TERRAMIN AUSTRALIA LIMITED

ANGAS ZINC MINE

OCTOBER 2011

angas zinc mine Community Update OcTOBeR 2011

CommunityUpdate

Special Edition

Water Quality Questions & Answers

Question: Where does the water come from?

Fact: The water is all naturally occurring from the underground and after use in the mine process it is filtered multiple times and then treated by a reverse osmosis system to be purer than any water in the region – be it river water, or town mains water. Tests are conducted regularly to verify purity. It is not wastewater.

In fact… the water is cleaner than local town water supplies

Question: How is the water proven to be clean?

Fact: Tests are taken by trained operators on a 24 hour shift, and monitored continuously by equipment in the plant. Samples are taken for independent testing by NATA accredited laboratories in Victoria, with all results compared.

Question: Can the water leave our site untreated?

Fact: No, there are many control systems to prevent any water from leaving our site untreated. All rain water and site water is collected in the tailings dam before it is treated. This is one of the Angas Zinc Mine compliance requirements.

Question: How is the Monitoring carried out?

Fact: Many systems are used to monitor the treated water quality, including technical probes into pipe systems. These include, 24-hour manned operation, manual testing on a 24-hour basis, and multiple probes in situ. The nature of the reverse osmosis (RO) membranes are such that untreated water cannot pass through the membranes.

Our commitment to the local community and local economy…Angas Zinc Mine accepts the regulations set by the government and its regulating authorities.

Our everyday relationships with the local and regional community prove that we accept and exceed the standards expected of us.

Through various initiatives, the mine sponsors many community organisations including;

• StrathRoostersfootballclub,majorsponsor since 2008

• CLASS,CommunityLiving andSupportServices

• WorkplaceLearning – CornerstoneCollege, – TrinitySeniorCollege

• StrathalbynswimmingClub• StrathalbynCricketClub• StrathalbynBowlingClub• StrathalbynKindergym• StrathalbynTennisClub• StrathalbynSoccerClub• StrathalbynSeniorCitizen’sClub• StrathalbynCFS• StrathalbynPolo&RecreationClub• MakeAWishAustralia

“Our commitment is to ensure all we do is carried out responsibly and will assist

local environments, including wetlands...”

Water Facts for the Strathalbyn Community Whowouldthinkhaving‘toomuchwater’would be a problem for a business in the dryStateofSouthAustralia?

WehaveanabundanceofnaturalwaterattheAngasZincMinenearStrathalbyn.

Underground mining brings up more than theprizedorethatminersareseeking,itattracts groundwater that enters the mine through the earth below.

This water is naturally high in salt content, and that is why the company has set up a purpose designed purification plant using reverseosmosis(RO)technology.

Cleaningthisgroundwatertopurestlevelscosts money, but we accept that, as part of our commitment to the community.

MineGeneralManagerRobHowie says“This is not about mining at any cost, we are part of the community and we will do whatisrequiredandabovethat,tomakesure we are doing no harm to our community.

“We want to support local land ownerswith their water issues by passing on the science and the data we have developed about local water since we arrived in the region.

“In our regular studies of the region we have discovered previous damage to the wider environment that needs addressing, and we are also doing extensive assessment that could be beneficial to local farmers and local environmental groups. We are prepared to share ourfindings and what we test regularly.

“Our commitment is to ensure all we do is carried out responsibly and will assist local environments, including wetlands, and support the groups that represent them.”

The Company is working with all Statemining and environment agencies to ensure we meet all requirements.

Working with the CommunityAs part of community consultation, and in cooperation with the StrathalbynCommunity Consultative Committee(SCCC) and its chairman, Mr. C. Irwin,further information is being provided to cover the proposed release of purified water from the Angas Zinc Mine lease, nearStrathalbyn.

TheSCCCwasestablishedin2006,priorto the mine start-up, to ensure accurate and effective communication between thecommunityandallkeystakeholdersinthe Angas Zinc Mine approval process and subsequent mine operation.

Recently, there has been communitycomments that the treated water from the mine may be below approved water quality standards. These comments indicate a need to provide information to assure the community that the water purification and desalination process being used at the minesite is cutting-edge technology, and the purity of the water has been independently certified.

Quality water is ready for multiple uses This water can be available for many other uses in the region... to community groups, greening projects, agricultural and farmgroupsandtothecreeks,riversandlakesin the region, similar to seasonal flows.

Inthecomingsummerthemine’spurifiedfiltered water could well be a water saving lifeline for local pastures, or sport fields, or community groups.

angas zinc mine Community Update OcTOBeR 2011

angas zinc mine OcTOBeR 2011Community Update

New Environment SuperintendentOur new eco-expert... from Kakadu to Fleurieu

Conservation Biologist, Matt Daniel, hasrecently been employed as the company’sEnvironmentandCommunitySuperintendentwhileAnyaHartisonmaternityleave.

Matt will be the key contact for the minecommunity interface until Anya returns.

Eyre Peninsula born Matt, who grew up atWudinnahas travelledanamazingpathwayto arrive working as Community andEnvironment Superintendent at Angas ZincMine.

HehasbackgroundinEnvironmentalScienceand recently moved from the Northern Territory where he worked with traditionalland owners, negotiating with mining companies including the Ranger UraniumMineinKakaduNationalPark.

Hehas15yearsexperienceinenvironmentalmanagement, in particular with attention to water quality, land management, mining and not-for-profit groups.

Matt has technical training and professional experience that could be a valuable asset to local environment and community groups.

With outstanding environmental experts onour staff, we have developed positive options for helping the community with additional water resources, especially as we head into summer.

Risk Assessment and Management is world classTerraminhasestablishedariskmanagementand assessment plan using international standards relating to purified water disposal, andhassubmittedittoregulatorsatPrimaryIndustriesandResourcesofSA(PIRSA),aspart of our review process.

Terramin has monitored water quality both onsite and external to the mine lease since 2008, including the Angas River. Thiscomprises over 400 samples for water quality alone across the required areas, in many cases more often than our regulations required.

Samples are collected using approvedtechniques and competent people, and then sent to independent accredited laboratories foranalysisandreportingback.

A defined process encompassing a world standard “chain of custody reporting” is used totracktheprocessandreporting.

The Facts on our waterAll our water samples are laboratory tested by independent and NATA accredited organisations.

ForthepasttwoyearsthecompanyhassuppliedpurifiedwaterfromtheminesitetotheCouncilownedandmanagedSTEDSpond,justacrosstheCallingtonRoadfromthemine.

Inthistime,Council,EPAandTerraminhaveworkedtogethertomanagewaterflows,bothduringextendedrainevents,pondinspectionsandrecentlyduringCouncilmaintenance.

Thesupplyof treatedwater to theSTEDSalsoprovidedsupport for thecommunity forodourcontrolby‘watercapping’thetreatmentpondsandsupplyingwaterforthehorseeventareasinStrathalbyn,especiallyduringdryseasons.

Wehaveconfirmed:

• ThequalityofthewaterismanytimesbetterthantheAngasRiverandisofdrinking water standard

• ThewaterissuitableforreleasetolocalwetlandareasaccordingtotheEPAregulator

• Partofthemanagementstrategyforthewetlandareaistoprovidewatertoreplicateseasonal effects, similar to winter and above average rain events as experienced in late 2010whenthewholeareaincludingSwampRoadwasinundatedandflooded.

Did You Know? We are returning (excess) waste rockand tailings from the mining process to the underground passages to reduce the surface ‘footprint’ remaining aftermining activity ceases.

Wearerecyclingpurifiedwaterintotheaquifer through bore holes, which may be available for use by local residents in future years.

The RO treated water is as good asdrinkingquality.

Zinc and lead mines have been operating around this local region for over 150years.

Angas Zinc Mine produces 46,000tonnes of Zinc and 18,000 tonnes ofLead, Copper, Silver and Gold – anactivity that requires the mine to employ 120 staff, plus local and regionalcontractors, and significant spending in the regional community.

Do you need water?The company wants to hear from local community and businesses that may have uses for our high quality filtered and purified water.

We will consider all responsible options that will bring benefit to the community.

ANGAS ZINC MINE Callington Road, Strathalbyn, PO Box 125, Strathalbyn, SA 5255 T (08) 8536 5950 COMMENTS (24 hours) T (08) 8536 8010 E angas_community@terramin.com.au

A natural option… The company is investigating an option to send pure water to a nearby wetland, one that is now dry. This would replicate natural flows that previously occurred.

Expertwaterindustryadvicetellsusitwilltakeupto40daysbeforethelocalwetlandswillbecomefull,atwhichtimethewaterwill flowasitnaturallydidyearsago, intoBurnsideCreek,whichinturnflowstotheAngasRiver.

If there are big rains, as we had unexpectedly in last summer, the water from our purification plants will be shut off.

TheaverageflowintheAngasRiveris10-40MLperdayduringwinter,andtheproposalistoput1MLintothesystemfromtheminetoremainatlessthan10%ofRiverFlowasperrecognised standards.

Environment & Community Superintendent, Matt Daniel

Reverse Osmosis (RO) plant at Angas Zinc Mine