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NYSE: LMC
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2008 Second Quarter Results

 Cautionary Statements
Caution Regarding Forward Looking Statements

This presentation contains forward-looking statements. These forward-looking

statements are not based on historical facts, but rather on current expectations and
projections about future events. These forward-looking statements are subject to risks
and uncertainties. These risks and uncertainties could cause actual results to differ
materially from the future results expressed or implied by the forward-looking statements.

Caution Regarding Inferred Resources

This presentation uses the terms "Measured", "Indicated" and "Inferred" Resources. U.S.
investors are advised that while such terms are recognized and required by Canadian
regulations, the Securities and Exchange Commission does not recognize them.
"Inferred Resources" have a great amount of uncertainty as to their existence, and great
uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any
part of an inferred resource will ever be upgraded to a higher category. Under Canadian
rules, estimated of Inferred Resources may not form the basis of feasibility or other
economic studies. U.S. investors are cautioned not to assume that all or any part of
Measured or Indicated Resources will ever be converted into reserves.

Corporate Operations Projects Exploration Growth

 Presenter
PHIL WRIGHT PRESIDENT & CEO

Questions
ANDERS HAKER VP & CFO

JOAO CARRELO EXEC. VP & COO

NEIL O’BRIEN SR. VP EXPL. & BUS. DEV.

Corporate Operations Projects Exploration Growth

 Significant Highlights
 First half operating earnings of $320 million exceeds internal
expectations by 8%
 Production, excluding Aljustrel, exceeds internal expectations –
2008 production forecast to be revised upwards
 Copper 65% of revenue for first half 2008
 Zinc and nickel prices fallen substantially
 Large price adjustments affecting comparison quarter to quarter
 Non-cash impairment charge of $165 million related to write
down of Aljustrel results in net loss for the quarter of $108 million
 Major new zinc-copper discovery at Neves-Corvo – potential to
be largest combined zinc-copper deposit at this mine

Corporate Operations Projects Exploration Growth

 Non-Cash Impairment Charge
 Aljustrel in pre-production phase
 High cost zinc mine in a low zinc price environment
 Write down of carrying value to net $nil
 Impairment charge of $165 million (153 million + future income
tax expense of $12 million)
 The write down expenses the previously written-down figure of
$27 million, 2008 capex; pre-production start up costs; and makes
provision for contractual obligations if closed
 Studying potential for early extraction of copper resources
 Decision on the future of Aljustrel is expected before year end

Corporate Operations Projects Exploration Growth

Production & Metal Prices: Q2’08 and Q2’07
Production Prices
(tonnes) (US $/t, US $/lb)

Q2’08 Q2’07 Q2’08 Q2’07

Copper 23,478 22,375 8,448 7,637

3.83 3.46
Zinc 46,452 40,549 2,115 3,673
0.96 1.67
Lead 12,397 13,237 2,316 2,174
1.05 0.99
Nickel 1,954 - 25,730 48,185
11.67 21.86

Corporate Operations Projects Exploration Growth

 Change In Production Q1’08 to Q2’08
30,000
50,000 2,701 (234) 991 46,452
24,939 9 (986) (484) 23,478 42,994
Contained metal

Contained metal
(tonnes)

(tonnes)
Throughput

Throughput
Recovery

Recovery
Grade

Grade
Q1 08 Cu Q2 08 Q1 08 Zn Q2 08

207 (86)
14,000 (16) 1,954
12,577 449 (578)
(51) 12,397 2,000 1,884
Contained metal

Contained metal
(tonnes)

(tonnes)
Throughput

Throughput
Recovery

Recovery
Grade

Grade
Q1 08 Pb Q2 08 Q1 08 Ni Q2 08

Corporate Operations Projects Exploration Growth

 Second Quarter: Financial Results
$ Millions Q2’08 Q2’08 Q2’07
(incl. impairment)

Sales 294 294 320

Operating Earnings 137 137 219
Add (deduct):
General Exploration (10) (10) (8)
Amortization (55) (55) (35)
Derivatives 7 7 (28)
Forex (2) (2) (9)
Interest and Other Items (4) (4) 6
Investments (1) (1) 50
Impairment - (165) -
Earnings Before Income Tax 71 (81) 195

Net Earnings 56 (108) 154

Corporate Operations Projects Exploration Growth

 Change in Pre-Tax Earnings Q1’08 to Q2’08
Pre-Impairment

140

120 109.4
(68.7)
100
US$ (million)

41.7 (11.1)
80
(4.3) 5.0 71.4
60 Costs Forex Other

40
Price & price Sales
20 adjustments Volume

Pretax Pretax
earnings earnings
Q1 08 Q2 08

Corporate Operations Projects Exploration Growth

 Effect of Price Adjustments on Reporting
Indicative only

Q2’08 Q1’08
Net Sales Reported 294.1 305.7
Price Adjustments 11.3 (42.5)
Restated Actuals 305.4 263.2

Q2’08 Q1’08
Operating Earnings Reported 137.2 182.9
Price Adjustments 11.3 (42.5)
Restated Actuals 148.5 140.4

Corporate Operations Projects Exploration Growth

 Project Progress
Tenke Copper Project
 Construction progress improved significantly
 First copper expected 2nd half 2009
 Expansion planning underway
 No developments in contract review process
Ozernoe Project
 In discussion with partners. No progress to report
Zinkgruvan Copper Project
 On-budget (in EUR) and on schedule
 Targeting 2010 for first copper
 Project improves zinc mining flexibility

Corporate Operations Projects Exploration Growth

 Tenke Construction Progress

Corporate Operations Projects Exploration Growth

 Iberian Projects
Neves-Corvo Expansion
 New zinc-copper deposit discovered: thick, high-grade zinc
intersections with good copper potential
 Presently assessing doubling zinc production from existing ore
bodies to 1 million tpa ore (+ 50,000 tpa zinc in concentrate)
 Also studying large-scale development utilizing Lombador
deposit. Pre-feasibility studies expected by end of year.
Aguablanca
 Assessing underground expansion
Aljustrel
 Assessing copper portential

Corporate Operations Projects Exploration Growth

 Growing Our Reserves and Resources
Exploration Q2/08 Q2/07 2008 est. 2007
Expenditure - $millions $10 $7.9 40.0 35.4
Approx. two-thirds is near-mine & one-third is regional exploration
Highlights
 Neves-Corvo: 9,198 m drilled, major new Lombador East
zinc/copper discovery
 Aljustrel: 6,035 m drilled, expansion and delineation of Feitais
copper resource
 Aguablanca: 7,853 m drilled, expansion of nickel/copper
mineralization to northwest and south
 Zinkgruvan: 5,340 m drilled, encouraging results
Corporate Operations Projects Exploration Growth
 Outlook
 Contained metal production outlook: 96,000 (92,000) tonnes
copper, 181,000 (202,000) tonnes zinc, 45,000 (47,000) tonnes
of lead and 7,000 (6,800) tonnes nickel. (Previous forecasts in brackets)
 Aljustrel and Ozernoe under review
 2008 Capital expenditure expected to be $400 to $450 million,
result of paste deposition at Neves-Corvo and weaker US Dollar
 Balance sheet remains strong
 Positioning ourselves for potentially tough few years in zinc/lead;
focusing on developing resource base and expansion of existing
operations
 Continue to assess opportunities created by present market
conditions
Corporate Operations Projects Exploration Growth
 Questions
PHIL WRIGHT PRESIDENT & CEO

ANDERS HAKER VP & CFO

JOAO CARRELO EXEC. VP & COO

NEIL O’BRIEN SR. VP EXPL. & BUS. DEV.

Corporate Operations Projects Exploration Growth

TSX: LUN
NYSE: LMC
OMX: LUMI