Analysis of the Situation

On 9th March 2011 at 8:48am OZ Minerals Limited was pleased to announce that it
had signed an agreement to purchase Carrapateena copper-gold project in South Australia
from Rudy Gomes (58%), Teck Australia Pty Ltd. (34%) and various minorities (8%). After
this announcement, the investor’s interest in the stock of OZ Minerals has declined.

As a result, when markets open at 10am OZ Minerals stock price was A$ 1.61. But
immediately after market opens, share price of OZ Minerals Ltd. continuously dropped to
A$ 1.565 till 12.30pm. If the volume of shares traded in that time frame is
considered, it will be noticed that at 10am the volume trade was 3140 thousand.
In 11.30 am it increased to 4860 thousand and OZ Minerals Ltd. stock price dropped to A$
1.565. The news of Carrapateena copper-gold project purchase taken negatively by the
market and investors were looking to selling more shares in the short time span of 1.30 hours.
After dropping down to A$ 1.565 it stayed there for nearly one hour and volume of trade was
also very less in this span of time. After that, it slowly regained a bit of momentum and
climbed to A$ 1.575 at 1.30 pm. Again the stock price stayed there for nearly one hour. After
that, it slowly regained bit and went to A$ 1.58 at 3.00 pm but it again dropped to A$ 1.570 at
3.30 pm. If the volume of shares traded is considered in the closing of the day, it will be
noticed that at 3.00 pm the volume trade was 1507.12 thousand. In 3.30 pm it increased to
3320 thousand it’s nearly more than two times of 1507.12. OZ Minerals Ltd.’s stock
price dropped to A$ 1.575 at 4.00 pm. The volume of trade and dressed of stock
price clearly indicate that bear exist the bull in the closing period of market.

Since mid of February of 2011, nearly last one month of OZ Minerals Ltd. share price was
shown an downward trend which indicate that, the investor were decline the investor interest
in the stock of OZ Minerals. When announced made by OZ Minerals
Ltd. to sign an agreement to purchase Carrapateena copper-gold project in South Australia
with a cost of US $ 250 million the market immediately reacted and OZ Minerals Ltd. stock
price went down significantly throughout day of 9th March 2011.

As per the financial position concerns of OZ Minerals Ltd. it shows that, OZ Minerals Ltd.
suffer loss by A$ 517.3 million but makes profit of A$ 586.9 million on 2010 financial year.
OZ Minerals Ltd. also paid dividend of A$ 223.1 million to their shareholder on 9th March
2011. Purchase of Carrapateena copper-gold project and payment of dividend to its
shareholder made a huge expenditure for OZ Minerals Ltd which also reduces a significant
amount cash balance of OZ Minerals Ltd. This makes a negative impact on share price of OZ
Minerals Ltd. As investors not shown enough interest to OZ Minerals Ltd. stocks and stock
price dropped on 9th March 2011.

As the acquisition of the project cost US $ 250 million of cash of which

 US$ 10m refundable deposit paid today on signing of sale and Purchase Agreement
(SPA).
 US$ 240m on transfer of all licences and shares in RMG to OZ Minerals (anticipated
to be one to two months from signing the SPA).

Following these two further payments will be made to the vendor upon commercial
production being reached:

 US$ 50m on first commercial production of either copper, uranium, gold or silver.
 US$ 25m on first commercial production of rare earths, iron or other commodity.

Funding for the US $250 million will come from OZ Minerals’ current cash resources which
includes US $ denominated funds. Payment of these amounts neither impacts our previously
recommended capital initiatives nor the ability to undertake additional business development
initiatives.

Though the project represents a significant long term option for OZ Minerals Ltd. and it also
holds 100% ownership of the project. Though the project is not yet developed
properly it currently needs a huge capital expenditure to develop it properly and
start the production.

 The first priority will be further drilling to allow estimation of Mineral Resource. At a
later stage it will be determined whether a shaft may be sunk to expedite this work.
Development and drilling to the inferred Resource stage is likely to take 24 months.
 A pre-feasibility study will be undertaken tn tandem with the establishment of a
Meneral Resource and is anticipated to be completed within 24-36 months from
purchase.

It clearly seen that the production may took place nearly after 3 years from now which
turndown the investor to invest in OZ Minerals Ltd. stock. As a result investor looking to
sale out their stocks and OZ Minerals Ltd. Stock price dropped throughout the
day.
OZ Minerals Ltd. also looking to buy back their share from the market which also shown a
negative impact on OZ Minerals Ltd. stock price and it price dropped in this period.

Offer consideration

The acquisition consideration is as follows:

 US$ 10m refundable deposit paid today on signing of sale and Purchase Agreement
(SPA).
 US$ 240m on transfer of all licences and shares in RMG to OZ Minerals (anticipated
to be one to two months from signing the SPA).

Following this two further payments will be made to the vendor upon commercial production
being reached:

 US$ 50m on first commercial production of either copper, uranium, gold or silver.
 US$ 25m on first commercial production of rare earths, iron or other commodity.

Funding for the US $250 million will come from OZ Minerals’ current cash resources which
includes US $ denominated funds. Payment of these amounts neither impacts our previously
recommended capital initiatives nor the ability to undertake additional business development
initiatives.

Project plan:

It is difficult to estimate an exact project schedule however the following project a

preliminary indication of potential timing.

The first priority will be further drilling to allow estimation of Mineral Resource. At a later
stage it will be determined whether a shaft may be sunk to expedite this work. Development
and drilling to the inferred Resource stage is likely to take 24 months.

A pre-feasibility study will be undertaken tn tandem with the establishment of a Meneral

Resource and is anticipated to be completed within 24-36 months from purchase.
Should the pre-feasibility study be positive, a full feasibility study include detailed
engineering design would likely take a further 24 months.

As the acquisition of the project cost US $ 250 million of cash of which US $ 10 million
has been paid on 9th March 2011 and remaining will be paid on within one
or two months. Though the project represents a significant long term option for OZ
Minerals Ltd. and it also holds 100% ownership of the project. Though the project
is not yet developed properly it currently needs a huge capital expenditure to
develop it properly and start the production. There are other various expenses
regarding the project which increase the total cost of the project. OZ Minerals Ltd. not
yet making an exact project schedule and pre-feasibility study is not taken place yet which
expected to take 24 to 36 months from the purchase of project. If pre-feasibility study comes
out be positive, then company went for feasibility report study which expected to
further 24 months. It clearly seen that the production may took place nearly after 3 years from
now which turndown the investor to invest in OZ Minerals Ltd. stock. As a result investor
looking to sale out their stocks and OZ Minerals Ltd. Stock price dropped
throughout the day.
OZ Minerals Ltd. also looking to buy back their share from the market which also shown a
negative impact on OZ Minerals Ltd. stock price and it price dropped in this period.