Sumitomo Metal Mining Company Limited and Sumitomo Corporation entered into an investment agreement dated May 14T 2011 with Quadra FNX Mining Limited for the development of the Sierra Gorda copper project in Chile.

After receiving the required approvals and completing all other closing conditions, the closing of the previously announced investment agreement and the formation of the Joint Venture took place on September 14th 2011.

To participate in the Project, Sumitomo Metal Mining and Sumitomo Corporation have incorporated 70:30 JV company in Chile named SMM Sierra Gorda Inversiones Limitada which subscribed for 45% of the shares of Sierra Gorda SCM which owns the Project.

In accordance with the terms of the JV Agreement, Quadra FNX will have a management role in the Joint Venture which will be jointly governed by a JV Council Sumitomo will second several key expats to Project and have an active role in the development and operations of the Project Development of the Sierra Gorda has commenced with the initial earth works and construction of support facilities, such as the camp. Mobile mining equipment remains on schedule for delivery in September with pre stripping of the ore body is scheduled to commence in early 2012 followed by production in 2014.