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© 2008 Katanga Mining Limited Trading symbol: KAT.TO
Arthur Ditto, President & CEO June 18, 2008
2
This management presentation contains “forward-looking statements”, within the meaning of the United States Private Securities Litigation Reform Act of 1995 and similar Canadian legislation, concerning the business, operations and financial performance and condition of Katanga. Forward-looking statements include, but are not limited to, statements with respect to anticipated developments in Katanga’s operations in future periods; planned exploration activities; the adequacy of Katanga’s financial resources and other events or conditions that may occur in the future; estimated production and synergies; the ability of Katanga to become a significant low cost copper/cobalt company; the ability of Katanga to continue to create value for its shareholders; the ability of Katanga to meet expected financing requirements; the future price of copper and cobalt; the estimation of mineral reserves and resources; the realization of mineral reserve estimates; the timing and amount of estimated future production; costs of production; capital expenditures; permitting time lines and permitting, mining or processing issues; currency exchange rate fluctuations; government regulation of mining operations; information concerning the interpretation of drill results; success of exploration activities; environmental risks; unanticipated reclamation expenses; title disputes or claims; and limitations on insurance coverage. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might”, “will” or “will be taken”, “occur” or “be achieved”. Forward looking statements are based on the opinions and estimates of management as of the date such statements are made, and they are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Katanga to be materially different from those expressed or implied by such forward-looking statements, including but not limited to risks related to: unexpected events during construction, expansion and start-up; variations in ore grade, tonnes mined; delay or failure to receive board or government approvals; timing and availability of external financing on acceptable terms; risks related to international operations; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; future prices of copper and cobalt; possible variations in ore reserves, grade or recovery rates; failure of plant, equipment or processes to operate as anticipated; political unrest and insurrection; acts of terrorism; accidents, labour disputes and other risks of the mining industry; delays in the completion of development or construction activities, as well as those factors discussed in or referred to in the current annual Management’s Discussion and Analysis and current Annual Information Form of Katanga filed with the securities regulatory authorities in Canada and available at www.sedar.com. Although management of Katanga has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Katanga does not undertakes to update any forward-looking statements that are incorporated herein, except in accordance with applicable securities laws.
Cautionary and Forward-Looking Statements
3
10 Years Invested in the DRC
Council of Ministers and Presidential
approval of JV
Kamoto JV Agreement entered into
after 12 months of negotiation
New Mining Code published
Findings of DRC mining contract review received
Democratic Presidential
elections
Katanga milestones DRC milestones
First contact made with DRC
to explore opportunities
Kinross Forrest Limited JV
formed
JV assumes site mgmt; initial
financing & path to Phase I
Phase I completed and
first copper produced
1997 Oct 2001 Jul 2002 Feb 2004 Jul/Aug 2005 Jul 2006 Nov 2006 Dec 2007 Jan 2008 Feb 2008
Merger with Nikanor
completed
4
From Mine to Metal
Underground Mining
Cobalt metal
Milling
Flotation
Open Pit Mining
Copper cathode
5
Company Highlights
Major single-site operation in the DRC
Producing refined copper cathode and cobalt metal
Strong financial position; generating operating cash flow
239Mt M&I resource @ 4.45% Cu and 0.44% Co
Target >300ktpa Cu and >30ktpa Co production in 2011
Mine life 40+ years
75-25 joint venture with Gécamines (state-owned mining company)
6
0% 1% 2% 3% 4% 5% 6%
KatangaTenke
Mount IsaTaimyr Peninsula
AntaminaOlympic Dam
OK TediCollahuasiGrasberg
EscondidaEl Teniente
Codelco NorteLos Pelambres
Bingham CanyonLos Bronces
AlumbreraBatu HijauToquepala
Morenci
Ore Grade - % M&I Contained Copper0 500 1,000 1,500
EscondidaGrasberg
Codelco NorteMount IsaAntaminaKatanga
CollahuasiEl Teniente
Bingham CanyonMorenci
Los PelambresTaimyr Peninsula
Batu HijauAlumbrera
Olympic DamOK Tedi
Los BroncesToquepala
Tenke
Copper Equivalent Production (Kt)
Leading Global Mines by Production1
…Ranked by Grade2,3
1. Based on 2007 production, except Katanga, Tenke and Taimyr Peninsula (2011 forecasts: 300 Kt Cu and 30 Kt Co, 115kt Cu and 8Kt Co, 2006 figures respectively). Price assumptions used to convert production to copper equivalent: Cu $1.60/lb, Co $10.00/lb, Zn $0.75/lb, Ag $11.00/Oz, Au $700/Oz, Mo $12.00/lb.
2. Katanga figure includes all deposits.3. Based on reported Measured and Indicated resource copper grades. Source: CIBC World Markets
World-Scale Producer
Katanga
Katanga
7
Low Cost Producer
(0.49)Co credit
Kamoto Project Life of Mine average costs1 US$/lb Cu
Site cost 0.74
Site cost after Co credit 0.25
Transportation 0.25
Royalties 0.07
Total Cash Costs 0.57
Capital 0.14
Total Costs 0.711. Based on 2008 estimates; production ramping up to 150ktpa Cu and 8ktpa Co; analyst consensus long term metal price forecasts of $1.59/lb Cu and $10.00/lb Co.
Combined Kamoto & KOV production costs will be determined by expansion feasibility study (Sept 2008)
8
High-Grade Reserves & Resources
Reported under Canadian NI 43-101 standards of disclosure for mineral projects. Sources: Katanga June 2006 Feasibility Study & NI 43-101 and press release dated 22/02/07; Nikanor November 2007 Revised Independent Technical Report.
400
0.38
740
0.43
CoCuProven and Probable Mineral Reserves
310
0.48
107,000Ore Tonnes (’000s)
66,000Ore Tonnes (’000s)
3.3Contained Metal Grade %
3,500Contained Metal Tonnes (000s)
3.5Contained Metal Grade %
2,300Contained Metal Tonnes (000s)
Measured and Indicated Mineral Resources
172,000Ore Tonnes (000s)
4.8Contained Metal Grade %
8,200Contained Metal Tonnes (000s)
Inferred Mineral Resources
9
Site Overview
Key Assets Other Mines& Plants
Concession Area= 184km2
10
SX/EW module 2
Leach tanks
Roaster
High voltage yard
Acid plant
Cobalt area
Existing Luilu Refinery
Greenfield SX/EW
More than doubles production capacity
Higher grade refined metal produced
Increased Cu & Co recoveries
Phased modular approach
SX/EW module 1
1 Module ~ 80ktpa Cu
11
Key Project Milestones*
* Based on scoping study. Feasibility study will finalize schedule.1. Current estimate of accelerated capex schedule for Kamoto project.
Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1
2008 2009 2010Task Name 2011
Kamoto phase II 1
Kamoto phase III 1
Kamoto phase IV 1
Feasibility Study
Module 1 SX/EW Construction
Mining of KOV Begins
Acid Plant Construction
New Cobalt Plant Construction
Module 2 SX/EW Construction
Est. Capex $136 m
Est. Capex $124 m
Est. Capex $64 m
12
Phased Production Growth
0
50
100
150
200
250
300
350
2008 2009 2010 2011
Tonn
es C
oppe
r ('0
00s) Copper - new refinery
Copper - refurbished plant
0
5
10
15
20
25
30
35
2008 2009 2010 2011
Tonn
es C
obal
t ('0
00s) Cobalt - new refinery
Cobalt - refurbished plant
13
2008 Expected Quarterly Production
12,670
10,520
6,200
4,115
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
Q1 Q2 Q3 Q4
Tonn
es C
oppe
r
Payable Copper in ConcentrateCopper Cathode
1,1101,000
660
135
0
200
400
600
800
1,000
1,200
Q1 Q2 Q3 Q4
Tonn
es C
obal
t
Payable Cobalt in ConcentrateCobalt Metal
Copper cathode production commenced December 2007
Cobalt metal production commenced May 2008
14
2008 Expected Production
2.8 million
6.5 millionPayable copper (pounds)
Payable cobalt (pounds)
43,500KZC Cobalt Concentrate (tonnes)
133,000KTC Copper Concentrate (tonnes) – feed to Luilu
73.5 millionTotal Payable copper (pounds)
6.4 millionTotal Payable cobalt (pounds)
3.6 millionCobalt metal (pounds)
67 millionCopper cathode (pounds)
15
2008 Expected Production Costs
$(1.73)$(2.31)$(2.88)
Credit (US$/lb)
$0.42$(0.16)$(0.73)
Net Cost (US$/lb)
@ $30
Copper Cathode Operating Cost AnalysisCobalt (US$/lb)
@ $50@ $40
$2,015KZC Cobalt Concentrate total costs (US$/tonne)
$(1.73)Cobalt credit (US$/lb)$0.42Operating costs after Cobalt credit (US$/lb)
$2.15Operating costs before Cobalt credit (US$/lb)Copper Cathode Production Costs
16
Strong Financial Position
2009+ GlencoreMarket pricing90% payable on leaving site
2009 onwards capex spend to be determined by feasibility study (Sept 2008)
100% Offtake agreements in place
2008 LN Metals
Capital expenditure
US$150m Glencore convertible loan
US$125m in corporate debentures
Low debt level
US$463m at March 31, 2008
Strong cash position
First draw planned in 1H 2009
Close expected by 2008 year-end
Facility currently under discussion:up to $550 million
Future needs offset by:Current operating cash flowMetal prices remaining strong
Financial scope to be determined after feasibility study (Sept 2008)
Financing initiative
17
Benefits
Now employing some 4,000 DRC nationals
Local payroll now exceeding US$3.5m per month
Supporting up to 15,000 jobs in the regional economy
Benefits to the DRC to date: US$251m
Returns over 20 years from 2011: US$7.3bn
Substantial Benefits to DRC
Policy
Open & active engagement with local stakeholdersWork in partnership to create sustainable livelihoodsLong-term improvements to living standardsGuided by international standards
Education/Training &Enterprise
Health
Agriculture
Infrastructure
Returns to DRC figure based on $1.25/lb Cu and $10.00/lb Co & excludes capital expenditure
Programs
18
Mining Lease & Contract Review
Process currently underway:
Transfer of two open pit deposits to Gécamines
Transfer of Mining Lease from Gécamines to Joint Venture
Consolidation of Joint Ventures
Completion of Mining Contract Review
19
External Challenges: Infrastructure
RailImports – rail already used for importing suppliesExports – current route to DurbanMaputo and Dar-es-Salaam operational but not practicalRoute to Lobito: shorter with only one border crossing; upgrade expected to be completed by 2009.
RoadExports – direct route from Kolwezi to DurbanImports – over 600 loads transported for Phase I – transit as short as 7 days from JohannesburgLubumbashi to Kolwezi road – upgrade being financed by World Bank
20
External Challenges: Power
Short term
Unaffected by recent load shedding on 220kV network
Our installations are fed from 120kV substation
SNEL guaranteed 82MW by June 2008 – sufficient power until end 2009
Long term
Private sector refurbishment of Inga II will add 850 MW by 2011
Plans to secure financing to refurbish Zongo, Koni and Mwadingusha
Working closely with SNEL on future needs – 2011 requirement approx. 300MW
21
Goals for 2008
Strengthen management team
Complete Phase II construction at current Kamoto project
Ramp up production of refined copper cathode and cobalt metal
Consolidate Joint Ventures & complete DRC mining contract review process
Start mining at KOV open pit expansion project
Complete expansion project feasibility study by end of September
Preparation for LSE listing in 2009
Generate earnings and positive cash flow from operations
22
Overview
Targeting over 300,000 tonnes Cu and over 30,000 tonnes Co by 2011
Potential to be Africa’s largest Cu producer & world’s largest Co producer
Now generating operational cash flow
Genuine commitment tosustainable development
Globally significant integratedsingle-site operation
Proven management teamand track record
Large-scale, low-cost andlong-life producer
23
1Q Operations
24
1Q 2008 Production and Sales
Copper Cathode
0200400600800
1,0001,2001,4001,600
Jan Feb Mar
Tonn
es Production Sales
Concentrate
01,0002,0003,0004,0005,0006,0007,0008,000
Jan Feb Mar
Tonn
es
Production Sales
Extensive maintenance undertaken throughout the Kolwezi Concentrator plant during first quarter
25
Open Pit Mining
T17Total ore mined consistently exceeding plan
Copper grades improving
High grade cobalt ore stockpiled to process through cobalt circuit at Luilu
TilwezembeWaste stripping continued through first quarter and April
Ore mining and ore haulage to KZC resumed in April
0.70%
2.52%
33,624
Copper ore
0.71%Cu grade
0.90%Co grade
61,431Ore mined (mt)
Cobalt ore1Q 2008
1.30%Cu grade
1.39%Co grade
50,718Ore mined (mt)
1Q 2008
26
Kamoto Underground Mining
April ore development exceeded forecast
Exhaust ventilation capacity doubled during the quarter
Dewatering and servicing of areas 8 and 9 doubled areas available for mining starting in May
Improved setup and organization of working faces yielding improved productivity
752Development meters
0.37%Co grade
4.08%Cu grade
117,948Ore hoisted (mt)
1Q 2008
27
Concentrators
Kamoto (KTC) ConcentratorNo material issues at current rate of operation
Metallurgist hired to improve quality control and help to refine performance
Kolwezi (KZC) ConcentratorExtensive maintenance undertaken throughout the plant during first quarter
Crushing to stockpile resumed March 12 and concentrator resumed operation April 9
Expected 4,500t/month of concentrate production for remainder of 2008
Sulphide
KZCKTC
3.79%
40.0%
13,147
7.03%
11.5%
3,009
Oxide
1Q 2008
1.81%Concentrate Co grade
17.1%Concentrate Cu grade
10,639Concentrate (DMT)
Oxide
28
Luilu Metallurgical Plant
Copper cathode production increased each month during the first quarter and April
Copper production bottlenecks being removed
Copper residue belt filter complete and commissioning at end of April
Cobalt electrowinning started April 28 with first cathode harvested May 3
Process Director hired and arrived at start of May
3,946Cu Cathode (mt)
1Q 2008
29
1Q Financials
30
Balance Sheet – March 31, 2008
Actual ActualAs of As of
31-Mar-08 31-Dec-07$m $m
AssetsCash 463.4 100.7Other current assets 148.7 27.8Total current assets 612.1 128.5
Property, plant and equipment 2,428.7 298.3Other assets 3.1 22.0Total assets 3,043.9 448.8
LiabilitiesCurrent liabilities 110.2 67.1Long term debt 266.4 267.5Other long term liabilities 554.5 0.0Total shareholders' equity 2,112.8 114.2 Total liabilities and shareholders' equity 3,043.9 448.8
31
Summary Financial Table
2008 2007$000 $000
Revenues 90,156 0Operating loss (14,796) (3,858)Net loss (17,396) (5,435)Loss per share ($ per share) (0.10) (0.07)
Average Common Shares Outstanding 179,123 78,038
First Quarter
32
Technical
33
Kolwezi Klippe Deposits
T17
KOV
Mashamba East
Kamoto U/G
0 5km
R1 Argillaceous Siltstones / Sandstones
R2.1 Kamoto Group (OBI, RSC & OBS)
R2.2 Dolomitic Shales
R3 Dolomites w/ Interbedded Siltstones
34
Kamoto Underground
2007 Reserve Extraction Plan
35
KOV and Kamoto East Pits
0 1000 2000
1400
1000
Kamoto pit Kov pit
S N
Cut 3Cut 7
Geotechnical units, Cut 3 and Cut 7
LEGEND:
RGSCMNSDSOREBDYRSCRATL
35
36
KOV Dewatering Plan
1275
Lining a Decant Pond
Silt Dam
Pumping starts fourth quarter 2008
37
Current Production Process
Sulphide OreKamoto U/G
Oxide OreT17, KOV, Mashamba East Kamoto
Concentrator
CopperCathode
Copper Extraction
Cobalt Extraction
Luilu Metallurgical Plant
Cobalt Metal
Kolwezi ConcentratorTilwezembe Ore copper/cobalt concentrate
Existing Product
38
CopperCathode
Planned Production Process
All Sulphide OreKamoto U/G
Kamoto Concentrator
Copper Extraction
Luilu Metallurgical Plant
CopperCathode
Optimized production – 2011
All Oxide OreT17, KOV, Mashamba East
Copper/cobalt Extraction
Module 2
Copper/cobalt Extraction
Module 1
New SX/EW Plant
Cobalt Metal
Existing facilities Planned facilitiesProduct
Cobalt Salt
Cobalt solution
39
Kamoto Phase II Rehabilitation Program
Scope essentially unchanged from Feasibility Study
$136 million capex budget based on advanced engineering of the Roaster,
known costs from Phase I and escalation factors
Kamoto U/G – expand production fleet to allow for 120ktpm production &
continue upgrade of facilities
Kamoto Concentrator – 3rd Cascade Mill, 58 float cells, three additional
delivery lines to Luilu
Luilu – new roaster, 14 tanks, 54 electro-winning cells
Mashamba East – dewatering deferred
Tailings Structures – two additional ponds at Luilu
40
Expansion Feasibility Study
Scheduled for completion by end September 2008
Mineral resource evaluation update to comply with NI 43-101
New optimized mine plan for Kamoto and KOV being developed
Project capital and operating costs update
Assessment of the environmental issues related to the combined operations
sufficient to complete a revised EIS/EMPP