Duck Pond Relincho (100% owned) Galore Creek (50% owned) Mesaba (100% owned) CESL Limited (CESL) Markets Generations 39 Copper prices on the London Metal Exchange (LME) averaged US$3.61 per pound in 2012, down US$0.39 per pound  from the 2011 average. Demand for copper metal grew by 2.1% in 2012 to reach an estimated 19.7 million tonnes globally. Growth outside of  China remained relatively subdued, with improved growth in North America offset by continued weakness in Europe.  Growth in real demand in China, estimated at between 5% and 6%, was also weaker than in prior years, despite an  increase in refined copper imports into China. In 2012, global copper production increased 2.2% to reach just over 20 million tonnes for the year. Copper scrap  availability remained tight for most of 2012, with Chinese imports up 3.8% over the previous year. We expect that  scrap will again play an important part of the supply picture in 2013. Located in Richmond, B.C., CESL focuses on advancing and commercializing our proprietary hydrometallurgical  technology. We have a well-tested suite of technologies suitable for treating complex copper, copper-gold, copper- nickel and nickel concentrates, particularly those with deleterious elements such as arsenic or magnesium, which  inhibit the sale of concentrates to conventional smelters. In 2013, the CESL team will continue to pursue opportunities  to unlock metallurgically challenged resources to create additional value by employing the CESL process. Work on an advanced scoping study at the Mesaba copper-nickel project in northern Minnesota was completed in  2012. Further optimization studies will be conducted in 2013, including some metallurgical and infill drilling. The Galore Creek project is located in northwest B.C. In 2012, a work program including approximately 25,000 metres  of infill and geotechnical drilling was completed. An additional 10,000- to 12,000-metre exploration drill program is  planned in 2013. Relincho, a major greenfields copper project, is located in central Chile, approximately 110 kilometres east of the port  city of Huasco at an altitude of 2,200 metres above sea level. Permitting delays have affected the progress of third-party  port and power supply facilities that we had expected to use for Relincho and will delay the completion of the feasibility  study, which is now expected to be complete at the end of the fourth quarter of 2013. Exploration and geotechnical  drilling are ongoing, and a new resource and reserve estimate is expected at the completion of the feasibility study.  Based on the prefeasibility study, copper production would average 195,000 tonnes per year in the first five years  of full production and 180,000 tonnes per year over the initial 22-year mine life. In addition, 6,000 tonnes per year of  molybdenum could be produced as a byproduct over the life of the mine.  The Boundary open pit is currently in development and will provide a supplemental feed source starting in the second  half of 2013 as underground reserves become depleted. The current mine life extends to early 2015 and we are working  to extend the life of the mine. Duck Pond’s production in 2013 is expected to be approximately 14,000 to 16,000 tonnes  of copper and between 12,000 and 16,000 tonnes of zinc. Copper production in 2012 was 14,100 tonnes and zinc production was 19,500 tonnes. This compares with copper  production of 13,200 tonnes and 21,300 tonnes of zinc production in 2011.  We own 100% of the Duck Pond underground copper-zinc mine located in central Newfoundland. Duck Pond’s gross  profit before depreciation and amortization was $42 million in 2012, compared to $57 million in 2011 and $58 million  in 2010. Gross profit declined in 2012, primarily due to lower metal prices.