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    PAGE 1 of 8
    P ERILYA LIMITED
    TE TO BROKEN HILL MINERAL RESOURCES AND ORE RESERVES
    assumptions
    e attached)
    d cost profile
    llite deposits, should
    ant
    improve
    ales zinc, lead and silver miner today announced the updated 2008 Ore
    .4% zinc, 7.3%
    1% zinc, 4.5%
    ion life at the
    ations of nine years, under conservative price assumptions, compared to the previously
    e has increased
    date; providing
    ult of improved operational performance and scheduling
    s validation that
    t grade zinc/lead
    , reduce the net
    urve, and to
    ave had considerable success in improving productivity with over 80% improvement in
    development rates performance and over 50% in tonnes of ore mined per man over this calendar year, with
    further improvements evident under the resized Broken Hill Operation. We are also reducing operational costs, in
    particular the historically high fixed-costs component. Both productivity and cost improvements have contributed
    to the extending the life of the Southern Operations to nine years.” Mr O’Connor said.
    “Under the leadership of Paul Arndt, the Broken Hill Operation is now well placed to operate through a sustained
    period of adverse metal prices and positioned to rapidly increase production should metal prices and margins
    improve,” he added.
    7 November 2008
    UPDA
    H
    ighlights

    Broken Hill Ore Reserves increase life of mine to 9 years at conservative price

    Substantial Resource base for potential conversion to Reserves at a later date

    AMC Consultants Pty Ltd (“AMC”) completed an independent technical review (se

    Broken Hill is well placed to operate for a sustained period on lower production an• Production can be rapidly ramped up with ore sourced from multiple sate
    metal prices improve
    • North Mine, North Mine Deeps, Potosi, Flying Doctor and the Pinnacles region have significMineral Resources, which can be put into production quickly should metal pricesPerilya (ASX:PEM), the New South W
    Reserve and Mineral Resource statement for its Broken Hill Operation. Perilya said that its Mineral Resources had increased by 6% to 19.36 million tonnes containing 9lead and 90.8 g/t of silver and Ore Reserves, post resizing, is 10.02 million tonnes containing 6.lead and 46.7 g/t of silver, as at 30 June 2008.
    Importantly, the Ore Reserves and the mining plan associated with this Reserve, establish a productSouthern Oper
    anticipated two to three years mine life. In addition, material outside of the reported Ore Reservwith Mineral Resources identified that are capable of conversion to Ore Reserves at a laterfurther opportunity to extend the life of mine at Broken Hill. The security of the Ore Reserves has increased as a res
    of mining activities. Perilya’s Executive Chairman, Patrick O’Connor, said the Ore Reserve and Mineral Resource iBroken Hill remains a world-class and significant base metals producer, with one of the highesmines in Australia. Our goal now is to build on improved productivity at the Broken Hill Operation
    cash cost to below US$0.60 per pound of zinc payable to move Perilya well down the industry cost cmine in a sustainable manner replacing Ore Reserves as we mine. “To date we h
    PAGE 2 of 8
    P ERILYA LIMITED
    AMC reviewed the methodologies and processes used for Mineral Resource and Ore ReservSouthern Operations, and the methodologies and processes used for Mineral Resource esSouthern Extensions, North Mine Upper, Potosi and Flying Doctor deposits and reported that inoverall approach and methodology used to estimate the Mineral Resources was consistent windustry practice and
    reported the methodologies applied were conservative and prudent considering the nature of tthe Southern Operations. Since Perilya acquired the Broken Hill deposit in 2002 a total of 11.3 million tonnes of ore has been mcontaining 1.2 million tonnes of contained zinc and lead. The Ore Reserves have been consistentlthrough classification of areas as economic during developme
    Contained zinc and lead metal within the Ore Reserve is currently 1.06 million tonnes, wfavourably to the 1.28 million tonnes at the time of acquisition of the Broken Hill Operation. Furtadditional target areas for potential inclusion in the Resource is underway. Mineral Re
    Exploration ReThe Measured
    Resources and O Mineral Resourc
    Joint Ore Reserves Cf those Mineral Reso
    Ore Reserves
    .
    Inquiries:
    Investor
    Med
    PAGE 3 of 8
    P ERILYA LIMITED
    BROKEN HILL OPERATION MINERAL RESOURCES AND ORE RESERVES UPDATEThe Broken Hill Operation Mineral Resources and Ore Reserve estimates, which include mindeposits at the Southern Operation (including Southern Extensions); North Mine; P
    Blocks; Flying Doctor and Pinnacles, have been updated as at 30 June 2008. (See Figures 1 and 2).
    The Ore Reserve, which only applies to the Southern Operation, is 10.02 million tonnes (“Mt”grade of 6.1% Zn, 4.5% Pb and 46.7 g/t Ag (2007: 11.24Mt at 6.7% Zn, 4.9% Pb and 49.6 g/t AThe combined Broken Hill Operation Mineral Resource (Measured, Indicated and Inferred) Operation; North Mine Uppers; North Deeps; Potosi; Silver P
    (1130 and Henry George deposits), is 19.36Mt at an average grade of 9.4% Zn, 7.3% Pb, representing an inc
    The Broken Hill Operation Mineral Resources and Ore Reserve data for all mines and deposits is1, Table 2 and Figure 1. Importantly, the security of the updated Ore Reserve has increased as a result of improvschedul
    nine years. Substantial Mineral Resources from the Southern Operation, North Mine, Potosi adeposits may be converted to Ore Res
    Operation. Ore Reserves were estimated from the available Mineral Resource at the Southern Operation, byterm plan shapes and
    The Ore Reserves were estimated using conservative price and operating cost assumptions, incmetal prices of US$0.65 cents per pound of payable zinc, US$0.65 cents per pound of payable lesilver, and an AUD/USD exchange rate of 72 cents, which are lower than the current market cprices for the next 4 years.
    The Mineral Resource for the South Operation, North Mine Upper (0-26 level) and Potosi was ecut-off of 7.0% Zn+Pb. For the North Mine Deeps, below the 26 level, a cut-off of approximately 8used and for Silver Peak, Henry George and 1130 deposits a 2% to 5% Zn+Pb variable cut-ofFlying Doctor deposit was estimated using a 2% Zn+Pb cut-off, based on mineralised horizons t5% Zn+Pb (high grade) or 1% Zn+Pb (low grade) boundaries. During the past 18 months significant work was completed to identify and rank near-mine usurface drill targets at the Southern Operati
    exploration targets have been identified and reveal significant potential for moderate and high gmineralisation. Based on a ranking st
    targeting a further 3.0Mt – 5.6Mt from the near-mine targets at the Southern Operation (The pand grade is conceptual in nature, there has been insufficient exploration to define a Mineral Reuncertain if further exploration will result in the determination of a Mineral Resource). This willpotential driver for further extending the life of mine. Further additions to the Mineral Resource inventory are anticipated on the successful outcodefined exploration targets and lode extensions. AMC reviewed the methodologies and processes used for Mineral Resources and Ore ReserveSouthern Operation, and the methodo
    Southern Extensions, North Mine Upper, Potosi and Flying Doctor deposits. AMC reported, inoverall app
    PAGE 4 of 8
    P ERILYA LIMITED
    North Mine Perilya is continuing the feasibility study of the North Mine, including the Upper and North Mine
    Under the right economic circumstances and mining approach this ore body remains a significanlong term future. A feasibility study is in progress and follows a preliminary study of the North Deeps completedincluded an assessment of the potential of the North Mine Upper areas between the 12
    date has included a detailed geological assessment of the North Mine Upper area, whicsignificant additional Mineral Resource (included in this update), and explorati
    The Min
    138g/t Ag and the North Mine Deeps 3.3Mt containing 11.5% Zn, 13.8% Pb and 224 g/t Ag.
    Potosi The Potosi deposit conta
    previously been reported separately as Potosi North and Potosi Extended. The Mineral Resource for Potosi (Potosi North and Potosi Extended) currently includes 1.6M
    Zn, 3.4% P
    Prior to Potosi being placed on care and maintenance in September 2008, the Potosi Exploraprogre
    Flying Doctor
    Perilya is continuing the regulatory approval process for this project to enable early mining whimprove. Outlook and Stra
    P
    erilya is targeting production of 55,000 tonnes of contained zinc and 50,000 tonnes of coannum. In response to the lower metal prices, the Broken H
    f
    ocus on a lower production rate and is targeting a reduction in its cash costs to US$0.65 to USof payable zinc from January 2009. With the resizing of the B
    P
    erilya is focused on:

    Exceeding the production targets set under the new operati
    i
    mprove the financial viability and cash flows from the operation; • Reduci
    c
    urve and increasing the profit margins of the Broken Hill Operation; • Improving productivity rates to further reduce unit costs;

    Extending the life of the Broken Hill Operation in a sus
    • Maintaining flexibility to rapidly increase production in response to market priceconditions; • Leveraging the value of surplus capacity of the infrastructure at Broken Hill to purarrangements with third parties that would allow for processing of external ore sources;
    Table 1: Ore Reserves - Broken Hill Operation Broken Hill OperationsOre Reserve as at 30 June 2008TonnesZincLeadSilver'000%%g/tReserveSouthern OperationsLHOS**Proved4,5726.44.245.9Probable3,8175.03.134.6Total8,3895.73.740.8PillarProved1,2628.99.684.6Probable3715.55.550.9Total1,6338.18.76.9
    Total
    ProbableTotal
    Table 2: Mineral Resources – Broken Hill Operation Broken Hill OperationsMineral Resource as at 30 June 2008TonnesZincLeadSilver'000%%g/tResourceSouthern OperationsMeasured5,8749.77.574.5Indicated3,1449.76.362.4Inferred5109.610.183Total9,5289.77.270.9North Mine UppersMeasured15.06.867.0(Above 26L)Indicated807.07.7104.0Inferred8307.18.5141Total9107.08.4137.7North DeepsMeasured2,10011.413.9216.0(Below 26L)Indicated1,20011.713.6239.0Total3,30011.513.8224.4PotosiInferred1,60014.03.446Total1,60014.03.446Silver PeakInferred3905.29.278Total3905.29.278Central BlocksInferred6804.73.543Total6804.73.543Flying DoctorIndicated8653.14.243Inferred5903.33.746Total1,4553.24.044Henry GeorgeInferred1,2907.70.814Total1,2907.70.814
    1130Inferred22012.20.6
    TotalMeasured7,97510.19.2111.
    IndicatedInferred
    Total19,3629.47.390.Notes
    All Mineral Resources and Ore Reserves figures reported represent estimates at 30 June 2008. Comp
    PAGE 5 of 8
    P ERILYA LIMITED
    Figure 1: Perilya
    rces and Ore
    mineralisatio
    en
    oken Hill
    North Mine Deeps North Mine Uppers Southern Operation Potosi / Silver Peak / Central Blocks / Flying Doctor PAGE 6 of 8
    P ERILYA LIMITED
    Historical 12 Lev
    COMPETENT PERSON STATEMENTS Attribution Statements The information in this report that relates to Ore Reserves for Southern Operations is based on information compiled b
    Consulting and is a member of the Australasian Institute of Mining and Metallurgy. Mr Raleigh has suwhich is relevant to the style of mineralisation and type of deposit under consideration and to the acundertaking to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian CodExploration Results, Mineral Resources and Ore Reserves’. Mr Raleigh consents to the inclusion in the rebased on the information in the form and context in which it appears.
    sub-set) and Potosi is based on information compiled by Mr Noel Carroll who is a full-time employee omember of the Australian Institute of Geoscientists. Mr Carroll has sufficient experience which is relevmineralisation and type of deposit under consideration and to the activity which he is undertaking to qualiPerson as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, MineOre Reserves’. Mr Carroll consents to the inclusion in the report of the matters based on the informatiocontext in which it appears.
    The information in this report that relates to Mineral Resources for Silver Peak; Central Blocks; Flying Doc(1130 and Henry George deposits) and North Mine Uppers, is based on information compiled by Mr Davfull-time employee of Perilya and is a member of the Australasian Institute of Mining and Metallurgy. Mr Pexperience which is relevant to the style of mineralisation and type of deposit under consideration and tohe is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian CoExploration Results, Mineral Resources and Ore Reserve
    PAGE 8 of 8
    P ERILYA LIMITED
    AMC CONSULTANTS PTY LTD - STATEMENT FOR PERILYA BROKEN HILL In October 2008, AMC conducted a technical review1 of the methodologies and processes used2008 Mineral Resource and Ore Reserve estimates for Southern Operations, and the meprocesses used for the Mineral Resource estimates for the Southern Extensions, North Mine UFlying Doctor deposits at Broken Hill. The review was re
    data quality, the process and the methodology used to estimate the Mineral Resources and thThe review did not involve detailed checks of the actual estimations. AMC is of the opinion that the overall approach and methodology used to estimate the Mineraconsist
    ent with accepted industry practice and is appropriate for the style of mineralisation that Hill. AMC has not identified any fatal flaws that could have a material impact on the Mineral reported. With respect to the Mineral Resource reported for Southern Operations, only resources thcurrently planned mining ou
    outlines. AMC believes this to be a conservative but prudent approach considering the remnant the operation. AMC considers that the Mineral Resource for Southern Operations provides a sinput to estimate the Ore Reserve.
    The Ore Reserve for Southern Operations is based on the Measured and Indicated Resource cothe planned mining outlines. AMC considers that the mining factors applied to allow for ore rdilution and mining dilution are appropriate for the nature of the mining operations, which involvremnant ore blocks as well as unmined lodes.
    The Ore Reserve represents 86% of the production scheduled in Perilya’s life-of-mine plan, whyear period from 1 July 2008, the balance of the material in the production schedule bemineralisation from development and other ar
 
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