Second Quarter Results 2010

OMX: LUMI

Cautionary Statements

Caution Regarding Forward Looking Statements

This presentation contains forward-looking statements. These forward-looking statements are not based on historical facts but rather on current expectations and projections about future events These historical facts, but rather on current expectations and projections about future events. These forward-looking statements are subject to risks and uncertainties. These risks and uncertainties could cause actual results to differ materially from the future results expressed or implied by the forward-looking statements. Such risks may include without limitation: risks and uncertainties relating to foreign currency fluctuations; Such risks may include, without limitation: risks and uncertainties relating to foreign currency fluctuations; risks inherent in mining including environmental hazards, unusual or unexpected geological formations, ground control problems and flooding; risks associated with the estimation of mineral resources and reserves and the geology, grade and continuity of mineral deposits; the possibility that future exploration, development or mining results will not be consistent with the Company’s expectations; the potential for and de e op e t o g esu ts ot be co s ste t t t e Co pa y s e pectat o s; t e pote t a o a d effects of labor disputes or other unanticipated difficulties with or shortages of labor or interruptions in production; actual ore mined varying from estimates of grade, tonnage, dilution and metallurgical and other characteristics; the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses; and commodity price fluctuations.

For further details of other risks and uncertainties see Risk Factors Relating to the Company’s Business in the Company’s Annual Information Form and in each management discussion and analysis.

Presenter

PHIL WRIGHT

PHIL WRIGHT PRESIDENT & CEO

Questions

JOAO CARRELO EXEC. VP & COO

MARIE INKSTER CFO

PAUL CONIBEAR SVP CORP DEVELOPMENT

Q2 Highlights

ƒ

Metal prices 30% to 70% higher than same quarter last year, Euro 7%

weaker against US dollar, SEK 5% stronger

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Production recovering well from Q1 issues. Aguablanca still has some

challenges

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Net Income $75 6 million or $0 13 p/share improved from last year’s $43 5

Net Income $75.6 million or $0.13 p/share, improved from last year s $43.5

million or $0.08 per share. Net cash improved by $200+ million.

ƒ

Tenke at copper nameplate capacity. Equity earnings of $8.3 million; EOC

Tenke at copper nameplate capacity. Equity earnings of $8.3 million; EOC

facility reduced to $188.9 million, reduction of $26.8 million during the quarter

ƒ

Project advances:

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ƒ Neves-Corvo shaft expansion complete ƒ Lombador pre-feasibility complete; and

Zinkgruvan copper project successfully started up ƒ Zinkgruvan copper project successfully started-up

Normalized Earnings

Q2 '10 Q2 '09 Q1 '10

$ Millions _{Q2 10 Q2 09 Q1 10}

75.6

43.5 74% 38.0

Derivative (gains) losses pre-tax _{(11.2) 9.2 0.5} AFS iti ( i ) t _{(32 4) (0 6)}

Reported Net Income

AFS securities (gains) pre-tax _{(32.4) - (0.6)} Tax on above _{7.7 (2.4) (0.1)} Non-recurring tax adjustments 1,2 _{13 6 (6 2)} -Non recurring tax adjustments _{13.6 (6.2)}

53.3

44.1 21% 37.8

0.09

$ $ 0.08 $ 0.07

Adjusted Net Income

Earnings per share - continuing operations

Q Q ( ) 0.09 $ $ 0.08 $ 0.07 2  Q2 '09  ‐$(6.2) is a partial recovery of valuation allowance on loss carry‐forwards in Spain g p g p 1  Q2 '10 ‐ $13.6 is an increase in future tax liability related to the 2.5% tax rate increase in Portugal

ƒ Large negative price adjustments in Q2 2010 vs Q2 2009 (copper and nickel)

Financial Position

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Net cash at June 30, 2010 of $107.8 million, an increase of $97.6

million for the quarter

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The change in net cash during the quarter is after:

ƒ $32.4 million of capital expenditure;

ƒ $6.8 million advanced in respect of Tenke; and

ƒ includes $59.9 million from the sale of investments and AFS securitiesincludes $59.9 million from the sale of investments and AFS securities

ƒ

Operating cashflow of $78.8 million during the quarter compared to $63.7

million for the same quarter last year

million for the same quarter last year

2 000 1,960 474

Change in Production: Q2 ‘10 and Q2 ‘09

Tonnes Tonnes 30 000 pper _{1 600} 1,800 2,000 1,715 121 109 474 ckel 20 000 25,000 30,000 _23,992 21,774 1,416 676 4,311 Co p 1 200 1,400 1,600 Ni c Excluding Tenke 7,038t attributable share 10 000 15,000 20,000 1,200

Q2 2009 Throughput Grade Recovery Q2 2010

Tonnes Tonnes

10,000

Q2 2009 Throughput Grade Recovery Q2 2010 40,000 4 147 190 11,678 14,000 12 478 1,958 616 27 _2,839 nc 30,000 _ead 35,000 31,962 216 4,147 190 12,000 12,478 10,953 616 Zi Le 20,000 25,000 24,458 8,000 10,000

Corporate Operations Projects Exploration Growth

Cash Costs: Q2 2010 and Q2 2009

Cash cost per lb of primar metal

Q2 '10 Q2 '09 Q2 '10 Q2 '09 (US cents) (local currency)

Cash cost per lb of primary metal

Neves-Corvo Gross cost 127 112 101 82

(Local in € cents) By-product* (7) (2) (5) (2)

Copper _{Net cost 120 110 96 80}

Copper _{Net cost 120 110 96 80}

Zinkgruvan Gross cost 69 63 530 498

(Local in SEK) By product* (41) (23) (318) (293)

(Local in SEK) By-product (41) (23) (318) (293) Zinc Net cost 28 40 212 205

Aguablanca Gross cost 777 760 621 557

Aguablanca Gross cost 777 760 621 557

(Local in € cents) _{By-product* (234) (271) (189) (200)} Nickel _{Net cost 543 489 432 357} * By-product is after related TC/RC

Copper Dominant, Zinc Leverage

Q2 ‘10 Revenue Contribution by Metal Q2 ‘09 Revenue Contribution by Metal

Note: This analysis does not include Tenke. Inclusion of Tenke in the above would substantially increase the contribution of copper

Corporate Operations Projects Exploration Growth would substantially increase the contribution of copper.

Change in Prices: Q2 ‘10 & Q2 ‘09

Copper $/lb

3.18

2.12

_3.29

Average LME

pp

Zinc

$/lb

0.92

0.67

1.04

Lead

$/lb

0.88

0.68

1.01

Nickel

$/lb

10 15

5 89

9 11

Nickel

$/lb

10.15

5.89

9.11

EUR/USD

1 27

1 36

_{1 38}

EUR/USD

1.27

1.36

_1.38

SEK/USD

0.13

0.13

0.14

Financial Results

Q2 '10 Q2 '09 Q1 '10

Selected Financial Information: $ Millions

183.1 194.8 -6% 141.7 (97.1) (94.6) 3% (72.3) (5 2) (9 2) 43% (4 8)

Operating costs including ARO

SG&A and stock based compensation Sales

(5.2)

(9.2) -43% (4.8)

80.8

91.0 -11% 64.6

Add (deduct): Depreciation, Amortization (32.6) (38.5) (36.2)

SG&A and stock-based compensation

Operating Earnings

Selected items only _{Exploration/project investigation (5.6) (4.1) (4.6)}

Other income and expenses _{12.4 9.7 7.4} Derivative contracts _{11 2 (9 2) (0 5)} Derivative contracts _{11.2 (9.2) (0.5)} Gain on sale of AFS securities _32.4

-Tenke equity investment _{8.3 (3.4) 17.2} Income tax(expense)/ recovery _{(31.3) (2.0) (9.9)}

75.6

43.5 38.0 Income from continuing operations

Corporate Operations Projects Exploration Growth

0.13

$ $ 0.08 $ 0.07

Change in Operating Earnings: Q2 ‘10 & Q2 ‘09

Q2 2009 Volume Price & Adj.

Cost FX Closures Q2 2010 Actual

Tenke Production

Q2 '10 Q2 '09 Q1 '10

100% basis: Lundin attributable 24.75% _{Q Q Q} Copper cathode (tonnes)

Production 16,48328,438 28,769

S l 24 997 11 894 29 772

Sales 24,997 11,894 29,772

Average realized price/lb $ 2.96 $ 2.20 $ 3.26

Cobalt (contained tonnes) Cobalt (contained tonnes)

Production 1,651 n/a 2,231

Sales 1,718 n/a 1,476

/ $ $

Average realized price/lb $ 12.72 n/a $ 12.07

Net cash costs/lb of copper:

Gross cost $ 1 27 n/a $ 1 37

Gross cost $ 1.27 n/a $ 1.37

Cobalt credits $ (0.54) n/a $ (0.40)

Royalties $ 0.06 n/a $ 0.07

Corporate Operations Projects Exploration Growth

Tenke Investment

Q2 '10 Q2 '09 Q1 '10

$ Millions _{Q2 10 Q2 09 Q1 10}

Income (loss) from investment 8.3 (3.4) 17.2 Excess Overrun Facility

$ Millions

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Change during quarter (26.8) 42.3 (11.4) Closing balance 188.9 196.1 215.7

ƒ Production issues in April, throughput now consistently above design capacity ƒ Freeport continuing to address start-up and quality issues in the cobalt circuit

and implementing corrective actions over the next several quarters

ƒ Freeport are expecting copper production to increase from 115,000 tpa in 2010 to over 130 000 in 2011

to over 130,000 in 2011.

ƒ Expansion study work, scheduled for completion around mid-year, will continue into the third quarter of 2010.

Q1 ‘11. Technical report will be filed following completion of this study.

ƒ Phase I of Lombador:

ƒ Lift zinc at Neves-Corvo from a nominal 50 000 tpa to 140 000 tpa

270 L l

50,000 tpa to 140,000 tpa

ƒ Capital cost of approximately €140 million. ƒ An expected start-up date of 2013

270 Level

ƒ Cash costs expected to be in third-quartile on a normal costing basis.

ƒ Lombador ramp, commenced in 2009, now at 500 level. Due to reach 300 level (900 metres below surface) by Q1-2012. An exploration drive to be developed at this level to allow underground exploration of the remainder of the orebody

Corporate Operations Projects Exploration Growth

Tonnes C1 Tonnes C1 _Comment

Neves-Corvo Cu 77 000 $ 1 25 77 000 $ 1 25 No change

Outlook

Neves Corvo Cu 77,000 $ 1.25 77,000 $ 1.25 No change Zn 6,000 6,000

Zinkgruvan Zn 75,000 $ 0.30 75,000 $ 0.30 No change Pb 36 000 36 000

Pb 36,000 36,000

Cu 1,000 1,000

Aguablancag Ni 7,500, $ 6.25 7,900, $ 6.25 Decreased nickel

Cu 6,500 7,000 and copper Galmoy Zn 14,000 14,000 No change (in ore) Pb 4 000 4 000 (in ore) Pb 4,000 4,000 Total Cu 84,500 85,000 Zn 95,000 95,000 Pb 40,000 40,000 Ni 7,500 7,900 Tenke Cu 28 500 28 500 No change Tenke Cu 28,500 28,500 No change (attributable share)

Outlook

ƒ Guidance for 2010, as given at the end of the first quarter, is maintained for all g q operations, except Aguablanca

ƒ Aguablanca is still dealing with the effects of heavy rain which has contributed to the zones of instability in the pit Aguablanca also notified of possible rolling

the zones of instability in the pit. Aguablanca also notified of possible rolling

industrial action commencing July 31, 2010. As a precaution, guidance has been reduced.

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Zinc at Neves-Corvo to resume in 2011 at rate of 50,000 tpa. Earlier start

at rate of 25ktpa is under evaluation

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$40

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Capex guidance for the year reduced to $190 million: Tenke now at $40

million, the bottom-end of previous guidance. Tenke expansion study work

will continue into the third quarter

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Exploration/resource evaluation increased to $24 million

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Volatility likely to remain high in 2010 with an improving outlook thereafter

Volatility likely to remain high in 2010 with an improving outlook thereafter

Questions

PHIL WRIGHT

PHIL WRIGHT PRESIDENT & CEO

JOAO CARRELO

JOAO CARRELO EXEC. VP & COO

MARIE INKSTER

MARIE INKSTER CFO

PAUL CONIBEAR