Robert Carmichael March 7, 2011 PDAC – Toronto, Canada The Neves-Corvo Deposit, Southern Portugal An Update on Exploration Results Robert Carmichael March 7, 2011 PDAC – Toronto, Canada

Outline History; Neves-Corvo in a Global Context; Geology and Deposit Morphology; Resource Growth Since 2005; Semblana Discovery; Exploration Potential.

Lisbon Portugal Spain Neves Corvo Sevilla

History 1977: discovery – drilling gravity anomaly; 1988: start of copper production; 1990: start of tin production; 2005: new ownership – expanded drilling – focus on zinc resource; 2009: cumulative production reaches 2 million tonnes of copper metal; 2010: discovery of 6th massive sulphide lens – Semblana deposit.

Global VMS Context Neves-Corvo is the second largest VMS deposit in the world (measured by contained Cu + Zn); Past production + current M+I+I resource is: 207 Mt at 2.3% Cu and 3.3% Zn; Not fully delineated; Initial resource was 34 million tonnes at 8.5% copper; Mine operated for 5 years before the head grade dropped below 10% copper; Mined an average of 100,000 tonnes copper metal per year for 20 years.

Global VMS Context – USGS Database 870 deposits

Global VMS Context – USGS Database 870 deposits Las Cruces USGS database

Geology and Deposit Morphology Typical Iberian Pyrite Belt large volcanogenic massive sulphide deposit; Atypical with respect to contained metal, particularly copper and tin; Completely blind – no surface expression; Late Strunian age (354 Ma); Deposits hosted in Volcano-Sedimentary complex; At least 6 discreet massive sulphide lenses; Associated stockwork zones – may be displaced by thrust faulting.

250 metres to top of orebody N 250 metres to top of orebody

SW NE Corvo Deposit Graça Deposit

Resource Growth Since 2005 Since YE 2005, we have added 220 thousand tonnes of Cu metal and 2.9 million tonnes of Zn metal to the M+I Resource (net of production); July 2007 – Lombador East Deposit discovery (67m @ 8.0% Zn plus 16m @ 3.9% Cu); May 2009 – Lombador Mid Cu Deposit discovery (32m @ 4.5% Cu); September 2009 – Lombador Mid Zn Deposit discovery (23m @ 7.3% Zn plus 12m @ 7.8% Zn) September 2010 – Semblana Deposit discovery (21m @ 4.6% Cu)

Zinc Resource and Metres Drilled M+I ore tonnes up 193% in 3 years Tonnes x 1,000 Metres Drilled

Copper Resource and Metres Drilled Tonnes x 1,000 Metres Drilled

Current Resource Estimate COPPER Classification Tonnes Copper % Zinc % Lead % Silver g/t Measured 36,995,000 3.4 1.2 0.4 50 Indicated 3,895,000 2.4 1.0 0.6 53 M+I 40,890,000 3.3 Inferred 26,319,000 1.9 0.3 41   ZINC 58,047,000 6.2 1.4 61 13,929,000 6.9 1.5 71,976,000 6.4 59 26,791,000 4.9 Cutoff Grade is 1.0% for Copper Resource and 3.0% for Zinc Resource

N Lombador Neves Corvo Semblana Zambujal Graça 1,000m Plan view of deposits and underground development. White line is axis of Rosario anticline, next image is perspective view along fat arrow. Zambujal Graça 1,000m

Lombador 3 km 3.5 km Graça Neves Corvo Zambujal Underground Development 3D View Looking Southwest with Massive Sulphide Lenses and Underground Development Surface Semblana 1.2 km General perspective of existing underground development in blue, and massive sulphide deposits in red. Note scale in yellow.

Lombador 3 km 3.5 km Graça Neves Corvo Zambujal Underground Development 3D View Looking Southwest with Massive Sulphide Lenses and Underground Development Surface Semblana 1.2 km Lombador East Cu/Zn Deposit Lombador South General perspective of existing underground development in blue, and massive sulphide deposits in red. Note scale in yellow.

Lombador South deposit intersected by a few holes prior to 2005, goal was to convert to indicated resource. NF34 discovered LE deposit, based on NF32A, we were expecting sulphide lens to pinch out. Note zinc zones within massive sulphide envelope, underlying copper stockwork zones. Zinc zones have good internal continuity, but terminate very quickly laterally into barren pyrite; grade boundaries must (in places) be perpendicular to lithological contacts.

Semblana Deposit Discovery Semblana story, three holes drilled to test gravity feature. BHEM traces from two holes indicated strong offhole anomaly. Interestingly, we drilled 68 metres of massive sulphide (pyrite) between the two most easterly holes – easy to miss without BHEM.

Semblana Deposit Discovery 1,700m h 0m v 1,300m h -400m v Follow up drilling discovered Semblana, pink outline so far but open in several directions. Blue arrows show horizontal and vertical distances from Lower Corvo development (south) and planned Lombador 360 level development (north). Maybe need a new shaft halfway along northern blue line??

N 200 m Semblana Discovery Plan View Open Open Open Open PSI50 N PSJ48-1 PSK50B 200 m 8m @ 4.5% Zn, 124 gpt Ag 2 + 40 PSJ50 0 + 63 35 + 30+ 35 + 52 PSK50-2 PSK50A 4m @ 2.6% Cu 18 + 9 3000 17 + 44 PSJ46 PSK50-1 PSK50A-1 13m @ 4.1% Cu 14 + 20 10 + 4 Open 16 + 64 PSK48 21m @ 4.2% Cu 25 + 70 PSK48-1 20m @ 3.5% Cu 18 + 25 Open PSL48A-1 PSM52 PSL48 8 + 75 4m @ 4.6% Cu 39m @ 2.6% Cu; Incl 11m @ 7.0% Cu 5 + 65 37m @ 1.4% Cu SO48-1 PSM44 SO48 2600 5 + 55 SO48-4 - Massive sulphide + stockwork; assays pending Massive sulphide + stockwork; with assays - Weak stockwork 14 + 20 - Massive sulphide + Stockwork Thickness (metres) PSN44 Close up of Semblana in plan view. Deposit is almost horizontal as far as we can tell. 55 + 0 PSO44-1 Open 68 + 46 PSQ46 2400 23m @ 2.2% Zn 1 + 0 Open PSO42 Semblana Discovery Plan View 6200 6600 6400 7000 6800

200 m 800m below surface Semblana Discovery Vertical Section Open Assays pending 39m @ 2.6% Cu; Incl 11m @ 7.0% Cu 20m @ 3.5% Cu 21m @ 4.2% Cu 800m below surface 37m @ 1.4% Cu Massive sulphide 13m @ 4.1% Cu Stockwork 200 m Semblana Discovery Vertical Section

11.0 metres @ 7.0% Cu Within 38.5 metres @ 2.6% Cu Open 11.0 metres @ 7.0% Cu Within 38.5 metres @ 2.6% Cu

35 m Stockwork up to 0.8% Cu, 1.5% Zn 6.8m massive sulphide @ 6.0% Zn Exploration Potential See gap in drill pattern corresponding to gravity anomaly – also note Monte Branco hole (stockwork) and massive pyrite intersection. Assays from massive pyrite intersection not in database, trying to get them from Nelson, may have some zinc. Potential to add one or two new sulphide lenses yet. 1000 m 35 m Stockwork up to 0.8% Cu, 1.5% Zn 6.8m massive sulphide @ 6.0% Zn

Exploration Potential Ground gravity – note anomaly to the south of Semblana – undrilled. 1000 m

Conclusions Neves-Corvo deposit is a globally significant deposit of both copper and zinc; Zinc potential has been largely unappreciated until recently; Increase in exploration activity has produced a dramatic addition to the resource base; Indications that resource will continue to grow with additional drilling – lots of exploration potential left; Development of Neves-Corvo into a major zinc mine with production targeted for 2011, expanded for 2013; 80,000 metres drilling planned for 2011 – more to come!