Toronto, July 25, 2008
Xstrata plc subsidiary, Xstrata Canada Corporation (“XCC”), has declared the following preferred share dividends:
| Name of XCC Security | Trading Symbol | Dividend Amount Per Share | Record Date | Payable Date |
| Preferred Shares, Series 3 | FAL.PR.B | Cdn$0.2863 | August 15, 2008 | September 2, 2008 |
| Preferred Shares, Series 3 | FAL.PR.B. | Cdn.$0.2863 | November 14, 2008 | December 1, 2008 |
On February 21, 2007, the Parliament of Canada enacted amendments to the Income Tax Act (Canada) which are intended to reduce the personal tax rate on “eligible dividends” paid after 2005. XCC hereby notifies its holders of preferred shares that the full amounts of the dividends to be paid on the Series 3 Preferred shares set out above are designated as eligible dividends for purposes of these amendments and any applicable corresponding provincial provisions.
Xstrata ContactStephen K. Young
Telephone +1 416 775 1556
Email syoung@xstratanickel.ca