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C O R P O R A T E D I R E C T O R Y 2 Directors David Humann (Chairman) David Moore (Managing Director) Brian Lynn Muslim Lakhani is a Director of TCC s subsidiary, Tethyan Copper Company Pakistan (Private) Limited Registered Office Level 1, 1 Havelock Street West Perth, Western Australia 6005 AUSTRALIA Telephone: (+618) 9321 7125 Facsimile: (+618) 9321 8994 Website www.mincor.com.au/tethyan Subsidiary Tethyan Copper Company Pakistan (Private) Limited 100% owned by TCC ACN & ABN Numbers ACN: 093 519 692 ABN: 24 093 519 692 Auditors PricewaterhouseCoopers 1 William Street, Perth Western Australia, 6000 AUSTRALIA Postal Address PO Box 1810 West Perth, Western Australia 6872 AUSTRALIA Pakistan Office First Floor, 227/B Block 2 PECHS, Karachi 75400 PAKISTAN Telephone: +9221 453 1252 Facsimile: +9221 453 1259 Bankers ANZ Banking Group Solicitors Blakiston & Crabb 1202 Hay Street, West Perth Western Australia, 6005 AUSTRALIA Date and Location of Annual General Meeting Friday, 30 November 2001, 11.00am Venue: Level 1, 1 Havelock Street West Perth, Western Australia Photo: Drilling at Reko Diq Cover Photo: H4 Starter Project the light-coloured material in the middle ground is the H4 Leached Cap

3 C O N T E N T S COMPANY PROFILE 4 COMPANY HIGHLIGHTS 5 CHAIRMAN S REPORT 6 REVIEW OF OPERATIONS 7 STATEMENT OF HEALTH, SAFETY & ENVIRONMENTAL POLICIES 12 CORPORATE GOVERNANCE STATEMENT 14 DIRECTORS REPORT 16 FINANCIAL STATEMENTS 19 INDEPENDENT AUDIT REPORT 34 SCHEDULE OF TENEMENTS 35 Photo: Reko Diq camp

4 C O M P A N Y P R O F I L E A world-class development opportunity in copper in Alliance with Australia s pre-eminent mining company Tethyan Copper Company Ltd ( TCC ) is an unlisted Australian public company. Its major shareholder is Mincor Resources NL, a listed Australian nickel mining and mineral development company. TCC operates an Alliance with BHP Billiton for the exploration and development of the Reko Diq Project, which includes the H4 Starter Project and the Western Porphyries Project. Reko Diq hosts an attractive mix of known mineral resources, advanced projects, drillready targets and geological potential. TCC s proposal is to use this mix in a staged project development with ongoing exploration to develop a world-class copper-gold mining district. TCC s vision is that initial production from the medium-sized H4 Starter Project could be the key to obtaining financing for the projected billion dollar Western Porphyries Project. This in turn may include ore from all of the 19 known mineralised porphyries in the immediate area a total resource that may exceed 3 billion tonnes. As a privately funded company TCC s prime goal is and must be the creation of shareholder wealth. However, TCC recognises and fully comprehends its wider responsibilities to the local and national society in which it operates; to the health, safety and well-being of its employees, and to the natural environment. TCC believes that the successful development of a large scale mining operation at Reko Diq would be of incalculable benefit to the people of Balochistan, and that the revenues generated by such a project would contribute towards poverty alleviation throughout the region. Photo: Local TCC geologists, Asad ur Rehman and Naseer Ahmed

5 C O M P A N Y H I G H L I G H T S 2 0 0 0 2 0 0 1 April 2000 Alliance negotiated with BHP Billiton for the development of the copper resources at Reko Diq. June 2000 Formation of Tethyan Copper Company Limited Alliance Agreement assigned to TCC. Calculation of an Inferred Resource for the Western Porphyries Project: 730 million tonnes @ 0.6% copper and 0.4g/t gold Start of Financial Year under Review (2000-2001) Jul to Oct 2000 Completion of seed financing in TCC - A$1.6 million raised. Nov 2000 Commencement of 3,500 metre drilling programme at the H4 Starter Project. Feb 2001 Completion of drilling programme at the H4 Starter Project. Mar 2001 Commencement of heap leach metallurgical test work. Apr 2001 Resource estimate by SRK Consulting confirms the discovery and delineation of a significant copper deposit at the H4 Starter Project: Indicated Resource 75 million tonnes @ 0.8% copper (0.6% copper cut-off) May 2001 Commencement of commercial negotiations with Federal Government of Pakistan regarding fiscal and regulatory environment. End of Financial Year under Review Jul 2001 Completion of detailed Scoping Study by SRK Consulting: Metallurgical test work Open pit design and optimisation Capital and operating cost studies Production optimisation studies, economic evaluation Scoping Study indicates economic viability of H4 Starter Project, based on the assumptions used: Net Present Value US$73 million Internal Rate of Return 21% Statement by SRK Consulting of a Probable Reserve for the H4 Starter Project: Probable Reserve 78 million tonnes @ 0.7% copper (0.3% copper cut-off) Aug 2001 Ongoing column heap leach test work demonstrates excellent leaching characteristics of the H4 Starter Project s ore.

6 C H A I R M A N S R E P O R T To my fellow Shareholders I am pleased to present the first Annual Report of Tethyan Copper Company Limited. The attached financial statements and directors report for the financial year ended 30 June 2001 provide a detailed explanation of the activities of your company. As events in Afghanistan unfold Pakistan finds itself at the centre of global affairs. Clearly, the current state of unrest in the region will cause delays in our project. However, we hope for a quick resolution of the current crisis and we are grateful for the strong stand the President and Government of Pakistan has taken. We believe that the policies of the Pakistan Government will have a positive impact on the long term economic and political development of the country. We believe that Pakistan will receive the support of many countries around the globe and that a considerable effort will be made to provide economic and social aid. We are hopeful that a rapidly improving commercial and investment environment will emerge. We believe very strongly that the development of mining operations at Reko Diq will be of immense benefit to the people of Balochistan, and will contribute to the economic development of the Pakistan nation. TCC is committed to developing the Reko Diq resources and we continue to work with the Government of Pakistan and with our employees in Pakistan to make progress in the administrative, commercial, operational, permitting and exploration functions. We are also continuing our preparations for raising additional capital to enable us to commence development of our first project, the H4 Starter Project, at the earliest appropriate time. We will keep you informed on a regular basis via our newsletters and financial reports. David J Humann Chairman Photo: RC drilling at the H4 Starter Project, Reko Diq

7 R E V I E W O F O P E R A T I O N S REKO DIQ PROJECT, Pakistan Tethyan Copper Company Limited ( TCC ) is a vehicle created to explore, finance and develop the giant copper resources at Reko Diq in Pakistan, in Alliance with BHP Billiton. In October 2000 initial financing of TCC was completed through the raising of A$1.6 million in seed capital. Simultaneously, TCC exercised its option to enter the Alliance with BHP Billiton. Between October 2000 and February 2001 TCC carried out a 30 hole drilling programme at the H4 Starter Project, part of the Reko Diq system. This work successfully defined an Indicated Resource for the H4 Starter Project (SRK Consulting, June 2000). In July 2001, Scoping Studies by SRK Consulting, Signet Engineering Ltd and the BHP metallurgical laboratories in Newcastle were completed, demonstrating the economic viability of an SX-EW copper mine at the H4 Starter Project based on the assumptions used. Detailed negotiations on the form and content of a Minerals Agreement commenced at the Federal and Provincial levels in Pakistan. This Agreement is intended to define the fundamental fiscal and regulatory environment for the life of the H4 Starter Project. Vision and Goals TCC s vision is to use the development of a mediumsized copper mine at the H4 Resource as a starter project to a very large copper-gold porphyry mine based on the enormous resource potential of the 19 known mineralised porphyry systems in the immediate area. TCC envisages its future financing via an offshore market more comfortable with the perceived country risk than the Australian market. TCC will seek a listing to raise funds for a bankable feasibility study on the H4 Starter Project. FIGURE 1: Reko Diq Location and Tenement Map The bankable feasibility study is expected to take 18 months to complete. If both the listing and the feasibility study are successful, project finance for mine development and construction will be sought, at an appropriate ratio of debt to equity.

8 R E V I E W O F O P E R A T I O N S Location and Infrastructure The region is located in Pakistan s sparsely populated western desert Province of Balochistan. The infrastructure is good, with a sealed road and rail line passing only 30 km south of the Reko Diq Complex. The region is part of the Tethyan Magmatic Arc which extends from Pakistan through Iran into Turkey. The Arc is a prospective setting for large porphyry deposits comparable to Pacific Rim settings such as the Chilean and North American Belts (e.g. the Escondida and Bingham Canyon porphyry copper mines) and the Indonesian-South Pacific Belt (e.g. the Grasberg and Ok Tedi porphyry copper-gold mines). The Tethyan Magmatic Arc hosts numerous porphyry copper-gold deposits including the operating mine of Sar Chesmeh (>1.2 billion tonnes @ 0.8% copper and 0.3g/t gold) in Iran. The Reko Diq Intrusive Complex is an ancient volcanic system that hosts 19 known copper-gold porphyry deposits in an area of about 10 km by 15 km. It comprises an older central porphyry surrounded by younger porphyries. Supergene copper mineralisation (the H4 Starter Project) is developed over the central porphyry. There is substantial hypogene (unweathered) mineralisation in the younger porphyries. FIGURE 2: Tethyan Magmatic Arc The H4 Starter Project The H4 Starter Project is a zone of supergene enriched copper mineralisation, mostly chalcocite, developed above a primary porphyry system in the centre of the Reko Diq Complex. The area is flat with reasonable outcrop and good access. TCC drilled 30 holes totalling 3,467 metres between October 2000 and February 2001. BHP had previously drilled 16 holes into the same zone. TCC s drilling indicated the presence of a sizeable copper resource below 20 metres to 80 metres of barren leached cap.

9 R E V I E W O F O P E R A T I O N S The resource lies within a diorite porphyry intruded into a volcanic pile of andesitic lava, volcaniclastic rocks and sedimentary rocks. The volcanic rocks have been affected by predominantly phyllic or intermediate argillic hypogene alteration in the vicinity of the porphyritic intrusions, within a supergene leaching environment. FIGURE 3: LandSat Image From the drill data SRK Consulting estimated the following resource: Indicated Resource: Inferred Resource: Total Resource: 68 million tonnes @ 0.8% copper 7 million tonnes @ 0.7% copper 75 million tonnes @ 0.8% copper (all at a cut-off grade of 0.6% copper) A Scoping Study, to an accuracy of ±30%, was completed during July 2001. The study comprises a report on the Resource Modelling and Geology by SRK, a report on Mineral Processing by Signet Engineering Ltd, and a report on open pit mining and project economics by SRK. Leaching test work was carried out by the BHP Billiton Minerals Technology laboratory in Newcastle, Australia. As a result of the reiterative economic evaluations carried out during the Scoping Study SRK selected a cut-off grade of 0.3% copper, for the proposed mining operation. The resource statement at this cutoff grade is as follows: Indicated Resource: Inferred Resource: Total Resource: 94 million tonnes @ 0.7% copper 15 million tonnes @ 0.6% copper 108 million tonnes @ 0.7% copper (all at a cut-off grade of 0.3% copper)

10 R E V I E W O F O P E R A T I O N S Following a pit optimisation exercise and the application of practical pit designs, SRK estimated a Probable Reserve from the above Indicated Resource of: 78 million tonnes @ 0.7% copper, using a 0.3% copper cut-off In accordance with the 1999 Australasian Code for Reporting of Mineral Resources and Ore Reserves the reserve is classified as Probable. The Probable Ore Reserve of 78 million tonnes @ 0.7% copper using a 0.3% copper cut-off is the economically mineable portion of an Indicated Mineral Resource as shown above. FIGURE 4: H4 Starter Project - Long Section FIGURE 5: Schematic Geology Long Section The scoping study considered adequate mining parameters with appropriate costs, geotechnical, process and recovery parameters. A pit design was developed taking into account practical mining constraints. Leaching test work was carried out by BHP Billiton Minerals Technology laboratory in Newcastle. Extensive column leach test work is underway at the BHP Billiton laboratory. The Scoping Study indicates that a bacterial leach, solvent extraction and electro-winning operation, to produce 40,000 tonnes copper metal per annum, would have a total capital cost of US$132.6 million. Ore production would proceed at a rate of 5 million tonnes per annum for the first 3 years, thereafter increasing to a maximum of 8 million tonnes per annum. The average cash cost of production over the life of the project is estimated at US$0.48 per pound copper. Such a project, based on the assumptions used (including, most pertinently, a copper price of US$0.90 per pound), would have an after tax Net Present Value (at a 10% discount rate) of US$73 million, and generate an internal rate of return of 21% (pre-financing), over a mine life of 12.5 years. The payback period is just over 5 years from the start of construction, 3.5 years from the start of production. The information in the scoping report that relates to Mineral Resource is based on information compiled by Anthony Wesson, who is a fellow of the Australian Institute of Mining and Metallurgy. Anthony Wesson is a Technical Director of SRK Consulting. The statement relating to Ore Reserves was compiled by Clive Seymour, who is a member of the Australian Institute of Mining and Metallurgy and Technical Director of SRK Consulting.

11 R E V I E W O F O P E R A T I O N S The Western Porphyries These are four adjacent porphyry bodies with medium to long term potential as the core resource of a world class copper-gold mine at Reko Diq. As previously reported, TCC has calculated the following Inferred Resource for the Western Porphyries: 730 million tonnes @ 0.6% copper and 0.4g/t gold (0.5% copper cut-off) This resource is derived from 34 drill holes covering approximately half the mineralised envelope, indicating the potential for twice this tonnage in the four porphyry bodies. Mineralisation is continuous with depth and has been drill-tested in places to 500 metres below surface. TCC believes there is excellent potential for the discovery of smaller tonnages of the higher grade starter ore that would significantly enhance the financial returns achievable from this resource. Unlike the H4 Starter Project, the Western Porphyries would require flotation processing to produce a gold-rich copper concentrate for sale to smelters. The project would require production on a larger scale (as is typical of such resources) and the capital cost could exceed US$1 billion. A further nine porphyries inside the Reko Diq Complex have been drill-tested, with between one and five drill holes each. Some of the better intersections are: 216 metres @ 0.50% Cu, 0.32g/t Au in H8 (RC45) 65 metres @ 0.43% Cu, 0.68g/t Au in H9 (RC59) 60 metres @ 0.40% Cu, 1.39g/t Au in H36 (RC53) Five other mineralised porphyry systems have been discovered but not yet drill tested. Two may have considerable potential. The Alliance with BHP Billiton The Alliance Agreement with BHP Billiton grants TCC the right to: Acquire all of BHP Billiton s interest in the H4 Starter Project; Explore, develop, acquire and exploit any mineralisation it may find in the region, subject to BHP Billiton s Clawback Right; Take secondment of BHP Billiton s Senior Project Manager for at least a two year period; Access all exploration data that BHP Billiton has developed in the region; and Buy BHP Billiton s existing exploration equipment at a non-profit price. In return TCC will carry out an agreed exploration programme during the three years from the start of the Alliance Agreement (the First Period). The cost of the Agreed Programme is estimated at US$1.5 million. Provided TCC completes the Agreed Programme, TCC will have acquired all of BHP Billiton s rights and interests in the H4 Starter Project and may elect to continue the Alliance Agreement for the Second Period (a period of three years from the end of the First Period). In consideration TCC must spend at least US$2 million on regional exploration during the Second Period.