Operations

Mt. Milligan is a copper-gold project located approximately 90 miles northwest of Prince George in central British Columbia, Canada. Thompson Creek is in the process of constructing the mine, with start-up expected in the third quarter of 2013 and commencement of commercial production of copper and gold expected in the fourth quarter of 2013. For additional information about Mt. Milligan, please visit www.mtmilligan.com.

Feasibility Study

The Mt. Milligan project is based on a conventional truck-shovel open pit mine and 60,000 tonnes per day copper flotation concentrator to be built over a 30-month period, with expected completion in the third quarter of 2013 and commercial production expected to commence in the fourth quarter of 2013. Average annual production over a 22-year mine life is forecast to be 81 million pounds copper and 194,500 ounces gold. The mine plan has been designed for extraction of higher grade and rich reserves in the early years. In the first six years of the mine plan, copper production is expected to average 89 million pounds per year and gold production is expected to average approximately 262,100 ounces per year. Highlights of the Feasibility Update Study are:

• Gold in reserve 6.0 million oz (second largest gold reserve in Canada)
• Copper in reserve 2.1 billion lbs
• Mine life 22 years
• Life-of-Mine strip ratio steady at 0.84/1

The current capital expenditure estimate is $1.5 billion.

CONSTRUCTION AND DEVELOPMENT UPDATE

During the first quarter of 2013, the Company made cash and financing capital expenditures of C$154.3 ($153.0) million for the Mt. Milligan copper-gold project. Capitalized interest and debt issuance costs were C$25.4 ($24.6) million for the first quarter of 2013. Capital expenditures were primarily related to the ongoing construction of buildings and facilities (concentrator, truck shop, administration building, tailings storage facility, and primary and pebble crushers), continued development of the mine and expenses for mining equipment. The Company incurred C$1,294.2 million in cash spend since the inception of the project through March 31, 2013.

The Company is currently estimating an aggregate of approximately C$1.5 billion to construct and develop Mt. Milligan, of which approximately C$240.0 million of expenditures remain to be spent, plus an additional C$40.0 million to C$50.0 million of aggregate capital expenditures for a permanent operations residence (of which C$1.5 ($1.4) million has been spent on capital expenditures and C$6.6 ($6.5) million has been prepaid to one vendor in the first quarter of 2013). The permanent operations residence is expected to be completed in 2014.

As of March 31, 2013, overall project completion is estimated to be at 89%. The Mt. Milligan project remains on schedule, with commissioning and start-up expected to commence in August of 2013, and commercial production of copper and gold expected in the fourth quarter of 2013.

Below are upcoming critical milestones for the project:

MT. MILLIGAN RESERVE AND RESOURCE INFORMATION

Mt. Milligan Reserve (October 2009)

Category	Tons (millions)	Cu (%)	Au (oz/t)	Contained Cu lb (million)	Contained Au oz (million)
Proven	302.7	0.210	0.013	1,273	3.87
Probable	229.1	0.187	0.009	851	2.16
Total	531.8	0.200	0.011	2,124	6.03

Mt. Milligan Resource⁽¹⁾ (Exclusive of Mineral Reserve) (October 2009)

Category	Tons (millions)	Cu (%)	Au (oz/t)	Contained Cu lb (million)	Contained Au oz (million)
Measured	66.1	0.140	0.006	187	0.41
Indicated	181.1	0.150	0.006	529	1.07
Total	247.2	0.150	0.006	716	1.48
Inferred	22.6	0.150	0.006	70	0.14

1. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability.
Click here to view the 43-101 technical report dated October 13, 2009.