Ann: June Quarter 2009 Activities and Cashflow Re, page-6

re: Ann: June Quarter 2009 Activities and Cas... Cost performance
The average cash cost (C1) for the June quarter of US$1.15/lb of copper after precious metal
credits4 was higher than that for the previous quarter largely reflecting the impact of lower
copper production and lower gold credits as gold dor¨¦ production from the seasonal heap leach
gold operation was suspended (refer to Table 4 in the Attachment). The average cash cost for
the half©\year to 30 June 2009 was US$0.91/lb of copper after precious metal credits (Table 4).
Cash costs in 2009 are expected to average approximately US$0.85/lb copper after precious
metals credits5 (previous guidance US$0.80/lb). This positions Phu Kham as a competitive
copper producer in global terms.