NEWS RELEASE

XSTRATA ANNOUNCES DISPOSAL OF ALUMINIUM ASSETS FOR US$1.15 BILLION

Zug, 11 April 2007

Xstrata plc announces the disposal of Xstrata Aluminum, comprising all of Xstrata’s aluminium interests, to Apollo Management LP for a total cash consideration of $1.15 billion.

Xstrata Aluminum was created from the former Falconbridge Group’s aluminium assets, known as Noranda Aluminum, following Xstrata’s acquisition of Falconbridge Limited in 2006. The disposal follows a comprehensive strategic review by Xstrata, which examined a number of options for these assets, including an assessment of their potential as a platform from which to establish a substantial aluminium business, and of the prospects for a whole or partial sale of the business.

Noranda Aluminum comprises a 100% owned primary smelter in New Madrid, Tennessee and three modern rolling mills in Tennessee, North Carolina and Arkansas, together with a 50% interest in the Gramercy aluminum refinery in Louisiana and St Ann bauxite mine in Jamaica, both of which are owned through a joint venture with Century Aluminum Inc.�

Apollo Management is a leading private equity and capital markets investor with investments in a diverse range of sectors in the US and internationally.� Apollo invests in industry-leading, franchise assets led by world-class management teams.�

Mick Davis, Xstrata Chief Executive, commented: “The sale of Xstrata’s aluminium assets represents the successful conclusion of the in-depth review of the business we commenced shortly after Xstrata took control of Falconbridge in August 2006.  

“Noranda Aluminum is a highly cash generative and robust business with an excellent suite of assets. However, our review concluded that these assets do not provide Xstrata with the necessary scale or upstream exposure to represent a suitable entry point from which to build a world-class aluminium business. As a result, these assets fit more naturally with alternative owners who are incentivised to optimize the business as a standalone unit, than as part of Xstrata’s portfolio.�

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“Bill Brooks and his team are to be commended for their efforts in building a business which attracted strong interest from potential buyers and for their co-operation in helping to realise this successful outcome to our strategic review process.”

Rick Press, partner of Apollo Management, said "Noranda Aluminum represents an outstanding collection of assets, with excellent growth potential.� We look forward to working with Noranda's top quality management team and employees to serve the Company's existing and future customers."� Josh Harris, founding partner of Apollo and head of its industrials practice, added "We are pleased to be acquiring these assets from Xstrata, a world-class company that Apollo has long admired.� Noranda Aluminum will be an excellent addition to Apollo's portfolio of basic materials and value-added processing businesses."�

The transaction is subject to regulatory approval under the Hart-Scott-Rodino Act and is expected to complete in the second quarter of 2007.

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Notes to editors

Apollo Management LP

Apollo is a leading private equity and capital markets investor with more than 16 years of experience investing across the capital structure of leveraged companies. The firm employs more than 80 professionals and has offices in New York, Los Angeles, London, Singapore and Paris. Since its inception, Apollo has managed more than $33 billion of capital across a wide variety of industries both domestically and internationally.� The firm’s most recent private equity fund and its co-investment affiliate has capital commitments of $11.6 billion.� Companies owned or controlled by Apollo Management include, among others, Affinion Group, Inc., AMC Entertainment, Inc., Berry Plastics Corporation, Goodman Global Holdings, Inc., Hexion Specialty Chemicals, Inc.., Hughes Communications, Inc., Metals USA Holdings Corp., Momentive Performance Materials, Inc., Rexnord Corporation and Verso Paper Company.

Xstrata plc

Xstrata is a global diversified mining group, listed on the London and Z�rich Stock Exchanges, with its headquarters in Zug, Switzerland. Xstrata’s businesses maintain a meaningful position in seven major international commodity markets: copper, coking coal, thermal coal, ferrochrome, nickel, vanadium and zinc, with recycling facilities, additional exposures to gold, cobalt, lead and silver and a suite of global technologies, many of which are industry leaders. Xstrata’s operations and projects span 18 countries and employ approximately 43,000 people, including contractors.