1 Hiearchy of Controls Benefitting Safety, Health & Environment

Xstrata plc Sustainable Development Standards 2008, Hierarchy of Controls 5 Risk and Change Management

Ontario MOL, Reg. 833 Hierarchy of Controls In determining exposure to airborne concentrations of the biological or chemical agent, no regard shall be had to the wearing or use of personal protective equipment. The employer shall provide, and workers shall wear and use, personal protective equipment appropriate in the circumstances to protect the workers from exposure to the agent, if engineering controls required by this Regulation, (a) are not in existence or are not obtainable; (b) are not reasonable or not practical to adopt, install or provide because of the duration or frequency of the exposures or because of the nature of the process, operation or work; (c) are rendered ineffective because of a temporary breakdown of the controls; or (d) are ineffective to prevent, control or limit exposure because of an emergency. O. Reg. 491/09, s. 5.

Hierarchy of Controls - Health and Safety Elimination of risk Substitution of less hazardous materials, processes, operations or equipment Engineering controls Warnings Administrative control PPE.

Hierarchy of Controls - Environment

Examples of Hierarchy in Action at Klgold Benefiting Health, Safety & Environment Paste backfill instead of sand. High tonnage low grade mining versus high grade mining. Use of bio-diesel in underground diesel equipment Wet Milling

Klgold places 16 % of tailings underground Paste is pumpable and flowable compared to sand resulting in improved working conditions as opposed to sand. Paste backfill has lead to safer mining practices Klgold is exploring options to increase the percentage of tailings that can be added to paste. Blast furnace slag versus portland cement as a binder. Tailings is reuse versus sand is digging up an irreplaceable natural resource. Condition of permits for some new mines includes requirement to place all tailings underground. 34 Level 38 Level 42 Level #3 Shaft 50 Level 53 Level LEGEND Existing Holes Recently Drilled Holes Planned Holes Future Holes 51 Level 45 Level 4717 Sub Level 47 Level 30 Paste Backfill

Emissions at a Transfer Point as a Function of Tonnes Handled or Dropped, Moisture and Wind Speed.

Suspended Particulate Emissions as a Function of Tonnes Handled, Moisture, Wind Speed m - % moisture in material wind speed kph10 30 Kg. emiss./tonne material handled Daily kilograms emissions from handling 1,000 tonnes per day Daily kilogram emissions from handling 10,000 tonnes per day Conclusion, higher grade lower tonnage operations emit less particulate into workplace & environment

10 One of two Klgold Particulate Matter smaller than 10 microns And Dustfall Monitoring Sites PM 10 Suspended Particulate Monitoring

The US Department of Labor - Mine Safety and Health Administration (MSHA) has mandated strict diesel particulate matter (DPM) exposure limits for underground miners. 160 ug/m3 Biodiesel has been shown by MSHA in their underground testing and in numerous underground mining applications at various blend levels to consistently help meet or exceed DPM PEL criteria, thereby significantly improving worker health. In addition, MSHA has continually endorsed biodiesel in national workshops and meetings as a viable means of reducing total and elemental carbon levels in underground mines

Wet Milling and CIP for Gold Recovery as Opposed to a Smelting Operation. 12 Wet milling is more energy efficient than dry milling Workers are exposed to minimal amounts of dust from handling dry materials, CIP is a wet process with very small amounts of dust created. Mill is not a dusty environment.

The Result, Clean Snow 13