RBC Capital Markets, Global Mining & Metals Conference

100
Global Mining & Materials Conference June 14, 2016

Transcript of RBC Capital Markets, Global Mining & Metals Conference

Page 1: RBC Capital Markets, Global Mining & Metals Conference

Global Mining & MaterialsConferenceJune 14, 2016

Page 2: RBC Capital Markets, Global Mining & Metals Conference

Forward Looking Information

Both these slides and the accompanying oral presentations contain certain forward-looking statements within the meaning of the United States Private Securities LitigationReform Act of 1995 and forward-looking information within the meaning of the Securities Act (Ontario). Forward-looking statements involve known and unknown risks,uncertainties and other factors which may cause the actual results, performance or achievements of Teck to be materially different from any future results, performance orachievements expressed or implied by the forward-looking statements. These forward-looking statements include statements relating to the long-life our assets andestimated resource life, estimated profit and estimated EBITDA, production guidance, our expectation regarding market supply and demand in the commodities we produce,2016 cost guidance, expectation that we will achieve further unit cost reductions in 2016, the sensitivity of EBITDA to foreign exchange movements, the effect of US dollar oilprice changes on our Canadian dollar cost savings, our goal to maintain the core of our business at least free cash flow neutral, our expectation that we will end 2016 with atleast $500 million in cash, expectation that we will not draw on our US$3B facility in 2016, the availability of options to strengthen our liquidity and our ability to takeadvantage of any of those options, 2016 production and cost guidance, 2016 capital expenditure guidance, our statements regarding the Fort Hills capital expenditures andour ability to fund those, our statements regarding our liquidity, 2016 total spending reduction expectations, expectation of an additional $300M in operating cost reductions in2016; total of greater than $1B of annualized savings identified and included in the 2016 plan; capital and operating cost savings, our level of liquidity, statements regardingour credit rating, the availability of or credit facilities and other sources of liquidity, statements regarding our coal growth potential, the conceptual future production profile forcoal, the potential benefits of LNG use in haul trucks, all projections for Project Corridor and statements made on the “Corridor Project Summary” slide, statements regardingthe production and economic expectations for the Fort Hills project, including but not limited to operating and sustaining cost projections, sustaining capital projection, freecash flow projections, netback assumptions and calculations, operating margin, Alberta oil royalty, net margin, Teck’s share of go-forward capex, mine life, capital costprojections, transportation capacity and our ability to secure transport for our Fort Hills production, and management’s expectations with respect to production, demand andoutlook in the markets for coal, copper, zinc and energy.

These forward-looking statements involve numerous assumptions, risks and uncertainties and actual results may vary materially, which are described in Teck’s public filingsavailable on SEDAR (www.sedar.com) and EDGAR (www.sec.gov). In addition, the forward-looking statements in these slides and accompanying oral presentation are alsobased on assumptions, including, but not limited to, regarding general business and economic conditions, the supply and demand for, deliveries of, and the level and volatilityof prices of, zinc, copper and coal and other primary metals and minerals as well as oil, and related products, the timing of the receipt of regulatory and governmentalapprovals for our development projects and other operations, our costs of production and production and productivity levels, as well as those of our competitors, powerprices, continuing availability of water and power resources for our operations, market competition, the accuracy of our reserve estimates (including with respect to size,grade and recoverability) and the geological, operational and price assumptions on which these are based, conditions in financial markets, the future financial performance ofthe company, our ability to attract and retain skilled staff, our ability to procure equipment and operating supplies, positive results from the studies on our expansion projects,our coal and other product inventories, our ability to secure adequate transportation for our products, our ability to obtain permits for our operations and expansions, ourongoing relations with our employees and business partners and joint venturers. Management’s expectations of mine life are based on the current planned production ratesand assume that all resources described in this presentation are developed. Certain forward-looking statements are based on assumptions regarding the price for Fort Hillsproduct and the expenses for the project, as disclosed in the slides. Our estimated profit and EBITDA statements are based on budgeted commodity prices and a 1.40CAD/USD exchange rate. Our estimated year-end cash balance assumes current commodity prices and exchange rates, our 2016 guidance for production, costs and capitalexpenditures, existing US$ debt levels and no unusual transactions. Cost statements are based on assumptions noted in the relevant slide. Assumptions regarding liquidityare based on the assumption that Teck’s current credit facilities remain fully available. Assumptions regarding Fort Hills also include the assumption that project developmentand funding proceed as planned, as well as assumptions noted on the relevant slides discussing Fort Hills. Assumptions regarding our potential reserve and resource lifeassume that all resources are upgraded to reserves and that all reserves and resources could be mined. The foregoing list of assumptions is not exhaustive. Assumptionsregarding the Corridor project include that the project is built and operated in accordance with the conceptual preliminary design from a preliminary economic assessment.

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Forward Looking Information

Factors that may cause actual results to vary materially include, but are not limited to, changes in commodity and power prices, changes in market demand for our products,changes in interest and currency exchange rates, acts of foreign governments and the outcome of legal proceedings, inaccurate geological and metallurgical assumptions(including with respect to the size, grade and recoverability of mineral reserves and resources), unanticipated operational difficulties (including failure of plant, equipment orprocesses to operate in accordance with specifications or expectations, cost escalation, unavailability of materials and equipment, government action or delays in the receiptof government approvals, industrial disturbances or other job action, adverse weather conditions and unanticipated events related to health, safety and environmentalmatters), union labour disputes, political risk, social unrest, failure of customers or counterparties to perform their contractual obligations, changes in our credit ratings,unanticipated increases in costs to construct our development projects, difficulty in obtaining permits, inability to address concerns regarding permits of environmental impactassessments, and changes or further deterioration in general economic conditions. We will not achieve the maximum mine lives of our projects, or be able to mine allreserves at our projects, if we do not obtain relevant permits for our operations. Our Fort Hills project is not controlled by us and construction and production schedules maybe adjusted by our partners. The Corridor project is jointly owned. The effect of the price of oil on operating costs will be affected by the exchange rate between Canadianand U.S. dollars.

Statements concerning future production costs or volumes are based on numerous assumptions of management regarding operating matters and on assumptions thatdemand for products develops as anticipated, that customers and other counterparties perform their contractual obligations, that operating and capital plans will not bedisrupted by issues such as mechanical failure, unavailability of parts and supplies, labour disturbances, interruption in transportation or utilities, adverse weather conditions,and that there are no material unanticipated variations in the cost of energy or supplies.

We assume no obligation to update forward-looking statements except as required under securities laws. Further information concerning assumptions, risks anduncertainties associated with these forward-looking statements and our business can be found in our most recent Annual Information Form, as well as subsequent filings ofour management’s discussion and analysis of quarterly results, all filed under our profile on SEDAR (www.sedar.com) and on EDGAR (www.sec.gov).

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Agenda

Teck Overview & Strategy

Commodity Market Observations

Teck Update

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• Americas-centered strategy focused on long-life assets in stable jurisdictions− Canada, U.S., Peru and Chile are

favorable regions in which to operate with well-known mining codes

• High-quality assets: All business units are cash flow positive

• Sustainability: Key to managing risks and developing opportunities

Strong Resource Position1

With Sustainable Long-Life Assets

Coal Resources ~100 years

Copper Resources ~30 years

Zinc Resources ~15 years

Energy Resources ~50 years

Attractive Portfolio of Long-Life Assets in Low Risk Jurisdictions

1. Reserve and resource life estimates refer to the mine life of the longest lived resource in the relevant commodity assuming production at planned rates and in some cases development of as yet undeveloped projects. See the reserve and resource disclosure in our most recent Annual Information Form, available on SEDAR and EDGAR, for additional detail regarding underlying assumptions.

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Diversified business model

Attractive portfolio of long life assets

Low half of the cost curve

Appropriate scale

Low risk jurisdictions

Consistent Long-Term Strategy

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Financial Results Overview

2015 Q1 2016

Revenue $8.3 billion $1.7 billion

Assets $34.7 billion $ 33.8 billion

Gross profitbefore depreciation & amortization

$2.6 billion $464 million

Profit (loss)attributable to shareholders

($2.5 billion) $94 million

Adjusted EBITDA* $2.0 billion $517 million

Adjusted profit*attributable to shareholders

$188 million$0.33/share

$18 million$0.03/share

*Non-GAAP financial measure. See ‘Use of Non-GAAP Financial Measures’ in news release for additional information.7

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Teck has leverage to stronger zinc and copper markets, and benefits from the weaker Canadian dollar

The Value of Our Diversified Business Model

Cash Operating Profit 20153

Production Guidance1

Unit of Change

Effect on Estimated

Profit 2

Effect on EstimatedEBITDA2

$C/$US C$0.01 C$21M /$.01∆ C$32M /$.01∆

Coal 25.5 Mt US$1/tonne C$21M /$1∆ C$33M /$1∆

Copper 312 kt US$0.01/lb C$5M /$.01∆ C$9M /$.01∆

Zinc 940 kt US$0.01/lb C$9M /$.01∆ C$14M /$.01∆

2016 Leverage to Commodities & FX

1. Based on midpoint of 2016 guidance ranges. Zinc includes 645 kt of zinc in concentrate and 295 kt of refined zinc.2. Based on budgeted commodity prices and C$/US$ exchange rate of 1.30. The effect on our profit and EBITDA will vary with commodity price and exchange rate movements,

and sales volumes.3. Reflects gross profit before depreciation and amortization, a non-GAAP financial measure. See Appendix for reconciliation.

Base Metals~65%

Copper ~35%

Zinc~30%

Coal~35%

BaseMetals~65%

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Agenda

Teck Overview & Strategy

Commodity Market Observations

Teck Update

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Improved outlook for steelmaking coal

Small surplus in copper could shift into deficit

Growing deficit and shrinking inventories in zinc

Oil market to rebalance

Change in Direction in Key Commodity Markets

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Coal Price Assessments

Spot prices well above the Q2 quarterly contract price of US$84/t

Source: Platts, Argus, The Steel Index

• Price volatility but well off the lows

• Demand improving

• Closures continue

• Supply curtailment in China 70

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Quarterly Contract SettlementArgus FOB AustraliaTSI Premium HCC FOB Australia

Improved Outlook for Steelmaking Coal

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-1,200

-1,000

-800

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-200

02006 2007 2008 2009 2010 2011 2012 2013 2014 2015

2016YTD

Thou

sand

tonn

es

Source: Wood Mackenzie1. Relative to initial expectations

6.6%

2007-2015 disruptions to concentrate production averaged 5.8%1

1.2%

• Currently a slight oversupply in a ~20 Mt market

• Additional ~2% disruption could balance market

• Post-2016, new supply minimal

• Exchange stocks represent <2 weeks of supply

Small Surplus in Copper Could Shift Into Deficit

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$0$50

$100$150$200$250$300$350$400

2007 2009 2011 2013 2015

Spot Annual

02004006008001,0001,2001,4001,6001,800

50¢

100¢

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2007

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2009

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2011

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2016

LME Stocks SHFE Price

Spot TCs vs. Realized Annual TCs

Daily Zinc Prices & Stocks

• Mine closures tightening concentrate supply

• Growing demand expected to outpace supply curtailments

• Declining inventories

• Chinese imports of zinc metal are increasing

• Treatment charges moving significantly in favour of the mines

US

¢/lb

thou

sand

tonn

es

plotted to May 13, 2016

US$

/dm

t

plotted to April 2016Source: CRU, Teck

Source: LME, SHFE, CRU

Growing Deficit & Shrinking Inventories in Zinc

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Global Crude Oil Supply and Demand Balances

Source: Consensus Economics, May 2016

Fort Hills first production may coincide with forecasted supply deficit

Oil Market to Rebalance

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Agenda

Teck Overview & Strategy

Commodity Market Observations

Teck Update

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Near-Term Priorities

1. Teck’s share of sanction capital as of May 18, 2016.2. Assumes current commodity prices and exchange rates, Teck’s 2016 guidance for production, costs and

capital expenditures, existing US$ debt levels and no unusual transactions.

• Keeping operations cash flow positive

• Funding Fort Hills from internal sources− Remaining Fort Hills capital expenditure

of C$915M1

• Maintaining a strong financial position− Target for US$3B credit facility to remain

undrawn in 2016− Expect year-end cash balance of

>C$500M1

• Ensure access to multiple sources of capital

• Reduce near term maturities− Extend maturity of 2017 revolver

• Evaluating opportunities to further strengthen liquidity

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0.00

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2012 2013 2014 2015 2016F*

Before by-product credits

After by-product credits

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OperatingCapitalized Stripping

C$/

tTrack Record of Successfully Lowering Cash Costs Over Time

Copper Cash Costs3

Achieved significant unit cost reductions, and expect further reductions in 2016

Steelmaking Coal Total Site Costs1

2

1. Total site costs are site costs, inventory write-downs and capitalized stripping, excluding depreciation. 2. Operating costs include site costs and inventory write-downs.3. By-product credits reduced cash costs by US$0.19/lb in 2015. Assumes US$0.19/lb in 2016.4. Red Dog zinc/lead site costs are Red Dog site costs per tonne of combined zinc and lead production.* 2016F based on mid-point of guidance range.

Red Dog Zinc/Lead Site Costs4

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$0

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$2,500

$3,000

US$

M

Existing Notes

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$500

$1,000

$1,500

$2,000

$2,500

$3,000

US$

MExisting Notes New Notes

Extending Near Term Debt Maturities

Call features on new notes provide deleveraging opportunities

Pro-Forma Debt Maturity Profile2Current Debt Maturity Profile1

1. As at May 30, 2016.2. Teck announced on May 26, 2016 that it will issue US$1.25 billion aggregate principal amount of five-year and US$600 million aggregate principal amount of eight-year senior secured

notes. The transaction is expected to close on June 7, 2016. Please see press release dated May 23, 2016 for offering announcement and May 26, 2016 for pricing details. Teck also announced on May 23, 2016 that it has commenced cash tender offers to purchase up to US$1 billion aggregate principal amount of series of notes issued by Teck in the 2017-2019 maturity period. The pro-forma table presents maturities on the assumption that noteholders tender US$1.25 billion and that equal amounts of notes due 2017, 2018 and 2019 are tendered and taken up.

Weighted Average Maturity: 13.7 yrsWeighted Average Coupon: 4.78%

Weighted Average Maturity: 14.6 yrsWeighted Average Coupon: 5.72%

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Strong Financial Position; Liquidity of >C$5.1B1

Amount ($M) Commitment Maturity Letters of Credit Limit ($M)

Letters of Credit Issued ($M)

Total Available ($M)

US$3,000 Committed July 2020 US$1,000 Undrawn US$3,000

US$1,0002 Committed June 20192 US$1,0002 US$7851 US$2152

Expect to keep available for letter of credit requirements

~C$1,650 Uncommitted n/a n/a ~C$1,450 ~C$200

− Only financial covenant is debt to debt-plus-equity of <50%; excludes issued letters of credit

− Availability not affected by commodity price changes or credit rating actions

− Available for general corporate purposes

1. As of April 25, 2016. Assumes a 1.30 CAD/USD exchange rate.2. Teck announced on May 23, 2016 that it has received commitments from a majority of its lenders to extend the maturity of its US$1.2 billion revolving credit facility from June 2017 to

June 2019. As part of the extension, Teck has agreed to certain amendments to the credit facility and has also agreed to provide guarantees for the benefit of the credit facility. Lenders holding aggregate commitments of US$200 million have declined to extend and as result the size of the facility will reduce to US$1B in June 2017. Effectiveness of the amendments is subject to definitive documentation.

3. Assumes current commodity prices and exchange rates, Teck’s 2016 guidance for production, costs and capital expenditures, existing US$ debt levels and no unusual transactions.

Expect to achieve year-end cash balance of >C$500M3

and to keep our US$3B facility undrawn in 2016

• Cash balance of ~C$1.3B1

• Substantial credit facilities1:

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Summary

Diversified business model

Attractive portfolio of long-life assets in low risk jurisdictions

Good exposure to strengthening commodities –metallurgical coal & zinc

Target to keep major mines cash flow positive after sustaining capital and capitalized stripping

Strong financial position, with liquidity >$5.1B1

1. Includes cash balance of C$1.3B and undrawn US$3B credit facility as of April 25, 2016.2020

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Global Mining & MaterialsConferenceJune 14, 2016

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Additional Information

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Prices Finding a Bottom?

Commodity prices remain under pressure but off recent lows

Source: LME, GSCI, BEA, LBMA, Teck

Relative Price Changes

0.00

0.20

0.40

0.60

0.80

1.00

1.20

Zn Cu Ag

Au GSCI WTI

Hot Rolled Coil plotted to April 12, 2016

Peak Since Peak

SinceJanuary 2016

Oil $108/bbl -61% +14%

GSCI 5,185 -57% +3%

Zinc $1.10/lb -26% +16%

Copper $3.37/lb -37% +2%

Gold $1,385/oz -9% +16%

Silver $22/oz -28% +14%

Steel $690/st -33% +24%

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"C$ vs US$ Exchange Rate (left axis)' Teck (right axis)

TCK B Stock Price vs. C$/US$ Exchange Rate (2000-present)

Canadian Dollar Impacts Stock Price

Plotted to May 17, 2016

C$/

US$

Exc

hang

e R

ate

C$/

shar

e

Canadian dollar exchange rate is highly correlated with commodity prices

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Bloomberg Commodity Price Index (Left Axis) Teck (Right Axis)

Teck Stock Price vs. Bloomberg Commodity Price Index (2000-present)

Commodity Price Correlation With Stock Price

Plotted to April 18, 2016

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0%

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2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Steelmaking Coal Copper Zinc

Gross Profit Before Depreciation and Amortization

Diversified Business Mix

Zinc generated almost half of profit in the past and could do so again

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NorthAmerica

~23%Europe~14%

LatinAmerica

~2%

China~22%

Asia excl. China~40%

Diversified Global Customer BaseExposure to Recovery in Developed Markets as well as Growing Emerging Markets

Note: Teck percentage split based on 2015 revenue.

Revenue contribution from diverse markets

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Consistent Delivery Against GuidanceIn 2015, Met or Beat Guidance across Key Benchmarks

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2015 Results 2016 GuidanceSteelmaking Coal

Production 25.3 Mt 25-26 MtSite costs $45/t $45-49/tCapitalized stripping $16/t $11/t1

Transportation costs $36/t $35-37/t

Total cash costs2 $99/tUS$76/t

$91-97/tUS$65-69/t

CopperProduction 358 kt 305-320 ktC1 unit costs3 US$1.45/lb US$1.50-1.60/lbCapitalized stripping US$0.21/lb US$0.21/lb1

Total cash costs4 US$1.66/lb US$1.71-1.81/lbZinc

Metal in concentrate production5 658 kt 630-665 ktRefined production 307 kt 290-300 kt

2016 Production & Site Cost Guidance

1. Approximate, based on capitalized stripping guidance and mid-point of production guidance range.2. Steelmaking coal unit cost of sales include site costs, inventory adjustments and transport costs. Total cash costs are unit cost

of sales plus capitalized stripping. 3. Net of by-product credits.4. Copper total cash costs Include cash C1 unit costs (after by-product margins) and capitalized stripping. 5. Including co-product zinc production from our copper business unit.

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($M) SustainingMajor

EnhancementNew Mine

Development Sub-totalCapitalized

Stripping Total

Coal $50 $40 $ - $90 $290 $380

Copper 120 5 80 205 190 395

Zinc 130 10 - 140 60 200Energy 5 - 1,000 1,005 - 1,005

TOTAL $305 $55 $1,080 $1,440 $540 $1,980

Total capex of ~$1.4B, plus capitalized stripping

2015A $397 $64 $1,120 $1,581 $663 $2,244

2016 Capital Expenditures Guidance

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46 35

31

1512

35

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2014 20152014 2015

Significant Cost ReductionsUnit Costs Reduced at all of our Operations in 2015, Preserving Margins in a Volatile Commodity Environment

1. Non-GAAP financial measure. Steelmaking coal unit cost of sales include site costs, inventory adjustments and transport costs. Total cash costs are unit cost of sales plus capitalized stripping. See Appendix for definition.

2. Non-GAAP financial measure. Copper C1 unit costs are net of by-product margins. Total cash costs are C1 unit costs plus capitalized stripping. See Appendix for definition.

23%

Total Cash Costs (US$/tonne)1

76

99

Site

Transport

Inventory

Total Cash Costs (US$/lb)2

xx%

14%Copper2

C1 Unit Costsdown US$0.20/lb

Total Cash Costsdown US$0.27/lb

Total

Capitalized Stripping

Site

Total

Capitalized Stripping

1.661.93

2014 2015

24%

Unit Cost of Sales (US$/tonne)1

64

84

C1 Unit Costs (US$/lb)2

xx%

12%

1.45

1.65

Steelmaking Coal1

Unit Cost of Salesdown US$20/t

Total Cash Costsdown US$23/t

1.65 1.45

0.28 0.21

2014 2015

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- $50 $100 $150 $200 $250

Other ($1M)

Productivity - Utilization (e.g Op Delays)…

Components (life/cost) ($7M)

Freight savings ($7M)

Over time reduction ($12M)

Productivity - Enablers, multiple levers ($16M)

Plan optimization ($21M)

Pricing Improvements ($20M)

Equipment Rental Savings ($20M)

Mining Productivity - Availability ($23M)

Admin savings ($55M)

Idling & Energy Savings ($64M)

Consumables ($64M)

Employee Cost Reduction ($134M)

Contractors/Consultants Reduction ($160M)

Mining Productivity - Throughput ($215M)

2013 Initiatives 2014 Initiatives 2015 Initiatives

CAD$ millions(all USD savings translated using CAD/USD rate of 1.384)

~C$820M of Annualized Savings in 2015, from Major Cost Reduction Initiatives in 2013-2015

Annualized 2015 Savings from Major Cost Reduction Program Initiatives (C$M)

Targeting an additional C$300M in operating cost reductions in 2016; A total of >C$1B of annualized savings identified and included in 2016 plan

Meaningful Savings and Capital Spending Reductions Achieved

$0

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2012 2013 2014 2015 2016Guidance

New Mine Development Major Enhancements

Sustaining Capital Capitalized Stripping

C$M

Total Capital Expenditures 2012-2016F

Productivity – Utilizat. (e.g. Op Delays) ($5M)

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Operation Expiry DatesElkview In Negotiations - October 31, 2015Fording River April 30, 2016Highland Valley Copper September 30, 2016Trail May 31, 2017Cardinal River June 30, 2017

Quebrada BlancaOctober 30, 2017

November 30, 2017December 31, 2017

Quintette April 30, 2018Antamina July 31, 2018Coal Mountain December 31, 2018Line Creek May 31, 2019

Carmen de Andacollo September 30, 2019December 31, 2019

Collective Agreements

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CoalWell established with capital efficient growth options

Strong platform combined with diverse portfolio of options allows us to be selective in terms of commodity and timing

Completed In Construction Pre-Sanction

CopperStrong platform with substantial growth options

ZincWorld-class resource combined with integrated assets

EnergyBuilding a new business through partnership

Trail #1 Acid Plant

HVC Mill Optimization

Pend Oreille Restart

Fort Hills

Elk Valley Brownfield (4 Mpta)

Staged Growth/Value Pipeline

Red Dog Satellite Deposit – Anarraaq

San Nicolas (Cu-Zn)

Elk Valley Brownfield (Replacement 4Mpta) Quintette/Mt. Duke

Frontier

Lease 421

QB Phase 2

Corridor

Mesaba

ZafranalHVC Brownfield

Galore/Schaft Creek

Cirque

Future Options

Trail #2 Acid Plant

Medium-term Growth Options

Elk Valley Brownfield

Antamina Brownfield

Red Dog Satellite Deposits

Neptune Terminals to 18Mtpa

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Credit Ratings

S&P Moody’s Fitch DBRS

BBB- Baa3 BBB- BBB (low)

BB+ Ba1 BB+ BB (high)negative

BB Ba2 BB BB

BB- Ba3 BB- BB (low)

B+negative B1 B+

negative B (high)

B B2 B B

B- B3negative B- B (low)

Investment Grade

Non-Investment Grade

Supported by:• Diversified business model• Low risk jurisdictions• Low cost assets• Conservative financial policies• Significant cost reductions• Capital discipline• Achieving production guidance• Production curtailments in coal• Dividend cut• Streaming transactions

Constrained by:• Debt-to-EBITDA metric, due to weak prices

Ratings reflect the current economic environment

As at April 19, 2016.35

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Teck Credit Ratings vs. Bloomberg Commodity Price Index

Credit Ratings Reflect Commodity Prices

Plotted to April 18, 2016

0

50

100

150

200

250Ja

n-05

Jan-

06

Jan-

07

Jan-

08

Jan-

09

Jan-

10

Jan-

11

Jan-

12

Jan-

13

Jan-

14

Jan-

15

Jan-

16

Moody's S&P Fitch Bloomberg Commodity Price Index (Right Axis)

BBB/Baa2

BBB-/Baa3

BB+/Ba1

BB/Ba2

BB-/Ba3

BBB+/Baa1

B+/B1

B/B2

B-/B3

A+/A1

A/A2

A-/A3

Inve

stm

ent G

rade

Non

-Inve

stm

ent G

rade

36

Page 37: RBC Capital Markets, Global Mining & Metals Conference

Cost management delivering improvements in Free Cash Flow1, despite weakening prices

Target to be at least cash flow neutral

Fort Hills’ capital expenditures are fully funded2

Potential future free cash flow following project completion

Teck’s total share of capital C$2.94B

Remaining capital (as of May 18th, 2016)

~C$915M

Teck cash balance(as of March 31st, 2016)

~C$1.5B

1. Free Cash Flow is a non-GAAP financial measure calculated as Net Cash from Operations, before changes in Working Capital, less Investing activity excluding Fort Hills capital expenditures, not including proceeds from sales of investments, less interest paid, distributions to minority interests and effect of exchange rate changes on cash and cash equivalents. See Appendix for reconciliation.

2. As of March 31, 2016. Based on Suncor’s planned project spending. Sanction capital is the go-forward amount from the date of the Fort Hills sanction decision (October 30, 2013), denominated in Canadian dollars and on a fully-escalated basis.

On time, on budget, and >55% completed Target for first oil in late 2017

(300)

(200)

(100)

-

100

200

300

400

1H 13 2H 13 1H 14 2H 14 1H 15 2H 15C

$ M

illion

s

Free Cash Flow, Before Fort Hills Capex

Core Business Free Cash Flow Positive1; Funding Fort Hills From Internal Resources

3Q ’15: (C$109)4Q ’15: C$47

37

Page 38: RBC Capital Markets, Global Mining & Metals Conference

• Six focus areas• Community • Biodiversity• Our People• Water• Air• Energy and Climate Change

• Achieved all 2015 goals• Set new short-term 2020

goals • Working towards long-term

2030 goals

Our Sustainability Strategy

38

Page 39: RBC Capital Markets, Global Mining & Metals Conference

Our External Recognition

Best 50 Corporate Citizens in Canada 2015

On the Dow Jones Sustainability World Index six years in a row

One of top 100 most sustainable companies in the world and one of Canada’s most sustainable companies

Top 50 Socially Responsible Corporations in Canada

Listed on FTSE4Good Index in 2015

39

Page 40: RBC Capital Markets, Global Mining & Metals Conference

Steelmaking CoalBusiness Unit & Markets

Page 41: RBC Capital Markets, Global Mining & Metals Conference

Steelmaking Coal Will Slowly Rebalance

• Excess supply continues to pressure prices & margins• US exports declining but still >1.5 times above historical average levels• Reduced imports into China, although some evidence of destocking• Stronger fundamentals ex-China

Tighter Market ex-ChinaUS Steelmaking Coal Exports (ex. Canada)

Decline in China offset by growth in other Asian countries and Latin America

Source: GTIS

-10

-5

0

5

10

China Latin America JKT Europe IndiaSe

abor

nem

et. c

oal i

mpo

rts

chan

ge, 2

020

vs. 2

015,

Mt

38 Mt

0

10

20

30

40

50

60

70

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

Mt

2000-2009average at 23 Mt

2010-2014average at 55 Mt

Source: Average of Wood Mackenzie & CRU

41

Page 42: RBC Capital Markets, Global Mining & Metals Conference

45 55 65 75

China

0

3

6

9

12

15

Jan-

10A

pr-1

0Ju

l-10

Oct

-10

Jan-

11A

pr-1

1Ju

l-11

Oct

-11

Jan-

12A

pr-1

2Ju

l-12

Oct

-12

Jan-

13A

pr-1

3Ju

l-13

Oct

-13

Jan-

14A

pr-1

4Ju

l-14

Oct

-14

Jan-

15A

pr-1

5Ju

l-15

Oct

-15

Jan-

16

Traditional Steel Markets

• China slowing

• JKT slowing

• EU stable

Rest of the World

• India good growth

• Brazil stable

• US slowing

Monthly Hot Metal Production

Source: WSA, based on data reported by countries monthly

Mt

Update to February 2016

Global Hot Metal Production

JKT

India

Europe

USA

Brazil

42

Page 43: RBC Capital Markets, Global Mining & Metals Conference

Facilitates access to seaborne raw materials

Sources: NBS, CISA

Status of Relocation of Chinese Steel Industry To the Coast

Xinjiang

Tibet

Qinghai

Sichuan

InnerMongolia

Henan

Shanxi

Guangxi Guangdong

Fujian

Zhejiang

Jiangsu

Shandong

Liaoning

Jilin

Heilongjiang

GuizhouHunan

Hubei

Jiangxi

Anhui

ShaanxiGansu

Ningxia

Qinghai

Sichuan

Yunnan

Beijing

Hebei

WISCO Fangchenggang Project• Planned capacity: hot metal 8.5 Mt, crude

steel 9.2Mt, steel products 8.6 Mt• Cold roll line (2.1 Mt) commissioned in Jun

2015• No timeline for BFs yet

Baosteel Zhanjiang Project• Capacity: hot metal 8.2 Mt, crude steel 8.7

Mt, steel products 8.2 Mt, coke 3.2 Mt • BF #1 commissioned in Sep 2015• BF #2 preheating to be commissioned in

Aug 2016

Ningde Steel Base• Proposed but no progress yet

Ansteel Bayuquan Project• Phase 1 (~ 5.4 Mt pig iron, 5.2 Mt crude

steel and 5 Mt steel products) in 2013• Phase 2 (5.4 Mt BF) planned but no

progress yet

Capital Steel Caofeidian Project• Phase 1 (10 Mt) completed in 2010.• Phase 2, planned with the investment of

~US$7 billion, kicked off in Aug 2015 and scheduled to be completed by 2018 Capacity: hot metal 8.9 Mt, crude steel 9.4 Mt, steel products 9.0 Mt

Shandong Steel Rizhao Project• Capacity: hot metal 8.1 Mt (2 BFs), crude

steel 8.5 Mt, steel products 7.9 Mt • BF #1 started construction in Sep 2015;

scheduled to be completed by the end of 2016

43

Page 44: RBC Capital Markets, Global Mining & Metals Conference

Sources: NBS, CISA

Growing Share of Chinese Steel Industry Production on the Coast

50%

52%

54%

56%

58%

60%

62%

64%

66%

68%

0

100

200

300

400

500

600

700

800

900

2000 2003 2006 2009 2012 2015

Non-coastal (Mt, lhs) Coastal (Mt, lhs) Coastal share (%, rhs)

Chinese Steel Industry Production

44

Page 45: RBC Capital Markets, Global Mining & Metals Conference

0

200

400

600

800

1000

2010 2015 2020 2025 2030 2035

Crude Steel and Hot Metal Production

Source: WSA, China Association of Metalscrap Utilization, Wood Mackenzie

Crude Steel

China Scrap Use to Increase Slowly

China’s Scrap Ratio Low vs. Other Countries

73%54%

33%

88%

28%

50%

11%

36%

0%

20%

40%

60%

80%

100%

UnitedStates

Europe Japan Turkey Russia Korea China WorldAverage China

Steel Use By Sector(2000-14)

Electric Arc Furnace

Hot Metal

Hot metal / crude steel ratio to remain >90% and EAF share of crude steel production <10% until ~2028

45

Page 46: RBC Capital Markets, Global Mining & Metals Conference

65

70

75

80

85

90

95

100

105

US$

/tonn

e

DCE’s coking coal price Platts Premium LV CFR

Argus Premium HCC CFR China's Liulin #4 CFR

60

80

100

120

140

160

180

200

US$

/tonn

e

DCE’s coking coal price Platts Premium LV CFR

Argus Premium HCC CFR China's Liulin #4 CFR

Dalian Coking Coal Futures Follow Seaborne Prices and Fundamentals

Source: Wind, Platts, Argus46

Page 47: RBC Capital Markets, Global Mining & Metals Conference

An Integrated Long Life Coal Business

47

Prince Rupert

Ridley Terminal

Vancouver

Prince George Edmonton

Calgary

Westshore Terminal

Quintette

Cardinal River

Elk Valley

Kamloops

British Columbia

Alberta

Seattle

Elkford

Sparwood

Hosmer

Fernie

Fording River

Greenhills

Line Creek

Elkview

Coal Mountain

ElcoElk Valley

1,150 km

• >1 billion tonnes of reserves support 26 Mt of production for many years• Geographically concentrated in the Elk Valley• Established infrastructure and capacity with mines, railways and terminals• Only steelmaking coal mines still operating in Canada; competitive globally

Neptune Terminal

47

Coal MountainPhase 2

47

Page 48: RBC Capital Markets, Global Mining & Metals Conference

We Are a Leading Steelmaking Coal Supplier To Steel Producers Worldwide

NorthAmerica

~5%Europe~20%China

~20%

High quality, consistency, reliability, long-term supply

Asia excl. China~50%

Source: Teck, based on 2015 sales volumes.

LatinAmerica

~5%

Proactively realigning sales with changing market48

Page 49: RBC Capital Markets, Global Mining & Metals Conference

0

50

100

150

200

250

300

350

Q1

2010

Q2

2010

Q3

2010

Q4

2010

Q1

2011

Q2

2011

Q3

2011

Q4

2011

Q1

2012

Q2

2012

Q3

2012

Q4

2012

Q1

2013

Q2

2013

Q3

2013

Q4

2013

Q1

2014

Q2

2014

Q3

2014

Q4

2014

Q1

2015

Q2

2015

Q3

2015

Q4

2015

Q1

2016

US$

/ to

nne

Teck Realized Price (US$) Benchmark Price

Average realized price discount: ~8-9%

Discount to the benchmark price is a function of:

1. Product mix: >90% hard coking coal

2. Direction of quarterly benchmark prices and spot prices- Q2 2016 benchmark for premium

products is US$84/t

Historical Average Realized Prices

Average Realized Price in Steelmaking Coal

Average realized % of benchmark: 91-92% (range: 88%-96%);Expect Q2 2016 realized price >95% of benchmark

96%

88%

93%

94%

92%

91%

93%

49

Page 50: RBC Capital Markets, Global Mining & Metals Conference

4635 34

3

1

35

28 26

15

128

2014 2015 2016

Total cash costs down 31% from 2014 to 2016F2

Total Cash Costs2 US$/t 2014 2015 20163 Change

Site $46 $35 $34 -26%

Inventory Adjustments $3 $1 $0 -100%

Transportation $35 $28 $26 -25%

Unit Cost of Sales (IFRS) $84 $64 $60 -28%

Capitalized Stripping $15 $12 $84 -45%

Total Cash Costs2 $99 $76 $68 -31%

Sustaining Capital $6 $2 $14 -76%

All In Sustaining Costs $105 $78 $69 -34%

1. In US dollars per tonne. Assumes a Canadian dollar to US dollar exchange rate of 1.10 in 2014, 1.28 in 2015 and 1.38 in 2016.2. Steelmaking coal unit cost of sales include site costs, inventory adjustments and transport costs. Total cash costs are unit cost

of sales plus capitalized stripping. All in sustaining costs are total cash costs plus sustaining capital.3. Based on the mid-point of guidance ranges.4. Approximate, based on capital expenditures guidance and mid-point of production guidance ranges.

IFRS

Steelmaking Coal Costs1

$99

$76

IFRS IFRS

$68

Site

Inventory

Transport

Capitalized Stripping

50

Page 51: RBC Capital Markets, Global Mining & Metals Conference

Steelmaking Coal: 5 Year Planning Objectives 2016

• Evaluating options to maintain 26 Mt of annual production− Despite the closure of CMO and

CRO in the 5 year horizon− Exploring lowest cost options at

remaining 4 Elk Valley operations− Utilize assets available from

closed operations

• Maintain all operations cash positive throughout the plan− Embed continuous cost

improvement in each year− Ensure plans meet short term

goals without sacrificing the long term viability of the operations

• Future growth options remain available but dependent on stronger coal prices -

5

10

15

20

25

30

2017F 2018F 2019F 2020F 2021F

Prod

uctio

n (m

illion

s to

nnes

)

Conceptual Future Production Profile

FRO GHO (80%) EVO LCO CRO CMO Added Elk Valley51

Page 52: RBC Capital Markets, Global Mining & Metals Conference

>75 Mt of West Coast Port Capacity PlannedTeck Portion at 40 Mt

• Exclusive to Teck • Recently expanded to 12.5 Mt • Planned growth to 18.5 Mt

Westshore Terminals

Neptune Coal Terminal

Ridley Terminals

West Coast Port Capacity

• Current capacity: 18 Mt• Expandable to 25 Mt• Teck contracted at 3 Mt

• Teck is largest customer at 19 Mt• Large stockpile area• Recently expanded to 33 Mt• Planned growth to 36 Mt • Contract expires March 2021

Milli

on T

onne

s (N

omin

al)

Teck’s share of capacity exceeds current production plans, including Quintette

12.518

336

7

3

0

5

10

15

20

25

30

35

40

Neptune CoalTerminal

RidleyTerminals

WestshoreTerminals

Current Capacity Planned Growth

52

Page 53: RBC Capital Markets, Global Mining & Metals Conference

LNG Haul Trucks – Status Update

53

• Six pilot trucks have been converted to “dual-fuel” - LNG and diesel (four 830E’s, two 930E’s); first in Canada

• Current substitution rates achieved: 25 – 40% (target >35%)• Pilot objective is to confirm the business case (cost and sustainability) for a Teck

wide application; focus is on safety, sustainability and operability• Establishing reliability of the LNG systems • Optimizing LNG substitution rates and monitoring GHG emissions

53

Page 54: RBC Capital Markets, Global Mining & Metals Conference

Our Market - Seaborne Hard Coking Coal2: ~200 million tonnes

1. Source: International Energy Agency 2014 data2. Source: CRU

Global Coal Production1: 7.9 billion tonnesSteelmaking Coal Production2: ~1,185 million tonnes

Export Steelmaking Coal2: ~325 million tonnesSeaborne Steelmaking Coal2: ~290 million tonnes

High Grade Hard Coking Coal Is A Niche Market

54

Page 55: RBC Capital Markets, Global Mining & Metals Conference

• Around the world, and especially in China, blast furnaces are getting larger and increasing PCI rates

• Coke requirements for stable blast furnace operation are becoming increasingly higher

• Teck coals with high hot and cold strength are ideally suited to ensure stable blast furnace operation

• Produce some of the highest hot strengths in the world50 60 70 80 90 100

South Africa

Japan (Sorachl)

Japan(Yubarl)

U.S.A.Canada OtherTeck HCCAustraliaJapanSouth Africa

Australia(hard coking)and Canada

U.S.A.

Australia(soft coking)

10

20

30

40

50

60

70

80

Drum Strength Dl 30 (%)

CSR

Teck HCC

Coking Coal Strength

High Quality Hard Coking Coal

55

Page 56: RBC Capital Markets, Global Mining & Metals Conference

Copper Business Unit & Markets

Page 57: RBC Capital Markets, Global Mining & Metals Conference

0

200

400

600

800

1000

1200

1400

50¢

100¢

150¢

200¢

250¢

300¢

350¢

400¢

450¢

500¢

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

LME Stocks Comex SHFE Price

Copper Metal Prices & StocksU

S¢/lb

thou

sand

tonn

es

plotted to April. 19, 2016

Daily Copper Prices & Stocks

Source: LME, ICSG, ILZSG57

Page 58: RBC Capital Markets, Global Mining & Metals Conference

Copper Mine Production Forecasts Continue to Decline

Losses in 2016 already 72% of 2015 levels

16,000

16,500

17,000

17,500

18,000

18,500

5% Disruption net of ProjectsMarket Adjustment2017 Adjusted

15,000

15,500

16,000

16,500

17,000

17,500

Feb-

13

Jun-

13

Oct

-13

Feb-

14

Jun-

14

Oct

-14

Feb-

15

Jun-

15

Oct

-15

Feb-

16

2015 AdjustedMarket Adjustment5% Disruption

thou

sand

tonn

es c

onta

ined

cop

per

2015 2016

15,000

15,500

16,000

16,500

17,000

17,500

18,000

18,500

5% Disruption & ProjectsMarket Adjustment2016 Adjusted

2017

thou

sand

tonn

es c

onta

ined

cop

per

thou

sand

tonn

es c

onta

ined

cop

per

• Down 588 kmt from 2013 net estimates• Down 1.8 million tonnes from guidance

Source: Wood Mackenzie

• Down 1.3 million from 2014 estimates• Projects down by 80% • Net Mine Production Growth in 2016 now

only 1.6%, less than 250 kmt

• Down 1,068 kt from April 2015 estimates • Projects down by 60% or 510 kmt

58

Page 59: RBC Capital Markets, Global Mining & Metals Conference

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

10000

0 10 20 30 40 50 60 70 80 90 100

$/to

nne

Cumulative Production %2013 Cash Costs 2013 Total Costs 2014 Cash Costs 2014 Total Costs

Copper Costs Higher Than Understood

GFMS Net Cash and Total Cost Curves

2013 Price

2014 Price

2015 Price

Current Price (4/19/2016)

Source: GFMS, Thomson Reuters59

Page 60: RBC Capital Markets, Global Mining & Metals Conference

Copper Margin Curve

Source: Bernstein Research

Bernstein Estimated Margin After Sustaining Capex

(5,000)

(4,000)

(3,000)

(2,000)

(1,000)

-

1,000

2,000

3,000

4,000

5,000

6,000

- 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000

Mar

gin

(US$

/tonn

e)

Cumulative Copper Production (kt)

At US$2.00 Copper At US$2.40 Copper

At US$2.40 6,239kt

72nd Percentile

At US$2.004,270kt

49th Percentile

60

Page 61: RBC Capital Markets, Global Mining & Metals Conference

Copper Growth Set to Decline

-1,500

-1,000

-500

0

500

1,000

1,500

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Thou

sand

tonn

es

Las Bambas Escondida Cerro Verde Sentinel Grasberg Buenavista

Other Mines Mount Isa Cu Spence SxEw Chuquicamata Escondida SxEw Radomiro SxEw

Source: Wood Mackenzie

Annual Change to Mine Production

61

Page 62: RBC Capital Markets, Global Mining & Metals Conference

Ore Grade TrendsOngoing decline will put upward pressure on unit costs

Source: Wood Mackenzie

0.8

1.0

1.2

1.4

1.6

1.8

2.0

2.2

2.4

2.6

0.8

0.9

1.0

1.1

1.2

1.3

1.4

1.5

1.6

1.7

1980 1984 1988 1992 1996 2000 2004 2008 2012 2016 2020 2024

Cop

per G

rade

Cu

%

All Operations Primary Mines Co-By Product Mines - (RH axis)

Industry Head Grade Trends (Weighted by Paid Copper)

62

Page 63: RBC Capital Markets, Global Mining & Metals Conference

10¢

20¢

30¢

40¢

50¢

60¢

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Standard Spot High Grade Spot Realised TC/RC

Copper Concentrate TC/RCs

Copper Concentrate TC/RC

plotted to February 2016

Source: Teck, CRU63

Page 64: RBC Capital Markets, Global Mining & Metals Conference

Wood Mac Still Forecasting Chinese Demand Growth

Non-Residential Buildings Drive Copper Demand Near TermCopper Intensity Generation/Transmission

Increasing green electricity consumption to drive copper demand;Non-residential construction has higher intensity of use

Source: Wood Mackenzie, Teck64

Page 65: RBC Capital Markets, Global Mining & Metals Conference

0

200

400

600

800

1,000

1,200

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Cathode Concs Scrap Blister/Semis

000’

s to

nnes

(con

tent

)

Net Copper Imports up ~5% in 2015

Source: NBS

Updated to February 2016

Total copper unit imports continue to climb

China Switching to Copper Concentrates

65

Page 66: RBC Capital Markets, Global Mining & Metals Conference

Significant Chinese Copper Demand Remains

…But Will Add Significantly in Additional Tonnage Terms

Annual Growth Rate of Chinese Copper Consumption to Slow Dramatically…

China expected to add almost as much to global demand in the next 15 years as the past 25 years

Source: Wood Mackenzie, Teck

-

200

400

600

800

1,000

1,200

1,400

1990 1994 1998 2002 2006 2010 2014 2018 2022 2026 2030

0%

5%

10%

15%

20%

25%

30%

1990 1994 1998 2002 2006 2010 2014 2018 2022 2026 2030

Annual Avg. 11.9%

Annual Avg. 2.8%

Annual Avg. Growth356 Mt/yr

Annual Avg. Growth325 Mt/yr

Thou

sand

tonn

es

66

Page 67: RBC Capital Markets, Global Mining & Metals Conference

-100

0

100

200

300

400

500

600

700

800

0

100

200

300

400

500

600

700

800

Feb-

13

Jun-

13

Oct

-13

Feb-

14

Jun-

14

Oct

-14

Feb-

15

Jun-

15

Oct

-15

Feb-

16

Since April 2014• Despite a 725,000 tonne drop in demand

• The surplus is down 750,000 tonnes

thou

sand

tonn

es c

onta

ined

cop

per

2015 2016

0

100

200

300

400

500

600

700

800

2017

thou

sand

tonn

es c

onta

ined

cop

per

thou

sand

tonn

es c

onta

ined

cop

per

Global Copper Cathode BalancesWood Mackenzie’s Outlook is Trending Down

Since December 2014• Despite a drop of 660,000 tonnes to Wood

Mackenzie’s demand estimates

• Their surplus is down 700,000 tonnes

Since April 2015• Down from a 510,000 tonnes surplus

• Despite a 510,000 tonne drop in demand

Source: Wood Mackenzie67

Page 68: RBC Capital Markets, Global Mining & Metals Conference

(2,000)

(1,500)

(1,000)

(500)

0

500

2012 2014 2016 2018 2020

Thou

sand

tonn

es

• At 2.3% global demand growth, 480 kt of new supply needed annually

• Post 2016, mine production falls ~260 kt per year

• Structural deficit starts 2018

• Projects delayed today will not be available to the market by 2018

• Market finely balanced through 2018; could materially change with similar disruptions to 2015

Forecast Copper Refined Balance

Long-Term Copper Mine Production Still Needed

Source: ICSG, Wood Mackenzie, Teck68

Page 69: RBC Capital Markets, Global Mining & Metals Conference

Building Partnerships: Corridor Project

Teck and Goldcorp have combined Relincho and El Morro projects and formed a 50/50 joint venture company

• Committed to building strong, mutually beneficial relationships with stakeholders and communities

Capital smart partnership • Shared capital, common infrastructure• Shared risk, shared rewards

Benefits of combining projects include:• Longer mine life• Lower cost, improved capital efficiency• Reduced environmental footprint• Enhanced community benefits• Greater returns over either standalone

project

69

Page 70: RBC Capital Markets, Global Mining & Metals Conference

Corridor Project Summary

Initial Capital

$3.0 - $3.5billion

Copper Production1

190,000tonnes per year

Gold Production1

315,000ounces per year

Mine Life

32+years

Copper in Reserves2

16.6billion pounds

Gold in Reserves2

8.9million ounces

Note: Conceptual based on preliminary design from the PEA1. Average production rates are based on the first full ten years of operations2. Total copper and gold contained in mineral reserves as reported separately by Teck and Goldcorp; refer to Appendix A in Additional Information.3. Capital estimate for Phase 1a based on preliminary design shown in 2015 dollars on an unescalated basis70

Page 71: RBC Capital Markets, Global Mining & Metals Conference

Copper Development Projects in theAmericas

Corridor is one of the largest open pit copper development projects in the Americas on the basis of copper contained in Proven and Probable Reserves

-

5,000

10,000

15,000

20,000

25,000

Rad

omiro

Tom

ic

Cor

ridor

El A

rco

Que

brad

aB

lanc

a II

Que

llave

co

Agu

a R

ica

Rel

inch

o

El M

orro

Cas

ino

Sch

aft C

reek

Gal

ore

Cre

ek

Rio

Bla

nco

Cop

per E

quiv

alen

t in

Res

erve

s (M

lbs)

Copper-equivalent contained in Reserves (Mlbs)(North & South American Copper Projects)

Note: Copper equivalent reserves calculated using $3.25/lb Cu and $1,200/oz Au. Does not include copper resource projects that are currently in construction

Source: SNL Metals & Mining, Thomson One Analytics, and company disclosures.71

Page 72: RBC Capital Markets, Global Mining & Metals Conference

ZincBusiness Unit & Markets

Page 73: RBC Capital Markets, Global Mining & Metals Conference

Zinc Metal Prices & Stocks

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

50¢

100¢

150¢

200¢

250¢

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

LME Stocks SHFE Price

US¢

/lb

plotted to April 15, 2016Source: LME/SHFE

Daily Zinc Prices & Stocks

73

Page 74: RBC Capital Markets, Global Mining & Metals Conference

0

1,000

2,000

3,000

4,000

5,000

6,000

0

100

200

300

400

500

600

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2013 2014 2015

Monthly Chinese Zinc Mine Production

LME Zinc Stocks

Zinc Mine ProductionUndersupplied, Even With Lower Growth

200

400

600

800

1,000

1,200

50¢

60¢

70¢

80¢

90¢

100¢

110¢

120¢

Stocks Price

• Metal market in deficit

• LME stocks down >810 kt over 27 months; sub-500 kt recently for the first time since 2010

• ‘Off-market’ inventory position to work down also

• Large periodic increases indicate significant off-market inventories flowing through the LME to consumers

• Chinese zinc mine production is down in the last 27 months

US

¢/lb

thou

sand

tonn

es

Source: LME, NBS, CNIA74

Page 75: RBC Capital Markets, Global Mining & Metals Conference

• Down 770 kt from January 2015 estimates

• Down 1,230 kt from January 2015 estimates

Zinc Mine Production Wood Mackenzie’s Outlook is Trending Down

thou

sand

tonn

es c

onta

ined

zin

c

2015 2016 2017

• Down 820 kt from April 2015 estimates • New project production down by 22%

thou

sand

tonn

es c

onta

ined

zin

c

thou

sand

tonn

es c

onta

ined

zin

c

12,000

12,500

13,000

13,500

14,000

14,500

15,000

Feb-

13M

ay-1

3A

ug-1

3N

ov-1

3Fe

b-14

May

-14

Aug

-14

Nov

-14

Feb-

15M

ay-1

5A

ug-1

5N

ov-1

5Fe

b-16

12,000

12,500

13,000

13,500

14,000

14,500

15,000

May

-14

Jul-1

4S

ep-1

4N

ov-1

4Ja

n-15

Mar

-15

May

-15

Jul-1

5S

ep-1

5N

ov-1

5Ja

n-16

Mar

-16

12,000

12,500

13,000

13,500

14,000

14,500

15,000

Apr

-15

May

-15

Jun-

15Ju

l-15

Aug

-15

Sep

-15

Oct

-15

Nov

-15

Dec

-15

Jan-

16Fe

b-16

Mar

-16

Source: Wood Mackenzie75

Page 76: RBC Capital Markets, Global Mining & Metals Conference

2014-2020 2014-2020

Significant Zinc Mine ReductionsLarge Short-Term Losses, More Long Term

-500

-400

-300

-200

-100

0

Cen

tury

Lish

een

Skor

pion

Red

Dog

Ros

eber

y

Brac

emac

-McL

eod

Rap

ura

Aguc

ha

Pom

orza

ny-O

lkus

z (in

cl B

ulk)

Jagu

ar

Mid

-Ten

ness

ee

Mae

Sod

Ende

avor

0

100

200

300

400

500

Gam

sber

gAn

tam

ina

Dug

ald

Riv

erM

cArth

ur R

iver

Bish

aG

ansu

Jin

hui

Kyzy

l-Tas

htyg

skoe

Shal

kiya

Res

tart

Sind

esar

Khu

rdAg

uas

Teni

das

Cha

ngba

Zaw

ar M

ines

El B

roca

lSa

ngui

kou

Car

ibou

Rea

ctiv

atio

nSa

n C

risto

bal

Pena

squi

to

Source: ICSG, Wood Mackenzie Teck, Company Reports76

Page 77: RBC Capital Markets, Global Mining & Metals Conference

LME Zinc Stocks – Since Dec 2012LME Zinc Stocks - 11 Years

Zinc Inventories Declining

200

400

600

800

1,000

1,200

50¢

60¢

70¢

80¢

90¢

100¢

110¢

120¢

Dec

-12

Mar

-13

Jun-

13

Sep

-13

Dec

-13

Mar

-14

Jun-

14

Sep

-14

Dec

-14

Mar

-15

Jun-

15

Sep

-15

Dec

-15

Mar

-16

Stocks Price

0

200

400

600

800

1,000

1,200

1,400

50¢

100¢

150¢

200¢

250¢

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

Stocks Price

US

¢/lb

thou

sand

tonn

esplotted to

Apr. 19, 2016

US

¢/lb

thou

sand

tonn

es

• LME stocks down ~810 kt over 24 months• Large inventory position still to work down but we are under 500kt for the first time

since early 2010, now nearing 400kt.• Large, sudden increases indicate there are also significant off-market inventories

flowing through the LME to consumers

plotted to Apr . 19, 2016

Source: LME77

Page 78: RBC Capital Markets, Global Mining & Metals Conference

• Down 15 kt from December 2014 estimates, taking the market from deficit of 96 kt to a deficit of 111 kt

• Down 385 kt from December 2014 estimates, taking the market further into deficit of 624 kt

thou

sand

tonn

es c

onta

ined

zin

c

2015 2016 2017

• Up 379 kt from April 2015 estimates • Wood Mackenzie expects over 1 million

tonnes of projects and expansions will come online in 2017 due to higher prices

thou

sand

tonn

es c

onta

ined

zin

c

thou

sand

tonn

es c

onta

ined

zin

c

(300)

(200)

(100)

0

100

200

300

400

Feb-

13

Jun-

13

Oct

-13

Feb-

14

Jun-

14

Oct

-14

Feb-

15

Jun-

15

Oct

-15

Feb-

16

(1,000)

(800)

(600)

(400)

(200)

0

200

400

May

-14

Jul-1

4S

ep-1

4N

ov-1

4Ja

n-15

Mar

-15

May

-15

Jul-1

5S

ep-1

5N

ov-1

5Ja

n-16

4243

0 (500)

(400)

(300)

(200)

(100)

0

100

200

300

400

Apr

-15

May

-15

Jun-

15Ju

l-15

Aug

-15

Sep

-15

Oct

-15

Nov

-15

Dec

-15

Jan-

16Fe

b-16

Mar

-16

Zinc Concentrate BalancesWood Mackenzie’s 2015 - 2017 Outlooks Trending Down

Source: Wood Mackenzie78

Page 79: RBC Capital Markets, Global Mining & Metals Conference

Zinc Metal Market Mostly in Deficit Since 2013

-1000

-800

-600

-400

-200

0

200

400

600

2013 2014 2015 2016 2017

WoodMac CRU

Market View – Wood Mackenzie & CRU

• Zinc metal deficit forecasted for 2016 and 2017

• Mine production increases of -3.5% and 7.6% respectively expected for 2016 and 2017. The closure of Century and Lisheen, as well as production cuts due to low zinc prices will cause mine production to decrease in 2016. In 2017, higher prices are expected to bring a large amount of Chinese mine production online and it is expected that Glencore will bring production back in 2017

• Deficits of around 500kt/year in 2016 and 2017 will still result in large draw down of stocks

Zinc Metal Balance

Source: Wood Mackenzie, CRU79

Page 80: RBC Capital Markets, Global Mining & Metals Conference

China6%

USA 19%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

00 01 02 03 04 05 06 07 08 09 10 11 12 13 14

Galvanized Steel as % Crude ProductionChina Zinc Demand

Construction15%

Transportation 20%

Other 5%

Consumer Goods30%

Infrastructure30%

Chinese Zinc Demand to Outpace Supply

Source: Teck

If China were to galvanize crude steel at half the rate of the US using the same rate of zinc/tonne, a further 2.1 Mt would be added to global zinc consumption

80

Page 81: RBC Capital Markets, Global Mining & Metals Conference

• Deficit is being decreased by 106 kt from December 2014 estimates, to 89 kt

• Deficit increased by 250 kt from December 2014 estimates, to 439 kt

• Increase due to production cuts, resulting in insufficient concentrate available to smelters and less refined production in 2016.

thou

sand

tonn

es

2015 2016 2017

• Deficit increased by 250 kt from April 2015 estimates, to 475 kt

thou

sand

tonn

es

thou

sand

tonn

es c

onta

ined

zin

c

Refined Zinc BalancesWood Mackenzie’s Outlook is Trending Down

(500)

(450)

(400)

(350)

(300)

(250)

(200)

(150)

(100)

(50)

0

Feb-

13

Jun-

13

Oct

-13

Feb-

14

Jun-

14

Oct

-14

Feb-

15

Jun-

15

Oct

-15

Feb-

16

(500)

(450)

(400)

(350)

(300)

(250)

(200)

(150)

(100)

(50)

0

May

-14

Jul-1

4S

ep-1

4N

ov-1

4Ja

n-15

Mar

-15

May

-15

Jul-1

5S

ep-1

5N

ov-1

5Ja

n-16

Mar

-16

(500)

(450)

(400)

(350)

(300)

(250)

(200)

(150)

(100)

(50)

0

Apr

-15

May

-15

Jun-

15Ju

l-15

Aug

-15

Sep

-15

Oct

-15

Nov

-15

Dec

-15

Jan-

16Fe

b-16

Mar

-16

Source: Wood Mackenzie81

Page 82: RBC Capital Markets, Global Mining & Metals Conference

Committed Zinc Supply Insufficient for Demand

Forecast Zinc Refined Balance

Source: Teck

• We expect insufficient mine supply to constrain refined production− From 2014-2020, refined metal supply

increase of only 792 kt − Over the same period, refined demand

increase of 2.8 Mt

• Market was in deficit in 2014

• Ongoing, large inventory that has funded the deficit will continue in 2016

• Metal market moving into significant deficit with further mine closures and depleting inventories

(2,500)

(2,000)

(1,500)

(1,000)

(500)

0

500

2012 2013 2014 2015 2016 2017 2018 2019 2020

Thou

sand

tonn

es

82

Page 83: RBC Capital Markets, Global Mining & Metals Conference

• Red Dog has stable zinc production despite declining grade• Pend Oreille moving to a higher proportion of secondary mining,

which improves selectivity and ore availability• Increased refined zinc production at Trail with enhanced process

stability of a new acid plant 83

Poised to Capitalize on Improving Zinc Fundamentals

83

Page 84: RBC Capital Markets, Global Mining & Metals Conference

EnergyBusiness Unit & Markets

Page 85: RBC Capital Markets, Global Mining & Metals Conference

North American Rig Counts Down Sharply

Source: Baker Hughes, EIA, National Bank of Canada, HIS, US Department Of Energy

North American Rig Count & US Production

5,000

5,500

6,000

6,500

7,000

7,500

8,000

8,500

9,000

9,500

10,000

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

1/7/

11

1/7/

12

1/7/

13

1/7/

14

1/7/

15

1/7/

16

Thou

sand

bpd

Rig

Cou

nt U

nits

US Rig Count CAD Rig Count US 4-week Production Avg.

As of 4/18/16

85

Page 86: RBC Capital Markets, Global Mining & Metals Conference

Source: Rystad Energy, Morgan Stanley

Oil Liquids – Discovered Resources & Production (Billion bbl)

Oil Exploration Success Fell To a Post-1952 Low in 2015

Enough oil has been discovered to meet production in only 4 of the past 30 years

86

Page 87: RBC Capital Markets, Global Mining & Metals Conference

Source: PIRA Scenario Planning Annual Guidebook: February 2015

0

20

40

60

80

100

120

2000 2014 2020 2025 2030 2035 2040

Milli

on b

pd

Transport Petrochemicals Other** Buildings Other Industry Power Generation

PIRA Forecasted World Oil Demand By Sector (2000-2040)

World Oil Demand Expected to Grow

87

Page 88: RBC Capital Markets, Global Mining & Metals Conference

Source: BMO Capital Markets, May 2016

Oil Sands Mining Costs Lower Than Understood

88

Page 89: RBC Capital Markets, Global Mining & Metals Conference

Sufficient Western Canadian Takeaway Capacity Expected

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026

2027

2028

2029

2030

kbbl

s/da

y

Western Canada Crude Supply Forecast Pipeline & Local Refining Capacity

Pipeline, Local Refining & Rail Capacity

TMX & Energy East

Enbridge Expansions

Western Canadian Supply and Takeaway Capacity

Source: CAPP, Lee & Doma Energy Group

Fort Hills’ First Oil Sufficient takeaway capacity expected for forecast growth

• 2011–2014− Rapid production growth resulted in

takeaway capacity challenges− Industry added significant pipeline and

rail capacity during this time

• 2015–2030− Existing pipeline capacity, new pipelines

(TMX and Energy East) and existing rail capacity expected to provide sufficient takeaway capacity

89

Page 90: RBC Capital Markets, Global Mining & Metals Conference

Building An Energy Business

Strategic diversification

Large truck & shovel mining projects

World-class resources

Long-life assets

Mining-friendly jurisdiction

Competitive margins

Minimizing execution risk

Tax effective

Mined bitumen is in Teck’s ‘sweet spot’90

Page 91: RBC Capital Markets, Global Mining & Metals Conference

• Significant value created over long term

• 60% of PV of cash flows beyond year 5

• IRR of 50-year project is only ~1% higher than a 20-year project

• Options for debottlenecking and expansion

50-year assets provide for superior returns operating through many price cycles

The Real Value of Long-Life Assets

Fort Hills Project Indicative Rolling NPV1

1. Indicative NPV assumes US$95 WTI, $1.05 Canadian/US dollar exchange rate, and costs as disclosed with the Fort Hills sanction decision (October 30, 2013).

91

Page 92: RBC Capital Markets, Global Mining & Metals Conference

Fort Hills Project Status & Progress

• Project Progress: Construction has surpassed the midway point and project continues to track positively within schedule expectations

• >95% Engineering complete (approximate as at April 2016)

• >55% Construction complete (approximate as at April 2016)

• Capital expenditures:1, 3 Continue to track positively within project sanction cost

Global fabrication, module and logistics program:Performing well to date, delivering positive results

All critical schedule milestones have been achieved to date supporting target late 2017 for first oil

Fort Hills Key Numbers2

Teck’s Sanction Capital3 ~C$2.94B

Teck’s Estimated 2016 Spend C$960M

Teck’s Remaining Capital(as of May 18th, 2016) ~C$915M

Operating & Sustaining Costs4 C$25-28 per barrel of bitumen

Sustaining Capital4 C$3-5 per barrel of bitumen

Teck’s Share of Production 13,000,000 bitumen barrels per year

Mine Life 50 years

1. Based on Suncor’s planned project spending. 2. All costs and capital are based on Suncor’s estimates.3. Sanction capital is the go-forward amount from the date of the Fort Hills sanction decision (October 30, 2013), denominated in Canadian dollars and on a fully-escalated basis. 4. Sustaining capital is included in operating & sustaining costs.

92

Page 93: RBC Capital Markets, Global Mining & Metals Conference

Teck’s Sanction Capital2

~$2.94billion

Teck’s Estimated 2016 Spend

$960million

Teck’s Remaining Capital3

~$915million

Operating & Sustaining Costs4

$25-28per barrel of bitumen

Sustaining Capital4

$3-5per barrel of bitumen

Teck’s Share of Production

13,000,000bitumen barrels per year

1. All costs and capital are based on Suncor’s estimates.2. Sanction capital is the go-forward amount from the date of the Fort Hills sanction decision (October 30, 2013), denominated in

Canadian dollars and on a fully-escalated basis. Includes earn-in of $240M. 3. As of May 18, 2016.4. Based on Suncor’s estimate at project sanction in October 2013. Sustaining capital is included in operating & sustaining costs.

Mine life: 50 years

Fort Hills Key Numbers1

93

Page 94: RBC Capital Markets, Global Mining & Metals Conference

Source: Teck 1. Estimates are based on exchange rates as shown, expected bitumen netbacks, and operating costs of C$25 per barrel

(including sustaining capital of C$3-5 per barrel). 2. Per barrel of bitumen.3. Sanction capex is the go-forward amount from the date of the Fort Hills sanction decision (October 30, 2013), denominated

in Canadian dollars and on a fully-escalated basis. 4. Pre-tax free cash flow yield during pre and post capital recovery periods.5. Post-payout estimated net margin includes C$1.50 export market premium.

The Fort Hills project is expected to have significant free cash flow yield across a range of WTI prices

Fort Hills Free Cash Flow Yield4

Sensitivity to WTI PricePotential Contribution

from Fort Hills US$60 WTI

& $1.30 USD/CAD

US$75 WTI & $1.20

USD/CAD

Pre-Payout Post-Payout

Teck’s share of annual production (36,000 bpd) 13 Mbpa 13 Mbpa

Estimated netback2 ~$40/bbl ~$55.50/bbl

Estimated operating margin2 ~$15/bbl ~$30.50/bbl

Alberta oil royalty2 ~$1.50/bbl ~$10/bbl

Estimated net margin2,5 ~$13.50/bbl ~$22/bbl

Annual pre-tax cash flow ~$180 M ~$290 M

Teck’s share of sanction capex3 ~$2,940 M ~$2,940 M

Free cash flow yield4 ~6% ~10%

Fort Hills Project Economics Are Robust1

0%

5%

10%

15%

20%

25%

$40 $50 $60 $70 $80 $90 $100 $110 $120

Free

Cas

h Fl

ow Y

ield

WTI $/bbl

Post-Payout @$1.20 USD/CAD

Pre-Payout@$1.30 USD/CAD

94

Page 95: RBC Capital Markets, Global Mining & Metals Conference

$60 $58.75

$40

$13.50 $15

$-

$10

$20

$30

$40

$50

$60

$70

Royalties based on pre-capital payout. * WTI/WCS Differential based on Lee & Doma 2016-2020 forecast average.** Export Premium based on average premium pricing for USGC market via Keystone and Flanagan South Pipelines.Source: Alberta Energy bitumen valuation methodology (http://www.energy.alberta.ca/OilSands/1542.asp)1. Estimates are based on C$/US$ exchange rates as shown, expected bitumen netbacks, operating costs of C$25 per barrel (including

sustaining capital of C$3-5 per barrel) and Phase 1 (pre-capital payout) royalties.

Cash Margin1 Calculation Example: Prior to Capital Recovery

Fort Hills Bitumen Netback Calculation Model

$13.50$10

$14.75 $7-9$1.25

$22

$3 $1.50 $1-2

95

Page 96: RBC Capital Markets, Global Mining & Metals Conference

Fort Hills Bitumen Netback Calculation Model

$22

$3 $10$1-2

Royalties based on pre-capital payout. * WTI/WCS Differential based on Lee & Doma 2021-2030 forecast average.** Export Premium based on average premium pricing for USGC market via Keystone and Flanagan South Pipelines.Source: Alberta Energy bitumen valuation methodology (http://www.energy.alberta.ca/OilSands/1542.asp)1. Estimates are based on C$/US$ exchange rates as shown, expected bitumen netbacks, operating costs of C$25 per barrel (including

sustaining capital of C$3-5 per barrel) and post payout royalties.

$75 $74

$55.50

$20.50 $22

$-

$10

$20

$30

$40

$50

$60

$70

$80

Cash Margin1 Calculation Example: Post Capital Recovery

$12.35$13.25$10

$7-9$1.25

96

Page 97: RBC Capital Markets, Global Mining & Metals Conference

Source: Shorecan, Net Energy, Lee & Doma

Western Canadian Select (WCS)

Average Monthly WTI-WCS DifferentialWestern Canadian Select (WCS) Is The Benchmark Price For Canadian Heavy Oil At Hardisty, Alberta

WCS differential to West Texas Intermediate (WTI) • Contract settled monthly as differential to Nymex WTI• Long term differential of Nymex WTI minus $10-20 US/bbl• Based on heavy/light differential, supply/demand, alternate

feedstock accessibility, refinery outages and export capability− Narrowed in 2014/2015 due to export capacity growth, rail

capacity increases, and short term production outages• Recently improved export capability to mitigate volatility− Further export capacity subject to rigorous regulatory review;

potential impact to WCS differentials.

WTI (US/bbl) $40 $50 $60 $70 $80 $90 $100WCS Differential to Nymex WTI (US/bbl) -$13.00 -$14.50 -$15.50 -$17.00 -$18.00 -$19.50 -$20.50

*Forecast Assumptions: Fort Hills Startup 2017/2018 with supply/demand model exiting Western Canada in a constrained pipe/excess rail transportation model, per Lee & Doma Energy Consulting.

FORECAST*

Plotted to May 2016

$-

$5

$10

$15

$20

$25

$30

$35

$40

$45

2010

2011

2012

2013

2014

2015

2016

WCS Differential (US$/bbl)Long-term WCS Differential

$23.122012-2013

$15.692010-2011

$16.452014-2015

$14.05YTD 2016

97

Page 98: RBC Capital Markets, Global Mining & Metals Conference

Source: Shorecan, Net Energy, Lee & Doma

Diluent (C5+) Pricing

Average Monthly WTI/Diluent (C5+) Differential

Diluent (C5+) at Edmonton, Alberta Is the benchmark contract for diluent supply for oil sands

Diluent differential to West Texas Intermediate (WTI)• Contract settled monthly as differential to Nymex WTI• Based on supply/demand, seasonal demand (high in winter, low

in summer), import outages• Long-term diluent (C5+) differential of Nymex WTI +/- $5 US/bbl

Diluent (“Pool” in Edmonton is a common stream of a variety of qualities• Diluent pool comprised of local and imported natural gas liquids

WTI (US/bbl) $40 $50 $60 $70 $80 $90 $100Diluent (C5+) Differentialto Nymex WTI (US/bbl) +$2.50 +$1.50 +$0.50 -$0.50 -$1.50 -$2.50 -$3.50

*Forecast Assumptions: Fort Hills Startup 2017/2018, using 2015 CAPP Western Canadian oil production forecast, Diluent (C5+) differentials per Lee & Doma Energy Consulting

FORECAST*

$(10)

$(5)

$-

$5

$10

$15

$20

Jan-

10M

ay-1

0S

ep-1

0Ja

n-11

May

-11

Sep

-11

Jan-

12M

ay-1

2S

ep-1

2Ja

n-13

May

-13

Sep

-13

Jan-

14M

ay-1

4S

ep-1

4Ja

n-15

May

-15

Sep

-15

Jan-

16M

ay-1

6

WTI/C5+ Diff (US/bbl)Long-term C5+ DiffPlotted to May 2016

98

Page 99: RBC Capital Markets, Global Mining & Metals Conference

Progress in Implementing Our Diversified Marketing Strategy

Market Access Options for Teck’s 50 kbbls/day of Fort Hills Diluted Bitumen Blend

Cushing

Flanagan

Houston

Kitimat

Edmonton

US Gulf Coast

Europe

Asia

TransCanada Energy East (Proposed, Contract Carriage)Enbridge Northern Gateway (Proposed, Contract Carriage)

TransCanada Keystone/MarketLink (Existing, Contract Carriage)Enbridge Flanagan South (Existing, Contract Carriage)

Vancouver

TransMountain Pipeline Expansion (Proposed, Contract Carriage)

Asia

Agreements for pipelines to Hardisty in place

Agreement for Hardisty product storage in place

Monitoring production vs market access balance

Developing a portfolio of pipeline capacity opportunities, to enable access to diversified markets

Evaluating opportunities in the secondary market for pipeline capacity

Developing a diversified customer base

Hardisty

Chicago

Sarnia

Patoka

SuperiorGuernsey

MontrealSaint John

Enbridge Mainline System (Existing, Common Carriage)Spectra Express (Existing, Contract Carriage)

Teck can enter into long-term take or pay contracts

99

Page 100: RBC Capital Markets, Global Mining & Metals Conference

Intra Alberta Logistics On Schedule For Fort Hills Commissioning

RailLocal Market

Pipeline LegendBitumenBlendDiluentExistingNew

East Tank Farm Blending w/Condensate

Wood Buffalo Extension

Norlite Diluent Pipeline

Cheecham Terminal

Hardisty Terminal

Wood Buffalo Pipeline

Athabasca Pipeline

Edmonton Terminal

Fort HillsMine Terminal

Northern CourierHot Bitumen Pipeline

Teck

OptionsExport Pipeline

Kirby Athabasca Twin Pipeline

Pipeline/Terminal OperatorPipelineCapacity

(kbpd)

Teck Capacity

(kbpd)Project Construction Status

(% completion)

Northern Courier Hot Bitumen TransCanada 202 40.4 Pipeline and Facilities: Tank terminal:

East Tank Farm - Blending Suncor 292 58.4 Diluent terminaling and blending

Wood Buffalo Blend Pipeline Enbridge 550 65.3 In service

Wood Buffalo Extension Enbridge 550 65.3 Pipeline:Pump stations and facilities:

Norlite Diluent Pipeline Enbridge 130 18.0 Pipeline:Pumpstations and facilities:

Hardisty Blend Tankage Gibsons 425 kbbls 425 kbbls Blend storage tank

73%90%

100%

100%18%

20%

80-90%

30%

52%

100