Investor Presentation: Our Commitment to Zambia in a Slowing Investment Environment

Our Commitment to Zambia in

a Slowing Investment Environment

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Geographically Diversified Portfolio of High-Quality Operations & Projects

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High-Quality, Stable Operations

Kansanshi Cu-Au mine, Zambia

• Located near Solwezi in the

north western Province of Zambia

• First production in 2005

• Open pit mining

• Flexible ore treatment to allow for

variation in ore type :

– sulphide circuit; oxide circuit;

gold facility

• Near mine resource definition and

exploration programs

• Workforce = ~11,200 (substantially more created through the multiplier effect)

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High-Quality, Stable Operations

Kansanshi Cu-Au mine, Zambia

Multi-phase production expansion

project underway

– 2012 – 2015

60% increase in overall

production capacity

– 2012 – 2014

130% increase in oxide

production capacity

– 2014 - 2015

90% increase in sulphide

production capacity

Expansion

Project Capacity Completion

Estimate

Cost

Production

Impact

(US$M)

Oxide 7.2 mtpa Complete 31 Copper: 10,000 - 15,000 tpa

Oxide 14.5 mtpa 2013 - 2014 200 Copper: 60,000 - 75,000 tpa

Smelter 1.2 mtpa 2014 650 Smelter Acid – 1.0 Mtpa @

$40-$50/tonne

Sulphide 25 mtpa 2015 565 Copper: 60,000 - 70,000 tpa

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Our Project Pipeline

Copper Smelter, Zambia

• Processing capacity of 1.2 Mtpa

—71% Sentinel

—100% Kansanshi

— Average copper grade 26%

• Blister copper production 300,000 tpa;

acid production 1.0 Mtpa

• Estimates:

− Capital cost of US$650M

− Operating cost US$69/tonne of

concentrate

− Commissioning from mid 2014

• Estimated savings: US$340M - US$510M/year

• Direct jobs to be created estimated at ~400

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Our Project Pipeline

Sentinel Cu project, Zambia

• Located ~ 140 km northwest of

Solwezi, northern Zambia

• M&I resource of 1,027 Mt at

0.51% Cu grade, containing 5.2 Mt Cu

• Estimates:

– 2.2:1 LOM strip ratio

– >15 years mine life

– US$2.0 billion capex

– Annual production up to

300,000 tonnes

• Direct jobs to be created estimated at ~ 2,000

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(21%)

(15%)

(5%)

3%

5%

5%

7%

9%

11%

12%

13%

15%

16%

22%

23%

27%

33%

Glencore

ENRC

Kazakhmys

Norilsk

Eramet SA

Anglo American

HudBay

Rio Tinto

Freeport

Teck

Lundin

Vedanta

BHP Billiton

Vale

Antofagasta

Southern Copper

First Quantum

Total Annualized Shareholder Return

Source: CapIQ

January 2000 – March 2013

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Our Economic Contribution to Zambia

• Total Investment to end 2012

= $2.75 billion

• Committed Investment = $3.5 billion

• Tax paid since 2005 = >$2.0 billion

(>10% of all taxes collected)

• Number of employees including

contract labour =13,200

(substantially more with the multiplier

effect of 1:10)

• Direct contribution to Zambian gross

national income = 9%

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Our Contribution to Our Zambian Communities

• On-going malaria control and HIV programs

• 106 school places currently provided;

additional 600 being created

• Over 50 hospital beds donated plus

refurbishments and upgrades to hospitals

• 930 conservation farming positions

supported

• 53 scholarships provided; 47 students on

various training programs

• 107-space apprenticeship program

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Our Contribution to Zambia in a Slowing Investment Environment

Committed Investment to 2015 = $3.5 billion

• Sentinel copper project = $1.7 billion

• Kansanshi copper smelter = $480 million

• Kansanshi sulphide expansion = $555 million

• Other commitments = $765 million

• Direct jobs to be created = 2,400

One of the Few Mining Companies

Investing in Building Capacity

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Metals & Mining Capital Expenditure Has Peaked

Source: Company information, CapIQ

Note: Includes Anglo American, BHP Billiton, Glencore Xstrata, Rio Tinto and Vale

(US$ MM)

--

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013E 2014E 2015E

Capital Expenditure by Major Mining Companies

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IPO Proceeds

(US$ Bn)

Junior Miners Struggling to Access Capital Troubled Financing Landscape Has Created a Funding Gap for Junior Mining Companies

Source: Ernst & Young Metals and Mining Outlook 2013

40-50% reductions in new issues and follow-on

proceeds providing little support for Juniors from the

equity markets

--

50

100

150

200

250

300

--

5

10

15

20

25

2007 2008 2009 2010 2011 2012

Proceeds Volume

Volume

(Deals)

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Bond Proceeds

(US$ Bn)

--

40

80

120

160

200

--

20

40

60

80

100

120

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Proceeds Volume

Syndicated Loan Volume (2000-2012)

(US$ Bn)

Focus on Capital Structure, Not Capital Spending

Source: Ernst & Young Metals and Mining Outlook 2013

1

5

8

10

12

25

59

-- 20 40 60

Debtor in Possesion

Project Finance

Capital Expenditure

Acquisition Finance

Working Capital

Corporate Purposes

Refinancing

Volume

(Deals)

Source: Ernst & Young Metals and Mining Outlook 2013

Two-tier market:

the largest

borrowing large;

the rest

borrowing little

or not at all

Over 50% of

proceeds “used

to restructure

existing lending”

Only a small

fraction of

proceeds are

used to fund

growth projects

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First Quantum: Success Through Project Development

We spend a

disproportionally high

amount on growth

projects

This approach has

been a key driver

behind our success as

a company by

providing the basis for

our superior track

record of production

growth and

shareholder returns

Building on this track

record, we have

increased and

accelerated our

development projects

(ktpa)

--

10%

20%

30%

40%

50%

60%

70%

2005 2006 2007 2008 2009 2010 2011 2012 2013

First Quantum Copper Peers Majors

Source: CapIQ

--

200

400

600

800

1,000

1,200

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Source: CapIQ

Bwana Lonshi

2001

Kansanshi

2004

Guelb Moghrein

2006 Frontier

2007

Ravensthorpe

2011

Kevitsa

2012

Kansanshi

Expansion

and Smelter

Sentinel

Cobre

Panama Haquira

Enterprise

Capital Expenditure as a Percentage of Revenue (2005-2013)

Copper Production (Total)

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Leading Copper Growth

Source: BrookHunt

1.8

1.5 1.5

1.3 1.2

0.9 0.8

0.8

0.6

0.5 0.5 0.5 0.4 0.4 0.3

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2018E Copper Production, Mt

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In Summary

• Capital available for investment in mining

projects is diminishing rapidly

• First Quantum is one of the few companies still

investing

• Currently, mining companies are being much

more selective on where they invest their capital

Our Commitment to Zambia in

a Slowing Investment Environment