As part of the environmental assessment process for the Cuervo hydroelectric project, the Environmental Assessment Service for the Region of Aysen emitted a fourth consolidated report of queries and observations (or ICSARA, from its name in Spanish). The document includes fifteen observations made by services with competence in environmental matters.

Energia Austral reiterated its full readiness to continue complementing and deepening the information about the Cuervo project with the aim of completing an optimum assessment process.

The Cuervo Hydroelectric Project involves the construction of a hydroelectric plant with an installed capacity of 640MW in the Commune of Aysen in the Region of Aysen. Once all the environmental and other approvals are in place, construction would begin towards the end of 2012, creating a maximum of 1,650 direct jobs, of which around 320 will be filled by local workers.

Ends

Energía Austral Contacts

ABOUT ENERGÍA AUSTRAL (www.energiaaustral.cl)

Energía Austral is a subsidiary of Xstrata Copper and forms part of its Business Development Unit. It is developing three hydroelectric plants in the Aysén municipal district - Cuervo, Blanco and Cóndor - and a transmission line to transport the energy produced to Chile’s Central Interconnected Grid (SIC). Energía Austral has offices in Puerto Aysén, Coyhaique and Santiago.

ABOUT XSTRATA COPPER (www.xstratacopper.com)

Xstrata Copper is the fourth largest global copper producer with attributable mined production in 2010 of 913,500 tonnes of copper in cathodes and concentrates. The company is also one of the world’s largest producers of smelter and refined copper, including from third party materials.

Headquartered in Brisbane, Xstrata Copper is one of the commodity business units within the major global diversified mining group Xstrata plc. Its mining and metallurgical operations and development projects span eight countries: Argentina, Australia, Canada, Chile, Peru, the Philippines, Papua New Guinea and the USA.