Notes to the Pro Forma Consolidated Income Statement

The Pro Forma financial information has not been audited by Ernst & Young LLP.

The 2006 Pro Forma Income Statement and segmental information for the Group is prepared to illustrate the effect the Falconbridge Group, Cerrejón and Tintaya acquisitions, rights issue, the May 2006 new shares issue and related debt draw downs, would have had if they had taken place on 1 January 2006.

The 2005 Pro Forma Income Statement and segmental information for the Group is prepared to illustrate the effect the Falconbridge Group, Cerrejón and Tintaya acquisitions, rights issue, the May 2006 new shares issue and related debt draw downs, would have had if they had taken place on 1 January 2005. The pro forma financial information for the year ended 31 December 2005 has been extracted from the Xstrata plc Rights Issue prospectus dated October 2006 and updated to reflect amendments to Tintaya’s 2005 income statement, the financing structure of the Group and a change in the method in applying deferred tax to acquisition fair value adjustments to reflect the intention to realise the assets’ values through use.

The pro forma information for 2005 and 2006 excludes certain exceptional items relating to the Falconbridge acquisition, so as not to distort the results of the Group by these one off items. The exceptional items excluded include the goodwill impairment and certain restructuring costs.

Reconciliation of Pro Forma and Statutory Financial Statements