Taking Equinox from Junior Explorer to Global Producer

THE STORY OF LUMWANA

Not an overnight success….

18 years of challenges and survival

Seeds were sown in the exploration success of Hunter Resources

Equinox floated in 1994

Exploration – Australia, Sweden, Peru, Africa

Lumwana development – the challenges:

Financing

Construction

Operations

Community Relations

The “end game” – Equinox takeover by Barrick

EQUINOX Evolution from Explorer to Producer

History of Equinox – an example of the challenges of

building a successful mining company

Equinox founded in 1993 by Craig

Williams and Bruce Nisbet

Previously successful

exploration track record

Equinox floated on ASX in 1994

and raised A$9 million

Established team from Hunter

Resources

Initial focus on IOCG

Cloncurry and Gawler Craton

Nuckulla Hill discovery in 1996

EQUINOX BUILDING A MINING COMPANY

Equinox founded in 1993 and listed in 1994

Following the 1997 Bre-X fraud, the exploration industry went into a 7 year decline

Australia was also becoming more difficult to explore with “native Title” issues

Equinox decided to look for opportunities “Offshore”

Initially IOCG in Sweden

Then approached by Anglo American to explore for IOCG in Southern Africa

EQUINOX BUILDING A MINING COMPANY

“Opportunity” in difficult times

Zambezi JV: Equinox – Anglo

Equinox to manage target generation

Anglo to manage target drill out

Focused on Zambia

Handed over to Anglo in 1999

Equinox then had team with Zambian

expertise – looking for opportunities

Approached Phelps Dodge about Lumwana

Lumwana JV struck with Phelps Dodge in 1999

(copper price $0.63/lb Cu)

Equinox right to earn 51% by spending $10m,

then up to 75% for further $34m

Restructured 2003 to buyout remaining 49% for

$5m (PD to retain 1% NSR – buyout for $12.8m)

Initial Focus was exploration

applying integrated strategy of detailed geology,

geochemistry and airborne

magnetics/radiometrics

Substantial change to the previously applied

exploration models of the region

EQUINOX BUILDING A COPPER COMPANY

Lumwana: Exploration to Feasibility

EQUINOX BUILDING A COPPER COMPANY

Lumwana: Exploration to Feasibility

Pre-feasibility conducted in parallel with

exploration effort

Challenge was then to fund a full

bankable feasibility study

Funds required $13m

Equinox cash on hand $300k

Equinox Market Cap of <$7m

Equity market in Australia not

interested

Raised $13m non-recourse debt

(with equity kicker) from international

banks

Acquired a world class

copper asset, at the bottom

of the market

We knew it was sub-

economic at $0.63/lb Cu,

but maybe one day……

Equinox had the vision and

persistence to finance in

difficult times

Determination to complete

feasibility

Q3-2003 market started to

improve and recognize

value of Lumwana

We knew raising capital

required was not possible

on ASX, so listed on TSX

EQUINOX BUILDING A COPPER COMPANY

In difficult markets there is opportunity…

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Lumwana

Acquisition Lumwana

Feasibility

‘97 Crash

Feasibility

Financing

Market Cap (A$m)

Equinox ability to raise

equity capital escalated:

as Lumwana progressed

Copper price improved

Mid-05 financing facilitated

ordering of long-lead items

Major financing in late-05

facilitated commencement

of construction

Bank debt finalised in late-

06

Between 2005 and 2010

Equinox raised:

Equity $800m

Debt $600m

EQUINOX BUILDING A COPPER COMPANY

TSX listing facilitated equity financing

Share Price (A$)

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Lumwana

Construction

Commenced

$144.7m

$8.6m

TSX IPO

$15.6m $28.8m

$105.0m

$211.3m

$584m Bank

Debt

Lumwana construction commenced

early 2006 with clearing of site

Progressed through 2007 – 2008

On track for completion mid-2008

EQUINOX LUMWANA CONSTRUCTION

Scheduled for completion mid-2008

(Cu price >$3.00/lb)

Commissioning of mills was underway

EQUINOX LUMWANA CONSTRUCTION

Scheduled for completion mid-2008

(Cu price >$3.00/lb)

Commissioning of mills was underway

Transformer fire in July 2008

Delayed commissioning 5 months to

December 2008

Needed to raise an extra $80m of debt to see

us through (at the peak of the GFC)

First copper sold in Q1-2009 at $1.38/lb Cu

EQUINOX LUMWANA CONSTRUCTION

EQUINOX LUMWANA MINE OPENING

But again, we overcame those challenges and opened

the mine on 17th April 2009

Mine opened by President

Banda of Zambia

Most government

ministers and all local

chiefs and other

dignitaries celebrated

opening with 2,500 guests

An important occasion for

Zambia as well as for

Equinox

Terribly unfortunate that

Bruce did not live to see

this pivotal milestone of

Equinox history

Ramp up challenges during 2009

Mill performing well

Record wet season

Ramp up of material movement

from mine took longer than

expected

Steady improvement over 2009 year

Strong performance in 2010

Copper production 147,000 tonnes

Robust copper market

Strong cash flow

– revenue > $1.0 billion

EQUINOX RAMP UP OF OPERATIONS

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EQUINOX COMMUNITY RELATIONS

Licence to operate in emerging markets

Local community engagement and investment

Constructive government relations

Labour relations

Project financing

Commercial banks and in particular the Development

Agencies (DFI’s) e.g. World Bank/IFC, EIB, EFIC

Strong focus on Community Relations and

Environment (DFI’s more so than project economics)

Need to justify benefits of the mine development to

the local community

Often not easy as DFI:

Management often does not have mining

experience; and

are very sensitive to anti-mining NGO’s

Critical to gain community support for the

mine development

EQUINOX LOCAL COMMUNITY INITIATIVES

Community engagement required from an early stage:

Education:

Working with Provincial Education Office to improve

education outcomes

Scholarship programs for students

Scholarships to teachers to improve their effectiveness

Providing books, facilities, teaching aids, etc.

Health:

HIV/AIDS – intensive programs for prevention, treatment,

care and education

Malaria – treatment and eradication

Commercial capacity building:

Progressing from historic “subsistence agriculture”

Agricultural development – vegetable farming and

marketing, floriculture, commercial fisheries

Small to medium business development – crafts, textiles

Micro-finance initiatives to promote business development

Key objective is to promote local self sufficiency

“after Lumwana”

EQUINOX INFRASTRUCTURE DEVELOPMENT

Regional Infrastructure:

Benefits to the community as a consequence of Lumwana

development

Grid power delivery

Improved roads

Airport upgrade

Regional hospital developed at Manyama

Local Infrastructure:

Provided by Lumwana to regional community, just in 2010:

19 classrooms in 6 schools

2 science labs

1 library

22 staff houses

3 rural health clinics

3 welfare centres

All completed with high level of community engagement,

with local people fabricating bricks, providing labour, etc

EQUINOX LOCAL COMMUNITY EMPLOYMENT

Employment for local community:

Prior to Equinox :

Subsistence agriculture

No formal employment

Lumwana development

Local people employed on a priority basis

Employment register (census) established early

Employment:

During construction 4,400 local people employed

In steady state operations (2010) local people employed

totalled 2,300

Intensive training programs:

Required to develop new skills

Equinox took the attitude that it was better to develop

skills from a “clean slate”, rather than import “bad habits”

EQUINOX COMMUNITY RELATIONS

Town developed on Mining Lease

Lumwana Town first new town in Zambia

since Independence in 1964

Lumwana town development and

associated infrastructure

Over 1,000 houses built at cost

>$100m

Medical clinic

Schools

Shopping centre/commercial facilities

Sporting facilities

Home ownership and mortgage scheme for local workforce

Government declared Multi-Facility Economic Zone

Key problem is uncontrolled town development outside Mining Lease

Lumwana would never employ from mine gate

But major influx into area from other parts of Zambia

Government responsibility to manage urban development, but too little, too late

Over 5.8 Million tonnes

(12.8 Billion lbs) of

contained copper in

resource

Mining operation of

>100 Mtpa material

movement and

processing 20 Mtpa ore

Moved Equinox into

global top 20 copper

producers

Financial and

operational strength

facilitated corporate

growth strategy

EQUINOX LUMWANA – A World Class Mine

Lumwana is now a copper mine of world significance

that placed* Equinox in global top 20 copper producers

* in 2011

Citadel Acquisition EQUINOX

Key assets in Saudi Arabia:

Jabal Sayid development project

Regional exploration targets

Jabal Sayid:

VMS style deposit

Resources 37.5Mt of 2.2% Cu + 0.3g/t Au

Underground mine being developed

Annual production will be about 60,000 tpa

Cu + 15,000 ozs Au

Commissioning in mid-2012

Equinox’s first corporate

acquisition was the $1.25

billion takeover of the Citadel

Resource Group in late-2010 Lode 2

Lode 4

Lode 1

Upper copper

sulphide zone

Portal

Jabal Sayid Construction

$4.8 billion Bid for Lundin Mining EQUINOX

Equinox – Lundin would have had an

unrivaled copper growth profile

500,000 tpa copper production by

2016

Globally the combined group would

have been:

8th largest copper company

4th largest pure copper play

In early 2011 Equinox launched a hostile $4.8 billion bid

for Lundin Mining

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Lumwana Expansion

to 45Mtpa

Jabal Sayid

Tenke Fungurume

Neves-Corvo

Lumwana

However, our growth achievements and expansion objectives also attracted others…..

On 4 March 2011 Minmetals (MMG) announced a hostile proposal to make an offer for

Equinox of C$7.00 per share – a price we considered inadequate and opportunistic

With the Minmetals’ proposal it was clear Equinox could not continue to pursue Lundin

Equinox was “in play”

Board and management sought a superior outcome for shareholders over the

Minmetals proposal

Secured an offer by Barrick Gold for Equinox of C$8.15 per share

Valued the company at C$7.3 billion (A$7.1 billion)

EQUINOX The Barrick Offer

Equinox was “in play”

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Citadel

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Share Price Performance : 2005 - 2011 EQUINOX

Lumwana Fire

Lundin Offer

Barrick Bid

Market Cap (C$m) Barrick

Takeover

ASX Market Capitalisation EQUINOX

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Equinox was the 7th largest mining company in Australia

.....and Australia’s 37 largest listed company

when it was taken over in mid-2011.

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POSITIONING IN GLOBAL COPPER EQUINOX

* Source: Brook Hunt, Equinox

Global Copper Producers – 2011 Forecast*

The addition of Jabal Sayid in 2012 would have moved

Equinox into the top 15 global copper producers

Very few companies have evolved from an explorer to a global producer

Maintaining their independence and not having to sell down their asset ownership

Equinox achieved this through:

Dogged determination to keep going through difficult times

Persistence to do what was necessary to provide finance

Maximising leverage to a robust copper price cycle (in recent years)

Developing a dedicated team with technical and management expertise second to

none – team evolved with the company

And having the vision to set our goals and achieve them

Shareholders who came along with us were well rewarded. Over the 8 years from 2003-

2011:

EQN share price appreciated from $0.06 to $8.15 (13,580%)

EQN Market Capitalisation increased from $5.5 million to $7.3 billion (132,000%)

EQUINOX Evolution of a Global Copper Company