Rossi Mine Expansion Halliburton Energy Services

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Dan Turner Anita Brown April 2012

Contents

• Introduction to Halliburton

• Demand for domestic barite

• Current mining operations update

• Proposed mine expansion plan

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Halliburton Founded in 1919, Halliburton is one of the world’s largest providers of products and services to the energy industry. With nearly 70,000 employees in approximately 80 countries, the company serves the upstream oil and gas industry. Halliburton was ranked 144 in the 2011 Fortune 500 company list. Halliburton is committed to safety and strives to minimize the impact on the environment, control risks to employees and to maintain safe work practices. Halliburton consists of two divisions: Drilling & Evaluation and Completion & Production. Barite mining falls under the Baroid Product Service Line.

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Baroid

Barite • The chemical formula for barite is BaSO4. It has a high specific gravity

of 4.50. Its Moh’s hardness is 3.0 to 3.5. Barite can be found in a variety of colors including yellow, brown, white, blue, gray, or even colorless.

• Barite is a high density, chemically inert mineral making it ideal for many applications. Barite is used in oil and gas drilling; as non-toxic filler, extender or weighting agent in plastics, paints and rubber, and as a shield around nuclear power plants. It also has medical uses such as blocking x-ray and gamma-ray emissions, and a pharmaceutical grade barite is used for barium milkshakes for intestinal x-rays.

• Drilling Industry – Nearly all barite is used by the petroleum industry as a weighting material in the formulation of drilling mud. Barite increases the hydrostatic pressure of the drilling mud allowing it to compensate for high-pressure zones experienced during drilling. The softness of barite also prevents it from damaging drilling equipment.

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China has been the world leader in barite production for the last 25

years. Recent natural disasters and current regulatory, political, safety

and environmental conditions have caused China to reduce

production by about 1 million tons annually. This is a large impact

because total annual global barite production is currently 7 million

tons. The price of Chinese ore has increased and the quality has

decreased. Therefore, it is essential that Halliburton is able to produce domestic barite to fill the

production gap.

Barite Sources

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X Rossi Mine Dunphy X

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A Brief History of the Rossi Mine

1937 First Rossi Claims were located by Antonio Rossi

1947 Mining began at Rossi

1977-1980 Development drilling increased reserves

1998 Halliburton acquired Rossi Mine

2008-2012 Development drilling increasing reserves

2012 Mine expansion plan developed

Currently Authorized Operations

• Mining

– Rossi Phases 1 - 6 – Queen Pit

• Waste Rock – North Dump – West Queen Dump

• Drilling – Within Plan of

Operation

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Rossi Orebody

Phase 1 Phase 3

Phase 4

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Phase 4 Mining

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Queen Lode

Queen Lode Extension

Queen Lode Eastern Extension

Sumner

Queen Complex Area

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Queen Lode Pit

Queen Lode Eastern Extension Sumner

Queen Lode

Extension

The Queen Complex

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Exploration Drilling – Queen Complex

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Crusher

New Jig Plant

Old Jig Plant

Maintenance Shop

Processing

15 New Jig Plant

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Proposed Mine Expansion

*This is conceptual, not a final engineered design.

• Pits – Expansion of Rossi Pit – Queen Complex Pits – Dawn Pit

• Waste Rock – North Dump Expansion – South Dump Expansion – East Dump – Dawn Dump – Backfill Stockpile

• Processing – Expansion of Jig Pond

• Drilling – Condemnation Drilling of all

Dumps – Exploration Drilling Within

Expanded PoO Boundary

Comparison of Authorized and Proposed

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