Sudbury, Ontario, May 11, 2011 – Sagamok Anishnawbek and Xstrata Nickel Sudbury Operations have signed a Memorandum of Understanding that will serve as the foundation for a continued working relationship between the two parties on matters such as the environment and other shared areas of interest. Xstrata Nickel is undertaking exploration activity within the traditional territory of Sagamok Anishnawbek, located west of Sudbury.

"This Memorandum of Understanding will facilitate open and timely dialogue between Xstrata Nickel and our First Nation as it relates to the company’s activities within Sagamok traditional territory," said Sagamok Anishnawbek Chief, Paul Eshkakogan.

"This Agreement reflects the positive relationship that has been established between Xstrata Nickel and Sagamok Anishnawbek," said Marc Boissonneault, Vice-President, Xstrata Nickel, Sudbury Operations.

The Agreement was signed by Chief Eshkakogan and Mr. Boissonneault at Sagamok, near Massey, Ontario on May 10, 2011. Members of the Sagamok community attended the signing ceremony as well as representatives of Xstrata Nickel.

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Editors Notes

Sagamok Anishnawbek

Sagamok Anishnawbek, a signatory to the Robinson-Huron Treaty of 1850, is a First Nation located on the north shore of Lake Huron, approximately 80 km west of Sudbury and 43 km east of Blind River. Sagamok has a total land base of 11,331 hectares and a total registered population of 2,636, of which approximately 58% live on reserve. The community is situated within one of the most active mineral resource areas in Canada. In recent years mineral exploration activity in Sagamok’s traditional territory has increased significantly with the staking of mining claims by several companies.

Xstrata Nickel

Xstrata Nickel, headquartered in Toronto, Canada, is one of Xstrata Group’s global commodity businesses. Xstrata Nickel’s operations include mines and processing facilities in Canada, the Dominican Republic and Australia, and a refinery in Norway. Xstrata Nickel has a world-class portfolio of growth projects in New Caledonia, Tanzania and Brazil. Xstrata Nickel is the world’s fifth largest nickel producer, with annual managed production of more than 92,000 tonnes of refined nickel.