MANAGING DIRECTOR & CEOS PRESENTATION TO THE 2010 ANNUAL GENERAL - PDF document

28 May 2010 MANAGING DIRECTOR & CEO’S PRESENTATION TO THE 2010 ANNUAL GENERAL MEETING Perilya ( ASX:PEM ), a full copy of the Managing Director & CEO’s presentation to the Company’s Annual General Meeting is attached. Ends For further information: Investors & Media: Inquiries: Paul Arndt Paul Marinko Managing Director Company Secretary +61 8 6330 1000 +61 8 6330 1000 Perilya Limited 1

ANNUAL GENERAL MEETING 28 May 2010

Board Members Non-executive Chairman • Mr. Zhang Shuijian g j Managing Director & CEO • Mr Paul Arndt Mr. Paul Arndt Non-executive Directors • M P t i k O’C Mr. Patrick O’Connor (Non-executive Deputy Chairman (N ti D t Ch i & Chairman of the Remuneration & Nominations Committee) • Mr Minzhi Han Mr. Minzhi Han • Mr. Peter Harley (Chairman of Audit & Risk Management Committee) • Mr. Wang Wen g

Today’s proceedings • Chairman’s Introduction • Formal Business Items 1. Consider and receive the annual financial statements 2. Adoption of the Remuneration Report 3. Re-election of Mr. Patrick O’Connor 4. Approval of Issue of Options to Mr Paul Arndt under the Employee Share Option Plan • Close of Formal Business • Business Overview by Managing Director & CEO • Questions • Refreshments

by Mr. Zhang Shuijian Chairman’s address

Formal B siness Formal Business

Annual Report 31 December 2009 “To receive and consider the Annual Financial Statements, the Directors Report and the Audit Report of Perilya for the financial year for the period ending 31 December 2009.” P Proxy Votes – no vote required V t t i d

Resolution 1: Adoption of Remuneration Report “To consider and receive annual remuneration Report for the C Company (which is contained in the Directors’ Report) for the ( hi h i t i d i th Di t ’ R t) f th financial year for the period ending 31 December 2009” Proxy Votes Proxy Votes For 347,530,465 Against 2,131,905 Open p 872,953

Resolution 2: Re-election of Mr. Patrick O’Connor “To re-appoint Mr. Patrick O’Connor, who retires by rotation, as a director of the Company.” Proxy Votes For 348,418,163 Against g 12,426,523 Open 878,003

Resolution 3: Issue of Options to Mr. Paul Arndt “To approve, for the purposes of ASX Listing Rule 10.14, Chapter 2E of the Corporations Act and for all other purposes, the issue of 1,089,092 Options under the Employee Share Option Plan to the Managing Director & CEO, Mr. Paul Arndt (or his nominee).” CEO, Mr. Paul Arndt (or his nominee). Proxy Votes For For 333 428 213 333,428,213 Against 16,396,248 Open 782,145

MANAGING DIRECTORS PRESENTATION 28 May 2010

Agenda � Safety Performance � Operating Performance � Financial Performance � Our Performance Relative to Peers � Zinc Market Update � Zinc Market Update � Investment in our Future Growth

Safety Performance Safety Lead Indicators 1000 900 800 � Key Highlights 700 600 500 – Lost time and Medical 400 treatment injury frequency rates 300 200 well below the industry average 100 0 9 9 9 9 0 9 9 9 9 9 9 9 0 0 9 0 0 0 0 0 0 0 0 0 0 0 1 1 1 0 0 1 - - - - - - - - - - - - - - - l - n b r y n p t v c n b r r u g r a c a a e p p a u e o e a e p p u u J J O O M M M M N N D D M M – All injury frequency rate the All injury frequency rate the J J F F A A J J S S J J F F A A A A Safety Meetings Safety Interactions lowest in Perilya’s history at Task Observations Inspections Hazards & Near Miss Reports Broken Hill Number of Frequency Rates All Injury Incidents Incidents and Frequency Rate 6 105 – Significant increase to our 95 5 85 75 highest level of proactive safety Lowest recorded AIFR 4 65 24.9 55 3 indicators indicators 45 35 2 25 15 1 5 0 -5 9 9 9 9 9 9 9 9 9 9 0 0 0 0 9 9 0 0 0 0 1 1 0 0 0 0 0 0 0 0 1 1 - - - - - - - - - - - - - - - t - n b r r y n l g p v c n b r r a p u c a p a e u u e e a e a O o M M A J M M A J F F J A A S S D D J F F M M N N All Injuries All Inj. FR

Operating Performance Cost / Tonne Ore Milled Cost / t Payable Metal (A$) (A$) 160 3,000 140 2,500 120 2 000 2,000 100 80 1,500 60 1,000 40 500 20 0 0 0 0 7 8 8 8 8 8 8 9 9 9 9 9 9 0 0 8 8 8 9 9 9 0 7 8 8 8 9 9 9 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 - - - - - - - - - - - - - - - - - - - - v n y l p v n y l p v n - - - - - - - - - - r u r u r n l n l n a a a v r y u p v r y u p v r o a a e o a a e o a J J o a a a o a a a o a a M M M e e N M S N M S N J J J J J N M M N M M N M J S J S J Actual Linear (Actual) Actual Linear (Actual) Tonnes Hoisted per Employee p p y Employee Manpower Trend 2008 - 09 p oyee a po e e d 008 09 (t) (t) 450 800 400 700 350 600 300 500 250 400 200 300 150 100 200 50 100 0 0 8 8 8 8 9 9 9 9 9 9 9 9 9 0 0 0 8 8 9 9 9 8 8 8 8 8 9 9 9 9 9 9 9 9 9 9 0 0 0 8 9 9 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 0 0 0 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - l p t v c n b r y n l p t v c n b r l - l u g r u g p t v c n b r y n p t v c n b r c a c a u g c r u g c e o e a e p a u e o e a e o e a o e a J u J u e a e p a u e a e O M O M J u O J u O S N D J F A M J S N D J F N D M M N D M A A A S J F A J A S J F Actual Linear (Actual) Actual 2 per. Mov. Avg. (Actual)

Financial Performance – 6 Mths to Dec 09 Financial Results Summary y 6 Months to 6 Months to 12 Months to Highlights Dec-09 Jun-09 Jun-09 Revenue 151.7 98.5 211.5 Significant boost in NPAT & EPS � Net Profit / (Loss) for the period 28.5 2.1 (75.1) EBITDA EBITDA 55.0 55.0 11.4 11.4 (60.3) (60.3) Higher metal prices & lower unit costs over past 6 Higher metal prices & lower unit costs over past 6 � � Shares on Issue (M) 526.1 394.6 394.6 months Simple EPS (annualised) 0.11 0.01 (0.19) Solid metal production from Broken Hill; in line � Cashflow from Operations 50.4 (12.9) (59.5) (*) with guidance of combined Zn+Pb of 120-130kt Cash 116.7 36.9 36.9 contained contained. Net Cash / (Debt) 54.7 28.3 28.3 Total Assets 294.3 160.8 160.8 Cash costs of US$0.44/lb continue positive trend. Shareholders Equity 144.8 83.7 83.7 � (*) Prior to $60.3 million hedge book closure in FY09 Pre capital cash generation from Broken Hill of � US$0.51/lb zinc over the period US$0.51/lb zinc over the period Operating Results Summary Record 6 month period of Beltana sales � Metal Production - Broken Hill: - Contained Zinc (tns) 35,100 35,200 75,300 Strong balance sheet, with full support of Zhongjin � - Contained Lead (tns) 29,200 27,700 48,100 Lingnan – 52.0% shareholder Combined Zn + Pb (tns) 64,300 62,900 123,400 - Contained Silver (Moz) 0.91 0.91 Transitional Year to Calendar Year reporting for � Beltana Sales (contained Zn) 26,180 17,320 32,602 2010 onwards Broken Hill (all in US$/lb payable Zn) - Average Price 0.95 0.57 0.66 - C1 Cash Costs - C1 Cash Costs 0 44 0.44 0 58 0.58 0 85 0.85 - Cash Margin 0.51 (0.01) (0.19)

Production Relative to Peers Exposure to zinc, lead and silver Exposure to zinc, lead and silver Contained Metal Production ‐ CY 2009 80,000 3.2 70,000 2.8 60,000 2.4 s (Silver) & Lead) 50,000 2.0 Tonnes (Zinc & Million Ounces 40,000 1.6 30,000 1.2 20,000 , 0.8 10,000 0.4 0 0.0 Perilya (*) y ( ) Kagara g JML CBH Terramin CY 2009 Zinc (LHS) Lead (LHS) Silver (RHS) – (*) Excludes an additional 43 500 tonnes of zinc sold in 2009 from Beltana Project – ( ) Excludes an additional 43,500 tonnes of zinc sold in 2009 from Beltana Project – Source: ASX Release for respective companies

Zinc Market - Overview � Fundamentals remain strong, despite current supply surplus � China and India remain large, growing sources of demand g , g g � Mine supply falls away significantly in 3 – 5 years � No major mine supply to replace j y � No “Super Giants” have been found (e.g. Broken Hill, Mt Isa, Red Dog) � Cost profiles increasing – structural shift to lower grade / higher cost mines � Consensus forecasts predict stable prices for 2010-11 increasing in subsequent years

Metal Prices Trends (since Jan 09) HEDGING 50% Pb 50% Pb prodn d AUD Metal Prices ($/tn) (Zn + Pb) 3,000 at A$2,829/tn to June 2011 2,800 2,600 2,400 /tonne 2,200 A$/ 2,000 1,800 1,600 1,400 Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 May-10 AUD Zn AUD Pb � 2009 saw strong recovery in AUD metal prices for both zinc and lead. � Recent sovereign risk fears in Europe early in 2010 have led to a sell off in all commodities, despite solid fundamentals. � Prudent hedging strategy meant lead prices locked in near the peak late in 2009, for 50% protection to Jun 11 (@A$2829/tn)