Investing in Africa

A Global Growth Portfolio

A Fast Growing Base Metals Producer

• • • •

Globally diversified - copper, lead, zinc and nickel Six profitable operating mines Two major expansion projects (Lombador Zn, Zinkgruvan Cu) World-class project development pipeline

– Tenke Fungurume (Cu) – Ozernoe (Zn)

• •

Significant exploration potential – existing mines Global exploration through strategic partnerships

Production Diversification 2007 Revenue Distribution

Zinc

Nickel

Copper Lead

Assumes for illustration purposes consolidation of Aguablanca as of Q1 2007

2008 Production Targets 202,000 t zinc 92,000 t copper 48,000 t lead 6,800 t nickel

Doubling production within 5 Years

A Major Investor in Africa

Tenke Fungurume “…one of the largest/highest grade copper/cobalt resource in the world”

Ownership and Funding

• 17.5%

Gecamines

(carried interest)

• 24.75% • 57.75%

(operator)

• 70:30 Freeport/Lundin funding obligations

A World Class Copper District

Mineral Resources Measured and Indicated:

235 million tonnes 3.01% copper / 0.31% cobalt

Inferred:

264 million tonnes 2.60% copper / 0.19% cobalt *NI 43-101 June 2006, Mintec and Nilsson Mine Services

Mine Plan and Resource Expansion

• 40 year mine plan • Kwatebala, Fwaulu and Goma deposits developed first

• Open pit - low strip ratio • First 10 years grade 4.57% copper and 0.40% cobalt

• Prove up new high grade for expansions with aggressive drilling > 50,000 m/year

Development Plan

• • • • •

Initial phase – 115,000 tpa Cu cathode / 8,000 tpa Co Construction in progress – direct cost $US900 million Production start-up in 2009 Cash costs in lowest quartile Objective to expand to + 400,000 tpa copper

Mining Method

Mining machine – training underway with prestripping

Process Process Copper / Cobalt Ore From Mine

Grinding

Whole Ore Agitated Leaching

Tailings Neutralization Residue to disposal

Thickening and Counter Current Decantation

First and Second Stage Impurity Removal

Solvent Extraction

Cobalt Hydroxide Precipitation

Electrowinning

Cobalt Refinery

Copper cathode to Market

Intermediate product to Market

Cobalt metal to Market

14

Regional Infrastructure Construction Village

Plant

Airstrip

Access Road Waste Dump Tailings Pond

220 KV Power Line

Fwalu Pits Kwatebala Pit Goma Pits

SNEL Power Substation TFM Camp

SNCC Railway

150 KV Power Line

National Road Each grid line = 2km

15

DRC’s Latent Power Supply •

Four hydro generating plants

•

Surplus power being exported at low rates

•

Investing in reliability

•

Restarting latent capacity

Transportation – A key Issue

Corporate Social Responsibility

Tenke Fungurume training programs

• •

Equator Principles

• •

Applicable IFC guidelines

•

Extractive Industries Transparency Initiative

•

Social programs managed by NGO’s

Voluntary Principles - Security and Human Rights

Freeport/Phelps Dodge corporate standards

Key Social Issues •

Involuntary Displacement/Resettlement

• •

Community Development

•

Review of contracts

Employment/Economic Opportunities

Community Meeting in Mulumbu

Current Development Activities

• • •

Design 70%, Procurement 80% complete

•

Continuous miner training, pre-stripping

Construction 20% complete Civil works well advanced, concrete, platework and steel erection in progress

Construction Progress

Trends in the DRC

…the majority of DRC’s important copper assets advancing with high industry standards

For the DRC •More than 50% of the cash flow goes to the DRC and Gecamines

Freeport/ Lundin

DRC Govt 40%

49%

•Including indirect revenues, more than 60 % of Tenke Fungurume value accretes to DRC

•Tenke Fungurume will contribute significantly to the economy and rebuilding of the DRC Gecamines 11%

For Lundin Mining Shareholders

• • • • •

24.75% of the world’s largest new copper district Strong project economics Well funded, low cash costs Extraordinary upside potential Stepping stone to additional significant African investments

Tenke Fungurume

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 forwardlooking 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.

Caution Regarding Inferred Resources This presentation uses the terms "Measured", "Indicated" and "Inferred" Resources. U.S. investors are advised that while such terms are recognized and required by Canadian regulations, the Securities and Exchange Commission does not recognize them. "Inferred Resources" have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred resource will ever be upgraded to a higher category. Under Canadian rules, estimated of Inferred Resources may not form the basis of feasibility or other economic studies. U.S. investors are cautioned not to assume that all or any part of Measured or Indicated Resources will ever be converted into reserves.