Malaysia Smelting Corporation BhdA Global Integrated Tin Mining and

Smelting Group

2Q 2011 Results Briefing Financial Results for 2nd Quarterended 30 June 2011

Kuala Lumpur - 10 August 2011

Disclaimer Notice

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This presentation should be read in conjunction with Malaysia Smelting Corporation Berhadresults for 2Q2011.

The presentation may contain forward-looking statements that involve risks anduncertainties. Such forward-looking statements and financial information involve known andunknown risks, uncertainties and other factors that may cause our actual results,performance or achievements, or industry results, to be materially different from any futureresults, performance or achievements expressed or implied by such forward-lookingstatements and financial information. Such forward-looking statements and financialinformation are based on numerous assumptions regarding our present and future businessstrategies and the environment in which we will operate in the future.

As these statements and financial information reflect our current views concerning futureevents, these statements and financial information necessarily involve risks, uncertaintiesand assumptions. Actual future performance could differ materially form these-lookingstatements and financial information. You are cautioned not to place undue reliance on theseforward-looking statements, which are based on Malaysia Smelting Corporation Berhad’scurrent view of future events.

Contents

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Pages

1. 2Q 2011 Performance Highlights 4-10

2. Tin Market Overview 11-15

3. MSC Group – Development 16

4. Outlook 17

2Q 2011 Results Briefing - Highlights

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FINANCIAL

2Q Revenue RM853 million, up 15.5% over 1Q 20111H Revenue RM1,591 million, up 24.8% over 1H 2010

2Q Profit before tax RM53 million, up 16.4% from RM46 million for 1Q 20111H Profit before tax RM99 million, up 124.7% from RM44 million (before abnormal items) for 1H 2010

1H Profit after tax RM70 million, a sharp turnaround from a loss of RM23 million (after abnormal items) for 1H 2010.

2Q Earnings per share 36 sen, 1Q 2011 - earnings per share of 30 sen1H Earnings per share 67 sen, 1H 2010 - loss per share of 28 sen

Interim dividend 12 sen per share less 25% tax declared payable on 28 September 2011 ( 1H 2010 - Nil )

Cash position continued to improve to RM237 million end of 2Q 2011 from RM119 million end of 2010

Long term borrowings reduced to RM59 million end of 2Q 2011 from RM82 million end of 2010

Total assets increased to RM1.4 billion end of 2Q 2011 from RM1.2 billion end of 2010

2Q 2011 Results Briefing - Highlights

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OPERATIONS

2Q Group production 11,726 tonnes, up 4.4% from 11,236 tonnes in 1Q 2011

1H Group production 22,962 tonnes, up 2.1% from 22,484 tonnes in 1H 2010

DEVELOPMENTS

Successful completion and commencement of production of a new production unit at Rahman Hydraulic mine in May 2011 contributing 20% increase in mine output

On-going upgrading of smelting and refining facilities at Butterworth Smelter

On-going efforts to acquire tin exploration and mining concessions and development projects in Malaysia, Indonesia, DR Congo and other countries

Continuing efforts to divest remaining non-tin assets at acceptable price

LME Cash Settlement Prices

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USD/Tonne 2010 2011 Remarks

1Q 17,209 29,910

2Q 17,882 28,923 2Q average price 3% lower than 1Q 201162% higher over 2Q 201041% increase over 2010 average

3Q 20,409 1H average price 68% higher over 1H 2010

4Q 25,873

Average 20,447

TIN MARKET HIGHLIGHTS 1H 2011

Supply/demand deficit in 2010 (estimated 12,000 tonnes) pushed tin prices to high levels above US$29,000 in 1H 2011. High prices were heavily influenced by investment fund buying.

High prices stimulated supply mainly from small-scale producers in Indonesia and an increase in Chinese exports, spurred by large premiums of the LME over Chinese domestic price. Additional supply also came from previously unreported stocks in China and tin in slagsin Indonesia. LME stocks subsequently increased.

The Japan crisis also knocks its physical consumption in 2011.

The technically bearish factors and the negative sentiments in the global financial markets led to fund selling.

Fallout from sovereign debt crisis of developed countries exacerbated panic selling in the global equities and commodities markets and dragged down tin prices.

The panic selling was also due to forced liquidations to meet margin calls and was overdone.

The market should see a reversal of the price fall soon. Indonesian exports have slowed down. Chinese domestic prices are now higher than LME prices. Apart from Japan, tin demand is still holding up.

Long term fundamental supply/demand factors are still positive.

ITRI's view is still that supply will continue to fall short of demand in 2011, with a further deficit in 2012 likely.

1Q2011 Highlights – Production (in tin metal equivalent)

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• MSC Butterworth smelter operating at full capacity

• Higher production in Rahman Hydraulic Tin due mainly to improved operational efficiency and the commissioning of a new palong

• Sustainable production at PT Koba Tin

20111Q

(tonnes)

20112Q

(tonnes)

20111H

(tonnes)

20101H

(tonnes)

20112Q / 1Q

( % )

1H 2011 / 1H 2010

(%)

2010 FY

MSC Butterworth smelter

9,473 10,028 19,501 19,017 5.9 2.5% 38,737

Rahman Hydraulic Tin

452 502 954 843 11.0% 13.2% 1,769

PT Koba Tin 1,763 1,698 3,461 3,467 (3.7)% (0.2)% 6,644

Group total * 11,236 11,726 22,962 22,484 4.4% 2.1% 45,381

* Sum of production from PT Koba Tin and Butterworth smelters

Financial Highlights

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(RM million) 20111Q

20112Q

20111H

20101H

20112Q / 1Q

(%)

1H 2011 /1H 2010

(%)

Total Revenue 738 853 1,591 1,274 15.5 24.8

Profit/(loss )before tax and unusual items

46 53 99 44 16.4 124.7

Unusual items 0 0 0 (48) - n.m.

Profit/(loss) before tax 46 53 99 (4) 16.4 n.m.

Profit/(loss) after tax 33 37 70 (23) 14.8 n.m.

Profit attributable to equity holders of MSC*

28 36 65 (21) 28.4 n.m.

Earnings per share (sen) 30 36 67 (28) 19.4 n.m.

* After deducting profit attributable to minority interests

Financial Highlights – Segmental Reporting 1st Half 2011

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(RM million) TinSmelting

TinMining

Others (Eliminations)/ Adjustments

Total

REVENUE

Sales to external customers 1,585 6 - - 1,591

Inter-segment sales - 386 1 (387) -

Total Revenue 1,585 392 1 (387) 1,591

RESULTS

Profit / (loss) from operations 34 64 (2) (5) 91

Finance costs (7) (3) (2) - (12)

Share of profit of associates 0 - 21 - 20

Profit / (loss) before tax 26 61 17 (5) 99

Income tax (7) (23) 0 1 (29)

Profit / (loss) after tax 19 38 16 (4) 70

Unaudited Condensed ConsolidatedBalance Sheet Summary

10PRIVATE AND CONFIDENTIAL 10

(RM million) 30 Jun 2011 31 Dec 2010 Increase(+)/Decrease(-)

%

Total Assets 1,444 1,220 +224 +18.4%

Inventories 426 404 +21 +5.2%

Receivables 350 259 +91 +35.4%

Cash 237 119 +118 +98.9%

Total Liabilities 972 912 +59 +6.5%

ST borrowings 678 619 +59 +9.5%

LT borrowings 59 82 -24 -28.7%

Net assets 473 307 +166 +54.1%

Shareholders funds 430 265 +165 +62.3%

Net assets per share (RM) Net debt (RM mil)Gearing*

4.304991.5 x

3.535822.3 x

+0.77-83

+21.8%-14.2%-32.8%

* Total debt / Total equity

Tin Market Overview – August 2011

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• China domestic tin price has been trading higher than LME price since May, reflecting supply constraints,stable consumption and low stock level. Given the reversal of price differential, tin exports from Chinasince October last year had stopped and China has become a net importer since June.

• Increase in export from Indonesia has paused. We expect to see lower export figures in the fourthquarter of 2011.

• Peru’s tin production is expected to fall by 20% in 2011.

• CRU/ITRI forecast a drop in LME stocks in the second half of the year and an overall supply deficit in2011. A significant fall in price will constrain supply and the market will continue to be in deficit in 2012.

• However, for the short term, sovereign debt crisis in developed countries and development in globaleconomies will dominate sentiment and influence general commodity price trend.

• In the long run, tin market fundamentals are still intact with annual consumption expected to growbetween 2% and 3% y.o.y. in an environment of supply constraints

• Based on this forecast, an additional 7,000 – 8,000 tonnes need to be produced annually to meet thegrowth in consumption. However, production is expected to remain flat.

Source: CRU, ITRI

MSC - 2nd Largest Refined Tin Producer in 2010

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LEADING TIN COMPANIES

(Production, tonnes refined tin)Company 2007 2008 2009 2010 % YoY

Yunnan Tin (China) 61,129 58,371 55,898 59,180 5.9%

Malaysia Smelting Corp 25,471 31,630 36,407 38,737 6.4%

PT Koba Tin (Indonesia) 7,724 7,109 7,455 6,644 -10.9%

Total MSC Group 33,195 38,739 43,862 45,381 3.5%

PT Timah (Indonesia) 58,325 49,029 45,086 40,413 -10.4%

Minsur (Peru) 35,940 37,960 33,920 36,052 6.3%

Thaisarco (Thailand) 19,826 21,731 19,300 23,505 21.8%

Guangxi China Tin (China) 13,193 12,037 10,500 14,300 36.2%

Yunnan Chengfeng (China) 17,064 13,500 14,947 14,155 -5.3%

EM Vinto (Bolivia) 9,448 9,544 11,805 11,520 -2.4%

Metallo Chimique (Belgium) 8,372 9,228 8,690 9,945 14.4%

Geijiu Zi-Li (China) 8,234 7,000 5,600 9,000 60.7%

Jiangxi Nanshan Tin (China) 8,007 3,100 3,000 6,000 100.0%

Data: ITRI

MSC expects to maintain its No.2 position in 2011

Global Tin Supply will continue to be in deficit

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Global Tin Supply/Demand Balance

('000 tonnes) 2007 2008 2009 2010 2011f % change

Production 345.8 337.1 335.8 350.0 350.7 0.2%

DLA Sales 7.7 3.9 0.0 0.0 0.0

Consumption 354.1 348.4 320.1 362.0 360.2 -0.5%

Market Balance -0.6 -7.4 15.7 -12.0 -9.5

Reported stocks 48.7 32.5 46.1 35.8 33.0 -7.8%

Stock Ratio

(weeks consumption) 7.1 4.8 7.5 5.1 4.8 -7.4%

Source: ITRI, August 2011

World Refined Tin Production andConsumption Trends

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('000 tonnes) 2007 2008 2009 2010 2011fProductionChina 144.0 125.3 140.6 155.0 160.5Indonesia* 78.0 65.7 64.5 57.1 57.7Malaysia 25.5 31.6 36.4 38.7 38.0Thailand 19.8 20.4 19.3 23.5 23.0Bolivia 12.3 11.8 15.0 15.0 15.0Brazil 10.2 11.0 10.4 6.7 8.5Peru 35.9 38.0 33.9 36.1 28.5Belgium 8.4 9.2 8.7 9.9 11.0Russia 3.2 1.6 1.0 1.0 1.0Other 9.2 8.6 6.0 7.0 7.5Total World 346.5 323.2 335.8 350.0 350.7ConsumptionChina 131.4 121.4 132.4 149.2 157.5Japan 34.2 32.2 27.1 32.5 26.5Other Asia 63.2 63.2 58.8 66.9 68.0USA 33.5 25.0 26.4 30.0 29.0Other Americas 17.5 17.4 16.6 20.4 20.0Europe 71.0 67.9 55.8 59.9 56.0Other 3.3 3.5 3.0 3.1 3.2Total World 354.1 330.6 320.1 362.0 360.2

* Note: Indonesian production excludes metal re-refined in other countriesData: production - CNI-A, Malaysia Chamber of Mines, MSC, PT Timah, Thaisarco, Minsur, SNIEE, WBMS consumption - USGS, WBMS, ITRI

Tin price hit by market correction

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MSC Group - Development

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• Integrated capabilities / focused business strategy – A unique tin player

• Increasing the number of production units:

• PT Koba Tin – additional 3 gravel pump mining units and 2 tailing retreatment facilities – tosustain production level

• Rahman Hydraulic Tin – an additional palong unit was commissioned in May and would increaseproduction capacity by 20%

• MSC Butterworth smelter – further efficiency improvements for full-capacity operation

• Signed a Confidentiality Agreement with DR of Congo in May to explore JV opportunities in the country.

• Continual improvements in operational efficiencies for cost-effective mining operations

• Development of new mining units in Indonesia by PT MSCI under cooperation agreements

• Enhancing efforts in increasing tin resources and sustaining production through investments inexploration and in acquisition of new and existing mining projects in Malaysia and Indonesia

• Divested 76.9% interest in Australia Oriental Minerals NL in June. Continuing efforts for divestment ofremaining non-tin assets at acceptable price

– Asian Mineral Resources Ltd (15.42%) – nickel development in Vietnam

– KM Resources Inc (30%) – copper, gold, silver and zinc mine in the Philippines

Outlook

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• MSC is optimistic on the long term prospects of the tin industry and believes that the Groupwill be able to capitalize on the strong global tin market fundamentals to expand itsbusiness.

• We expect the overall performance of the Group to remain profitable in the second half of2011 despite the current market volatility and uncertain short-term outlook.

• With the Group’s refocus on the integrated tin business and our presence throughout thevalue chain, we could enhance our pre-eminent position and seize new investmentopportunities in the industry.

Malaysia Smelting Corporation Berhad

A Global Integrated Tin Mining and Smelting Group

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