Q4 Production Report 2018

KAZ MINERALS GROUP Production Report for twelve months and THE fourth QUARTER Ended 31 december 2018

• Full year copper production¹ increased by 14% to 294.7 kt (FY 2017: 258.5 kt)
  • Copper production¹ at upper end of 270-300 kt guidance, mainly due to strong performance from Aktogay
  • Q4 copper production¹ of 77.9 kt (Q3 2018: 77.2 kt), driven by Bozshakol and Aktogay
  • Full year gold production² of 183.4 koz, above guidance range of 160-175 koz (2017: 178.7 koz)
• Bozshakol
  • Copper production² increased by 6% to 26.6 kt in Q4 (Q3 2018: 25.2 kt) due to higher grades and recoveries
  • Full year copper output of 101.6 kt (2017: 101.3 kt), in upper half of guidance range of 95-105 kt
  • Q4 gold production² of 34.1 koz, 9% above previous quarter due to improved recoveries and favourable grades
  • Full year gold output of 127.8 koz, ahead of 115-125 koz guidance
• Aktogay
  • Q4 copper production¹ increased by 3% to 36.0 kt (Q3 2018: 34.9 kt) supported by strong average sulphide grade of 0.63%
  • Full year copper production¹ of 131.4 kt (2017: 90.2 kt), exceeded guidance of 110-130 kt
  • Oxide production of 6.8 kt in Q4 and 25.7 kt for the full year, above 20-25 kt guidance
• East Region and Bozymchak
  • Q4 copper production² 11% lower at 15.3 kt (Q3 2018: 17.1 kt) after stockpiled ore was processed in Q3
  • Full year copper production² of 61.7 kt (2017: 67.0 kt) against full year guidance of approximately 65 kt
  • Strong full year gold (55.0 koz) and silver (2,356 koz) production², 10% and 18% ahead of guidance, respectively
  • Low grades continue to impact zinc production as indicated in Q3 production report, with full year output of 49.7 kt, below original guidance of c.60 kt

1. Payable metal in concentrate and copper cathode from Aktogay oxide ore.
2. Payable metal in concentrate.
3. See appendix for metal production by asset.

Andrew Southam, Chief Executive Officer, said: “KAZ Minerals’ operating assets have delivered another strong year in 2018, with a 14% increase in copper production to 295 kt. Approximately 45% of the Group’s copper production came from the Aktogay mine, commissioned in 2017, which ramped up to produce 131.4 kt of copper, an increase of 46% compared to the prior year. I am particularly proud that 2018 marks the tenth consecutive year in which the Group has achieved its annual copper production guidance, a period which includes the successful ramp up of our two major growth projects in Kazakhstan, Bozshakol and Aktogay.”

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