OREANDA-NEWS. March 9, 2011. This statement provides operational and unaudited financial results for Kazakhmys' managed businesses. The statement excludes the contribution from ENRC PLC, in which Kazakhmys has a 26% shareholding. The consolidated preliminary full year results of Kazakhmys, including the contribution from ENRC, will be released on 29 March 2011.

OPERATIONAL AND NON-FINANCIAL HIGHLIGHTS

•           Production of all metals in line or ahead of target

•           Copper cathode equivalent production of 303 kt in 2010

•           Strong performance from by-products of zinc, silver and gold

•           Power Division again delivered a strong performance

•           Net power generated increased 14% from 2009 to 11,065 GWh

•           Realised tariffs rose from 3.19 KZT/kWh in 2009 to 4.49 KZT/kWh

•           Growth projects

•           Feasibility study for Bozshakol, due for completion later this year

•           Aktogay sulphides likely to move into feasibility this year with acceleration of oxide deposit

FINANCIAL

•           Copper price rose strongly throughout 2010, with a record average sales price of USD 7,523 per tonne

•           Segmental EBITDA (excluding special items and share of associate ENRC) of USD 1,932 million

•           Increase of 60% from 2009, reflecting stronger metals prices

•           Net production costs of 89 US cents per pound

•           Slightly ahead of target, benefiting from cost management and strong by-product credits

•           Input cost inflation rose through the year

•           Net debt continues to decrease with strong operational cash flows

•           Net debt of USD 350 million from continuing operations

•           Cash held on balance sheet in preparation for capital spend on growth projec

•           Full year dividend of USD 118 million (22.0 US cents per share)

•           An increase of 144% on 2009, reflecting confidence in the business

•           Maintain prudent cover given future capital expenditure

2011 STRATEGY AND OUTLOOK

•           Continue to focus and deliver on core strategy

•           Further development of health and safety programme

•           Optimisation of assets to work against cost increases in the industry

•           Maintain progress on growth projects

•           Continue with accelerated refurbishment at Ekibastuz GRES-1.