PROMINENT HILL UPDATE - SA Explorers

•PROMINENT HILL UPDATE- Project Status- Exploration UpdateOxiana - Prominent Hill Project Presentation - December 2006Patrick Creenaune – Australian Exploration Manager1

Location• NE Gawler Craton, SouthAustralia.• ~650km north of Adelaide.• G2 and G9. O’DriscollLineaments, identified inearly 1970’s as beingspatially related to majorAustralian mineralfields/deposits.Oxiana - Prominent Hill Project Presentation - December 2006Patrick Creenaune – Australian Exploration Manager2

Prominent Hill Project Status• Oxiana Board Approval – August 2006• State and Federal Government approvals• Prestripping has commenced – 18 months• Plant construction to commence 2 nd quarter 2007• Fly in fly out operation• Project on schedule for commissioning of production of first copper goldconcentrate in 2 nd half 2008Oxiana - Prominent Hill Project Presentation - December 2006Patrick Creenaune – Australian Exploration Manager3

Prominent Hill Resource Statement. June 2006Ore TypeTonnes(000)Cu%Au g/tCopper Resource0.3% Cu cut-offMeasuredTotalIndicatedTotal40 75134 1671.741.180.510.431.54Mt Cuand 1.87Moz AuInferredTotal43 7600.990.50Total118 6781.300.49Ore TypeTonnes(000)Cu%Au g/tGold Resource‘Gold-only’ zones0.5ppm Au cut-off inmaterial with less than0.5% CuMeasuredTotalIndicatedTotalInferredTotal174859813 7730.300.060.120.631.531.060.9Moz AuTotal22 5450.101.24Oxiana - Prominent Hill Project Presentation - December 2006Patrick Creenaune – Australian Exploration Manager4

Open Pit ModelCopper-gold brecciaOpen pitView to NWGold-only• 1.4km x 1.2km at surfaceBase of final pit 480m deep• Pit resource: 79.2Mt @1.24% Cu and 0.58g/t Au• Throughput: 8Mt/a, cc, bn & cp0.87Mt Cu &1.3Moz Au• Head grade: 1.24% Cu, 0.58g/t Au, 3g/t Ag• Concentrate: 45%Cu, 19g/t Au, 57g/t AgOxiana - Prominent Hill Project Presentation - December 2006Patrick Creenaune – Australian Exploration Manager5

EXPLORATION UPDATE• EXPLORATION VECTORS• NEAR MINE EXPLORATION• REGIONAL EXPLORATIONOxiana - Prominent Hill Project Presentation - December 2006Patrick Creenaune – Australian Exploration Manager6

MagneticsArmstrong10KMMAGNETICS- RTP 1VDManxman BManxman A1Mount Woods InlierG9Joes Dam SouthHiltaba GraniteBlazeTaurusProminent Hill*Danae Hill MetavolcanicsGawler Range Volcanics (New)NeptuneCariewerloo BasinDanae HillChristie DomainOxiana - Prominent Hill Project Presentation - December 2006Patrick Creenaune – Australian Exploration Manager7

Geology• Host sediments at Prominent Hill (Dominant group at ~1700 Ma (Enginina Suite?);Subordinate group at ~1740 Ma (MWM). Mentor Formation???• Gawler Range Volcanics & Hiltaba Suite intrusives, equivalents thereof:1591 ± 5 Ma (Balta Granite)1586.8 ± 4.1 Ma (Microgabbro, Hiltaba Suite mafic, Peculiar Knob North)1585 ± 8 Ma (Dacite porphyry, Prominent Hill)• Mineralization1582 ± 5 Ma (Re-Os dating of molybdenite vein, Manxman B Prospect)• IOCG mineralizing systems exhibit a spatial association with the Hiltaba intrusives -Fe + Cu + Au are associated with the GRV-Hiltaba event.Oxiana - Prominent Hill Project Presentation - December 2006Patrick Creenaune – Australian Exploration Manager8

Gravity10KMMount Woods InlierManxman A1GRAVITY – 1VDJoes Dam SouthHiltaba GraniteProminent Hill *Danae Hill MetavolcanicsGawler Range Volcanics (New)NeptuneCariewerloo BasinChristie DomainOxiana - Prominent Hill Project Presentation - December 2006Patrick Creenaune – Australian Exploration Manager9

Prominent Hill – Neptune Area. Regional Drilling2KMOxiana - Prominent Hill Project Presentation - December 2006Patrick Creenaune – Australian Exploration Manager10

GeologyOpen PitProminent Hill2KMOxiana - Prominent Hill Project Presentation - December 2006Patrick Creenaune – Australian Exploration Manager11

Geophysics & Follow-up Drilling• 1990 – Burmine drill testmagnetic anomaly. 4 metres@ 0.24% Cu and 0.04 g/t Auin magnetite skarn.• 1993 - Normandy drilledthe magnetic anomaly. 92metres @ 0.11% Cu inmagnetite skarn.• 2001 – Minotaur tested thenon – magnetic portion ofgravity anomaly. URAN01 ;20 metres @ 3.0 g/t Au, 107metres @ 1.9% Cu and 0.65g/t Au and, deeper, 152metres @ 1.1% Cu and 0.6g/t Au.Drilling February to July, 2002Approx Extent of Open PitURAN0157m @ 7.70g/t AuHm-Si altered volcs - barren209m @1.54% Cu,0.93g/t AuOxiana - Prominent Hill Project Presentation - December 2006Patrick Creenaune – Australian Exploration Manager12

Section 5500mESNProminent HillShear zoneSedimentsHangingwallMagneticDomainHangingwallFault ZoneFootwallGawler RangeVolcanicsDolomiteOxiana - Prominent Hill Project Presentation - December 2006Patrick Creenaune – Australian Exploration Manager13

Mineralization StylesCopper1. Disseminated, breccia matrixhostedcopper mineralization (0.3%to 10% Cu).2. Massive chalcocite + haematitestockwork in dolomite (>15% Cu).Gold1. Haematite-matrix breccia hosted goldmineralization (0.2 to 2g/t level).2. High grade gold mineralization inhaematite-quartz breccia (0.5 to10g/t Au).3. High grade gold associated withcarbonate and haematite veinlets indolomite host (3 to >100g/t Au).Oxiana - Prominent Hill Project Presentation - December 2006Patrick Creenaune – Australian Exploration Manager14

Near Mine Exploration• Deep drill testing 300m beneath existing drilling and500m beneath the open pit floor• Two parent holes with 4 wedge holes• Mineralised breccia intersected final assays pendingOxiana - Prominent Hill Project Presentation - December 2006Patrick Creenaune – Australian Exploration Manager15

Current Drilling - Prominent Hill DeepsWest1200mRL800mRL20 m @0.75 % Cu204 m @0.24 % Cu,0.11 g/t Au(‘Western Rise’ haematite breccia)Cover16 m @2.35 g/t Au19 m @1.88 g/t AuUntestedGoldPotentialFinal pit outline9 m @ 9.6 g/t Au16 m @1.38 % CuPH06D27647 m @ 5.38% Cu, 0.29 g/t AuCurrent drillingChalcocite-bornitePH06D277‘EasternGoldZone’47 m @ 1.2 g/t AuEast60 m @1.23 g/t Au37 m @ 3.15 % Cu, 1.0 g/t Au66 m @ 2.23 % Cu,0.57 g/t AuBase of current resource400mRLPH04D079. 24 m @ 2.15 % Cu, 0.92 g/t Au26 m @ 3.90 g/t Au (last metre assayed 27 g/t Au)Chalcopyrite?UndergroundCopper / GoldResource0mRL0 400metres4000mE 4400mE 4800mE 5200mE 5600mE 6000mE 6400mEOxiana - Prominent Hill Project Presentation - December 2006Patrick Creenaune – Australian Exploration Manager16

Prominent Hill Deeps - PH06D277. 5800 East635.8 – 948.5 siliceoushaematite bx – minor bn,cpy948.5 – 1089.8 massivedoleriteOxiana - Prominent Hill Project Presentation - December 2006Patrick Creenaune – Australian Exploration Manager17

Prominent Hill Deeps - PH06D276. 5450 East996 – 1150m (154mdownhole) haematitebreccia with bornite &chalcociteOxiana - Prominent Hill Project Presentation - December 2006Patrick Creenaune – Australian Exploration Manager18

Summary of ResultsNeptune Prospect: Broad intervals of low grade Cu in altered/brecciatedvolcanics intersected in all 3 holes (Including narrower higher gradeintersections).Caliban Prospect: Altered and brecciated sediment and volcanics.Results received 31/10/2006. 14 metres @ 0.57% Cu and 0.24 g/t Au from303 metres.Prominent Hill East: Altered and brecciated sediment and volcanics.Broad low grade and narrow high grade intersections: e.g. 1.2 metres @4.2% Cu and 5.7g/t Au.Triton Prospect: Haematite alteration and associated low grade Aumineralisation. e.g. 28 m @ 0.18g/t Au.Oxiana - Prominent Hill Project Presentation - December 2006Patrick Creenaune – Australian Exploration Manager19

Current Drilling - Prominent Hill DeepsWest1200mRL800mRL20 m @0.75 % Cu204 m @0.24 % Cu,0.11 g/t Au(‘Western Rise’ haematite breccia)Cover16 m @2.35 g/t Au19 m @1.88 g/t AuUntestedGoldPotentialFinal pit outline9 m @ 9.6 g/t Au16 m @1.38 % CuPH06D27647 m @ 5.38% Cu, 0.29 g/t AuCurrent drillingChalcocite-bornitePH06D277‘EasternGoldZone’47 m @ 1.2 g/t AuEast60 m @1.23 g/t Au37 m @ 3.15 % Cu, 1.0 g/t Au66 m @ 2.23 % Cu,0.57 g/t AuBase of current resource400mRLPH04D079. 24 m @ 2.15 % Cu, 0.92 g/t Au26 m @ 3.90 g/t Au (last metre assayed 27 g/t Au)Chalcopyrite?UndergroundCopper / GoldResource0mRL0 400metres4000mE 4400mE 4800mE 5200mE 5600mE 6000mE 6400mEOxiana - Prominent Hill Project Presentation - December 2006Patrick Creenaune – Australian Exploration Manager20

Exploration Update – Regional and Deep DrillingMOUNT WOODS REGIONALDRILL TARGETS.MAGNETICS- RTP 1VDArmstrong North.(Magnetite + haematitebreccia + sulphide)Manxman B.(Haematite breccias)Blaze.Magnetite + low grade Cu0 10kilometresBulgunnia Fault ZoneManxman A1.(287m @ 0.23% Cu,CRAE)Joes Dam South.(Magnetite + low grade Cu +Au, Normandy)Prominent Hill.(100Mt deposit Cu +Au)Triton. (Haematite + lowgrade Cu + Au)Taurus.(Magnetite + lowgrade Cu + Au)Proteus. (10m @ 0.57% Cu,0.23g/t Au in haematite)Neptune.(4m @ 2.3% Cu& 617m @ 0.11% Cu,magnetite +chalcopyrite)Danae Hill / Pluto.(Low grade Cu, Zn,Pb in volcanics)Oxiana - Prominent Hill Project Presentation - December 2006Patrick Creenaune – Australian Exploration Manager21

Mt Woods Regional MineralizationNeptune ProspectJoes Dam South ProspectArmstrong ProspectOxiana - Prominent Hill Project Presentation - December 2006Patrick Creenaune – Australian Exploration Manager22

Ground gravity surveys• 3,800 square kilometres oftenements• Gravity was important in theProminent Hill discovery• Detailed gravity surveys nowbeing used for targeting• Drilling targets this yearOxiana - Prominent Hill Project Presentation - December 2006Patrick Creenaune – Australian Exploration Manager23

THE ENDOxiana - Prominent Hill Project Presentation - December 2006Patrick Creenaune – Australian Exploration Manager24