.Recent Update Text as of 15NOV12 ML reported Q3/12 financial results Wednesday evening. Production and detailed

. operational results had been previously announced. Adjusted EPS and CFPS were lower than our estimates and consensus on lower

revenue, due to timing of sale of a shipment of copper concentrate, and higher

per ton operating costs, due to previously announced power shortages to the mill

as result of unexpected damage to the gas turbine. Copper sales of 8.2Mlb were

23% below our estimate of 10.7Mlb as 2.3Mlb accumulated in inventory at port

awaiting shipment and was subsequently sold in the first week of October. . ML reports an adjusted EPS of loss of $0.01. We calculate a small positive

adjusted EPS of $0.00 which was below our estimate and consensus of positive

$0.01. Operating cash flow before changes in working capital items of $0.01 was

below our estimate of $0.04 and consensus at $0.03 (see Exhibits 1 and 2). . At Q3/12 end, there was $3.6M in unrestricted cash and equivalents and on the

balance sheet and negative working capital of $63.8M; however, subsequently ML

completed a private placement equity financing for net proceeds of C$27.2M and

amended its debt facilities. We estimate ML to improve its working capital

position to negative $4.6M by year end. . We maintain our 2-SP rating and C$2.00 target price.

Mark Turner, MBA, P.Eng. (Scotia Capital Inc. - Canada)

mark.turner@scotiabank.com / (416) 863-7484