RESOLUTION COPPER PROJECT PROFILE ~

The headframes for the #9 and #10 shafts l!

FACTS PROJECT OVERVIEW

Creates 3,700 direct and A modern engineering marvel indirect jobs is taking shape deep below t he­ $61.4 billion in economic benefits surface of Sou~hea st , to Arizona three miles east of Superior. ·' Ore body more than one mile There, a mile und£~ground, below the surface w here rock temperatures reach Copper yield will meet 25 percent 175 degrees, we are preparing o f U.S. demand to mine one of the la'9est· Production expected to begin copper ore bodies ever found. in 2021 Technologically advanced There appears to be enough underground mining method Of the red metal underground Water IS treated and dehvered to a local orr.gatoon diStroct that, at full production, the Resolut ion Cop~er Project w ill produce more than 1 billion pounds of copper per year. Based on current usage, that's enough to in meet 25 percent or more of the annual US demand for copper. The prodU<;:tive life of this extraordinary resource js estnnated to be at least 40 years. ·'

While astounding in its size and de ~h .. the discovery of this porphyry deposit in 1996 comes as no surprise. The state of Arizona has always been rich in copper, and the deposit is located in the heart of the historic Pioneer Mining District. The nearby Magm a Mine produced copper from 1912 to 1996, though that deposit was much closer to the surface where a simpler mining met hod I was employed.

• In March 2010, , Resolution Copper's parent company, reported an Inferred Resource of /.624 billion tonnes of ore at a grade of 7.47 percent copper and 0.037 percent molybdenum. An Inferred Resource assumes there is a con tinuous mineralized body present based on geological evidence, but the actual mass of the mineralization is still unproven.

For more Information visit: qp Resolution resolutioncopper.com Copper Mining_., securearizonasfuture.com AMRC001731 RESOLUTION COPPER PROJECT PROFILE

ore than 500 empioyees an contrrac ors are a ready a work on he project.

ABOUT RESOLUTION COPPER MINING Sinking of the u10 shart is undetway Resolution Copper Mining (RCM) is a limited liability company SIG NI F ICAN T ECONOMIC IMPACT owned 55 percent by Resolution Copper Company, a Rio Tinto The Resolution Copper mine will be a significant economic engin e for the region, PLC subsidiary, and 45 percent by employing an estimated 1,400 workers directly while creating another 2,300 jobs BHP Copper, Inc., a BHP-Billiton indirectly. These jobs are projected to generate total wages of approximately $220 PLC subsidiary. Resolut ion Copper million a year. The m ine is expected to generate $61.4 billion in economic benefits to Company is the manager of RCM. Arizona over its lifetime, adding nearly $20 billion to local, state and federal tax coffers.

Rio Tinto is a world leader in ENVIRO NMENTAL STUDI ES mining and exploration. The company d iscovers, mines, Currently in its pre-feasibility st age, the project has numerous technical and processes and supplies metals environmental studies being conducted in order to evaluate every alternative and minerals that make modern and formulate the best possible mining plan. Pre-feasibility studies are life work. Rio Tinto has 77,000 expected to be completed by the end of 2012 and will be followed by the employees worldwide and activities feasibility stage, a two-year period in w hich more extensive studies will be in more t han 40 countries. done in compliance w ith the National Environmental Policy Act (NEPA).

Once the necessary environmental and operating permits are obtained-and there are more than 50 required to ensure the prot ection of natural, cultural and historical resources-construction w ill begin. Construction is anticipated to take about six yea rs and will employ approximately 3,000 people. More than $5 b ill ion will be invested in the project before the mine pr oduces its first pound of copper, which is expected in 2021.

We have dewatered the historic Magma Mine and are rehabilitating and m odernizing the No. 9 shaft. The water retrieved from this legacy mine was treated and d elivered to local farmers for use in crop irrigat ion. We're also currently sinking an explorator y shaft to 7,000 feet below the surface. More than 500 employees and contractors are already at work on t he project.

Once we're ready for production, we will use an underground m ining method known as panel caving, a form o f block caving. This method accesses the ore from underneath through a series of deep shafts and tunnels. When operational, the Resolution Copper Project at Superior will be the deepest mine of its type in the world.

For more informa tion visit: ~ Resolution resolutioncopper.com ...--copper Mi!!iD g~ securearizonasfuture.com AMRC001732 THE SOUTHEAST ARIZONA LAND EXCHANGE ~ AND CONSERVATION ACT OF 2011 ~

H.R. 1904 was introduced in the House by Representative (R-AZ) in May 2011.

NOTABLE PROVISIONS INCLUDE:

• 2,422 transferred from federal ownership in exchange for 5,344 acres of high-priority conservation lands • Apache Leap to remain under management of the US Forest Service 3,050 acres of important riparian habitat on the lower San Pedro River transferred to BLM 940 acre Appleton Ranch acquired by BLM to consolidate 8,000 Appleton-Whittell Research Ranch LAND EXCHANGE O V ER VI EW

A land exchange between Resolution Copper and the federal government is a central component of the proposed mine development at , east of the Town of Superior, Arizona. The exchange, which requires an act of the nl h US Congress, would transfer 2,422 acres from the into I JUit Resolution Copper's ownership. Simultaneously, the company would transfer 5,344 acres of privately-held land to the government. Passage of HR 1904, the it COil olidc t Southeast Arizona Land Exchange and Conservation Act of 2017, will accomplish R solution Copp r ' this goal.

ownet chip of th The National Forest lands near Superior are underlain and surrounded by land wher current and historic mining operations and mining claims, while the lands w offered for exchange by the company are located throughout Arizona will dPv lor fld and provide long-term conservation, habitat protection and recreational opportunities. These high-value conservation lands were identified through op 1at th mir input from the US Forest Service, Bureau of Land Management, Audubon and The Nature Conservancy, among others.

Resolution Copper land is intermingled with federal land at Oak Flat, and the company holds unpatented mining claims covering the federal parcel except for a portion including Oak Flat campground that was withdrawn from mining in 1955 by President Eisenhower. This was one of a number of withdrawals all made at the same time to protect capital investments in campgrounds, lighthouses, airstrips and other government property across the country. The goal of the land exchange is quite simple: it consolidates Resolution Copper's ownership of the land where we will develop and operate the mine. In addition to developing the underground ore body to the fullest practical extent possible, use and control of the surface lands is crucial to developing and operating the safest mine possible.

For more Information visit: resolutloncopper.com ~ Resol~;tE~t_"! ~ .C::Copp~~ securearizonasfuture.com

AMRC001733 LEGISLATION AND VALUATION

NOTABLE PROVISIONS OF THE VALUATION LEGISLATION INCLUDE: Before completion of the land trade, all exchange parcels Transfer from federal ownership to Resolution Copper will go through an independent appraisal process of 2.422 acres of land needed for our mining operations directed, managed and approved by the United States in and around Oak Flat. In return, Resolution Copper Secretary of Agriculture. Through this process, the w ill transfer to the government 5,344 acres of high­ federal government will determine the market price of priority conservation lands around Arizona. the properties to be exchanged. This process is well • The scenic escarpment above the Town of Superior documented and is described in detail in the Department known as Apache Leap will remain under management of Justice-issued Federal Uniform Appraisal Standards of the US Forest Service, and 110 acres of Resolution for Land Acquisitions, or "Yellow Book." This publication Copper land will be transferred to the federal provides the methods and rules for determining property government, allowing for permanent Forest Service values for this type of transaction. If the value of the management and protection of the south end of federal lands are determined to be higher than the Apache Leap. Resolution Copper lands, the company will make up the • 3,050 acres on the lower San Pedro River corridor, difference, either through a payment to the United States known as the 7B Ranch, would transfer to the BLM Treasury or donation of additional lands subject to the and expand the conservation acreage along the river's approval of the Secretary of Agriculture or Secretary of northern corridor, considered one of the most important Interior as appropriate. riparian habitats in the Sonoran and Chihuahuan deserts. The BLM acquires an additional 940-acre parcel A brief summary of the exchange parcels proposed in the inside the Appleton-Whittell Research Ranch and Las current land exchange bill pending in Congress is found Cienegas National Conservation Area. in the table to the right.

AMRC001734 PARCEL OVERVIEW

FEDERAL PARCELS LOCATION PROPOSED RECIPIENT SIZE PURPOSE AND NEED

Oak Flat Pinal County, east of Re solution Copper Mining 2,422 acres Consolidates patchwork of Federal and Superior private lands. Allows for most efficient and safe development of mine.

NON·FEDERAL PARCELS

Apache Leap Pinal County, US Department of 110 acres Protection of cultural, historic, educational Private Lands east of Superior Agriculture, Forest and natural resource values of Apache Leap. Service

Appleton Ranch Santa Cruz County, US Department of 940 acres Consolidation of 8,000-acre Appleton· south of Elgin the Interior Whittell Research Ranch held by US Forest Service, BLM and the Audubon Society.

Cave Creek Maricopa County, US Department of 149 acres Acquisition of riparian habitat associated north of Town of Agriculture, Forest with Cave Creek. Enhance public Cave Cave Creek Service Creek recreational trail system. Protection of cultural resources.

East Clear Creek Coconino County, US Department of 640 acres Acquisition of more than 2 linear miles of approx. 30 miles Agriculture, Forest East Clear Creek near the Mogollon Rim. north of Payson Service Property Includes abundant and diverse resource values, including extensive riparian and aquatic ecosystems.

Dripping Springs Gila County, approx. US Department of the 160 acres Recreation and conservation area. 3 miles northeast of Interior Kearny

Tangle Creek Yavapai County, north US Department of 148 acres Acquisition of Tangle Creek and of Town of Carefree Agriculture, Forest associated riparian habitats in Bloody Service Basin. Consolidates Tonto National Forest.

Turkey Creek Gila County, southeast US Department of 147 acres Acquisition of perennial reach of Turkey of Pleasant Valley Agriculture, Forest Creek and associated riparian habitat. Service Abundant and d ivers e wildlife, Including three species of native fish. Consolidation of Tonto National Forest.

Lower San Pedro Pinal Count y, near US Department of 3,050 acres Protection of biologically diverse property, River, 78 Ranch Town of t~ammoth the Interior including riparian areas, ancient mesquite bosque, migratory bird corridor, and threa tened and endangered species habitat.

AMRC001735 PARCEL LOCATIONS

FEDERAL AND NON-FEDERAL PARCELS

ARIZONA

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resolutioncopper.com securearizonasfuture.com

102 t~a gma Heights Drive, Superior, Arizona 85173 Main Tel: 520.689.9374 Main Fax: 520.689.9304

AMRC001736