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Peru Minerals SectorUpdate

Trade and Investment GroupLondon 30 January 2002

www.monterrico.co.uk

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Highlights of 2002

Gold output rose from 3.84 million oz in 2001 to 4.36 million oz in 2002, exports rose 29% to US$1.5 billion in 2002

Copper output rose 16.7% to 872,783 tonnes

Zinc output rose 15.6% to 1.2 million tonnes

Silver output rose 3.3% to 76.4 million oz

Lead output rose 3.1% to 298,487 tonnes

Antimina commissioned and operated successfully

Alta Chicama becomes a significant gold discovery

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Peru : Operations, Investment, Discovery

Yanacocha (36Moz Au) – Newmont / BVN

Pierina (8Moz Au) – Barrick <$800M>

Alta Chicama (3.5Moz Au) – Barrick

Rescatada - AngloGold

Antamina (500Mt @ 1.2% Cu + Zn/Mo credit) US$2.3bn project completed under budget and ahead of schedule

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Industry Issues 2002

Tambogrande project, northern Peru

Strike action increased (SPCC and Volcan)

Barrick hit by a surprise US$141 million tax bill for fiscal years 1999 and 2000 relating to revaluation of the Pierna Gold Mine

Local protest over expansion of Newmont’s Yanacocha Gold Mine

Mining Royalty discussed (3% profits royalty)

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The Rio Blanco Project

6Diamond drill hole RB-20

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Progress at Rio Blanco July : An environmental baseline study was started and monitoring

continues

July : Geological mapping and surface work commenced

August – September : Monterrico mobilised 60 tonnes of drilling and camp equipment into Rio Blanco

September : Resource definition drilling commenced in September

December : 15 Drill holes completed latest results include 56 m @ 2.1% and 222 m @ 1.19% Cu

January : Pre-feasibility study commenced

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Rio Blanco Project - Target Zones