NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION INTO OR IN THE UNITED STATES, CANADA, ITALY AND JAPAN. THIS RELEASE IS FOR INFORMATION PURPOSES ONLY AND DOES NOT CONSTITUTE AN OFFER OR AN ADVERTISEMENT OF AN OFFER OF SECURITIES IN THE UNITED STATES OR IN ANY OTHER JURISDICTION.

OFFERING OF US$600,000,000 3.95% GUARANTEED CONVERTIBLE BONDS

DUE 2010

Zug, Monday 4 August 2003

Xstrata contacts

Marc Gonsalves
Telephone +44 20 7968 2812
Mobile +44 7775 662 348
Email mgonsalves@Xstrata.com

Brigitte Mattenberger
Telephone +41 41 726 6071
Mobile +41 793 811 823
Email bmattenberger@Xstrata.com

Michael Oke & Claire Bithell
Prospero Financial
Telephone +44 20 7898 9394/9387
Mobile +44 7778 469630/07796 278 294
Cazenove
Financial Advisor to Xstrata Plc
Duncan Hunter / Paul Reynolds
Telephone +44 20 7588 2828

Deutsche Bank
Joint Bookrunners
Brett Olsher, Global Metals & Mining
Telephone +44 20 7545 6459
Marcus Le Grice, Equity Capital Markets
Telephone +44 20 7545 6736
Toby Clark, Corporate Broking
Telephone +44 20 7547 6914

JPMorgan
Joint Bookrunners
Lloyd Pengilly, Metals & Mining
Telephone +44 20 7325 6454
Ian Hannam, Equity Capital & Derivative Markets
Telephone +44 20 7325 1168
John Lydon, Equity Capital & Derivative Markets
Telephone +44 20 7325 8273

Neither the Bonds, the Preference Shares nor the Shares have been, or will be, registered under the US Securities Act of 1933, as amended, or with any securities regulatory authority of any state or other jurisdiction of the United States and, accordingly, may not be offered or sold within the United States or to US persons, except pursuant to an exemption from, or in a transaction not subject to, registration under the US Securities Act of 1933, as amended. No regulatory authority has passed upon or endorsed the merits of the offering of the Bonds, the Preference Shares or the Shares or any document in relation thereto. Any representation to the contrary is a criminal offence in the United States.

Any offering of the securities will be made only by means of an offer document containing detailed information regarding Xstrata plc and its management, including financial statements. Stabilisation/FSA.

This communication has been issued by Xstrata plc and is the sole responsibility of Xstrata plc and is directed only at persons who (i) have professional experience in matters relating to investments or (ii) are persons falling within Article 49(2)(a) to (d) (“high net worth companies, unincorporated associations, etc”) of The Financial Services and Markets Act 2000 (Financial Promotion) Order 2001 (as amended) or to whom it may otherwise lawfully be communicated (all such persons together being referred to as “relevant persons”). This communication must not be acted on or relied on by persons who are not relevant persons. Any investment or investment activity to which this communication relates is available only to relevant persons and will be engaged in only with relevant persons.