Xstrata Copper: Xstrata Copper announces Divestment of its 70% interest in El Morro

Xstrata Copper announces that its subsidiary Xstrata Copper Chile SA has entered into a formal sale agreement with Barrick Gold Corporation for Xstrata's 70% interest in El Morro SCM, the holder of the El Morro copper-gold project, and associated rights and assets, for a total cash consideration of US$465 million. The transaction remains subject to several conditions before completion and is expected to close prior to 30 January 2010.

Xstrata Copper Chief Executive Charlie Sartain said "The agreement to divest our interests in the El Morro project represents the successful outcome of a competitive process. While we have demonstrated through the feasibility study that El Morro has strong prospects, our agreement with Barrick is a recognition that it will create more value as part of Barrick's portfolio than Xstrata Copper's. This is in view of the potential synergies with Barrick's existing interests in the region and Xstrata Copper's significant pipeline of organic growth projects in a number of countries, including the north of Chile.

"Xstrata Copper continues to have a world class pipeline of copper greenfieldand brownfield expansion projects providing us with significant optionality for future growth. The sale of our interest in the El Morro project will enable us to better direct our resources towards our other priority development projects, five of which are progressing to the final decision stage over the coming months," said Sartain.

Xstrata Copper will continue to have an active presence in Chile through its Lomas Bayas copper mine, Altonorte Metallurgical Complex, 44% interest in the Collahuasi joint venture and the Energia Austral hydropower plant project.

Notes to editors

ABOUT XSTRATA PLC

Xstrata is a global diversified mining group, listed on the Londonand Swiss Stock Exchanges, with its headquarters in Zug, Switzerland. Xstrata's businesses maintain a meaningful position in seven major international commodity markets: copper, coking coal, thermal coal, ferrochrome, nickel, vanadium and zinc, with a growing platinum group metals business, additional exposures to gold, cobalt, lead and silver, recycling facilities and a suite of global technology products, many of which are industry leaders. The Group's operations and projects span 19 countries.

ABOUT XSTRATA COPPER

Headquartered in Brisbane, Xstrata Copper is one of the commodity business units within the major global diversified mining group Xstrata plc. Its operations and projects span eight countries: Australia, Argentina, Chile, Peru, Canada, the USA, the Philippinesand Papua New Guinea. Its operations are administered by five separate divisions, based close to the mining operations, namely the North Queensland, Minera Alumbrera, NorthChile, Southern Peru and Canadadivisions. It also has a recycling business (Xstrata Recycling) with plants in the United Statesand offices in Canadaand Asia.

In Chile, Xstrata Copper's North Chile Division is headquartered out of the city of Antofagasta and manages the Lomas Bayas open pit copper mine and Altonorte Metallurgical Complex, both in Antofagasta Region, and Xstrata Copper's 44% interest in the Collahuasi open pit copper mine in TarapacAi Region. Xstrata Copper is also developing the Energia Austral hydropower project in Aysen Region in southern Chile.

Xstrata Copper is the fourth largest global copper producer with annual attributable production capacity of nearly one million tonnes.

ABOUT EL MORRO

The El Morro copper-gold project is located 4,000 metres above sea level in the district of Alto delCarmen, in the Atacama region of north-central Chile. Xstrata Copper acquired El Morro project in August 2006 as part of the Xstrata Group's acquisition of Canadian miner Falconbridge. In December 2007 Xstrata completed a Feasibility Study on El Morro and in November 2008 submitted for approval to the Chilean authorities the project's Environmental and Social Impact Assessment (ESIA). The ESIA is still under evaluation by the Chilean authorities.

The partners in El Morro SCM are Xstrata Copper (70%) and New Gold subsidiary Datawaves Sciences Inc.

CONTACT: Claire Divver, Investors and analysts, Xstrata plc Tel: +44 (0)207 968 2871 Tel: +44 (0)7785 964 340 e-mail: cdivver@xstrata.com Hanre Rossouw, Investors and analysts, Xstrata plc Tel: +44 (0)20 7968 2820 Tel: +44 (0)7879 455 885 e-mail: hrossouw@xstrata.com Emily Russell, Xstrata Copper Tel: +44 (0)1865 510918 Tel: +44 (0)7795 571 023 e-mail: erussell@xstratacopper.com WWW: http://www.xstrata.com

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