Perilya Limited October 2009 Disclaimer and Important Notice This - PDF document

Perilya Limited October 2009

Disclaimer and Important Notice This presentation contains forward looking statements that are subject to risk factors associated with an underground mining business. Where the company expresses or implies an expectation or belief as to future events or results, such expectation or belief is Where the company expresses or implies an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and believed to have a reasonable basis. However, forward looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by such forward looking statements. Such risks include, but are not limited to metals price volatility, currency fluctuations, production performance, increased production costs and variances in ore grade or recovery rates from those assumed in mining plans, project delay or advancement, environmental risks, approvals and cost estimates, as well as political and operational risks in the countries and states in which we sell product to, shipping risks and governmental regulation and judicial outcomes. The company does not undertake any obligation to release publicly any revisions to any forward looking statement to reflect events or circumstances after the date of this presentation, or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws. All references to dollars, cents or $ in this presentation are to Australian currency, unless otherwise stated. References to “Perilya” or “company” references to Perilya Limited (ABN 85 009 193 695) or its applicable subsidiaries. Competent Person Statement: The information contained in this report relating to the Ore Resource at Mt Oxide is based on information compiled by Mr Martin Jones who is a full-time employee of Perilya and is a member of the Australasian Institute of Mining and Metallurgy. Mr Jones has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Jones consents to the inclusion in the report of the matters based on the information in the p g p , p form and context in which it appears. 1

2 Perilya Mount Oxide Positioning our zinc, lead and copper assets for the future Flinders Hill Broken Hill k B

Lead/Zinc/Silver Production Comparison with Peers 80,000 60.0 70,000 70 000 50.0 60,000 es) 40.0 d/Zinc (tonne 50 000 50,000 lver (tonnes) ) 40,000 30.0 Lead Sil 30,000 20.0 20,000 10.0 0 0 10,000 0 0.0 Perilya* CBH* JML* Kagara* Terramin** * Basis 2008/2009 annual production Zinc Lead Silver ** Basis April-June Quarter annualised 3

Quarterly Performance – Overview H1 H2 Sept Qtr Highlights Dec 08 Jun 09 2010 PRODUCTION STATISTICS Production of 28,900tns combined Zn+Pb � Ore Total Ore Mined (kt) ( ) 788.9 737.6 349.7 Quarterly costs of US$0 38/lb zinc remain Quarterly costs of US$0.38/lb zinc remain � � Total Ore Treated (kt) 839.1 750.9 345.0 under target of US$0.50 – US$0.55/lb, Zinc despite 9 days lost production due to Grade (%) 5.3 5.4 5.4 Concentrate (kt) 81.5 72.8 33.9 regional power outage (lost production Contained Zinc (kt) 40.1 35.2 16.4 estimated 4kt of combined metal) Payable Zinc (kt) 33.6 29.4 13.7 Lead Free cash increased from $36.9 million to � Grade (%) 3.0 4.4 4.2 $46.2 million (after payment of $7 million Concentrate (kt) 28.7 40.2 17.9 Contained Lead (kt) 20.4 27.7 12.5 being the net payment for the silver buy- being the net payment for the silver buy Payable Lead (kt) 19.4 26.4 11.8 back). Positive cashflow of $16.3 million Silver net off one-off silver buy-back payment Grade (g/t) 30.7 49.5 53.8 Contained Silver (Moz) 0.607 0.908 0.419 Broken Hill cash & earnings positive in � CASH COST & OPERATING MARGIN (US$/lb zinc) ( ) current environment Average Price Received 0.73 0.57 0.82 Direct Cash Costs 1.11 0.85 1.01 Silver sale termination completed during � (*) (0.25) (0.51) By-product credits (0.90) quarter Zinc treatment charges 0.22 0.24 0.27 N t C Net Cash Cost h C t 1 08 1.08 0 58 0.58 0 38 0.38 Cash Operating Margin 0.44 (0.35) (0.01) (*) Silver and Lead production net of treatment charges, freight, handling and realised lead/silver hedging gains and losses 4

Perilya - General � Experienced Operators Long history of mining in Broken Hill – � Quality Assets Broken Hill - a solid foundation with 2.8Mtpa concentrator. LOM plan 8+ years based – on reserves (being updated for release in December Quarter) Mount Oxide - potential low cost copper project – Flinders – optionality – cashflow positive – Holding low cost add-ons that can be fast tracked into production – � Strong Major Shareholder (50.1%) that is delivering Balance Sheet strength Balance Sheet strength – Industry experience in mining, processing, smelting and marketing – Potential for future off-take agreements – Opportunities for synergies – 5

Broken Hill – Line of Load In excess of 250 000 000 t mined at 10% Pb 13% Zn 115g/t Ag In excess of 250,000,000 t mined at 10% Pb, 13% Zn, 115g/t Ag 7km strike length 6

Recent History: Reduction in Employees - Broken Hill � Major reduction in employees in Employee Manpower Trend 2008 - 09 September 2008 in response to market 800 trends 700 600 � Selective process based on capability 500 400 300 Safety performance – 200 100 0 Skill Level to match available roles – 8 8 8 8 9 9 9 9 8 8 8 8 8 8 8 9 9 9 8 9 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 - - - - - - - - - - - - - - - - - - - - n b r y n l p t v c n b r y n l r u g r u g a c a a e p a u e o e a e p a u J u J u M O M A M S N D A M J F J A J F J A Individual performance – Actual Linear (Actual) � Building a team � Building a team With strong leadership and a belief – that success was possible Having a strong focus on achieving – targets Doing what we say we are going to do – 7

Recent History: Productivity Improvement - Broken Hill � Productivity improvement built on Tonnes Hoisted per Employee (t) strong systems and good planning 450 400 processes 350 300 300 250 � A robust Mine Planning Process 200 150 100 Set up Mine2-4D LOM plan – 50 0 Set up detailed activity based EPS 8 8 8 8 8 8 9 9 9 9 9 9 7 7 8 8 8 8 8 9 8 9 – 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 - - - - - - - - - - - - - - - - - - - - - - v c n b r y n l p t v c n b r y n l r u g r u g a c a o e a e p a u e o e a e p a u J u J u M O M N D A M S N D A M J F J A J F J A schedule Actual Linear (Actual) � Improve Development output � Improve Production output Detailed plan – Focus on high grade Pillar mining – Focus on priority areas – activities (Toe City) ( y) Improved use of in cycle shotcreate – Focused on metal tonnes not just ore – Setting Standards and training – tonnes Debottlenecking the mine operational Debottlenecking the mine operational – – E Equipment utilisation and reliability i t tili ti d li bilit – activities 8

Recent History: Cost Reductions - Broken Hill Operating with smaller teams and reducing � Cost / t Payable Metal (A$) 3,000 administration and support staff 2,500 2 000 2,000 Doing without the “nice to have” � 1,500 1,000 Drive to eliminating waste � 500 0 0 Strong negotiation with Service providers and � 7 7 8 8 8 8 8 8 8 8 8 8 9 9 9 9 9 9 8 8 9 9 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 - - - - - - - - - - - - - - - - - - - - - - v c n b y n l p v c n b y n l r u g t r u g a r c a r o e a e p a u e o e a e p a u J u J u M O M N D J A M J S N D J A M J F A F A Suppliers Actual Linear (Actual) Providing better information to operating Providing better information to operating � � C Cost / Tonne Ore Milled / O (A$) areas as to where their spend is 160 140 120 100 80 60 40 20 0 7 7 7 7 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 9 9 9 9 9 9 9 9 9 9 8 8 8 8 9 9 9 9 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 - - - - - - - - - - - - - - - - - - - - - - v c n b r y n l p v c n b r y n l r u g t r u g a c a o e a e p a u e o e a e p a u J u J u M O M N D J F A M J S N D J F A M J A A Actual Linear (Actual) 9