The Perseverance deposits are located close to Xstrata’s existing mill infrastructure in Matagami, Quebec. A feasibility study on the Perseverance and Equinox deposits has been completed under the Company’s internal review process. Construction is proceeding ahead of schedule and commercial production is expected to commence in the third quarter of 2008. The mine commenced production ahead of schedule on 1 July 2008 and within the original budget. At expected production rates the mine will have a life of 5.5 years.

At the design mining/milling rate of 2,600 tonnes per day, the mine is expected to produce approximately 115,000 tonnes of zinc and 9,000 tonnes of copper in concentrates.

Discovered in April 2000, a full feasibility study was completed in 2002 but was not advanced due to the depressed zinc market at the time. The Matagami mill has been maintained for Perseverance after Bell-Allard mine closure in 2004. Project approval was announced on August 11, 2006. Xstrata holds 100% interest in the Perseverance deposits having acquired Société de Développement de la Baie James 10% interest in 2006.

The Perseverance mine is the eleventh mine to be developed in the Matagami mining camp since 1964. Further exploration is continuing in the camp through a joint venture agreement with Donner Metals.