1. 2008 Second Quarter Results TSX: LUN NYSE: LMC OMX: LUMI

2. Cautionary Statements Caution Regarding Forward Looking Statements This presentation contains forward-looking statements. These forward-looking statements are not based on historical facts, but rather on current expectations and projections about future events. These forward-looking statements are subject to risks and uncertainties. These risks and uncertainties could cause actual results to differ materially from the future results expressed or implied by the forward-looking statements. Caution Regarding Inferred Resources This presentation uses the terms "Measured", "Indicated" and "Inferred" Resources. U.S. investors are advised that while such terms are recognized and required by Canadian regulations, the Securities and Exchange Commission does not recognize them. "Inferred Resources" have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred resource will ever be upgraded to a higher category. Under Canadian rules, estimated of Inferred Resources may not form the basis of feasibility or other economic studies. U.S. investors are cautioned not to assume that all or any part of Measured or Indicated Resources will ever be converted into reserves. CorporateProjectsExplorationGrowthOperations

3. Presenter CorporateProjectsExplorationGrowthOperations PHIL WRIGHT PRESIDENT & CEO ANDERS HAKER VP & CFO JOAO CARRELO EXEC. VP & COO NEIL O’BRIEN SR. VP EXPL. & BUS. DEV. Questions

4. Significant Highlights  First half operating earnings of $320 million exceeds internal expectations by 8%  Production, excluding Aljustrel, exceeds internal expectations – 2008 production forecast to be revised upwards  Copper 65% of revenue for first half 2008  Zinc and nickel prices fallen substantially  Large price adjustments affecting comparison quarter to quarter  Non-cash impairment charge of $165 million related to write down of Aljustrel results in net loss for the quarter of $108 million  Major new zinc-copper discovery at Neves-Corvo – potential to be largest combined zinc-copper deposit at this mine CorporateProjectsExplorationGrowthOperations

5. Non-Cash Impairment Charge  Aljustrel in pre-production phase  High cost zinc mine in a low zinc price environment  Write down of carrying value to net $nil  Impairment charge of $165 million (153 million + future income tax expense of $12 million)  The write down expenses the previously written-down figure of $27 million, 2008 capex; pre-production start up costs; and makes provision for contractual obligations if closed  Studying potential for early extraction of copper resources  Decision on the future of Aljustrel is expected before year end CorporateProjectsExplorationGrowthOperations

6. Production (tonnes) Prices (US $/t, US $/lb) Q2’08Q2’07Q2’08Q2’07 Copper 23,47822,3758,448 3.83 7,637 3.46 Zinc 46,45240,5492,115 0.96 3,673 1.67 Lead 12,39713,2372,316 1.05 2,174 0.99 Nickel 1,954-25,730 11.67 48,185 21.86 CorporateProjectsExplorationGrowthOperations Production & Metal Prices: Q2’08 and Q2’07

7. Change In Production Q1’08 to Q2’08 CorporateProjectsExplorationGrowthOperations 30,000 9(986) (484) 50,000 2,701 (234) 991 449 (578) (51) 14,000 207(86) (16) 2,000 Q1 08 ThroughputGrade Recovery Q2 08 Q1 08 ThroughputGrade Recovery Q2 08 Q1 08 ThroughputGrade Recovery Q2 08Q1 08 ThroughputGrade Recovery Q2 08 Cu PbNi Zn 24,939 23,478 42,994 46,452 1,884 1,954 12,577 12,397 Contained metal (tonnes) Contained metal (tonnes) Contained metal (tonnes) Contained metal (tonnes)

8. Second Quarter: Financial Results $ Millions Q2’08Q2’08Q2’07 (incl. impairment) Sales294294320 Operating Earnings137137219 Add (deduct): General Exploration(10) (10)(8) Amortization(55)(55)(35) Derivatives77(28) Forex(2)(2)(9) Interest and Other Items(4)(4)6 Investments(1)(1)50 Impairment-(165)- Earnings Before Income Tax 71 (81)195 Net Earnings 56 (108)154 CorporateProjectsExplorationGrowthOperations

9. Change in Pre-Tax Earnings Q1’08 to Q2’08 Pre-Impairment CorporateProjectsExplorationGrowthOperations 0 20 40 60 80 100 120 140 109.4 41.7 (68.7) (4.3) 5.071.4 Sales Volume Price & price adjustments Forex Costs Other Pretax earnings Q1 08 Pretax earnings Q2 08 US$ (million) (11.1)

10. Effect of Price Adjustments on Reporting Indicative only CorporateProjectsExplorationGrowthOperations Q2’08Q1’08 Net Sales Reported294.1305.7 Price Adjustments11.3(42.5) Restated Actuals305.4263.2 Q2’08Q1’08 Operating Earnings Reported137.2182.9 Price Adjustments11.3(42.5) Restated Actuals148.5140.4

11. Project Progress Tenke Copper Project  Construction progress improved significantly  First copper expected 2 nd half 2009  Expansion planning underway  No developments in contract review process Ozernoe Project  In discussion with partners. No progress to report Zinkgruvan Copper Project  On-budget (in EUR) and on schedule  Targeting 2010 for first copper  Project improves zinc mining flexibility CorporateProjectsExplorationGrowthOperations

12. Tenke Construction Progress CorporateProjectsExplorationGrowthOperations

13. Iberian Projects CorporateProjectsExplorationGrowthOperations Neves-Corvo Expansion  New zinc-copper deposit discovered: thick, high-grade zinc intersections with good copper potential  Presently assessing doubling zinc production from existing ore bodies to 1 million tpa ore (+ 50,000 tpa zinc in concentrate)  Also studying large-scale development utilizing Lombador deposit. Pre-feasibility studies expected by end of year. Aguablanca  Assessing underground expansion Aljustrel  Assessing copper portential

14. Growing Our Reserves and Resources CorporateProjectsExplorationGrowthOperations Q2/08Q2/07 $10$7.9 2008 est.2007 40.035.4  Neves-Corvo: 9,198 m drilled, major new Lombador East zinc/copper discovery  Aljustrel: 6,035 m drilled, expansion and delineation of Feitais copper resource  Aguablanca: 7,853 m drilled, expansion of nickel/copper mineralization to northwest and south  Zinkgruvan: 5,340 m drilled, encouraging results Exploration Expenditure - $millions Highlights Approx. two-thirds is near-mine & one-third is regional exploration

15. Outlook  Contained metal production outlook: 96,000 (92,000) tonnes copper, 181,000 (202,000) tonnes zinc, 45,000 (47,000) tonnes of lead and 7,000 (6,800) tonnes nickel. (Previous forecasts in brackets)  Aljustrel and Ozernoe under review  2008 Capital expenditure expected to be $400 to $450 million, result of paste deposition at Neves-Corvo and weaker US Dollar  Balance sheet remains strong  Positioning ourselves for potentially tough few years in zinc/lead; focusing on developing resource base and expansion of existing operations  Continue to assess opportunities created by present market conditions CorporateProjectsExplorationGrowthOperations

16. Questions CorporateProjectsExplorationGrowthOperations PHIL WRIGHT PRESIDENT & CEO ANDERS HAKER VP & CFO JOAO CARRELO EXEC. VP & COO NEIL O’BRIEN SR. VP EXPL. & BUS. DEV.

17. TSX: LUN NYSE: LMC OMX: LUMI