ASX QUARTERLY RELEASE

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1 ASX QUARTERLY RELEASE Third Quarter Report 2018 FOR THE THREE MONTHS ENDING 30 SEPTEMBER 2018 OZ Minerals Metal Production & Costs Q1 Q2 Q3 YTD FY Guidance Total Copper (Tonnes) 27,466 27,131 31,919 86, , ,500 Prominent Hill 27,466 27,131 28,915 83, , ,000 Antas - - 3,004 3,004 6,000-6,500 1 Total Gold (Ounces) 30,873 28,121 36,601 95,595 - Prominent Hill 30,873 28,121 34,143 93, , ,000 Antas - - 2,458 2,458 - C1 Cash Costs (US cents/lb) Prominent Hill Antas All-in Sustaining Costs (US cents/lb) Prominent Hill Antas Prominent Hill copper production to reach top end of 2018 guidance range Prominent Hill 2018 copper production expected to reach the top end of guidance with All-in Sustaining Costs at the lower end of the range Carrapateena project on track for first concentrate production in Q Carrapateena expansion studies: Punt Hill drilling underway; maiden Fremantle Doctor Resource expected Q4 West Musgrave PFS making encouraging progress across resource geology and metallurgical studies; OZ Minerals completes 51% earn-in during October Pedra Branca project receives key Provisional Licence; resource delineation drilling to commence in Q4 Two new directors joined the Board bringing extensive international mining experience Cash balance remains strong at $454 million after investment into Carrapateena ($75 million) and dividend payments ($26 million) The third quarter saw positive progress across our assets and projects. Prominent Hill is expected to achieve the top end of 2018 copper production guidance and the lower end of AISC guidance, extending the consistent, reliable performance established over the past four years. Growth capital expenditure guidance for 2018 has been lowered, primarily due to a rescheduling of the Malu paste plant works which will now commence in Q4. Carrapateena construction remains on track with completion of the first raisebore to surface and crusher level development underway. We have again lowered project capital expenditure guidance for 2018 following refinements to the timing of procurement activity, which will result in higher cash outflows in Q Carrapateena expansion studies continued, with a maiden Mineral Resource estimate for Fremantle Doctor expected in Q4. Diamond drilling has also 1 Antas copper guidance represents production for the second half of 2018 only Page 1

2 ASX QUARTERLY RELEASE commenced on the Punt Hill project, approximately 50km south of Carrapateena. An update on the expansion desktop studies will be provided in Q Our confidence in the potential of the West Musgrave project continues to grow. Positive progress has been made across resource geology and recent metallurgical test work has produced encouraging early results with improved recoveries for both copper and nickel. An updated Mineral Resource for Nebo-Babel is expected in Q The regional exploration program continues to demonstrate the potential of the province with a second significant intersection of copper and nickel mineralisation at the Yappsu prospect, just 6km east of Nebo. We are now the major partner in the project with Cassini Resources, having reached the 51% earn-in level in October. Reviews of studies, drilling and cost estimates continued across all of the Brazilian projects to map out the long-term development pathway. Granting of the Provisional Licence at Pedra Branca represents another positive milestone as we continue to optimise the project scope and prepare for resource delineation drilling in Q4. Our 2018 expenditure forecasts for project studies and drilling is expected to come in lower than previously guided. Our exploration drilling has continued at Eloise and despite confirmation of an IOCG system at Alvito in Portugal, no significant intersections were returned over appreciable widths, leading OZ Minerals to withdraw from the Portugal agreement. Our financial position remains strong even as we invest heavily in growth. Our cash balance was $454 million at the end of Q3 after investment into the Carrapateena project of $75 million and dividend payments of $26 million. Our two new directors, Charlie Sartain and Marcelo Bastos, joined the OZ Minerals Board during the quarter. Both directors have led copper divisions for global resource companies and their broad and deep international experience, including in Brazil, will complement the skills of the OZ Minerals Board. Andrew Cole, Managing Director and CEO 17 October 2018 Page 2

3 OPERATIONS, PROJECTS AND A GROWING PIPELINE OF OPPORTUNITIES ASSET TIMELINE* *Assumes required study hurdles and proposed timeframes achieved. Previously announced project parameters stated. Page 3

4 SOCIAL PERFORMANCE Total recordable injury frequency per million hours worked moved slightly higher at the end of September (to 6.44) and now includes performance of the Brazilian assets for Q3. Frequency Dec- 17 OZ Minerals TRIF Mar- 18 Jun- 18 Sep- 18 A new General Manager at Prominent Hill has been appointed. Gabrielle Iwanow will join OZ Minerals from 1 January 2019 and brings with her over 14 years experience in resources and mining. At Carrapateena, the team hosted the Board of the Kokatha Aboriginal Corporation, the traditional owners, to view construction and jointly review and assess progress of the Partnering Agreement established in Figure 1: OZ Minerals TRIF In Brazil, the installation of a water tank by the Pedra Branca team has provided 20 local farming families on nearby land access to fresh water supply. A new office for Pantera in Ourilandia do Norte was opened and a group of 20 trainees graduated from the annual company training program with a record 16 of the graduating class gaining employment in OZ Minerals Brazil s operations. SALES AND MARKETING Shipments of concentrates for the quarter totalled 66,009 dry metric tonnes, containing 26,314 tonnes of copper, 31,657 ounces of gold and 157,503 ounces of silver. CASH GENERATION ($M) Figure 2: Cash utilisation Q Page 4

5 Trade receivables -$66M A strong cash balance of $454 million was recorded at 30 September. Concentrate +$31M Trade payables -$12M Ore inventory -$37M Working capital -$84M Cash balance -$39M -$200 $0 $200 $400 $600 $800 (Millions) Sep-18 Jun-18 Figure 3: Q3 working capital movements A reduction in working capital of $84 million during Q3 resulted from a reduction in trade receivables of $66 million (customer receipts from late Q2 shipments); increase in concentrate inventory of $31 million (shipment timing); increase in trade payables of $12 million (Carrapateena ramp-up) and net reduction in ore inventory of $37 million (stockpile processing). The net ore inventory movement of $37 million was made up of a non-cash ore drawdown of $51 million, partially offset by a positive $14 million Net Realisable Value (NRV) adjustment due to the discount unwind in relation to the low-grade gold ore stockpiles and revised economic assumptions. A cash investment of $75 million was made into the Carrapateena project ($85 million including payables) and the interim dividend totalling $26 million was paid to shareholders. Ore inventory stockpiles will continue to reduce, supplementing underground ore feed to maintain the plant at full capacity to mid The first of the gold hedges in place for stockpiled ore matured in September. PROMINENT HILL PROVINCE For operating and cost statistics, please refer to Tables 2 and 3 on pages 19 and 20 of this report. (t/oz) 40,000 (kt) 800 (Cu %) ,000 30, ,000 20,000 15, ,000 5, Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q Copper Gold 0 Q Q Q UG Ore Hauled (LHS) Q Q Q Q UG Mined Grade (RHS) 0 Figure 4: Prominent Hill production Figure 5: Prominent Hill UG ore hauled and grades Prominent Hill produced 28,915 tonnes of copper and 34,143 ounces of gold during the quarter and 2018 full year copper production is now expected to reach the top end of the guidance range. Page 5

6 Growth capital expenditure for 2018 has been revised downwards to $5 $10 million (from $20 $25 million) primarily due to a rescheduling of the Malu Paste Plant works which will now commence in Q4. No impact to the future production profile is expected with this deferral of capital spend. All-In Sustaining Costs are expected to end the year at the lower end of the guided range (US 120c/lb US 130c/lb). Prominent Hill remains on track to meet all other production and cost guidance metrics. Underground Operations Underground operations delivered 773kt of ore at 2.03% copper. Haulage volumes increased on the prior quarter with utilisation of the third decline enabling the rehandle of underground ore into the larger surface fleet. In addition, the fourth decline into the lower benches of the open pit was completed as planned. Underground grades increased during the quarter, driven by stope sequencing in line with the mine plan. Following selection of the preferred Paste Plant tender during the quarter, Q4 will see earthworks commence and the ordering of long lead items. Paste Plant construction is expected to take 14 months with commissioning by the end of Q Diamond drill platform development to inform the Prominent Hill extension study continued through the quarter with drilling expected to commence in Q A parallel investigation into haulage options has continued and a Feasibility Study is expected to be completed by Q Processing There was 2.5Mt of ore milled for the quarter. Copper content in concentrate produced was 42% with gold at 16 g/t. Concentrate grades are expected to improve in 2019 with increased underground ore feed driving an increasing coppersulphur ratio. Plant recoveries were 88% for copper and 73% for gold. The scheduled concentrator shutdown during Q3, which included a reline of the SAG Mill, was completed as planned with the next maintenance shutdown scheduled for January (Mt) (Mt) (US c/lb) 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q Ore Stockpile (LHS) Mill Throughput (RHS) 0.0 Figure 6: PH stockpiles and mill throughput Figure 7: PH Unit C1 costs Q vs. Q Page 6

7 Costs C1 cash costs were US 71c/lb for the quarter with an All-In Sustaining Cost of US 109c/lb. Costs were broadly in line with Q2 which marked the first quarter of open pit stockpile processing. Processing costs were lower in Q3 with lower maintenance costs compared to Q2 which included major maintenance of the crusher and relining of the ball mill. TCRC and transport costs were higher due to the customer mix. The higher gold grade and improved recoveries resulted in increased gold production which was reflected in higher by-product credits. Underground operating unit costs of $55/t for Q3 were consistent with the prior quarter. As previously mentioned, the costs attributable to ore stockpiles processed during the quarter amounted to $51 million. Additionally, the discount unwind in relation to the low-grade gold ore stockpiles during Q3 and revisions to economic assumptions has resulted in a positive Net Realisable Value (NRV) adjustment of $14 million. The net ore inventory movement for the quarter was $37 million. CARRAPATEENA PROVINCE Construction at Carrapateena is progressing to schedule and remains on track to produce first concentrate in Q Finalisation of the operational mine plan has resulted in a re-orientation of the mine footprint by 10 degrees following insitu stress measurements and has confirmed the ramp up schedule to full production as per the Feasibility Study Update (FSU) published 24 August Work is now underway to update operating costs and post commissioning sustaining capital following establishment of the finalised mine plan, the previously noted deferral of the Western Access Road and optimisation of the tailings storage design. Whilst costs will remain in the bottom quartile of the cost curve, the current trend for Life Of Mine All-in Sustaining Costs reflects an increase of approximately 5% from the FSU estimate. Operating costs and capital will be finalised as part of the annual business planning cycle currently underway. However, the project NPV is expected to remain in line with the original FSU estimate of $910 million when updated for current commodity price and exchange assumptions. Project capital expenditure guidance for 2018 has been lowered to circa $350 million (from A$400 A$430 million) following extension of non-critical path procurement activity, which will result in higher cash outflows in Q Total preproduction capital for the project is expected to remain within the FSU capital budget of $916 million. Underground development All key underground milestones remain on schedule with total development reaching 7,973 metres (3,347 metres to the face of the Tjati decline) and a vertical depth of 492 metres. The Mining Alliance between OZ Minerals and Downer has integrated well in the first three months, with additional staged mobilisation continuing in line with the scheduled ramp-up. The Tjati decline has now reached the competent basal conglomerate and is approaching the basement granite. Development rates were lower than the prior quarter due to water management activities as development passed through a known aquifer in the basal sandstone and the changeover of underground mining services contractor. Underground development works were expanded with crusher level development commencing and completion of the first ventilation raisebore to surface. Additional headings are now underway to access the primary crusher infrastructure and ventilation levels, taking the number of available headings from two to five, which will result in an acceleration of development rates in Q4. Page 7

8 (Metres) Q Q Q Q Q Q Q Q Figure 8: Quarterly decline advance Figure 9: Mobilisation of underground fleet Infrastructure development Flights to site have commenced with receipt of Civil Aviation Safety Authority (CASA) certification early in the quarter. Completion and handover of all 556 rooms at the Tjungu accommodation village was achieved with an average occupancy rate for both the Tjungu Village and the original exploration camp at 455 in September. Mineral Processing Plant and Non-Processing Infrastructure construction is continuing as per schedule, with first concrete poured in late August. Detailed civil works have progressed across site including grinding, flotation, regrind, thickening and site infrastructure buildings. Bulk earthworks and concrete works in the processing area are nearing completion. Engineering is largely complete and major equipment deliveries to site will ramp up during Q4. Figure 10: Processing plant construction Figure 11: Tjungu village Installation of the main communications fibre optic cable network and high voltage powerline is progressing well, with over 100 kilometres of cable installed from the Woomera Telstra Exchange to site. The associated Mt Gunston ElectraNet Sub Station is nearing completion while earthworks and concrete infrastructure for the ElectraNet Pernatty South substation is well-advanced. The pole installation program adjacent to the Processing Plant has commenced. With the deferral of the Western Access Road until 2020 as part of the optimised development strategy, localised safety improvements to the existing Southern Access Road will commence in Q4. OZ Minerals continues to work closely with local stakeholders to formalise the execution plan prior to works commencing. Construction contracts for the Southern Access Road and Tailings Storage Facility were awarded in early October. Page 8

9 ($M) ($M) Figure 12: Q3 pre-production capital expenditure Figure 13: Total pre-production capital expenditure Expenditure for Q3 on the Carrapateena project was $84.6 million. Project spend during Q4 will include ongoing decline development, additional ventilation raisebores from surface, process plant construction and mine area borrow pit works, as well as commencement of the tailings storage facility, northern wellfield bore fit out, and improvements to the Southern Access Road. Carrapateena province expansion Figure: 14 Carrapateena project schedule Carrapateena Expansion works are continuing with results of the desktop study expected in Q Studies are focused on optimisation of the Carrapateena Resource as well as Life of Province planning. This includes optimisation of the Sub Page 9

10 Level Cave inventory, a possible block cave transition for the lower half of the Carrapateena Resource, and options for mining lower grade mineralised zones. To support these studies a further $2.5 million has been allocated for drilling of the Carrapateena Extension area from Q to Q Studies will be ongoing during the year as a separate work stream and will not impact the scope, costs or schedule of the current Carrapateena project. At the Fremantle Doctor prospect, immediately north east of the Carrapateena breccia complex, a short resource delineation program was conducted to supplement existing results from earlier years exploration. In total, ~8,500m of drilling was completed across three surface collars and one subsurface daughter wedge. Navigational drilling techniques were employed to minimise deviation from intended targets. Details of surface collar locations and daughter wedge coordinates are presented in Table 5 below. All four drill holes returned intersections of copper mineralisation hosted primarily in chalcopyrite. Bornite mineralisation was observed for the first time at Fremantle Doctor in DD18FDR022. Figure 15: Fremantle Doctor drilling Complete assay results from the drilling at Fremantle Doctor were receipted during the quarter. Significant intersections appear in Table 1 below. Page 10

11 Hole Number From (m) To (m) Interval (m) Cu (%) Au (g/t) DD18FDR021* Including** Including** DD18FDR022* Including** DD18FDR023* DD18FDR023¹* DD18FDR023¹* ¹ Daughter Hole from Parent. *0.1% Cu cut off with unlimited internal dilution. **0.7% Cu cut off up to/including 4m internal dilution. Reported as down hole lengths as true widths are not known. Figure 16: Residual gravity anomaly Table 1: Drilling results from the Fremantle Doctor prospect Late in the quarter, exploration drilling commenced at the Saddle Zone the structural corridor between Carrapateena and Fremantle Doctor. One drill hole has been completed, visually returning intersections of chalcopyrite and bornite coincident with magnetic and gravity anomalism observed in updated geophysical surveys. Follow up drilling is planned to commence in Q4. Assays are pending. Please refer to JORC Table 1 in Appendix 1 for additional details on exploration activities in Q3, Expenditure for Q3 on Carrapateena province expansion was $3.8 million. MUSGRAVE PROVINCE Following an investment milestone of $22 million reached at West Musgrave during October, OZ Minerals has completed the earn-in of 51% of the project. OZ Minerals can earn 70% of the West Musgrave project by investing an additional $14 million towards project studies and regional exploration. Early metallurgical test work on master composites, which represent different time periods of the current mine plan, has shown a material improvement in copper and nickel recoveries and an increase in copper concentrate grade, while nickel recovery remains in line with the Further Scoping Study. Results from the test work will be provided following the completion of metallurgical test work on variability samples from different geological domains in Q Page 11

12 Figure 17: West Musgrave copper concentrate Figure 18: Water exploration drilling The 2018 resource drilling program is nearing completion with results to date increasing confidence in the existing resource model and geological interpretation. As a result, the 2019 infill drilling program has been brought forward to enhance the potential Feasibility Study schedule. An updated Mineral Resource statement for Nebo-Babel is expected in Q Water exploration drilling has commenced with a program designed to test the capacity of the local palaeochannels. Water modelling will be completed in Q4. Geotechnical drilling within the current pit outline has been completed and samples will undergo geotechnical laboratory test work in Q4 to help inform the pit slope design parameters. GR Engineering has been appointed to commence the engineering study which includes processing and non-processing infrastructure. Exploration drilling has continued at the Yappsu prospect (6 km east of Nebo). Assay results for diamond drill hole CZD0079 confirmed a broad zone of copper and nickel sulphide mineralisation with 0.44% Cu, 0.44% Ni 2. Further exploration drilling will occur at Yappsu followed by Succoth. Expenditure for Q3 on the West Musgrave project was $11.4 million. BRAZIL Reviews of current studies, drilling and cost estimates continued across all projects to determine the long-term development pathway for the Brazilian assets. Guided expenditure for project studies and drilling has been lowered to US$5 US$10 million (from US$15 US$20 million) having previously included funds for long lead items that will now be incurred in early New project opportunities continue to be evaluated in both the Carajás and Gurupi regions. 2 This information is extracted from the announcement by Cassini Resources Limited titled Further Success At Yappsu Prospect released on 10 September 2018 and is available at OZ Minerals is not aware of any new information or data that materially affects the information included in that announcement. OZ Minerals confirms that the form and context in which the Competent Person s findings are presented have not been materially modified from that announcement. Page 12

13 CARAJÁS PROVINCE Antas Antas produced 3,004 tonnes of copper and 2,458 ounces of gold during the quarter. A focus on operational improvements at Antas has seen near record quarterly plant ore tonnes milled offsetting lower mined grades. Time spent in the implementation of improvements to mine planning, stage design and operational safety systems led to a temporary reduction in mined volumes during the quarter, which are expected to improve from Q4. Figure 19: Antas open pit Figure 20: Antas processing plant Mining was focused in the stage 3 cut-back inclusive of a waste ramp de-stack, with ore from the more geologically complex eastern end of the ore body reconciling with lower than forecast grades. Mined grades are forecast to increase in Q4. A review of the open pit Mineral Resource and mine plan is underway with over 4,000 metres of grade control drilling to the base of Stage 2 completed in the quarter (results pending). Over 4,000 metres of Resource delineation drilling is planned for Q4, leading into an updated Mineral Resource estimate in Q Pedra Branca A key environmental licence (Provisional Licence LP) has been received, paving the way for the future grant of a Mining License and Installation Licence (an approval to begin construction). The project has already been granted a trial mining license facilitating early site works and potential upgrades to access and local infrastructure. Definitive Feasibility Study (DFS) works continued inclusive of Mineral Resource updates, mining studies and plant basic engineering. Operational readiness increased with an extended visit by key Brazilian mining personnel to the Australian operations and progression of underground contractor assessment. Work in the coming quarter will focus on resource delineation drilling and mine optimisation studies aimed at identifying the best value proposition in terms of mine scale and design. Completion of the DFS with a view to a decision to mine is expected mid Page 13

14 Pantera Resource delineation drilling continued with 3,254 metres completed using four drill rigs. Drilling will continue in Q4, aiming for a resource upgrade and conceptual mine design study during Q Successful completion of these works will inform a decision whether to exercise the option to acquire 100% of Pantera from Vale SA. Licensing and environmental studies will continue in parallel with development activities. GURUPI PROVINCE CentroGold Resource delineation drilling continued into the Contact Deposit with 5,400 metres completed using four drill rigs. Drilling will continue into Q1 2019, with productivity likely to be affected by the pending wet season. The PFS continues, with a Hill of Value optimisation exercise to identify optimal project scale. Concurrent with permitting activities the Company continues to engage with the neighbouring communities. Trainees seconded from the area have been transferred to the Company s Antas Mine for first-hand mining experience. Expenditure for Q3 on Brazil project studies and drilling was US$2.7million. STRATEGIC OPERATIONAL PROJECTS Concentrate Treatment Plant update A successful 120-hour pilot plant was completed on a sample of Carrapateena concentrate during the quarter. This was the first time Carrapateena concentrate has been run through a continuous pilot plant. The pilot plant achieved excellent stability and a product that was consistent with expectations from smaller batch tests. The upgraded Carrapateena concentrate was 54% Cu with very low impurities. An updated capital cost estimate for a plant capable of treating both Carrapateena and Prominent Hill concentrate is nearing completion. A decision on next steps for the CTP project will be made by the end of Expenditure for Q3 relating to the Concentrate Treatment Plant was $4.7 million. Figure 21: CTP pilot autoclave Figure 22: Power pole delivery at Carrapateena Page 14

15 Power Strategy update Preparation for the new line construction progressed with the Development Application lodged early in the quarter and notifications to landowners and Government agencies are ongoing. Cultural heritage work with traditional owners and access agreements with pastoralists have continued and are progressing well. Survey works have also commenced. A Transmission Connection Agreement is currently in negotiation with ElectraNet and execution is expected in Q4. Current electricity pricing remains fixed at Prominent Hill to the end of A contract for the future supply of electricity to Prominent Hill and Carrapateena is nearing completion, having given consideration to a range of pricing options across different durations. Downward forward pricing trends evidenced in the wholesale market of circa 20% year-on-year to 2020 have been confirmed in negotiations and execution of the contracts is expected during Q4. EXPLORATION AND GROWTH Figure 23: Growth pipeline At the Eloise project, a total of 28 drill holes have been completed on the Jericho prospect for a total of 12,840m. Drilling continues to intersect mineralisation along the entirety of the Jericho trend and the mineralised structure remains open along strike and at depth. Page 15

16 Best results from the recent drilling at Jericho include 3 : EL18D % Cu and 0.11g/t Au from 333m (Including 2.65% Cu, 0.13g/t Au) EL18D % Cu and 0.30g/t Au from 289m (Including 2.05% Cu, 0.41g/t Au) EL18D % Cu and 0.21g/t Au from 645m (Including 1.98% Cu, 0.40g/t Au) EL18D % Cu and 0.21g/t Au from 162m (Including 2.23% Cu, 0.30g/t Au) Drilling is ongoing at the Eloise project, currently testing an additional seven regional targets with similar magnetic and EM characteristics as Jericho. Internal modelling and evaluation of the project is currently underway. A ground EM survey at the East Musgrave project commenced in Q3 and is expected to be completed in early Q4. Results to date have identified multiple EM anomalies which are coincident with magnetic dipoles and targeted VRMI magnetic inversions. These anomalies have not been tested by historic drilling, however, nearby shallow drilling shows anomalous Cu and Ni geochemistry in mafic intrusive host rocks. Drill testing of six target areas is expected to commence in Q4, In partnership with Red Metals Ltd., diamond drilling has commenced on the Punt Hill project located approximately 50km south of Carrapateena. The first drill hole was collared late in the quarter, targeting a large gravity situated on a regional structure interpreted to be analogous to controlling structures of other IOCG deposits on the Stuart Shelf. A total of ~6,000m is planned to be drilled by Q1 2019, with two diamond rigs drilling throughout Q4. Figure 24: Eloise drill targets Results from the drilling at the Alvito IOCG project were received and quality checked during the quarter. Geochemistry and mineral associations confirm the presence of an IOCG system at Alvito, however, there were no significant intersections returned over appreciable widths and OZ Minerals has withdrawn from this agreement 3 This information is extracted from the announcement by Minotaur Exploration Limited titled Jericho delivers more Copper results for Eloise JV, Cloncurry released on 09 October 2018 and is available at OZ Minerals is not aware of any new information or data that materially affects the information included in that announcement. OZ Minerals confirms that the form and context in which the Competent Person s findings are presented have not been materially modified from that announcement. Page 16

17 Work plan approvals were received for ground-based geophysics and base of till geochemical sampling at the Lannavaara project in Sweden during the quarter. A ground EM survey commenced in late Q3 and results to date have confirmed the presence of the targeted EM anomaly. A structural geology consultant is in the field refining the existing structural interpretation. Ground based gravity and magnetic surveying, as well as collection of 200 base of till geochemical samples is expected to commence in October to further refine drill targets. Drill testing of targets is expected to commence in H Figure 25: Oaxaca Riqueza Marina geophysics Figure 26: Lannavaara IOCG project Ground magnetic and gravity surveys were completed during Q3 at the Riqueza Marina project in Mexico. Coincident magnetic and gravity anomalies were identified under alluvial cover and the company continues to focus on drill permitting. Expenditure for Q3 on Exploration and Growth was $6.2 million which includes Brazil exploration drilling. CORPORATE The first of the gold hedges matured in September, amounting to 12,932 ounces at an average price of A$1,666/oz. The total amount of gold hedged at the end of the quarter was 254,205 ounces at an average price of A$1,738/oz. Two new directors, Charlie Sartain and Marcelo Bastos, joined the OZ Minerals Board in Q3. Both new directors have led copper divisions for global resource companies and bring valuable international operating experience, complementing the existing skills of the OZ Minerals Board. Page 17

18 Corporate Information Webcast As is OZ Minerals established practice, a presentation associated with this Quarterly Report will be broadcast at 10am (AEDT) on the day that the Report is lodged with the ASX. Access to this live broadcast is available to all interested parties via the OZ Minerals website ( and is archived on the website shortly thereafter for ongoing public access. The date of each Quarterly Report presentation is announced in advance and can be found on the OZ Minerals website. While we will endeavour to release the Report on the date provided in advance, we may bring the announcement forward if the relevant information is finalised earlier than expected or delay the Report if information is not final. Issued Share Capital at 17 October 2018 Ordinary Shares 322,899,831 Share Price Activity for the September Quarter (Closing Price) High $9.76 Low $8.26 Last $8.96 (16 October 2018) Average daily volume 3.1 million shares Share Registry Link Market Services Limited Tower 4, 727 Collins Street Docklands VIC 3008 Telephone Australia: (+61) Facsimile: +61 (2) registrars@linkmarketservices.com.au Registered Office 2 Hamra Drive Adelaide Airport, South Australia, 5950, Australia Telephone: +61 (8) Fax: +61 (8) Investor and Media Enquiries Investors Tom Dixon Group Manager Investor Relations Telephone: +61 (8) Mobile: +61 (0) tom.dixon@ozminerals.com Media Sharon Lam Group Manager Communications Telephone: +61 (8) Mobile: +61 (0) sharon.lam@ozminerals.com Page 18

19 Table 2: Production and Costs September Quarter Q PRODUCTION & COSTS PROMINENT HILL ANTAS GROUP MINED (TONNES) MINED GRADE SOURCE OPEN PIT - COPPER-GOLD ORE OPEN PIT - GOLD-ONLY ORE UNDERGROUND - TOTAL ORE OP COPPER-GOLD ORE - 192, ,598 OP GOLD-ONLY ORE UG TOTAL ORE 773, ,185 OP WASTE - 1,300,868 1,300,868 COPPER (%) GOLD (G/T) COPPER (%) GOLD (G/T) COPPER (%) GOLD (G/T) ORE MILLED (TONNES) 2,463, ,444 2,654,454 MILLED GRADE RECOVERY COPPER (%) GOLD (G/T) SILVER (G/T) COPPER (%) GOLD (%) SILVER (%) COPPER CONCENTRATE PRODUCED TONNES 68,567 11,257 79,824 CONCENTRATE GRADE CONTAINED METAL IN CONCENTRATES PRODUCED COPPER (%) GOLD (G/T) SILVER (G/T) COPPER (TONNES) 28,915 3,004 31,919 GOLD (OZ) 34,143 2,458 36,601 SILVER (OZ) 190, ,164 TOTAL CONCENTRATE SOLD (DM TONNES) 55,462 10,547 66,009 COST SUMMARY MINING COSTS US Cents/lb SITE PROCESSING COSTS US Cents/lb TC/RC and TRANSPORT US Cents/lb NET BY - PRODUCT CREDIT US Cents/lb (67.6) (48.0) (65.8) OTHER DIRECT CASH COSTS US Cents/lb TOTAL C1 COSTS US Cents/lb ROYALTIES US Cents/lb OTHER INDIRECT COSTS US Cents/lb TOTAL CASH COSTS US Cents/lb D&A US Cents/lb TOTAL PRODUCTION COSTS US Cents/lb There was a Q3 net ore inventory movement of A$37 million, made up of a non-cash ore inventory drawdown of A$51 million, partially offset by a positive A$14 million Net Realisable Value (NRV) adjustment. OZ Minerals has adopted the direct cash expenditure incurred approach in calculating operating costs from 2018, which is aligned to the Wood Mackenzie methodology. Total reported C1 costs no longer include deductions for ore inventory adjustments. Page 19

20 Table 3: Production and Costs 2018 Year to Date 2018 YTD PRODUCTION & COSTS PROMINENT HILL ANTAS* GROUP OP COPPER-GOLD ORE 2,225, ,598 2,417,880 MINED (TONNES) MINED GRADE SOURCE OPEN PIT - COPPER-GOLD ORE OPEN PIT - GOLD-ONLY ORE UNDERGROUND - TOTAL ORE OP GOLD-ONLY ORE UG TOTAL ORE 2,141,638-2,141,638 OP WASTE 602,401 1,300,868 1,903,269 COPPER (%) GOLD (G/T) COPPER (%) GOLD (G/T) COPPER (%) GOLD (G/T) ORE MILLED (TONNES) 7,325, ,444 7,517,009 MILLED GRADE RECOVERY COPPER (%) GOLD (G/T) SILVER (G/T) COPPER (%) GOLD (%) SILVER (%) COPPER CONCENTRATE PRODUCED TONNES 190,832 11, ,089 CONCENTRATE GRADE COPPER (%) GOLD (G/T) SILVER (G/T) COPPER (TONNES) 83,512 3,004 86,516 CONTAINED METAL IN CONCENTRATES PRODUCED GOLD (OZ) 93,137 2,458 95,595 SILVER (OZ) 542, ,888 TOTAL CONCENTRATE SOLD (DM TONNES) 172,968 10, ,515 COST SUMMARY MINING COSTS US Cents/lb SITE PROCESSING COSTS US Cents/lb TC/RC and TRANSPORT US Cents/lb NET BY - PRODUCT CREDIT US Cents/lb (67.8) (48.0) (67.1) OTHER DIRECT CASH COSTS US Cents/lb TOTAL C1 COSTS US Cents/lb ROYALTIES US Cents/lb OTHER INDIRECT COSTS US Cents/lb TOTAL CASH COSTS US Cents/lb D&A US Cents/lb TOTAL PRODUCTION COSTS US Cents/lb * Antas production and costs represent activity for Q only as it became part of the OZ Minerals group at the end of June Page 20

21 Table 4: Guidance GUIDANCE PROMINENT HILL: COPPER PRODUCTION* 100, ,000 TONNES 95, ,000 TONNES GOLD PRODUCTION* 120, ,000 OUNCES 100, ,000 OUNCES UNDERGROUND ORE MOVEMENT MT MT UNDERGROUND UNIT MINING COSTS 1 UNDERGROUND CAPITAL EXPENDITURE A$45 - A$55/TONNE A$50 - A$60 MILLION (INC. DEVELOPMENT) GROWTH CAPITAL EXPENDITURE A$5 - A$10 MILLION DOWN FROM A$20-A$25 MILLION SITE SUSTAINING CAPITAL EXPENDITURE A$10 - A$20 MILLION ALL IN SUSTAINING COST 2 US 120c US 130c/lb C1 COSTS 2,3 US 75c US 85c/lb OTHER: ANTAS COPPER PRODUCTON (H2 ONLY) 4 6, TONNES BRAZIL PROJECT STUDIES AND DRILLING US$5 US$10 MILLION DOWN FROM US$15 US$20 MILLION CARRAPATEENA CONSTRUCTION CAPITAL CIRCA A$350 MILLION DOWN FROM A$400-A$430 MILLION WEST MUSGRAVE PFS (INCL. EXPLORATION) A$20 - A$30 MILLION CARRAPATEENA PROVINCE EXPANSION A$8 - A$10 MILLION CONCENTRATE TREATMENT PLANT STUDIES UP TO A$12 MILLION EXPLORATION A$20 - A$25 MILLION 1 Underground Unit Mining Costs include geology costs and exclude underground capital expenditure 2 AUD/USD of 0.76 has been used in converting A$ costs to US$ for C1 and AISC guidance 3 From 2018, C1 costs have been calculated to align with the Wood Mackenzie methodology, which excludes inventory movements 4 Antas production targets are contained on page 9 of the Avanco Resources Limited Annual Report for the year ended 31 December 2017 * Production Targets Cautionary Statement Page 21

22 Production Targets for the Prominent Hill Underground only are based on: Proved Ore Reserve 44% Probable Ore Reserve 47% Measured Mineral Resource 1% Indicated Mineral Resource 3% Inferred Mineral Resource 5% Production Targets for the entire Prominent Hill asset are based on: Proved Ore Reserve 47% Probable Ore Reserve 45% Measured Mineral Resource 1% Indicated Mineral Resource 2% Inferred Mineral Resource 5% The modifying factors used in the estimation of the Ore Reserve were also applied to the Mineral Resources in the generation of the production target. There is a low level of geological confidence associated with Inferred Mineral Resources and there is no certainty that further exploration work will result in the determination of Indicated Mineral Resources or that the production targets will be realised. The Ore Reserve and Mineral Resource Estimate underpinning these Production Targets were prepared by a Competent Person in accordance with the JORC Code The production targets are the result of detailed studies based on the actual performance of our existing mines and processing plant. These studies include the assessment of mining, metallurgical, ore processing, marketing, government, legal, environmental, economic and social factors. Further information on Prominent Hill Resources and Reserves is available in the document entitled Prominent Hill 2017 Mineral Resource and Ore Reserve Statement and Explanatory Notes which is annexed to the ASX Release entitled Prominent Hill underground Reserve growth continues, mine life extended to 2029 released on 21 November 2017 and available at OZ Minerals confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement and, in the case of estimates of Mineral Resources or Ore Reserves, that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed. OZ Minerals confirms that the form and context in which the Competent Person s findings are presented have not been materially modified from the original market announcement i COPPER EQUIVALENT CALCULATION FREMANTLE DOCTOR DRILL RESULTS The copper equivalent percent was calculated using the following formula: Cu Eq % = Cu % + (0.647 * Au g/t). Copper equivalent has been calculated using a copper price of $US 6415/tonne and a gold price of $US 1292/oz. Metallurgical test work conducted on a single composite sample in 2014 suggests that Fremantle Doctor material is similar in milling and flotation properties to Carrapateena material, and could be processed by a conventional crushing, grinding and flotation circuit. Copper recoveries of 90 percent at 35 percent copper in concentrate and gold recoveries of 75 percent with 10g/t in concentrate were achieved to date in the test work which are compatible with more detailed test work outputs from Carrapateena. It is assumed that the elements included in the metal equivalents calculation would therefore have a have a reasonable potential to be recovered. COMPETENT PERSONS STATEMENT The information in this report that relates to exploration results in respect to the Fremantle Doctor deposit are based on and fairly represents information and supporting documentation compiled by Mr Hamish Freeman BSc (Hons), a competent person who is a member of the Australian Institute of Geoscientists. Mr Freeman is a full-time employee of OZ Minerals Limited. Mr Freeman is a shareholder of OZ Minerals and is entitled to participate in the OZ Minerals Performance Rights Plan. Mr Freeman has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Freeman consents to the inclusion in the report of the matters based on this information in the form and context in which it appears. Mr Freeman has more than 22 years of continuous and relevant experience as a geologist in mineral exploration, including 18 years in iron oxide coppergold deposits. Page 22

23 CARRAPATEENA PROJECT: FREMANTLE DOCTOR APPENDIX 1: EXPLORATION DRILLING RESULTS JORC 2012 Table 1 Section 1: Sampling techniques and data Criteria Sampling techniques Comments All basement samples consist of diamond drill core (NQ2 and HQ) cut with an automatic core saw and sampled as half core, except for field duplicates, where quarter core was sampled. The method of sampling is considered to be of an acceptable quality for the reporting of Exploration Results. Predominantly 1m samples were obtained, but lengths range from 0.5m to 1.5m where adjusted to geological or major alteration boundaries. All available basement drill core was sampled. Entire samples were crushed then pulverised to a nominal 90% passing 75 microns. The resulting pulps were analysed using a variety of methods which included multi acid digest with ICP-OES determination for Cu, and fire assay (40g charge) with AAS finish for Au. Sub-sampling, sample preparation, assay methods and assay quality are discussed in the criterion Sub-sampling techniques and sample preparation below. Drilling techniques Drill sample recovery Logging Drill holes were diamond cored from surface using a combination of PQ, HQ and NQ2 core sizes. Holes were inclined and core was oriented using an Borecam core orientation tool. Length-based core recovery was measured from reassembled core for every drill run. The data were recorded in a SQL Server database via a Geobank front end. Average core recovery was high with more than 99 percent recovered through the reported intersections. The style of mineralisation and drilling methods employed lead to very high sample recovery, so no further effort was considered necessary to increase core recovery. Scatterplots of grade and core recovery do not suggest any relationship. The very high core recovery means that any effect of such losses would be negligible if such a relationship were to exist. All core samples were geologically logged by geologists and are considered to have been logged in appropriate detail to support Mineral Resource estimation, mining studies and metallurgical studies. Detailed geotechnical logging was not carried out for the reported drill holes, however RQD, fracture frequency and geological structural data were collected for core drilled. Core logs were qualitative and quantitative in nature. Lithology and alteration were logged qualitatively; mineralisation and structure were logged quantitatively. Core was photographed both dry and wet after meter marking and orientation. All recovered core ( metres, 99.8 percent) from the relevant intersections was geologically logged. Sub-sampling techniques and sample preparation All sampled core was cut with an automatic core saw in a consistent way that preserved the bottom of hole reference line, where present. Half core was used for normal sampling and quarter core for field duplicates. Samples were mostly 1m in length, but also ranged from 0.5m to 1.5m if adjusted to geological or major alteration boundaries. Only core samples were used in basement. Sample preparation included drying, crushing, and pulverising in full to a nominal 90% passing 75 microns. This is considered industry standard for this style of mineralisation. A quartz wash is used between the milling of each sample to reduce the risk of sample contamination. Controlled copies of SOPs (Standard Operating Procedures) and sign-offs exist for all sampling steps, and all staff were adequately trained in these. Checks were made by geologists on sampling prior to loading data into the database. Sample representativity was monitored by taking field duplicates, lab coarse crush, and pulp duplicates every 50 samples. Sizing data was collected for one in every 20 pulverised samples by the laboratory analysing the samples. Analysis of these results indicates that the sampling is representative. Analysis of duplicate data from a variety of scales, from quarter core to crushed core to pulp duplicates, indicates the sample sizes are appropriate to the grain size of the material being sampled. Page 23

24 APPENDIX 1: EXPLORATION DRILLING RESULTS Criteria Quality of assay data and laboratory tests Comments All samples were assayed at Bureau Veritas Adelaide Laboratory (Amdel). Copper grades were determined using a multi-acid digest with ICP-OES finish. Gold grades were determined by 40g fire assay with AAS finish. Review of QAQC results confirms that the quality of the data is acceptable. Geophysical measurements of magnetic susceptibility and radioactivity were taken on drill core but these data have not been used to determine any element concentrations. Assay data quality was monitored through submission of certified standards and blanks every 25 samples, quarter core field duplicates and lab coarse crush and pulp duplicates every 50 samples. Analysis of results from these samples showed that levels of bias, precision and contamination are within limits that are considered acceptable. Verification of sampling and assaying Documented verification of significant intervals by independent personnel has not been done, however the intersections have been verified by alternative personnel within OZ Minerals and the tenor of Cu is visually predictable. No twin holes have been drilled because the focus to date has been on finding high grade mineralisation. Primary data is stored both in its source electronic form, and, where applicable, on paper. Assay data is retained in both the original certificate (.pdf) form, where available, and the text files received from the laboratory. Core logging was recorded directly into the database using Toughbooks. Core length measurements for recovery were made on paper prior to entry into the database. Different user profiles and security settings exist to minimise the possibility of inadvertent modification of data. Assay data were reviewed visually for reasonableness. Where assay results are below detection limit, a value of half the detection limit has been used. No other adjustments were made to assay data. Location of data points All collar locations were determined by DGPS, or GPS for easting and northing, projected onto a digital terrain model (DTM) to determine elevation. All drill holes had magnetic down hole surveys taken at nominal 30m intervals using digital Borecam Proshot equipment. Completed holes were gyro surveyed using a conventional Axis Minetech Champ Gyro tool. The collar reference azimuth for most holes was calculated using a "best-fit" with Borecam Proshot (magnetic) surveys in non-magnetic ground in the cover sequence. To minimise the effect of drift of azimuth measurements with the conventional gyro, an average of multiple runs was normally used, typically two runs. The difference in interpreted volume of mineralisation due to drill hole position uncertainty is considered to be immaterial for the purpose of reporting Exploration Results or estimating Mineral Resources. The grid is MGA94 zone 53 south. Local elevations have been used, where 5000mRL is equal to Australian Height Datum. A DTM was flown by OZ Minerals in April The accuracy of the 2012 DTM is considered to be acceptable for the determination of collar elevation for the reported Exploration Results. Data spacing and distribution Drill holes at Fremantle doctor were drilled in a variety of directions and the spacing between holes is not uniform. Drill hole locations are shown in the accompanying presentation. Predominantly 1m samples were obtained, but lengths range from 0.5m to 1.5m if adjusted to geological or major alteration boundaries. Within basement, holes were mostly spaced at approximately 100m or closer in the known mineralised zone at depths above 3900mRL (up to 1200m below surface). Below 3900mRL and at the margins of the mineralisation, spacing varies but is generally wider than 100m. Page 24