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Detailed design work on the smelter is around 60% complete. Manufacture of the major equipment packages is progressing well. The waste heat boiler has been delivered to site. Earthworks construction is approximately 85% complete. Concrete works are around 30% complete. The main frames for the electric furnace have been installed and erection of the acid plant towers is underway. The project is scheduled for construction completion in mid-2014 followed by commissioning and ramp up.

Sentinel project, Zambia

A mineral resource and reserve estimate for the Sentinel copper project was released in March 2012. An estimated measured and indicated resource of 1,027 Mt at 0.51% copper grade, containing 5.2 Mt of copper has been delineated, inclusive of an estimated recoverable proven and probable mineral reserve of 774 Mt at 0.50% copper grade, containing 3.9 Mt of copper. The life of mine strip ratio is anticipated to be 2.2:1 and the estimated mine life is in excess of 15 years. An infill drilling program has commenced to identify further detail of the geological resources that will be encountered during the initial years of operation.

The project is expected to produce between 270,000 and 300,000 tonnes of copper in concentrate annually.

Sentinel construction activities continued to ramp up in Q1 2013 with the construction effort approaching its peak. Project milestones to the end of March 2013 include detailed design engineering which is approximately 90% complete; Musangezhi river dam is operational and Chisola river / raw water dam earthworks has commenced; over 42,000 cubic metres of concrete poured on site; and approximately 5,500 tonnes of structural steel fabricated with approximately 4,000 tonnes of steel already received on site and being erected. A significant safety milestone of 3,000,000 man hours without lost time incident was also achieved in this period. The first ball mill shell and heads are erected, and the project's first 100+ ton lift was completed successfully. Construction continues to progress well across the site. The development of project infrastructure continues: the first affordable houses in the town are scheduled to be occupied by early operations and mining personnel during Q2 2013; clearing for the first mine pre-strip areas commenced in April 2013; and the major tenders for the Zambia Electricity Supply Corporation Limited ("ZESCO") 330kV transmission line project have been received with the first contract for substation works near completion. A dispute has arisen with ZESCO, the state-owned power transmission and supply company, in respect of the tender selection for the contractor to build the transmission line. On April 23, 2013, a wholly owned subsidiary of the Company served a Declaration of a Dispute and Notice to Arbitrate under the Connection Agreement with ZESCO. In the event the dispute is not resolved the connection of power to the Sentinel project could be delayed.

The Company will continue project development with an on-going commitment to social responsibility within the complete license area.

Project capital costs were initially estimated at $1.72 billion for a 40 Mtpa throughput plant. However, a throughput increase to 55 Mtpa, plus the addition of a nickel processing plant (Enterprise project) has been added to the project development which increased the total capital cost estimate to $2.0 billion. The completion target for Sentinel remains unchanged and expected during 2014.