OZ MINERALS BUSINESS REVIEW

2008 CONTENTS CHAIRMAN AND CEO’S LETTER 2 2008 IN REVIEW 4 WHO WE ARE AND WHERE WE OPERATE 6 OUR OPERATIONS 8 CENTURY 9 GOLDEN GROVE 10 PROMINENT HILL 11 ROSEBERY 12 SEPON COPPER 13 SEPON GOLD 14 RESERVES AND RESOURCES 15 EXPLORATION AND PROJECTS 16 SUSTAINABILITY 19 BOARD OF DIRECTORS 22 EXECUTIVE COMMITTEE 22 CONTACT DETAILS 23

Chairman and CEO’s letter

z

Dear Shareholder,

On 1 July 2008, OZ Minerals was formed with the merger of Oxiana Limited and Zinifex Limited. The company has successfully completed the integration of the Oxiana and Zinifex operations and, in this process, identifi ed approximately A$50 million of permanent annual synergy benefi ts.

Financial Performance By any measure 2008 was an extraordinary year, characterised by an unprecedented decline in global economic conditions. This was manifested in the rapid and severe decline in base metal prices, particularly in the second half of the year, and a signifi cant deterioration in access to debt and equity markets. This resulted in an extremely diffi cult operating environment for OZ Minerals and the resources sector more generally. OZ Minerals’ fi nancial results refl ected this diffi cult economic environment and revenue from continuing and discontinuing operations of A$1,218.4 million generated a net loss after tax of A$66.4 million, after asset write- downs and one-off items the net loss after tax was A$2,484.9 million. This performance was overwhelmingly determined by the collapse in commodity prices and was compounded by the high levels of capital expenditure involved with the construction of the Prominent Hill operation and pre-strip mining at Century.

Operational Performance Pleasingly, throughout this challenging period OZ Minerals remained focused on operational excellence and a number of our sites generated record or near-record production results. 2 OZ Minerals Limited ABN 40 005 482 824 CONTENTS 2 4 6 8 9 10 11 12 13 14 15 16 19 22 22 23

The company reacted quickly to the rapid deterioration In light of this decision, OZ Minerals and China of market conditions, implementing a number of cash Minmetals have agreed to an alternative transaction saving measures to immediately defer capital whereby OZ Minerals would sell all of the Company’s expenditure of approximately A$495 million (net) assets to Minmetals other than the Prominent Hill and reduce operating expenditure budgets. An operation, Martabe project, certain exploration ongoing Business Improvement Challenge was projects in Cambodia and Thailand and its listed equity also initiated to identify and implement further interests to China Minmetals for US$1,206 million maintainable savings and effi ciencies. A sharp decline (approximately A$1,750 million). in the price of nickel over the year also saw the This revised offer is unanimously recommended by Avebury nickel operation in Tasmania put on care your Board, in the absence of a superior offer. The and maintenance. This was a disappointing decision proposal includes the full repayment of the Company’s to have to make but the potential remains to reopen debt facilities and also secures the future of operations the mine should nickel prices improve. A major providing certainty to employees, suppliers and achievement has been the recent commissioning customers. It also sees shareholders retain full and fi rst production of copper concentrate from ownership of Prominent Hill and exposure to our Prominent Hill operation in South Australia. the long-term growth profi le of that asset. Development of Prominent Hill has been a major focus for the company and a major use of our capital. The fi nal months of 2008 and early 2009 have been Commencement of production saw revenue begin a turbulent period for OZ Minerals and all of its to accrue from the end of the fi rst quarter of 2009. stakeholders and we want to assure you that the The Prominent Hill area remains highly prospective. Board and Executive Management fully appreciate Exploration drilling increased the copper resource the stress and concern that these activities have inventory by 35 per cent and near mine prospects placed on everyone. continued to return good results. Board and Management Tragically, two of our people died at work in 2008, In November we completed the formal part of the one at the Sepon operation in Laos and another integration of Oxiana and Zinifex. As planned, the at the Prominent Hill operation in South Australia. number of directors was reduced from eleven to Another man working at the Century mine suffered eight and Messrs Peter Cassidy, Owen Hegarty and a serious permanent disabling injury. Our deepest Richard Knight retired from the Board. Each of the sympathies are with all those who were impacted directors provided excellent service to OZ Minerals by these events and we also offer our assurance that since its formation. Their experience and expertise we are dedicated to maintaining a commitment to was particularly important during the integration safety within our global workforce. process. We would also like to acknowledge the Refi nancing of debt facilities and Minmetals Offer ongoing efforts and dedication of all our people who have worked tirelessly to get the company From mid-2008 OZ Minerals was negotiating to through this uncertain period, continued to meet refi nance certain of its debt facilities that were due production forecasts and customers’ requirements for renewal by the end of November 2008. Despite and have done so with an ongoing commitment the company’s best endeavours to negotiate this to safety, health and environmental concerns. refi nancing, the suddenness and depth of the credit crisis saw us unable to achieve the refi nancing by the due date. The decline in commodity prices, combined Yours faithfully with a period of elevated capital expenditure associated with building Prominent Hill and pre-strip mining at Century, also had signifi cant impact on OZ Minerals profi tability and cash fl ows. Since October 2008, OZ Minerals actively pursued a number of activities to secure its fi nancial position, including asset sales, pre-selling expected future production and several equity-raising options. In mid-February 2009, OZ Minerals announced that it Andrew Michelmore had entered into an Agreement for the proposed Managing Director and Chief Executive Offi cer acquisition through a scheme of arrangement for all outstanding shares in OZ Minerals by China Minmetals Non-ferrous Metals Company. On March 27 2009 the Treasurer of Australia announced that, due to concerns about Australia’s national security interests he would not approve Barry L. Cusack Chairman the scheme if the Prominent Hill operation – which is located in the Woomera prohibited weapons testing area – was part of the transaction. 15 April 2009 3 2008 in review

2008 was a remarkable year for the global » Installation of the second autoclave at Sepon economy, the base metals industry and for OZ which will allow increased copper production Minerals. OZ Minerals was formed on 1 July 2008 » Avebury nickel mine commissioned. Placed on with a substantial pipeline of development and care and maintenance in December 2008 exploration projects and the fi nancial capacity, » Approvals to mine received for the Martabe based on conditions at that time, to bring those Project* and commencement of construction projects into production. » Dugald River* feasibility study completed, However, the rapid and severe deterioration in resources increased base metal prices, particularly in the second half of » Pre-feasibility study completed for the Izok the year, and the signifi cant contraction in access Lake project* to debt and equity markets which accompanied the global fi nancial crisis, culminated in an extremely Exploration diffi cult operating environment for OZ Minerals. » Group copper and gold resources increased The company’s fi nancial results refl ected this diffi cult signifi cantly through discoveries at Prominent economic environment with OZ Minerals recording Hill and Sepon an adjusted net loss after tax of A$66.4 million and » Identifi cation of a new deposit immediately a net loss after asset write-downs and one-off items west of the Prominent Hill mine of A$2,484.9 million. » Group zinc resources increased due to the conversion of recent discoveries at Golden OZ Minerals’ share price fell throughout the second Grove and Rosebery half of 2008. Much of this decline can be linked to the general fall in equities markets over that period » Positive gold results from the Okvau Project which was exacerbated by the signifi cant decline in north-east Cambodia in commodity prices, especially zinc and copper. » Extensions to nickel mineralisation identifi ed at Avebury Notwithstanding our fi nancial performance the » Exploration portfolio consolidated to focus company delivered strong operating performance on Australia, Asia and Canada in 2008. Capital and operating budget reductions Operations In order to preserve cash OZ Minerals announced » Strong production at Century the deferral of several capital projects totalling » Golden Grove zinc production forecasts met, copper A$495 million. production slightly lower than planned but to increase signifi cantly in 2009 Deferred projects included: » Increasing zinc production from Rosebery » The Martabe gold-silver project due to improved plant performance » The Sepon copper expansion » Record production from the Sepon copper operation » The surface facility renewal at Rosebery in Laos with forecast production increasing » The Golden Grove open pit project » Production to plan at the Sepon gold operation » The Izok Lake and High Lake feasibility projects Development Projects » The Dugald River project » Successful start-up and fi rst production from the Cuts to operating expenditure of approximately Prominent Hill copper-gold operation in early 2009 A$185 million were also made.

4 * Development project deferred due to capital expenditure reduction measures. COMMODITY PRICE PERFORMANCE FINANCIAL YEAR ENDED 31 DECEMBER 2008

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The copper price was more resilient than other base Strong global zinc metal production exceeded demand metals throughout most of 2008 as supply diffi culties during 2008 seeing prices drop 52 per cent over the year. outweighed the deteriorating outlook for demand. Refi ned demand slowed as many of the world’s mature By the fourth quarter, concerns about China’s economy economies contracted amid the emerging credit crisis. In and the global credit crisis pushed prices sharply lower particular, demand from the construction and automotive to apparent support3000 levels of around US$3,000/t industries across Europe, the USA and Asia was weaker (US$1.36/lb). than expected. Production cuts during the latter part of 2500 the year provided support to the zinc price.

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The gold price ended the year almost unchanged Nickel prices fell by over 70 per cent from the March despite having traded in a relatively wide range 2008 peak of US$33,300/t (US$15.10/lb) as the global through the course of the year. In March 2008, gold nickel market remained in surplus. Weak demand for prices reached a new record level above US$1,000/oz, stainless steel outweighed disruptions to mine supply before trading to a low of US$720/oz in November and project delays. The historically high nickel prices 2008. Gold prices subsequently strengthened in the experienced since 2007 had encouraged a new supply fourth quarter due to ‘safe haven’ buying at a time source of nickel in pig iron, particularly for Chinese when other commodities were being hit particularly stainless steel producers which exacerbated the hard by global economic concerns. over-supply. 1050 1000 5 950 900 850 800 36000 750 32000 700 28000 24000 20000 16000 12000 8000 WhoWho wewe areare andand wherewhere wewe operateoperate

OZ MINERALS IS THE WORLD’S SECOND LARGEST PRODUCER OF ZINC AS WELL AS A SUBSTANTIAL PRODUCER OF COPPER, LEAD, GOLD AND SILVER. OZ MINERALS WAS FORMED IN 2008 THROUGH THE MERGER OF AUSTRALIAN BASED, INTERNATIONAL MINING COMPANIES OXIANA LIMITED AND ZINIFEX LIMITED. THE COMPANY CURRENTLY HAS MINING OPERATIONS LOCATED IN AUSTRALIA AND ASIA AND A PORTFOLIO OF ADVANCED AND EARLY STAGE EXPLORATION PROJECTS THROUGHOUT AUSTRALIA, ASIA AND NORTH AMERICA.

SEPON

MARTABE

CENTURY

DUGALD RIVER GOLDEN GROVE

PROMINENT HILL

MELBOURNE GROUP OFFICE ROSEBERY AVEBURY

6 HIGH LAKE IZOK LAKE

Operation Project pipeline Exploration Suspended operation Suspended development

OZ Minerals’operations and pending projects include:

The Century mine in Queensland which is the world’s second largest open pit zinc mine – producing some 500,000 tonnes of zinc annually.

The Golden Grove underground mine in Western Australia which produces concentrates of zinc, copper and other base and precious metals.

The Prominent Hill copper-gold operation in South Australia which started production in early 2009.

The Rosebery mine in Tasmania, a polymetallic underground mine, in operation since 1936.

The Sepon copper operation in Laos which produces approximately 65,000 tonnes of copper annually. The Sepon gold operation which is now in its seventh year of production.

The Martabe gold-silver project in Indonesia.*

The Dugald River undeveloped zinc, lead and silver deposit.*

The Avebury nickel mine in Tasmania, currently on care and maintenance.

An extensive portfolio of exploration projects and joint ventures across Australia, Asia and North America.

*Deferred development project

7 Our operations

OZ MINERALS’ OPERATIONS ARE DIVERSIFIED BY GEOGRAPHY AND COMMODITY

8 NAME Century Located in the remote lower Gulf region LOCATION of north-west Queensland, Australia. PRODUCT Zinc concentrate, lead concentrate MINING METHOD Conventional open pit mining PROCESSING METHOD Conventional grinding and fl otation COMMENCED OPERATION 2000 4.3 million tonnes zinc, 0.4 million tonnes lead, RESERVES* 29.5 million ounces silver 5.8 million tonnes zinc, 0.7 million tonnes lead, RESOURCES* 52.7 million ounces silver 513,571 tonnes zinc, 56,387 tonnes lead, 2008 PRODUCTION 4,178,964 ounces silver Zinc concentrates are transported via a pipeline to a de-watering and shipping facility in Karumba on the Gulf of Carpentaria. From here they are sold to SALES smelters in Europe, Australia, China, and Asia. WORKFORCE** Approximately 1,100 * As at 30 June 2008 (see OZ Minerals ASX Release 23/12/08 for full statement of Mineral Resources and Ore Reserves) ** As at 31 December 2008

N

GULF OF 0 100 CARPENTARIA Century KILOMETRES MARAMIE YAGOONYA

MORNINGTON ISLAND

CENTURY IS THE HOWITT FAR NORTH WORLD’S SECOND KARUMBA QUEENSLAND LARGEST OPEN PIT BURKETOWN NORMANTON ZINC MINE. UNDERGROUND NT SLURRY QLD PIPELINE CENTURY WA GREGORY DOWNS SA NSW

BOODJAMULLA VIC (LAWN HILL) NATIONAL PARK TAS

Operations Exploration In 2008, 513,571 tonnes of zinc in concentrate and Exploration at Century is focused on a number of 56,387 tonnes of lead in concentrate was produced at targets in the Century mine lease including the Century. This was in line with guidance for the year Watson’s Lode prospect, 10 kilometres south of and slightly above the previous year’s production. Century. Drilling in 2008 extended mineralisation to over 1,200 metres of strike, and further work is The Century deposit is covered by a large volume required to evaluate the resource potential of this of unmineralised waste material which must be high grade zinc-lead lode. Exploration extended removed to access the ore. Costs were elevated in the Silver King zinc-lead lode to over 800 metres of 2008 due mainly to the large volumes of pre-strip strike, however, scoping studies indicated that the mining required. Cash costs associated with this mineralisation is unlikely to be economic at current pre-strip mining are expected to be lower in 2009, commodity prices. with a reduction in prestrip from 40 million bank cubic metres to 24 million bank cubic metres. The tenements around the Century mine are being explored for similar shale hosted deposits and a During the year a new ball mill was installed to comprehensive targeting exercise has generated enable increased zinc recovery from ore. a suite of quality targets.

9 Golden Grove NAME Located approximately 450 kilometres north-east of Perth and 280 kilometres east of Geraldton in Western Australia LOCATION Zinc concentrate, copper concentrate, precious metal concentrate PRODUCT Underground, sublevel open stoping MINING METHOD Crush, grind, fl otation PROCESSING METHOD 1990 COMMENCED OPERATION 0.4 million tonnes zinc, 0.16 million tonnes copper, 0.23 million ounces gold, 10.17 million ounces silver RESERVES* 1.4 million tonnes zinc, 0.8 million tonnes copper, 1.0 million ounces gold, 43.7 million ounces silver RESOURCES* 139,900 tonnes zinc, 18,467 tonnes copper, 13,330 tonnes lead, 47,755 ounces gold, 3,157,837 ounces silver 2008 PRODUCTION Concentrates are exported via the Port of Geraldton to customers in China, Japan, India, Thailand and Australia. SALES Approximately 800 WORKFORCE** * As at 30 June 2008 (see OZ Minerals ASX Release 23/12/08 for full statement of Mineral Resources and Ore Reserves) ** As at 31 December 2008

NT QLD WA SA NSW Golden KALBARRI WESTERN AUSTRALIA VIC Grove TAS

NW COASTAL HIGHWAY YALGOO MT MAGNET

GOLDEN GERALDTON Operations GROVE

Production (contained metal in concentrate) for GERALDTON HWY MORAWA DONGARA

2008 was 139,900 tonnes of zinc, 18,467 tonnes N of copper, 13,330 tonnes of lead, 47,755 ounces of gold and 3,157,837 ounces of silver. Zinc production 0 100 200 KILOMETRES was well above forecasts and mainly the result of GREAT NORTHERN HWY high zinc grades and increased throughput in the December quarter. In 2009 mine scheduling will see reduced zinc production and higher copper Exploration production. The nature of the Golden Grove Exploration drilling on the southern leases at polymetallic mine gives capability to vary the Golden Grove in 2008 concentrated on testing the mix of copper and zinc produced. resource potential within 500 metres of surface. Golden Grove consists of the Scuddles and Gossan Although drilling intersected several discontinuous Hill zinc and copper underground mines and the zones of mineralisation in the Gossan Valley area, Scuddles plant. As part of measures taken to reduce potential for near surface economic mineralisation operating costs, OZ Minerals announced in January was downgraded. 2009 that the Scuddles mine would be put on care and maintenance. Operating costs at Golden Grove remained competitive at US43.1c/lb zinc due to extensive long-term margin improvement measures. THE GOLDEN GROVE In 2007, discoveries at Golden Grove highlighted UNDERGROUND BASE AND the potential for further additions to mine life and PRECIOUS METALS MINE annual capacity. Expansion studies to investigate the IN WESTERN AUSTRALIA addition of open pit copper mining and possible PRODUCES CONCENTRATES extensions of the underground mine have been temporarily put on hold due to current low OF ZINC, COPPER AND LEAD/ commodity prices. PRECIOUS METALS.

10 NAME Prominent Hill Located 650 kilometres north-west of Adelaide, 130 kilometres north-west of BHP Billiton’s Olympic Dam and 130 kilometres south-east of the town of LOCATION Coober Pedy in the Gawler Craton of South Australia. PRODUCT Copper concentrate MINING METHOD Open pit PROCESSING METHOD Conventional crushing, grinding and fl otation FIRST PRODUCTION February 2009 PRODUCTION FORECAST 85,000 –100,000 tonnes of contained copper and 2009 60,000 –70,000 ounces of gold RESERVES * 0.95 million tonnes copper, 1.4 million ounces gold RESOURCES * 2.5 million tonnes copper, 7.4 million ounces gold Concentrates will be transported to major smelters SALES in Asia and customers in Asia and Australia. WORKFORCE** Approximately 480 * As at 30 June 2008 (see OZ Minerals ASX Release 23/12/08 for full statement of Mineral Resources and Ore Reserves) ** As at 31 December 2008

ADELAIDE TO DARWIN RAILWAY OODNADATTA NT QLD WA SA OODNADATTA TRACK

COOBER BIRDSVILLETRACK Prominent NSW PEDY VIC WIRRIDA RAIL SIDING TAS MAREE PROMINENT Hill CHALLENGER MINE HILL

OLYMPIC TRANS-AUSTRALIAN RAILWAY DAM PROMINENT HILL IS TARCOOLA MINE STUART HWY THE FIRST COPPER- GAWLER CRATON

GOLD MINE TO MOVE EYRE HWY PORT AUGUSTA PORT PIRIE WHYALLA INTO PRODUCTION IN N AUSTRALIA IN MORE Operations 0 100 200 THAN TWO YEARS WITH KILOMETRES PORT The Prominent Hill copper-gold mine was brought LINCOLN FIRST PRODUCTION HAUL ROAD ELECTRICITY ACCESS ROAD into operation in February 2009. Prominent Hill has TO RAIL SIDING TRANSMISSION LINE TO HIGHWAY ADELAIDE ACHIEVED IN EARLY 2009. been a major focus for the company with construction ongoing over the past two years. The Prominent Hill operation is comprised of an open The Prominent Hill deposit remains open in most pit mine, conventional grinding and fl otation processing directions, and intensive drilling continued to extend plant with an 8mtpa capacity, a permanent village, known mineralisation and discover new zones, haulage road, power line and bore fi eld. including the Western Copper Zone, approximately one kilometre west of the open pit. Excellent high Prominent Hill concentrates will travel directly to grade infi ll drilling results at the end of 2008 have customers including smelters in China and India, lifted the level of confi dence in the Western Copper via the Adelaide to Darwin railway and the Port Zone and illustrate the potential upside still to be of Darwin. Concentrates will also be transported realised. This new deposit is still open in all directions by road to local customers. and is now supported by mine infrastructure. First production of Prominent Hill copper concentrates Intensive ongoing exploration within the large occurred in February 2009. tenement holdings (4,175 square kilometres) around the Prominent Hill mine development has Exploration been targeting additional iron-oxide copper-gold Work to defi ne extensions to the Prominent Hill systems within trucking distance of the Prominent orebody continues. In September 2008 OZ Minerals Hill processing plant. announced an increase in its global resource base for the project with contained copper increasing by 35 per cent to 2.5 million tonnes, contained gold by 100 per cent to 7.4 million ounces and contained silver increasing by 43 per cent to 22.6 million ounces.

11 Rosebery NAME Located at Rosebery, on Tasmania’s north-west coast in Australia. LOCATION Zinc concentrate, copper concentrate, gold doré PRODUCT Mechanised underground mining MINING METHOD 1936 COMMENCED OPERATION 0.42 million tonnes zinc, 0.12 million tonnes lead, 0.01 million tonnes copper, 0.18 million ounces gold, 10.17 million ounces silver RESERVES* 1.7 million tonnes zinc, 0.5 million tonnes lead, 0.1 million tonnes copper, 0.8 million ounces gold, 61.8 million ounces silver RESOURCES* 84,939 tonnes zinc, 2,062 tonnes copper, 28,674 tonnes lead, 30,675 ounces gold, 2,984,502 ounces silver 2008 PRODUCTION Concentrates are sold to Nyrstar in Hobart and Port Pirie. Doré bars are sold to Australian Gold Refi ners in Perth. SALES Approximately 530 WORKFORCE* * As at 30 June 2008 (see OZ Minerals ASX Release 23/12/08 for full statement of Mineral Resources and Ore Reserves) ** As at 31 December 2008

BURNIE BASS STRAIT NT QLD DEVONPORT WA SA Rosebery NSW VIC

TAS EMU BAY RAILWAY

WARATAH

SAVAGE RIVER DELORAINE

PIEMAN

ROSEBERY GRANVILLE HARBOUR

AVEBURY ZEEHAN CRADLE MOUNTAIN NATIONAL PARK TRIAL EAST HARBOUR AVEBURY N QUEENSTOWN STRAHAN MACQUARIE 0 100 HEADS KILOMETRES

Operations Exploration Rosebery produces approximately 700,000 tonnes of Rosebery mine has traditionally had a rolling mine ore per annum, which is processed into concentrates life of six years. Our exploration program, Project containing zinc, lead and copper. Silver and gold is Horizons, commenced work in 2006 and expanded also extracted from the ore and cast into doré bars. the resource by 65 per cent to 11.7 million tonnes. Exploration continues elsewhere on the mine lease. Concentrates are transported to the Port of Burnie by rail where they are shipped in bulk carriers to The potential for a small zinc resource was identifi ed customers in Port Pirie and Hobart. at the Jupiter prospect near the Rosebery mine. In 2008, 84,939 tonnes of zinc in concentrate, 28,674 tonnes of lead in concentrate, 2,062 tonnes of copper in concentrate and 30,675 ounces of gold doré was produced at Rosebery. A pre-feasibility study was carried out in 2007/08 THE ROSEBERY MINE IN to review the economic merits of renewing the surface facilities at Rosebery. While benefi ts from TASMANIA IS A POLYMETALLIC replacement of the grinding and fl otation circuits at UNDERGROUND MINE, IN a cost of A$125 million were identifi ed, these projects OPERATION SINCE 1936, WHICH have been deferred in light of OZ Minerals fi nancing diffi culties. Work on a new tailings storage facility HAS CURRENT POTENTIAL TO continues, however the underground ventilation EXTEND MINE LIFE BEYOND 2020. upgrade has been deferred.

12 NAME Sepon Copper Located approximately 40 kilometres north of the town of Sepon, in Savannakhet Province, LOCATION south-central Laos. PRODUCT Copper cathodes MINING METHOD Open pit Whole-of-ore leach, solvent extraction- PROCESSING METHOD electrowinning (SX-EW) COMMENCED OPERATION 2005 RESERVES* 792,000 tonnes copper RESOURCES* 1.8 million tonnes copper 2008 PRODUCTION 64,075 tonnes copper cathode Cathodes are transported via road and sea to SALES customers in south-east Asia. WORKFORCE* Approximately 5,080 (Sepon Copper and Sepon Gold) * As at 30 June 2008 (see OZ Minerals ASX Release 23/12/08 for full statement of Mineral Resources and Ore Reserves) ** As at 31 December 2008

CHINA CHINA BURMA

THAILAND VIETNAM THAI VIETNAM NGUYEN HONG Sepon VIET TRI GAI MALAYSIA HANOI CAMBODIA LAOS SUMATRA HAIPHONG Copper NAM DINH

THE SEPON COPPER CHIANG MAI ROUTE 13 VINH NAM OPERATION SOURCES ORE THAILAND THEUN II SEPON VIENTIANE CHATREE DONG FROM ONE OF THE HIGHEST KINGSGATE HA PA-AN SAVANNAKHET KHON KAEN GRADE OREBODIES IN ROUTE 9 HUE

NAKHON THE WORLD. SAWAN UBON RATCHATANI N PAKSE NAKHON RATCHASIMA SARI BURI ELECTRICITY TRANSMISSION BANGKOK CAMBODIA LINE Operations The Government of Laos holds a 10 per cent interest in Sepon with OZ Minerals owning the Exploration other 90 per cent. New discoveries continue to be made in the Sepon The Sepon copper operation commenced operation district and exploration for both copper and gold is in 2005 and has consistently produced more than ongoing with many targets remaining to be assessed. 60,000 tonnes of copper, as cathodes, annually. The Exploration for further copper resources at Sepon Sepon copper operation is based on mining the very is focused around the Khanong deposit, which is high-grade Khanong orebody. The newly discovered, currently being mined, and on the Thengkham and smaller, Thengkham and Phabing deposits will also Phabing deposits which lie seven kilometres to the be mined. west of Khanong. The installation of a second autoclave, designed to Drilling continued to deliver excellent primary increase copper recovery, process reliability and reduce copper-gold results at Thengkham East and new production downtime, was commissioned in the zones of primary copper mineralisation were outlined fi rst quarter of 2009. for follow up drilling at Thengkham South. A large- OZ Minerals had commenced work on an expansion scale geophysics survey undertaken in 2008 will aid to the Sepon copper operation but this was suspended in targeting gold and copper mineralisation in 2009. until after 2009 due to fi nancial constraints. In 2008, a record 64,075 tonnes of copper cathode was produced, with production forecast to increase in 2009. Sepon copper is sold to manufacturers of cable, wire and tubes in neighbouring countries including Thailand, Vietnam, Malaysia and China.

13 Sepon Gold NAME Located approximately 40 kilometres north of the town of Sepon, in Savannakhet Province, south-central Laos. LOCATION Gold doré PRODUCT Series of open pits MINING METHOD Conventional carbon-in-leach (CIL) PROCESSING METHOD 2002 COMMENCED OPERATION 0.18 million ounces gold RESERVES* 3.3 million ounces gold RESOURCES* 93,072 million ounces gold 2008 PRODUCTION Doré bars are transported by air freight to a refi nery in Australia. SALES Approximately 5,080 (Sepon Copper and Sepon Gold) WORKFORCE**

* As at 30 June 2008 (see OZ Minerals ASX Release 23/12/08 for full statement of Mineral Resources and Ore Reserves) ** As at 31 December 2008

CHINA CHINA BURMA

THAILAND VIETNAM THAI VIETNAM NGUYEN HONG Sepon GAI VIET TRI MALAYSIA HANOI CAMBODIA LAOS SUMATRA HAIPHONG Gold NAM DINH

CHIANG MAI ROUTE 13 VINH NAM THAILAND THEUN II SEPON VIENTIANE CHATREE DONG KINGSGATE HA PA-AN SAVANNAKHET KHON KAEN ROUTE 9 HUE

NAKHON SAWAN UBON RATCHATANI N PAKSE NAKHON RATCHASIMA SARI BURI ELECTRICITY TRANSMISSION BANGKOK CAMBODIA LINE

Operations Exploration Gold has been produced at Sepon since December Exploration for gold at Sepon is ongoing. 2002 and in early 2005, an expansion of the original Resource defi nition drilling in 2008 confi rmed gold processing facility doubled the capacity of the Houay Yeng as a new high grade open pit gold gold processing plant, to 2.5Mt/a. deposit. Seven kilometres east of the Sepon In 2008 the operation produced 93,072 ounces Gold plant, drilling at the Houay Bang target of gold. intersected moderate-high grade (primary) gold mineralisation. Gold doré bars produced at Sepon are transported to refi neries for refi ning into gold bullion. These bars are then sold to jewellers, manufacturers and banks.

The Sepon area contains signifi cant resources of primary gold mineralisation. While this material can THE SEPON GOLD not be treated in the current plant, a modifi cation OPERATION IS NOW to the existing plant could enable processing of this gold ore. Pre-feasibility study work carried out IN ITS SEVENTH YEAR previously indicated that additional primary gold OF PRODUCTION. resources are needed to justify such an expansion and work to increase the resource base is ongoing.

14 OZ MINERALS GROUP RESOURCES OZ MINERALS GROUP RESERVES (CONTAINED METAL) AS AT 30 JUNE 2008* (CONTAINED METAL) AS AT 30 JUNE 2008*

GOLD SILVER COPPER ZINC LEAD NICKEL GOLD SILVER COPPER ZINC LEAD NICKEL (MOZ) (MOZ) (MT) (MT) (MT) (MT) (MOZ) (MOZ) (MT) (MT) (MT) (MT) Martabe 5.9 61.5 Martabe 2.22 29.71 Sepon 3.3 15.1 1.8 Sepon Gold 0.18 0.46 Prominent Hill 7.4 22.6 2.5 Sepon Copper 0.79 Century 52.7 5.8 0.7 Prominent Hill 1.42 7.53 0.95 Dugald River 67.0 6.8 1.1 Golden Grove 0.23 10.17 0.16 0.40 0.05 Golden Grove 1.0 43.7 0.8 1.4 0.1 Rosebery 0.18 13.23 0.01 0.42 0.12 Rosebery 0.8 61.8 0.1 1.7 0.5 Century 29.50 4.32 0.43 Avebury 0.2 Avebury 0.04 High Lake 0.5 38.9 0.4 0.6 0.1 Total Resources 4.24 90.59 1.91 5.13 0.60 0.04 Izok Lake 33.5 0.4 1.9 0.2 Total Resources 19.0 396.7 5.9 18.2 2.6 0.2

* Details of Ore Reserves and Minerals Resources are tabulated above and documented in the OZ Minerals Limited Resources and Reserves Statement at 30 June 2008. (OZ Minerals ASX Release 23/12/2008) Assumes 100 per cent ownership. Signifi cant fi gures do not imply precision. Figures are rounded according to JORC Code guidelines.

Reserves and Resources

OZ Minerals’ Resources as at 30 June 2008 show a signifi cant year-on-year increase with gold up 19 per cent, copper up 22.1 per cent and zinc up slightly by 2.3 per cent. Silver and lead decreased slightly by 2.7 per cent and 3.4 per cent respectively while nickel fell signifi cantly (78 per cent) due to the exclusion of the Wiluna nickel laterite resource.

OZ Minerals’ Group Mineral Resources (contained This represents a year-on-year Reserve increase metal) as at 30 June 2008 were estimated to contain of 0.03 million tonnes for copper (2 per cent) and 19.0 million ounces of gold, 396.7 million ounces decreases of 0.02 million ounces gold (1 per cent), of silver, 5.9 million tonnes of copper, 18.2 million 12.84 million ounces silver (12 per cent), 18.5k tonnes tonnes of zinc, 2.6 million tonnes of lead and nickel (33 per cent), 1.11 million tonnes zinc (18 per cent) 0.2 million tonnes of nickel. and 0.1 million tonnes lead (14 per cent). The strong lift in Group copper and gold Mineral Drilling subsequent to the 30 June 2008 statement Resources resulted primarily from the addition of across our sites indicates potential for increases to several new discoveries at Prominent Hill and Sepon. Ore Reserves and Mineral Resources. However, these discoveries require extensive infi ll Detailed information on the OZ Minerals Group drilling to lift resource confi dence before an initial Resources and Reserves can be found in the ASX Ore Reserve can be established. Release entitled Mineral Resources and Ore Reserves OZ Minerals Group Ore Reserves (contained metal) Statement as at 30 June 2008 and the Explanatory as at 30 June 2008 were 4.24 million ounces gold, Notes available on the OZ Minerals website 90.59 million ounces silver, 1.91 million tonnes copper, www.ozminerals.com. 5.13 million tonnes zinc, 0.60 million tonnes lead and 0.04 million tonnes nickel.

15 Exploration and development projects

OZ MINERALS HAS A PORTFOLIO OF ADVANCED AND EARLY STAGE EXPLORATION PROJECTS THROUGHOUT AUSTRALIA, ASIA AND NORTH AMERICA.

16 DEVELOPMENT AND ADVANCED OZ Minerals had commenced work on developing EXPLORATION PROJECTS a 4.5 million tonnes per annum gold mining As well as advanced exploration projects in the operation with planned annual production of vicinity of our existing mines, OZ Minerals also around 200,000 ounces of gold and two million has stand-alone advanced exploration and near – ounces of silver. Following a review of capital and development projects in Australia, Canada and operating expenditure OZ Minerals announced Indonesia. While requirements to reduce the that development of the operation would be company’s capital expenditure saw these projects suspended and capital expenditure of approximately suspended or deferred in late 2008, they remain able US$225 million deferred until after 2009. to be re-started when economic conditions permit. In light of its refi nancing diffi culties OZ Minerals commenced an asset sale program in order to help Dugald River meet short term funding requirements. The Martabe The Dugald River deposit is an undeveloped zinc, project remained part of that asset sale process as lead and silver resource in northern Queensland. at the date of this report being published. A feasibility study completed in 2008 increased the resource to 54 million tonnes of 12.7 per cent REGIONAL EXPLORATION PROJECTS zinc, 2.0 per cent lead and 39 g/t silver. The study determined that Dugald River is a robust project OZ Minerals is exploring both in its own right and capable of producing 200,000 tonnes of zinc, 25,000 in partnerships with other companies in Australia, tonnes of lead and one million ounces of silver for Asia and North America. a period of over 20 years. It also concluded that In late 2008 OZ Minerals reduced its exploration the project had mid tier costs, high grades and budget to a minimal spend, with its current signifi cant exploration upside. exploration focussed on retaining assets and core While the project remains a very attractive zinc personnel, consolidating data and information, deposit, plans to seek Board approval to commence reducing fi eld work, completing planned divestments construction of this project were deferred in and prioritising those exploration programs which December 2008 due to the decline in zinc prices. are time dependent.

Nunavut projects Asia OZ Minerals has a suite of polymetallic base metals Cambodia and gold assets in the Nunavut Territories of OZ Minerals is exploring in joint venture with a local northern Canada. Cambodian company for gold in the Okvau-Oput area in north-east Cambodia where surface sampling, Principal assets include the Izok Lake copper, zinc, geophysics and early stage drilling has identifi ed lead and silver resource, the High Lake copper, zinc, a trend of gold mineralisation. Other areas being lead and silver resource, gold resources at Lupin explored for gold and copper, include Phnom Chi, and Ulu, base metal deposits at Gondor and Hood 100 kilometres west of Okvau and Ou Anlong and around 2,000 square kilometres of exploration north-east of Phnom Penh. tenements. Assets also include gold mining and processing plant and equipment on care and China maintenance at the Lupin mine. In China the Company is targeting discovery and The Izok Lake resource was the subject of a pre- development of large-scale base metals deposits feasibility study in 2008 which determined that in partnership with Chinese companies and discovery of further resources was required before organisations. Active joint venture programs have investment in a full feasibility study was justifi ed. been exploring for nickel sulphide deposits in Inner Mongolia and for gold and base metals tenements Martabe in the Sichuan and Yunnan Provinces. China wide The Martabe project is located in the Province of generative programs continue to assess new North Sumatra in Indonesia. opportunities for nickel, copper and zinc. The project is based on a gold and silver deposit which contains Mineral Resources of six million ounces of gold and 61.5 million ounces of silver.

17 Indonesia – Other The company holds interests and manages Throughout 2008, OZ Minerals assessed numerous exploration over 4,000 square kilometres of the opportunities for copper-gold deposits throughout Lawn Hill Platform in the Mt Isa Inlier in north- the Indonesian Archipelago. A number of projects west Queensland. were identifi ed and several have been successfully Exploration is also carried out in joint venture with secured under tenement. Surface exploration other companies in Australia including the Wagga programs completed to date have outlined several Tank copper project in New South Wales. Other porphyry copper-gold targets for drill testing. projects are currently being divested, including the Menninnie Dam base metals project in South Laos Australia, and gold and nickel Wiluna tenements Laos is a very underexplored country and is considered in Western Australia. to offer excellent potential for the discovery of new mineral deposits. OZ Minerals’ primary focus within CANADA Laos is the Sepon Mineral District, a highly mineralised 400 square kilometre area that encompasses the As well as well as exploration at the Nunavut Sepon Gold and Copper mines. development projects mentioned previously, OZ Minerals generative activities have focussed OZ Minerals has also identifi ed several other areas primarily on project generation initiatives for which are considered to be highly prospective for nickel-copper-platinum group element and base metals mineralisation and tenement applications polymetallic zinc deposits together with its have been submitted. alliance partners. Thailand AFRICA-EUROPE OZ Minerals is pursuing niche opportunities for bulk commodities in Thailand including iron ore, Tunisia potash and phosphate. OZ Minerals, in joint venture with Albidon Resources, is exploring for zinc deposits over Nine tenements have been secured for iron-ore the 4,992 square kilometre Nefza and Haffouz exploration in south-east Thailand close to existing concessions in northern and central Tunisia. road and port infrastructure. Surface exploration OZ Minerals may earn up to 70 per cent of the including geophysical surveys has been completed project from Albidon through staged expenditure along with initial drilling. Further drilling of priority and a series of cash payments. Drilling in 2008 targets is planned and applications have been intersected encouraging near surface zinc and submitted for additional tenements. lead mineralisation at two prospects and further evaluation of these and other newly generated AUSTRALIA targets is required. OZ Minerals has been actively exploring around the Century, Golden Grove, Rosebery, Prominent Sweden Hill and Avebury mines and is also undertaking Following a strategic review of the exploration regional exploration activities throughout other portfolio a decision was taken late in 2008 to exit areas of Australia. projects in Sweden.

18 Sustainability

Following is a brief overview of our approach to sustainability and performance highlights for 2008. For more information please see the full OZ Minerals Sustainability Report website at www.ozminerals.com.

SUSTAINABILITY AT OZ MINERALS OZ Minerals will regularly measure performance against requirements of the OZ Minerals Sustainability We understand that caring for our people, our Policy and Standards and report publicly on its neighbours and the environment is critical to progress. To improve the accuracy and transparency becoming a great resources company. At a time of reporting, a number of assurance processes were when much of the worlds’ focus is on fi nancial broadened during 2008, including development challenges, it is important we maintain focus on of an internal audit function and independent our commitments to both the fi nancial and external assurance of the OZ Minerals Sustainability non-fi nancial aspects of sustainability. Report 2008. The OZ Minerals Sustainability Policy, released in December 2008, details our commitments to PERFORMANCE IN 2008 economic, social and environmental sustainability Corporate Governance and responsible corporate governance. The policy OZ Minerals’ approach to corporate governance is supported by our core values - Respect, Integrity, is to have a set of values and behaviours that Action, Results – which underpin the behaviour ensure transparency and fair dealing and protect of all OZ Minerals employees. stakeholders’ interests. OZ Minerals key sustainability objectives are to: The Board is committed to following the corporate » Protect the safety, health and wellbeing of our governance guidelines and recommendations set employees and contractors out by the ASX Corporate Governance Principles » Minimise our impact on the environment and Recommendations (ASX Guidelines). The Board » Ensure that the communities in which we operate believes that the company’s policies and practices receive real benefi t from our activities comply with the guidelines. » Be known for our integrity Our People Since becoming OZ Minerals in July 2008, our OZ Minerals employs over 5,700 people* directly, focus has been on the alignment and integration 3,100 contractors* and spans nine countries. of policies, standards, systems and processes. Employees were a key element of the company’s In August 2008 the OZ Minerals Sustainability response to the sudden economic downturn and Standards were adopted. These are a comprehensive sharp fall in commodity prices experienced during set of standards for management of the safety 2008. By working together and reviewing all business and health, environmental and social aspects of processes for effi ciencies and performance our business. They are aligned with industry best improvements, employees were able to eliminate practice standards such as the International signifi cant costs from the OZ Minerals business within Council on Mining and Metals (ICMM) Sustainable just a few months. OZ Minerals also adopted an Development framework and the Minerals across-the-board remuneration freeze for 2008 Council of Australia’s (MCA) Enduring Value. impacting salary and short term incentives.

19 *Workforce as at 31 December 2008 Operating in a number of different locations and cultural contexts, we respect cultural heritage and traditional land rights through a variety of programs unique to each operation.

Despite these challenges a cross company employee In September a contractor at Prominent Hill was perception survey conducted at the end of 2008 killed in a light vehicle rollover and a contractor at reported a high level of commitment to the company Century sustained a serious permanent disabling across all sites and at all levels within the company. injury while conducting drill rig maintenance. OZ Minerals’ and external agencies conducted In these diffi cult times, our commitment to thorough investigations of these incidents and the employees is to provide leadership and opportunities company will implement all recommendations for development. While the opportunity to reward that came out of these investigations. Since the employees through remuneration is not available, merger was implemented on 1 July 2008 our the company will focus on developing and refi ning operations achieved a small reduction (3 per cent) a performance management system which ensures in Total Recordable Injury Frequency Rate (TRIFR). that expectations of employees are clearly outlined, that managers act as role models and support their OZ Minerals received recognition for safety teams, that employees have opportunities to learn innovation, with Avebury and Century receiving and grow in their roles, and to receive ongoing awards for development of a cable bolt installation coaching and feedback. machine and an automatic lighting plant activation system respectively. Our operations also performed OZ Minerals strives to never compromise on workplace safety and health. It is our belief that all incidents are consistently well at mine rescue competitions. preventable and every member of the OZ Minerals workforce has a personal responsibility to help create and maintain a safe and healthy workplace. Every person in a supervisory or management role has the TRIFR 12 MONTH MOVING AVERAGE 2008 Frequency Rate additional and very important obligation to provide 9 leadership to their people through their personal 8 behaviours and conformance with all our policies and standards. 7 6 During 2008 despite continuing emphasis and 5 initiatives to improve safety, our safety and health performance was not satisfactory. There were two 4 fatalities and one serious permanent disabling injury 3 occurred. In July an employee at Sepon was killed 2 when a lightning strike occurred during installation 1 of a radio tower. 0 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

Note: The MCA reported an indicative average TRIFR of 9 for metalliferous mines July 2007 to June 2008.

20 9 8 7 6 5 4 3 2 1 0 Our Neighbours OZ Minerals aims to build long-term partnerships Other examples of our activities included: with local communities through open and honest » Achieving certifi cation under the ISO14001 engagement. At each operation we have community standard for our environmental management relations representatives dedicated to working system at Sepon with communities closest to our operations. These » Implementing specifi c environmental management representatives ensure OZ Minerals responds quickly plans and processes at Prominent Hill in preparation and appropriately to any community concerns for the transition to full mine operation or grievances and keeps communities informed regarding any planned changes to our activities. » Updating land rehabilitation and closure accounting provisions for all sites, including independent external We aim to maximise the benefi ts of our operations assessment of these provisions to all stakeholders. OZ Minerals operations make » Providing ongoing co-sponsorship of a collaborative signifi cant contributions to local, regional and research program of these provisions run through national economies via taxes and royalty payments, AMIRA International to identify improved treatments direct and indirect employment, purchase of goods and approaches for reducing the development of and services and community investments. During acid rock drainage in mining waste materials 2008 OZ Minerals contributed over A$8.7 million to community development initiatives, targeting Signifi cant work was undertaken in 2008 to fully improvements in education and training, community characterise our group energy and greenhouse health, infrastructure and local business development. gas inventory. Our total energy use in 2008 was The focus of our community investments varies 12.86 petajoules. The group’s total greenhouse gas between operations, with priorities determined emissions in 2008 were equivalent to 1.09 million based on local development plans. tonnes of carbon dioxide. Our greenhouse gas profi le largely refl ects the on-site emissions from Operating in a number of different locations and the use of fuel in heavy mobile equipment and cultural contexts, we respect cultural heritage and vehicles, and the purchase of electricity to run the traditional land rights through a variety of programs ore processing plants and ancillary equipment at unique to each operation. Sepon undertook signifi cant our mines. work in developing its cultural heritage program during 2008, including working with the Government OZ Minerals seeks to improve energy effi ciency where of Laos and James Cook University (Australia) to clear value to the business can be demonstrated. excavate two signifi cant archaeological sites within During 2008 we met our ongoing commitments the area of its operations. At Century a 10-year review under the Energy Effi ciency Opportunities (EEO) and was conducted of the Gulf Communities Agreement, Greenhouse Challenge Plus programs. Under EEO, a unique tri-partite agreement between OZ Minerals, Century and Golden Grove undertook work to assess the Queensland Government and four Native Title and implement energy effi ciency opportunities. At groups in the lower Gulf of Carpentaria region in the same time, focus was placed on preparations to north-west Queensland. This produced a number of meet the requirements of the National Greenhouse recommendations for improvement, which we are and Energy Reporting Act 2007. now implementing. During 2008 OZ Minerals had 26 signifi cant environmental incidents and 61 incidences of Environment non-compliance with licence/permit conditions OZ Minerals strives to demonstrate good stewardship or regulations. Details of these non-compliances of natural resources by minimising its environmental and our actions to address impacts and prevent footprint, reducing waste, and using energy, water and recurrence are available in the full OZ Minerals other raw materials effi ciently. Sustainability Report. A range of environmental improvement programs For more information about OZ Minerals’ and initiatives were implemented by the OZ Minerals sustainability performance see the full Sustainability operations during 2008. Areas of key focus during Report website at www.ozminerals.com. the period of integration included the implementation of environmental standards across the group and improvements in the processes for reporting on business environmental performance.

21 BOARD OF DIRECTORS

BARRY CUSACK ANDREW MICHELMORE RONALD BEEVOR Chairman Managing Director and Independent Non-Executive Director Chief Executive Offi cer

MICHAEL EAGER BRIAN JAMIESON ANTHONY LARKIN Independent Non-Executive Independent Non-Executive Independent Non-Executive Director Director Director

PETER MANSELL DEAN PRITCHARD Independent Non-Executive Independent Non-Executive Director Director

EXECUTIVE COMMITTEE

ANDREW MICHELMORE BRETT FLETCHER DAVID LAMONT Managing Director and Chief Operating Offi cer Chief Financial Offi cer Chief Executive Offi cer

FRANCESCA LEE PETER LESTER BRUCE LOVEDAY Company Secretary Executive General Manager – Executive General Manager – and General Counsel Business Development Business Support

ANTONY MANINI JOHN NITSCHKE TIM SCULLY Executive General Manager – Executive General Manager – Executive General Manager – Exploration Projects and Technical Services Human Resources

22 CONTACT DETAILS

Head Offi ce Investor enquiries Level 23 Richard Hedstrom 28 Freshwater Place Group Manager – Investor Relations Southbank VIC 3001 [email protected] GPO Box 1291K Media enquiries Melbourne VIC 3006 Australia Natalie Worley Tel 61 3 9288 0333 Group Manager – External Relations Fax 61 3 9288 0406 [email protected] Email [email protected] Careers at OZ Minerals Share Registry [email protected] Link Market Services Product Marketing enquiries (Sales) Level 1, 333 Collins Street Russell Griffi n Melbourne VIC 3000 General Manager – Sales and Marketing Australia Tel 1300 306 089 russell.griffi [email protected] International Tel 61 2 8280 7763 Fax 61 2 9287 0303 Sustainability Website www.linkmarketservices.com.au Peter Plavina Design: ERD Communications Print: Bambra Press General Manager – Sustainability ADR Depositary [email protected] The Bank of New York 101 Barclay Street Community Relations New York, NY 10286 Matthew Foran United States of America Group Manager – Community and Tel +1 (212) 815 3700 Stakeholder Relations Fax +1 (212) 571 3050 [email protected] Toll Free US Callers: 1-888-BNY-ADRS CUSIP 692476104 ISIN Number: AU000000OZL8 Email [email protected] Website www.stockbny.com

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