatements are not guarantees of future performance. No representation is made that any of these statements or forecasts will come to pass or that any forecast result will be achieved.

Neither Xstrata, nor any of its associates or directors, officers or advisers, provides any representation, assurance or guarantee that the occurrence of the events expressed or implied inf d l ki t t t i thi t ti ill t ll Y ti d t t l d li th f d l ki t t tany forward-looking statements in this presentation will actually occur. You are cautioned not to place undue reliance on these forward-looking statements.

Other than in accordance with its legal or regulatory obligations (including under the UK Listing Rules and the Disclosure and Transparency Rules of the Financial Services Authority),Xstrata is not under any obligation and Xstrata expressly disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information,future events or otherwise.This presentation may contain references to “cost curves”. A cost curve is a graphic representation in which the total production volume of a given commodity across the relevantindustry is arranged on the basis of average unit costs of production from lowest to highest to permit comparisons of the relative cost positions of particular production sites, individualproducers or groups of producers across the world or within a given country or region. Generally, a producer’s position on a cost curve is described in terms of the particular percentile or

til i hi h th d ti f i l t d f d T t t t i d t l t il i f ti f i t fquartile in which the production of a given plant or producer or group of producers appears. To construct cost curves, industry analysts compile information from a variety of sources,including reports made available by producers, site visits, personal contacts and trade publications. Although producers may participate to some extent in the process through which costcurves are constructed, they are typically unwilling to validate cost analyses directly because of commercial sensitivities. Inevitably, assumptions must be made by the analyst withrespect to data that such analyst is unable to obtain and judgment must be brought to bear in the case of virtually all data, however obtained. Moreover, all cost curves embody anumber of significant assumptions with respect to exchange rates and other variables. In summary, the manner in which cost curves are constructed means that they have a number ofsignificant inherent limitations. Notwithstanding their shortcomings, independently produced cost curves are widely used in the industries in which Xstrata operate.

No statement in this presentation is intended as a profit forecast or a profit estimate and no statement in this presentation should be interpreted to mean that earnings per Xstrata sharefor the current or future financial years would necessarily match or exceed the historical published earnings per Xstrata sharefor the current or future financial years would necessarily match or exceed the historical published earnings per Xstrata share.

The distribution of this presentation or any information contained in it may be restricted by law in certain jurisdictions, and any person into whose possession any document containingthis presentation or any part of it comes should inform themselves about, and observe, any such restrictions.

By attending the presentation and/or accepting or accessing this document you agree to be bound by the foregoing limitations and conditions and, in particular, will be taken to haverepresented, warranted and undertaken that you have read and agree to comply with the contents of this notice including, without limitation, the obligation to keep this document and itscontents confidential.

22

AgendaAgenda

Overview of Xstrata

Nickel Markets

Xstrata Nickel – Demonstrating Operational Excellence

Koniambo Nickel Project – Update

33

Xstrata today: A global diversified mining powerhouseA global diversified mining powerhouse Global diversified miner with market capitalisation of $60bn*

Headquartered in Switzerland employing over 60 000 people in 19 countries Headquartered in Switzerland, employing over 60,000 people in 19 countries

Top 5 global producer of export thermal coal, export coking coal, copper, ferrochrome, nickel and zinc, as well as a growing platinum business

X t t l S t L d f D J S t i bilit I d f f th Xstrata plc Sector Leader of Dow Jones Sustainability Index for fourth consecutive year 2010/11

Global mining and metals industry – 2011*

Gl b l BHPGLOBAL Global Player

BHPBilliton$222bn

Xstrata$60bn

Rio Tinto$136bn

GLOBAL DIVERSIFIEDS

INTEGRATED MONOLITHS

AngloAmerican

$60bn

6

Vale$154bn

FOCUSED LOCALS

3+ regions Glencore$54bn

$60bn

2NUMBER OF KEY GEOGRAPHIES1–3 regions

Xstrataat IPO

44Note: * As at 16 June 2011 based on market capitalisation COMMODITY FOCUS

LOCAL HEROESRegional Player

MultiSingle 1–3 commodities 3+ commodities 8+ commodities

Prolific organic growth pipeline de-risked to ensure successful deliveryto ensure successful delivery Established track record of successful project delivery Innovative project solutionsInnovative project solutions Alliances and pre-emptive lock-up of engineering capacity Best in class community engagement

Decentralised project execution Decentralised project execution– Tailored to specific project requirements– Transfer of skills and learning across business units

Xstrata projects in implementation

14 major projects successfully delivered i 2002

20 major projects currently in construction

since 200220 major approved projects

14 major projects

+30,000 employees and contractors on projects teams

+250,000 tonnes of steel in construction14 major projects with near-term

approvals

Feasibility

55 5

$14bn in construction plus $7.5bn in projects with expected near-term approval

Feasibility and scoping

66Nickel Markets

Nickel Markets – Demand Nickel Markets Demand

• Robust demand in H1 2011, record global Robust demand in H1 2011, record global stainless steel production

• Driven by strong growth in the developing world particularly Chinaworld, particularly China• Slowing in Q2 - lower nickel prices have

prompted some de-stocking• Europe and USA have also softened on

renewed economic concerns and summer cyclicality

• Stainless steel demand to remain at current levels in Q3 and rising in Q4

• Non-stainless steel demand strengthened over Non stainless steel demand strengthened over the first half, in-line with global industrial production

• Led by key sectors such as aerospace oil

77

• Led by key sectors such as aerospace, oil and gas and power generation

Nickel Markets

Nickel Markets – Supply Nickel Markets Supply

• Disruptions reduced H1 2011 supply• Matte run-out at Vale’s Sudbury

smelter• Tsunami hit PAMCO’s FeNi plantp• Furnace rebuild at BHP Billiton’s Cerro

Matoso FeNi plant• Delays to new projects further constrained • Delays to new projects further constrained

supply, resulting in H1 2011 deficit• Drawdown in LME inventory• High rates of NPI production in China

• Supply recovery for H2 2011 is expected to satisfy growing demandto satisfy growing demand• Resumption of production disrupted in

H1 2011R f j t

88

• Ramp-up of projects

Nickel Markets

99Xstrata Nickel – Demonstrating Operational Excellence

Integrated nickel business with a portfolio of diverse assets and projectsof diverse assets and projects

2010 Top 5 Refined Nickel Producers

Jinchuan

Vale

MMC Norilsk

(kt)Xstrata

BHP Billiton

Jinchuan

0 50 100 150 200 250 300

30‐35ktpa Ni (FeNi)

1010Source: CRU – Nickel Quarterly April 2011 Xstrata Nickel – Demonstrating Operational Excellence

Sustainability continuesto be a key strategic focusto be a key strategic focus

Relentless focus on ‘Zero Harm’T l t ti i j i t Si l i

Xstrata Nickel safety statistics16 Total Recordable Injury Frequency Rate– Two years no lost time injuries at Sinclair

– Four million hours (4.5 years) at Kabanga– One year at Falcondo

Identification of five key safety priorities per site 8

10

12

14

16

rs W

ork

ed

Total Recordable Injury Frequency Rate

Lost-Time Injury Frequency Rate

– Identification of five key safety priorities per site integrated into continuous improvement process

Corporate Social Involvement0

2

4

6

Pe

r M

illio

n H

ou

r

– Focus on long-term investments and partnerships with third-party organisations that generate mutual benefits

2007 2008 2009 2010

P

Multi-Faceted Approach to Environmental Performance– Targeted capital investment to enhance

li d d li ffi i d t

Industry Awards

Raglan received two regional industry awards for lowest accident frequencies and best improvementcompliance and deliver efficiency and cost

savings– LEED certification at Nickel Rim South

– Active participation in development of policy and

frequencies and best improvement

Sudbury Operations received a regional award for attaining the lowest total medical aid frequency

1111

Active participation in development of policy and regulations for mines and smelter

Xstrata Nickel – Demonstrating Operational Excellence

Transformed into a robust business delivering value and future growth potentialdelivering value and future growth potential

Optimisation of Integrated Nickel Operations (INO)– Delivery of Nickel Rim South and Fraser mine in Sudbury (significant by-product credits); y y ( g y p );

continued cost focus at Raglan; Sinclair as a swing producer– Record INO mine production; record output from smelter (74ktpa Ni) and refinery (92ktpa Ni)

C1 dramatically reduced from $5 63/lb in 2008 to $2 16/lb in 2010 ahead of C1 dramatically reduced from $5.63/lb in 2008 to $2.16/lb in 2010, ahead of expectations, and down 43% from 2009

Strong track record of real cost savings ($208M over 2007-2010)

5.00

6.00200 FeNi productionINO productionC1 cash cost

Doubling of nickel production while maintaining 2nd quartile cost position

3.00

4.00

5.00

100

150C1 cash cost

Significant FeNi Production from Falcondo and Koniambo

1.00

2.0050

Significant expansion still remains• Raglan at 40ktpa Ni; New mine in

Sudbury (Amik, Big Smoke); Kabanga full production; Koniambo expansion;

1212

0.0002008 2009 2010 2013 2016

0kt mined nickel

$/lb C1 cash

cost

full production; Koniambo expansion; Araguaia

Xstrata Nickel – Demonstrating Operational Excellence

Supported by a strong resource base for the future

Australia

the future

Continual extension of existing mines Xstrata Nickel resource growth

4.0

5.0

6.0

ned

(Mt)

Indi

cate

d

AustraliaGreenfieldNew CaledoniaDominican RepublicCanada

and growth of project resources–~90% increased in measured and

indicated resources to a total nickel

1.0

2.0

3.0

Ni C

onta

inM

easu

re +

I

contained resource of 5.4Mt in 2010 (>8Mt Ni including Inferred)

~90%

increase

0.02007 2010

Focused and disciplined exploration –low risk increase of reserve base (sulphide focus)

Xstrata Nickel reserve base

2.0

2.5

3.0

(M

t)s

Mined outReserves

(sulphide focus)–Delineation of known discoveries–Extension drilling of brownfield sites

0 5

1.0

1.5

Ni C

onta

ined

Res

erve

s

– Exploration commitment towards highly prospective property for future resource expansions

~35%

increase

1313

0.0

0.5

2007 2010

p

Note: *Equity contained Nickel in reserves and resources Xstrata Nickel – Demonstrating Operational Excellence

1414Delivering Organic GrowthKoniambo Update

Project ScopeProject Scope

Earthworks – 8 500 000 m3 Earthworks – 8,500,000 m3

Pyramids of Giza – 2,500,000 m3

Concrete – 80,000 m3, Average capacity of standard Ready

Mix cement truck: 10 m3

Steel 53 000 tonnes (incl Steel – 53,000 tonnes (incl. modules) 7,000 tonnes of steel in the Eiffel

Tower Mechanical - >1,500 major pieces

of equipmentof equipment Electrical cables – 1,500 kms

Sydney to Adelaide

1515Koniambo Update

Module ConstructionModule ConstructionMetallurgical plant modules completed in China to take advantage of best value country approach

1616Koniambo Update

Module Shipment, Site Transport andStackingStacking

17-day journey by sea; 3 – 5 hour transport on site; 4 – 12 hour jacking process

1717Koniambo Update

Worker CampWorker CampCamp capacity currently 4,600, ahead of requirements

1818Koniambo Update

Koniambo DevelopmentKoniambo Development

Feasibility and

Design, specification, fabrication and delivery of large Labour-intensive

approval equipment, met and power plant, and

conveyor

project construction

1919Koniambo Update

Mass EarthworksMass EarthworksMass earthworks 79% complete; primarily contracted to local enterprises; re-vegetation in progress

2020Koniambo Update

Overland Conveyor AssemblyOverland Conveyor Assembly11-km conveyor from the massif to the plant; elevated construction minimizes environmental impact

2121Koniambo Update

Xstrata has maximum optionality to deliver sustainable growth in shareholder value

• Transformation of assets delivered long-life, low cost

sustainable growth in shareholder value

delivered long life, low cost businesses

• Industry-leading growth of 50% to 2014

• Entrepreneurial culture • Opportunistic but

disciplined approach to

World-class assets and projects

• Significant further growth options under study

M&A growth• Management track record

in transformational and organic growth Value-organic growth

• Net debt of $7 6bn and

seeking culture

Strong • Net debt of $7.6bn and 15% gearing

• $8.7bn of headroom in facilities

Strong financial position

• Continued demand growth from emerging markets facilities

• Strong cashflow generation

• Progressive dividend policy

Attractivecommodity

outlook

from emerging markets

• Robust recovery in developed markets

2222 22

outlook• Structural supply

constraints

Questions?

2323

2424Appendix

Delivery of embedded optionality well underwayunderway

Phase III:Deliver optionality

Phase I:Create optionality

Phase II:Enhance optionality

O ganic

Deliver optionalityCreate optionality Enhance optionality

Projects of $14bn currently in implementation to deliver 50%* volume growth to 2014Organic

Growth

g Significant further growth

potential from other early stage projects

Operational Excellence

Continued cost improvements Significant extension of

resource base – increase of 60% from 2006 to 2010

Dow Jones Sustainability Index o Jo es Susta ab ty deSector Leader for 4th

consecutive year

Strong track-record of di i li d M&A l ti ith Mergers and

Acquisitionsdisciplined M&A valuation with strong integration capability

Continue to review transformational and bolt-on acquisitions

2525 25

q‒ e.g. Recent entry into iron

ore

Note: * on a copper equivalent basis compared to 2009 Appendix

Koniambo LocationKoniambo LocationUniquely short distance from mined to finished product; well positioned for Asian markets

2626AppendixAppendix- Koniambo update

Industry-Leading Grade and ScaleIndustry-Leading Grade and Scale

Measured and indicated nickel laterite resources

With inferred resources,

~400Mt of ore, containing 7.6Mt of Ni7.6Mt of Ni

2727Source – Intierra and Xstrata AppendixAppendix- Koniambo update

Vavouto PortVavouto PortDredging , ocean outfall and wharf completed in 2010 without environmental incident

2828AppendixAppendix- Koniambo update

Met Plant AssemblyMet Plant AssemblyFull height of metallurgical plant is 110 meters, the tallest structure in New Caledonia; 28% complete

2929Appendix- Koniambo updateAppendix- Koniambo update

Power Plant ConstructionPower Plant Construction2 X 135MW coal-fired boilers and 2 X 40MW diesel-fired turbines; 21% complete

3030Appendix- Koniambo update