Telfer Mine Operations Overview

Mark Mitchell General Manager

2

Location

T elfer

P erth.

P O R T H E D L A N D

B R O O M E

N E W M A N

T E L F E RT E L F E RM A R B L E B A R

T O M PR IC E

N ew crest M in ing L im ited

T E L F E R P R O JE C TL ocation M ap

0km 250km

T elfer

P erth.

P O R T H E D L A N D

B R O O M E

N E W M A N

T E L F E RT E L F E RM A R B L E B A R

T O M PR IC E

N ew crest M in ing L im ited

T E L F E R P R O JE C TL ocation M ap

0km 250km

Distances From Telfer To:

Perth 1,300kmMarble Bar 270kmPort Hedland 450kmKarratha 600kmNewman 320kmNifty 70km

3

Site Layout

4

History & Highlights

Operation suspended in 2000

– Produced >6Moz

A detailed feasibility study for an expanded mining and processing operation was concluded in 2002

Construction of the project began in 2003

Open pit operations re-commenced mid 2003

Ore processing re-commenced Nov 2004

Exceeded feasibility study for all major physical parameters – mill throughput, underground hoisting capacity and open pit mining rates

5

Description of Operation

Ore contained in narrow reef or stockworks

Two mines

– Open pit (60-80Mtpa material movement)

– Underground ( > 5.6 Mtpa ore)

Ore processing ( > 18+ Mtpa)

– Conventional grind, gravity, flotation and CIL circuits

– Producing gold/copper concentrate and gold bullion

Open pit owner mining operations

Underground mining, alliance contract with Byrnecut Mining

Fly in fly out operation. Total workforce reducing from budgeted1400 to around 1000 people (employees plus contractors)

6

Security of Tenure - Community

The Martu people are the acknowledged traditional owners of the Telfer Project area

The Martu People and Newcrest in 2003 reached agreement on:– An Infrastructure Corridor Agreement in respect of the gas pipeline corridor– A Community Benefits Agreement under which Newcrest provides certain benefits to the

Martu for the first 6 years of operations

Newcrest Has:– Maintained 100% compliance to our obligations under the existing agreements– Continued with programs in education, health, training and employment– Currently >30 Martu employed at Telfer, > 90 indigenous employed. A Mine Entry Training

Program commenced in early 2008– Worked collaboratively with the Martu on important projects

7

Security of Tenure - Environment

Telfer R&D work a real highlight

– Closure Landform Development (with UWA)

Investigate the viability of forming natural landforms for rehabilitation of the Telfer area.

– Weed, Seed & Topsoil (with Kings Park Botanic Gardens):

Seed viability in topsoil, seed collection, storage and germination.

8

Geology

Rocks consist of a folded sequence of metamorphosed sandstones and siltstones that are 1.2 billion years old

Folds form domes hence the term ‘Main’ and ‘West’ Dome

A later stage event has introduced the gold and copper

Ore contained in ‘reefs’ and ‘stockworks’– Reefs – are parallel to the sedimentary layering– Stockworks – cross cut the sedimentary layering

Demands selectivity in mining to deliver the best ore grades

Mineral Resources – 19.5Moz gold & 0.7Mt copper

Ore Reserve – 14.5Moz gold & 0.55Mt copper

9

Mining Overview

10

Open Pit

Open Pit Operations comprise mining of two pits– Main Dome

– West Dome

Owner operated fleet– Conventional truck/shovel operation

– 12 metre benches

– RC grade control drilling

Open pit fleet– 24 Caterpillar 793 Haul Trucks

– Liebherr - 4 Excavators and 1 Face Shovel

– 5 drill rigs

11

Underground Operations

Materials handling system- Shaft to 1126m @ 7m diameter- loading station at 1100m- nameplate capacity 4Mtpa- currently achieving > 5.6Mtpa- underground gyratory crusher & automated skip loading

Sublevel level intervals 25m– cross-cuts at 14m

centres

Byrnecut contract mining

12

Processing Layout

Basic Flowsheet

13

Infrastructure

Power is generated on site

– Three gas turbines with total capacity of 138MW

– Natural gas supplied by 450 km pipeline from WA coast

– Pre-existing diesel power station provides back-up power

– Long term gas contract until 2019 at current rates

Groundwater (potable and production) from surrounding area

Road access via Pt Headland and Marble Bar

14

Reducing Telfer’s Cost Structure

Telfer cost reduction programme– Reduction in permanent manning on site from 1400 in June 08 to around1000

by December 2008. – Structured approach to further improvements in cost using detailed driver tree

analysis is underway.

What allows us to reduce permanent manning?– more stable plant availability– decrease in unscheduled work– productivity improvements– Clear demonstration of value required for temporary additional labour

Outcomes – FY08/09 cost reduction target of $25M to $30M.– Ongoing annual cost saving of $45M - $50M– Driving Telfer to the middle of the cash cost curve for the industry

(US$450 - $470/oz = industry mid point after by-product credits)

15

Reduction in Telfer’s Manning Levels

Telfer Permanent Site Plan vs Actual Permanent No.Includes Reduction & Transition

1389

13391319

1283

1238

1175

1000

13401324

1282

1235

1389

800

900

1000

1100

1200

1300

1400

1500

Jun Jul Aug Sep Oct Nov Dec

Month '08

Telfe

r Per

man

ent S

ite C

ount

Telfer Permanent Manning PlanTelfer Permanent Manning Level

16

Key achievements over last 12 – 18 months

Improving asset management

– Increasing focus on planned and preventative maintenance

Increase in processing plant recovery

Outstanding performance of underground operation

– hoisting improvements the tip of the iceberg

Open pit – positive results from dilution management program

Successful establishment of business improvement programs

– Mill throughput programmes underway

– Open pit operational efficiency programmes underway

17

Increasing underground hoisting rate

7000

10000

13000

16000

19000Ju

l-07

Aug

-07

Sep

-07

Oct

-07

Nov

-07

Dec

-07

Jan-

08

Feb-

08

Mar

-08

Apr

-08

May

-08

Jun-

08

Jul-0

8

Aug

-08

Sep

-08

Tonn

es p

er D

ay (t

)

2.6

3.1

3.6

4.1

4.6

5.1

5.6

6.1

6.6

Equi

vale

nt T

onne

s pe

r Yea

r (M

t)

60 day moving average Step Change

Improvement of acceleration and deceleration of

hoist

Changes to mine planning and mine design to optimise crushing feed to

hoist

Improved feed conveyor

performance increasing skip

load

Final hoist cycle time & skip load improvement

and ongoing mine planning optimisation

Gas Feed Disruption

Gas Feed Resumption

Continued hoist

utilisation improvements

18

Fixed plant - Increasing proportion of planned work

A major achievement. The data demonstrates the transition from a reactive to a proactive maintenance regime.Significant decrease in unplanned maintenance.Lower cost, fewer upsets and fewer people in the long run.

Telfer Scheduled Work Compliance 10-01-07- to 26-10-08

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1 5 9 13 17 21 25 29 33 37 41 45 49 53 57 61 65 69 73 77 81 85 89 93Week

Schedule Work (Jobs)

Scheduled Work Completed(Jobs)

19

Reduction in plant stoppages

Higher degree of planned and preventative maintenance has doubled the average time between mill stoppagesWe expect to be able to significantly improve on this measure

Mean Time Between Stoppage (MTBS)

0

10

20

30

40

50

60

1-Mar-08 1-Apr-08 2-May-08 2-Jun-08 3-Jul-08 3-Aug-08 3-Sep-08 4-Oct-08 4-Nov-08

Date

Ope

ratin

g H

ours

T1 - MTBS 60 day aveT2 - MTBS 60 day aveLinear (T1 - MTBS 60 day ave)Linear (T2 - MTBS 60 day ave)

Tim

e

Mean Time Between Stoppage (MTBS)

0

10

20

30

40

50

60

1-Mar-08 1-Apr-08 2-May-08 2-Jun-08 3-Jul-08 3-Aug-08 3-Sep-08 4-Oct-08 4-Nov-08

Date

Ope

ratin

g H

ours

T1 - MTBS 60 day aveT2 - MTBS 60 day aveLinear (T1 - MTBS 60 day ave)Linear (T2 - MTBS 60 day ave)

Mean Time Between Stoppage (MTBS)

0

10

20

30

40

50

60

1-Mar-08 1-Apr-08 2-May-08 2-Jun-08 3-Jul-08 3-Aug-08 3-Sep-08 4-Oct-08 4-Nov-08

Date

Ope

ratin

g H

ours

T1 - MTBS 60 day aveT2 - MTBS 60 day aveLinear (T1 - MTBS 60 day ave)Linear (T2 - MTBS 60 day ave)

Tim

e

20

Increase in Processing Recovery

Several projects completed and further work in progress has enabled recovery to be in the 85 to 88% range.

– Circuit configuration– Online process control technology

Still a substantial list of projects to apply to this area

Telfer Gold and Copper Recovery

50

60

70

80

90

100

Jan-0

8

Feb-0

8

Mar-08

Apr-08

May-08

Jun-0

8

Jul-0

8

Aug-08

Sep-08

Oct-08

%

Gold Copper

21

Key Targets and Priorities

Underground

– Continued improvement in mining and hoisting rates

– Additional mining opportunities

Open Pit

– Improving mining selectivity

• Blast movement

• Digging selectivity using high precision GPS technology

– Improving operational productivity

• Improving short interval control

• Minimise ore rehandle

Processing plant

– Circuit De-bottlenecking

• SAG Mill Liner & Grate Optimisation

• Pebble crushing optimisation

Focus on cost reduction

22

Exploration Potential

A number of local opportunities

Current Drilling– O’Callaghan’s– Below and around the

current underground mine

– Below West dome pits– Camp Dome

Acebell

Telfer

O’Callaghan’s

Westwin

Camp Dome

Trotman’s West IP

Redback

Minyari

23

Summary

Exceeded feasibility study for all major physical parameters

Underground has achieved outstanding performance

Improved asset utilisation

Cost reduction program to drive Telfer towards the mid point of global cash cost curve

Focus Areas– Mine – delivery of tonnes and grade– Plant – increased throughput