seep option

Under the Heads of Agreement, and subject to Universal shareholder approval (amongst other
conditions), Xstrata Copper will inject $6.6 million of new equity into Universal, giving Xstrata Copper
13.2% of Universal’s expanded share capital of 227.2 million shares. The shares will be subject to a
voluntary Restriction Period for two years and a right for Universal to place the shares in the event of
Xstrata Copper wishing to dispose of them once the Restriction Period expires.

$4.4 million of the placement funds raised will be allocated towards the current feasibility study of a
proposed 7-10mtpa mining and processing operation at Roseby based on the current combined sulphide
and oxide resources totalling 82 million tonnes grading 0.88% copper (the “Roseby Feasibility Project”
or “RFP”). If the RFP is positive and Universal develops the proposed mining operation, it will manage
and operate the mine and processing facilities as long as it holds the majority interest in the project.

$2.2 million of the placement funds will be allocated to the Sulphide Extension Exploration Project
(“SEEP”) – a major new exploration initiative at Roseby targeting potentially large sulphide copper
deposits below and/or along strike from the existing 60 million tonnes of stratabound oxide copper
mineralisation. The potential for a major copper sulphide system extending regionally below the known
oxide resources was first recognised by Universal in 2000. An updated geological model for this
mineralisation was reported to shareholders in December 2004.

The SEEP program will be undertaken by Xstrata Copper within the defined SEEP Area over the period
to December 2006. Following completion of the initial $2.2 million expenditure, Xstrata Copper may
elect to continue exploration within the SEEP, in which case it may earn a 51% interest in the SEEP by
either:

• sole funding $15 million of exploration expenditure within the SEEP; or
• expending not less than $10 million and completing a feasibility study based upon the SEEP
resources.