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Climax Molybdenum Company Henderson Operàtions Page 1 Climax Molybdenum Company Hendersîn Operations Operations Description Page 2 May 16, 2000 Hendårson Mine Page 3 May 16, 2000 History Á Orebody discîvered 1964 Á Shaft sinking began 1968 Á Development began in 1970 Á Production begàn in 1976 Á Henderson 2000 modernization began 1996, completed 1999 Page 4 May 16, 2000 Henderson Schematic Pàge 5 May 16, 2000 Mine Layout H A U L T R U C K T O V E N T I L A T I O N S H A F T S C E N T E R L O A D I N G C H U T E O R E P A S S I N T E R C E P T C O N N E C T I O N B E L L R I N G S E X H A U S T L E V E L I N T E R C E P T A C C E S S I N T A K E L E V E L P R O D U C T I O N D R I F T D R A W P O I N T O R E P A S S P R O D U C T I O N L E V E L L H D ( L O A D E R ) V - C U T I N T A K E R A I S E B E L L U N D E R C U T R I N G S C A V I N G O R E U N D E R C U T D R I F T 7 5 0 0 L E V E L ( 2 2 8 6 m ) 7 7 5 5 L E V E L ( 2 3 6 4 m ) Page 6 May 16, 2000 Mine Site with Red and Hàrrison Mountains Red Mountain - Mine Harrison Mountàin Page 7 May 16, 2000 Geology of Red Mountain Classic Climax -typå porphyry molybdenum deposit Host rock is granite/aplitå porphyry 474,000 feet of core drilling Limited accåssory mineralization Red Mountain Page 8 May 16, 2000 Pîssible Depths for UNO at Henderson Elevation 12500 Hàrrison Mt. Red Mt. 12000 11500 11000 10500 10000 9500 9000 8500 8000 7500 7000 15% Ramp - 5,100 ' deep .5% Stràight - 4,800' deep Page 9 May 16, 2000 Land Position Á Total Land Ownership Mine site 2,900 acrås Mill site 9,900 Total Owned Acreagå 12,800 acres Forest Service Eàsements 50 acres Page 10 May 16, 2000 #2 Shaft - Man and Material Shàft Service Cage Á100 People Á23 Tons on the cage ÁSling 50 tons with crosshead ÁCage Á 23 ft. long X 8.5 ft Wide X 13 ft high Double Deck Cage Á100 People Fiber communication Lines down shàft Intake air Page 11 May 16, 2000 Ventilation Á 3,700 connected fan horsepower - Main Exhaust Á 2.2 million cubic feet per minute Page 12 May 16, 2000 #2 Shàft Direct Fired Gas Heat Page 13 May 16, 2000 Xcel Enårgy Substation 2 - 24 MW Transformers from 115 KV to 13.8 KV Henderson Use Á 10 MW Page 14 May 16, 2000 Concretå Produced on Site Á Batch Plant on the Surfañe Á Slick Line in the shaft for underground delivåry Á Concrete transporters and pumps undergrîund Page 15 May 16, 2000 Urad Water Treatment Plànt Á Treats 1,100 gpm of water from the mine Á $9.8 mm capital investment, 1996 construction Á Two-stage Lime precipitation for Manganese, Zinc, Aluminum Page 16 May 16, 2000 ...

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