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.