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Brisbane, 8 February 2011

Xstrata Copper announces significant increases in both the total Mineral Resource estimate and Measured and Indicated Resources for the Horse-Ivaal-Trukai (HIT) deposit at the Frieda River copper-gold project in Papua New Guinea.

The new HIT resource estimate comprises a total of 1.9 billion tonnes at a grade of 0.45% copper, 0.22 grams per tonne gold and 0.7 grams per tonne silver, using a cut-off grade of 0.2% copper. This represents 8.6 million tonnes of contained copper metal and 14.3 million ounces of contained gold metal.

Contained copper has increased by 52% in the total Mineral Resource and by 125% in the Measured and Indicated resource categories, compared to the update released in January 2010. Importantly, Measured and Indicated resources now comprise 58% of the estimated total Mineral Resource. The new estimate includes the results of 34,000 metres of additional resource drilling in the first nine months of 2010.

Xstrata Copper Executive General Manager, Project Development Asia Pacific, Peter Forrestal, said the latest results continued to confirm Frieda River’s potential as a significant copper-gold producer in the Asia-Pacific region.

"Since assuming management control of the Frieda River Project in January 2007, we have conducted an aggressive evaluation programme, including over 50,000 metres of resource and geotechnical drilling in 2010.

"Following the delivery of the pre-feasibility study in October 2010, our focus is on finalising the drilling programme and technical studies for the feasibility study which is scheduled for completion in the first quarter of 2012.

"We also continue to undertake extensive environmental baseline studies and stakeholder engagement activities for the project’s Environmental and Social Impact Assessment (ESIA) which we expect to finalise by the end of the year," said Mr Forrestal.

The Frieda River Project pre-feasibility study outlined a potential open pit mining operation based on:

• An annual average copper production of 190,000 tonnes per annum and 280,000 ounces per annum of gold, over 20 years;
• An average milling rate of 50 million tonnes per annum (60 million tonnes per annum for the first eight years);
• Average mill recovery rates of 85% for copper and 70% for gold; and
• Indicative capital cost of $5.3 billion, including provision for a hydro power plant.

Table 1 Horse-Ivaal-Trukai Mineral Resources* 

Resource Class	Mt	Cu (%)	Au (g/t)	Ag (g/t)
Measured	300	0,52	0,31	0,80
Indicated	800	0,48	0,24	0,80
Inferred	800	0,4	0,2	0,7
Total	1.900	0,45	0,22	0,7

* Horse-Ivaal-Trukai is a copper-gold porphyry deposit located on the border of Sandaun and East Sepik provinces in Papua New Guinea, approximately 200 kilometres from the coast and 70 kilometres from the navigable Sepik River. The Mineral Resource estimate is reported above a 0.2% copper cut-off and is shown on 100% ownership basis as of 31 December 2010. The figures are constrained by topography and an economic pit calculated with Measured, Indicated and Inferred Resources. Numbers may not be exact as they are rounded for tabulation. Due to the uncertainty that may be attached to some Inferred Mineral Resources, it cannot be assumed that all or part of an Inferred Mineral Resource will necessarily be upgraded to an Indicated or Measured Resource after continued exploration.

*The January 2010 Mineral Resource was based on drill results available at the end of 2009 and a cut-off grade of 0.3% copper. For reference, the new Mineral Resource at a 0.3% cut-off grade is 1.4 billion tonnes at a grade of 0.52% copper, 0.26 grams per tonne gold and 0.8 grams per tonne silver.

*The information in this press release that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr. Raul Roco, who is a Member of The Australasian Institute of Mining and Metallurgy. Mr. Roco is a fulltime employee of the company. Mr. Roco has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr. Roco consents to the inclusion in the press release of the matters based on his information in the form and context in which it appears.

Xstrata Contacts
Emily Russell		Alison Flynn
Telephone:	+562 478 2204	Telephone:	+44 20 7968 2838
Mobile:	+ 569 9443 3571	Mobile:	+44 7769 314374
Email:	erussell@xstratacopper.com	Email:	aflynn@xstrata.com

ABOUT XSTRATA PLC

Xstrata is a global diversified mining group, listed on the London and Swiss Stock Exchanges. Headquartered in Zug, Switzerland, Xstrata maintains a meaningful position in seven major international commodity markets: copper, coking coal, thermal coal, ferrochrome, nickel, vanadium and zinc with additional exposure to gold, cobalt, lead and silver. The Xstrata Group also comprises a growing platinum group metals business, iron ore projects, recycling facilities and a suite of global technology products, many of which are industry leaders. The Group's operations and projects span 20 countries.

ABOUT XSTRATA COPPER

Xstrata Copper is the fourth largest global copper producer with attributable mined production in 2010 of 913,500 tonnes of copper in cathodes and concentrates. The company is also one of the world’s largest producers of smelter and refined copper, including from third party materials.

Headquartered in Brisbane, Xstrata Copper is one of the commodity business units within the major global diversified mining group Xstrata plc. Its mining and metallurgical operations and development projects span eight countries: Argentina, Australia, Canada, Chile, Peru, the Philippines, Papua New Guinea and the USA. Its operations and projects are administered through a regional divisional management structure, which ensures that critical decisions are taken close to the related businesses. It also has a recycling business (Xstrata Recycling) with plants in the United States and offices in Canada and Asia.

ABOUT THE FRIEDA RIVER PROJECT

The Frieda River copper-gold project is located on the border of the Sandaun and East Sepik provinces in Papua New Guinea (PNG), about 200 kilometres from the coast and 70 kilometres from the navigable Sepik River. It is a joint venture between Xstrata Frieda River Limited (81.82%), Highlands Frieda Ltd (18.18%). The project is managed by Xstrata Copper and is currently in the feasibility study stage, due for completion in the first quarter of 2012.