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CONSOLIDATED BROKEN HILL LTD REVITALISATION OF CENTRAL BROKEN HILL

CONSOLIDATED BROKEN HILL LTD REVITALISATION OF CENTRAL BROKEN HILL. August 2001. The Company. Founded in 1989 and listed on ASX in 1992 as Redfire Resources N.L. Name change in 2001 to Consolidated Broken Hill Ltd Current shares on issue ~ 88.5 million Shareholders (approximately) ~ 2,400

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CONSOLIDATED BROKEN HILL LTD REVITALISATION OF CENTRAL BROKEN HILL

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  1. CONSOLIDATED BROKEN HILL LTD REVITALISATION OF CENTRAL BROKEN HILL August 2001

  2. The Company • Founded in 1989 and listed on ASX in 1992 as Redfire Resources N.L. • Name change in 2001 to Consolidated Broken Hill Ltd • Current shares on issue ~ 88.5 million • Shareholders (approximately) ~ 2,400 • Recent share price range 8 - 20 cents • Approximate cash position (June accounts 2001) $A1.1M • Listed on the Australian Stock Exchange ASX code CBH • Top 10 shareholders hold 30.16% of Issued Capital

  3. Directors and Management • Jim Wall – Executive Chairman • Strong mining and management background • Previously Managing Director of base metal producers Savage Resources Ltd & Nicron Resources Ltd • Bob Besley – Managing Director • Extensive management and exploration experience. • Founded the company in 1989 • Ian Plimer – Director • Specialist on Broken Hill • Professor of Geology, University of Melbourne

  4. Directors and Management • Robert Willcocks – Director • Previously Senior Partner of Mallesons Stephen Jacques. • Resources & commercial specialist • Peter Jollie – Director • Former CEO of P&O Containers and an ex President of the Institute of Chartered Accountants in Australia • Member of Trade Policy Advisory Committee to Minister for Trade • Mike Fischer – Project Manager • Managed mining operations in Africa, Australia & PNG • Operated Woodcutters Zn-Pb Mine, Australia

  5. Project Location

  6. History of Broken Hill • Giant class deposit discovered 1883 • Funded industrialisation of Australia • Total zinc-lead-silver ore mined ~ 200Mt with revenue worth $70b in today’s terms • CBH holds central 3.8km

  7. Companies built from Broken Hill CML 7 S W N E BROKEN HILL SOUTH BHP NORTHS CRA PASMINCO PASMINCO 2 Kilometres 2 Kilometres * after Morland & Webster 1998 Browne & Marsh Shafts Delprats Shaft North Open Cut Blackwood Pit No 7 Shaft Kintore Pit Main Lode 00m RL -1000m RL

  8. Companies built from Broken Hill CML 7 S W N E ~ 54 Million tonnes * ~34 Million tonnes * ~106 Million tonnes 2 Kilometres 2 Kilometres * after Morland & Webster 1998 Browne & Marsh Shafts Delprats Shaft North Open Cut Blackwood Pit No 7 Shaft Kintore Pit Main Lode 00m RL -1000m RL

  9. Base Metal Provinces Selwyn Basin 18 Mt Zn 9 Mt Pb Irish Central Plain 14 Mt Zn 4 Mt Pb Aravalit-Delhi Orogenic Belt 16 Mt Zn 5 Mt Pb Abitibi Subprovince 17 Mt Zn ~1 Mt Pb Iberian Pyrite Belt 35 Mt Zn 13 Mt Pb Tri-State District 14 Mt Zn 4 Mt Pb NW Queensland Mineral Province 45 Mt Zn 24 Mt Pb Broken Hill 24 Mt Zn 20 Mt Pb

  10. N Consolidated Mining Lease 7 (CML7) Historical production:~54Mt @ 6.5% Zn, 12.5% Pb, 280g/t Ag from Main Lode (in white) Western Mineralisation:2m-40m wide unmined western lode (in yellow) paralleling main lode

  11. Resource Base Current • 2.5mt @ 10% Pb+Zn – Western Mineralisation Target • >10 yr mining life @ 1mt p.a (>10% Pb+Zn) Developed from: Western Mineralisation Zinc lodes Centenary Mineralisation Eastern lode Remnant main lode

  12. General Cross Section Current Resource Outline WESTERNMINERALISATION CENTENARY MINERALISATION 500 Metres Main Lode 10,200m RL SEA LEVEL Globe – Vauxhall Shear 9,800m RL 9,600m RL 9,400m RL 9,200m RL

  13. Resource Outline N Drill holes along drive

  14. CBH Western Mineralisation Drilling(May 2001)

  15. CML 7 S W N E Browne & Marsh Shafts Delprats Shaft North Open Cut Blackwood Pit Kintore Pit 2 Kilometres Zinc and Lead Lodes No 7 Shaft Western Mineralisation Zinc lodes 00m RL Lead lodes Centenary Mineralisation -1000m RL

  16. Zinc and Lead Lodes, CML8 No 4 LEVEL Sea Level RL 10,000m No 8 LEVEL C Lode 1 Lens B Lode No 12 LEVEL A Lode Upper A Lode Lower No 16 LEVEL 2 Lens 3 Lens No 20 LEVEL 200 Metres Zinc Lodes Lead Lodes (Main Lode)

  17. N Approximately 1 km Zinc and Lead Lode Extensions

  18. 100 Metres Zinc and Lead Lodes, CML7 Diagramatic Illustration of Drilling Results 100m W 00m 100m E LZDD5000 LZDD5001 C lode horizon -300m RL B lode -200m RL EOH 216.3m Zinc Lodes (Stoped) Unmined -100m RL EOH 270m Lead Lodes

  19. CBH Zinc LodeProgramme(April-May 2001) • Drilling results confirm: • Extension of B & C zinc lodes into CML7 • Presence of unmined lenses of high-grade main lode

  20. Eastern lode horizon • Main lode at depth • Main lode droppers Exploration Potential N

  21. Browne Shaft Delprat Shaft Kintore Pit North Open Cut Block 14 Pit Blackwood Pit BHP Pit No 7 Shaft 1 Kilometre Reference Amphibolite Lode Zone Gneiss Shear Zone Metasediments

  22. N Drive Level 1000’ 1480’ Drive Level Proposed Decline Proposed Decline Kintore Pit

  23. Decline Access Conceptual, not to scale

  24. Stage 1Development 2-Dimensional Diagramatic Representation STAGE 1 STAGE 1

  25. Kintore Open Pit

  26. N HMS Plant Concept for Kintore Pit Haul Road Portal Crusher Truck Ramp

  27. Heavy Medium Separation • Tennessee – Savage Resources • Woodcutters – Nicron Resources * Preliminary testwork on Western Mineralisation * Metcom Laboratories S.G. of heavy media: 2.96 Sample ¼ NQ core, diamond drill hole 3230

  28. Estimated Project Costs – Stage 1 • Acquisition & Corporate $ 4.9m • Infrastructure $ 5.9m • Mine Development $ 6.9m • Mine Operating $ 4.6m • Stage 2 Feasibility $ 2.0m • Subtotal $ 24.3m • Stage 1 Revenue $ 5.6m • Total $ 18.7m

  29. CML7 Development Plan Stage 1 > Kintore decline to upper part of Western Mineralisation - Initial stope trial of 120,000t > Infill drilling of Western Mineralisation, zinc lodes and remnant lead lodes Stage 2 > Development for sustained 500,000 tpa production from Western Mineralisation - metal output of 23,000t zinc, 17,000t lead and 560,000oz silver > Continued infill drilling of resource targets Stage 3 > Expansion into lodes in southern and northern areas of CML7 via declines from Kintore and Blackwoods pits respectively > Resource upgrade to support expansion to 1 million t.p.a.

  30. ExpectedProject Schedule • Data Analysis, Drilling Feb 01 - June 01 • Initial Mining Approval, Equity Funding May 01 - Sept 01 • Decline Development Dec 01 - Jun 02 • Stage 1 Production (120,000t) Jun 02 - Dec 02 • Project Expansion Feasibility & Funding Jul 02 - Sept 02 • Stage 2 Expansion (500,000tpa) Feb 03 - Oct 03

  31. Reference Broken Hill orebody Pospect Operating mill 5 Kilometres Pasminco tenements Broken Hill Tenure City of Broken Hill CML7

  32. Pasminco Reserves / Resources

  33. Reserves by Metal Content

  34. Zinc & Lead Prices12 Month Trend

  35. Summary - CML7 • Revisiting major orebody • Existing drilled resource • Established infrastructure • Continuous mining lease • No land title issues likely • Low capital entry to production • Early cash flow projected

  36. Expected Timetable • Marketing June - August • Prospectus issued September • AIM listing October

  37. CML7 Panorama

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