Xstrata PLC : Xstrata Coal to Acquire Sukunka Hard Coking Coal Deposit

Sydney, 8 March 2012

Xstrata Coal has agreed to acquire the Sukunka hard coking coal deposit ("Sukunka") from Talisman Energy Inc for US$500 million in cash, subject to customary conditions.

Sukunka is located in the Peace River Coalfield of northern British Columbia, contiguous with First Coal Corporation and Lossan tenements acquired by Xstrata Coal in August and October 2011 respectively.

Sukunka has an NI 43-101 compliant coal resource of 236 million tonnes in the Measured and Indicated categories.  Norwest Corporation has completed a pre-feasibility study for a longwall mine producing hard coking coal.  Xstrata Coal's technical studies indicate the potential to realise further value from the resource.

Xstrata Coal Chief Executive, Peter Freyberg, said:

"Based on our due diligence and technical analysis, Sukunka has the potential to be a high quality metallurgical coal mine.  Once developed, Sukunka would meaningfully increase our exposure to hard coking coal, while unlocking synergies with our neighbouring assets in the Peace River coalfield and providing additional regional scale."

End

Neither the content of the company's website nor the content of any other website accessible from hyperlinks on the company's website is incorporated into, or forms part of, this announcement

Xstrata contacts:
Kathryn Lamond                       
Telephone [phone]            
Mobile   [phone]                  
Email    [e-mail]

Alison Flynn
Telephone [phone]
Mobile   [phone]
Email    [e-mail]

www.xstratacoal.com

Notes to editors
About Xstrata plc
We are a major producer of a range of vital commodities used in everything from constructing buildings and delivering electricity, to developing jet engines and mobile phones. We are one of the top five global producers of copper, thermal and metallurgical coal, ferrochrome, zinc and nickel and we also produce silver, lead, platinum, gold, cobalt and vanadium.

Founded in 2002 and headquartered in Switzerland, we operate in over 20 countries and employ over 70,000 people at more than 100 operations and projects around the world. We work in a responsible and sustainable way, with an entrepreneurial spirit and dynamic approach. For more information, visit www.xstrata.com.

About Xstrata Coal
We are the world's largest exporter of high energy thermal coal used to generate electricity and one of the largest producers of coal used to make steel.  Headquartered in Sydney, Australia, we have interests in over 30 operating coal mines in Australia, South Africa and Colombia, as well as development projects in Canada.  For the fifth consecutive year, Xstrata retains its position as Mining Sector Leader in the annual Dow Jones Sustainability Index review 2011/12. 

For more information, visit www.xstratacoal.com.  

Talisman Energy
Talisman Energy Inc. is a global, diversified, upstream oil and gas company, headquartered in Canada.  Talisman's three main operating areas are North America, the North Sea and Southeast Asia. The company also has a portfolio of international exploration opportunities. Talisman is committed to conducting business safely, in a socially and environmentally responsible manner, and is included in the Dow Jones Sustainability (North America) Index. Talisman is listed on the Toronto and New York stock exchanges under the symbol TLM.http://www.talisman-energy.com.