LOGO

ANNUAL INFORMATION FORM

NORANDA INC.

May 9, 2003

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CONTENTS

|    |  |                                      |  |                                       |  |                                     |  | Page
|--- |  | ------------------------------------ |  | ------------------------------------- |  | ----------------------------------- |  | ----
|1.  |  | CORPORATE PROFILE                    |  | 4                                    
|2.  |  | INCORPORATION                        |  | 4                                    
|3.  |  | GENERAL BUSINESS DEVELOPMENTS        |  | 5                                    
|    |  | 3.1                                  |  | Three-Year History                    |  | 5                                  
|    |  | 3.2                                  |  | Principal Products                    |  | 8                                  
|    |  | 3.3                                  |  | Trends, Risks and Uncertainties       |  | 11                                 
|4.  |  | DESCRIPTION OF THE BUSINESS          |  | 16                                   
|    |  | 4.1                                  |  | Main Businesses                       |  | 17                                 
|    |  |                                      |  | 4.1.1                                 |  | Canadian Copper and Recycling       |  | 17  
|    |  |                                      |  | 4.1.2                                 |  | Copper                              |  | 19  
|    |  |                                      |  | 4.1.3                                 |  | Zinc                                |  | 22  
|    |  |                                      |  | 4.1.4                                 |  | Aluminum                            |  | 26  
|    |  |                                      |  | 4.1.5                                 |  | Nickel                              |  | 27  
|    |  |                                      |  | 4.1.6                                 |  | Exploration and Project Development |  | 30  
|    |  | 4.2                                  |  | Principal Subsidiaries and Associates |  | 35                                 
|    |  |                                      |  | 4.2.1                                 |  | Falconbridge Limited                |  | 35  
|    |  |                                      |  | 4.2.2                                 |  | Novicourt Inc.                      |  | 36  
|    |  |                                      |  | 4.2.3                                 |  | American Racing Equipment, Inc.     |  | 37  
|    |  |                                      |  | 4.2.4                                 |  | Magnola Metallurgy Inc.             |  | 37  
|    |  | 4.3                                  |  | Statistical Tables                    |  | 38                                 
|    |  | 4.4                                  |  | Environment                           |  | 47                                 
|    |  | 4.5                                  |  | Technology                            |  | 47                                 
|    |  | 4.6                                  |  | Labour Relations                      |  | 47                                 
|    |  | 4.7                                  |  | Legal Proceedings                     |  | 48                                 
|5.  |  | FORWARD-LOOKING STATEMENTS           |  | 48                                   
|6.  |  | SELECTED FINANCIAL INFORMATION       |  | 49                                   
|7.  |  | DIVIDEND POLICY                      |  | 50                                   
|8.  |  | MANAGEMENT'S DISCUSSION AND ANALYSIS |  | 51                                   
|9.  |  | MARKET FOR SECURITIES                |  | 51                                   
|10. |  | DIRECTORS AND OFFICERS               |  | 51                                   
|    |  | 10.1                                 |  | Directors                             |  | 51                                 
|    |  | 10.2                                 |  | Officers                              |  | 53                                 
|11. |  | ADDITIONAL INFORMATION               |  | 55                                   
|12. |  | GLOSSARY OF TERMS                    |  | 55                                   

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Certain definitions and metric imperial conversion table

|Wherever referred to in this Annual Information Form: |  | Metric Unit |  | Metric Symbol |  | Imperial Equivalent 
|----------------------------------------------------- |  | ----------- |  | ------------- |  | --------------------
|"kg" means kilogram                                   |  | Tonne       |  | mt            |  | 1.102311 tons       
|"lb" means pound                                      |  | Kilogram    |  | kg            |  | 2.20462 pounds      
|"oz" means troy ounces                                |  | Gram        |  | g             |  | 0.032151 troy ounces
|"tonne" or "mt" means 1,000 kilograms                 |  | Metre       |  | m             |  | 3.2808 feet         
|                                                      |  | Cubic metre |  | m3            |  | 35.315 cubic feet   
|                                                      |  | Kilometre   |  | km            |  | 0.6214 miles        
|                                                     

A
glossary of terms is set forth in Part 13 of this Annual Information Form. In this Annual Information Form, unless otherwise indicated, financial data are in Canadian dollars.

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1.     CORPORATE PROFILE

Noranda Inc. is an integrated mining and metals company. Its principal business is the ownership and operation of mining and metallurgical assets and the
addition of value through the development and management of these assets. Noranda is one of the world's largest producers of zinc and nickel and a significant producer of copper, primary and
fabricated aluminum, lead, silver, gold, sulphuric acid and cobalt. Noranda is also a major recycler of secondary copper, nickel and precious metals. The head and principal office of
Noranda Inc. is located at BCE Place, 181 Bay Street, Suite 200, Toronto, Ontario, Canada M5J 2T3.

In
this Annual Information Form, Noranda Inc. and its wholly-owned subsidiaries may be referred to individually or collectively as the "Company", "we", "us" or "ours" and the
Company, together with its other subsidiaries, associates and joint ventures, may be referred to as "Noranda".

2.     INCORPORATION

Noranda Inc. was incorporated under the Business Corporations Act (Ontario) ("OBCA") by restated articles of incorporation dated December 31, 1998.
Those articles reflect Noranda Inc.'s distribution to its common shareholders of its interests in Noranda Forest Inc. (now Nexfor Inc.) and Canadian Hunter Exploration Ltd.
effective as of such date. Noranda Inc.'s earliest predecessor was incorporated in 1922.

Our
principal subsidiaries as of December 31, 2002, their jurisdictions of incorporation, continuance, or organization and the percentage of voting securities we own, directly or
indirectly, are set out below:

PRINCIPAL SUBSIDIARIES

|Company                                  |  | Jurisdiction of Incorporation |  | Percentage of Voting Securities
|---------------------------------------- |  | ----------------------------- |  | -------------------------------
|American Racing Equipment, Inc. ("ARE")  |  | Delaware                      |  | 100.0                          
|Falconbridge Limited(1) ("Falconbridge") |  | Ontario                       |  | 59.5                           
|Magnola Metallurgy Inc.                  |  | Canada                        |  | 80.0                           
|Micro Metallics Corporation              |  | Delaware                      |  | 100.0                          
|Noranda Aluminum, Inc.                   |  | Delaware                      |  | 100.0                          
|Noranda Chile Limitada                   |  | Chile                         |  | 100.0                          
|Norandal USA, Inc. ("Norandal")          |  | Delaware                      |  | 100.0                          
|Noranda Finance Inc.                     |  | Delaware                      |  | 100.0                          
|Noranda Magnesium Inc.                   |  | Delaware                      |  | 100.0                          
|Noranda Sales, Inc.                      |  | Delaware                      |  | 100.0                          
|Noranda Sampling Inc.                    |  | Delaware                      |  | 100.0                          
|Novicourt Inc.(2) ("Novicourt")          |  | Quebec                        |  | 62.1                           
|                                        

In
addition, the Company owns 33.75% of the voting securities of Compañía Minera Antamina S.A. ("Antamina"), a Peruvian company, a 65% voting
interest in NorFalco LLC(3) ("NorFalco"), a Delaware limited liability company, and a 49% interest in the Noranda Income Fund, a trust formed under the laws of Ontario which
indirectly owns the CEZ zinc processing facility in Valleyfield Quebec. Brascan Corporation ("Brascan"), together with its associated companies, holds approximately 40% of Noranda Inc.'s
outstanding common shares.

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3.     GENERAL BUSINESS DEVELOPMENTS

3.1   Three-Year History



Noranda Inc.'s consolidated net earnings for the period ended December 31, 2000 were $293 million. The Company's financial results for 2000
were adversely affected by a labour strike at the Falconbridge Sudbury facilities (August 1, 2000 to February 20, 2001) and higher energy prices. Major developments in 2000 included:





Noranda Inc.'s consolidated net loss for the year ended December 31, 2001 was $92 million. Approximately $332 million of the earnings
decline was due to significantly lower metal prices and lower sales volumes resulting from the deterioration of the global economy. Revenue was also affected by a strike at the Falconbridge Sudbury
facilities and a voluntary production cutback at the Falcondo ferronickel facility in the Dominican Republic (21,700 tonnes in 2001 down from 27,800 tonnes in 2000). Major developments
in 2001 included:



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Noranda Inc.'s consolidated net loss for the year ended December 31, 2002 was $700 million. The Company's financial results for 2002 were
negatively impacted by a $630 million after-tax write-down of the magnesium plant, restructuring provisions and the labour strike at the Horne Smelter that commenced in
June 2002.

Major
developments in 2002 included:



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 Nikkelverk
 Matagami operations
 Noranda's Newport Rolling Mill
 New Madrid Primary Reduction Plant
 Lomas Bayas Operations
 General Smelting of Canada (Lachine, Qc)

 Kidd Creek Metallurgical operations
 Falcondo operations
 Raglan operations
 Brunswick zinc smelter




Major developments since the end of 2002 include:



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3.2    Principal Products

Noranda's principal products are copper, zinc, aluminum and nickel. These metals accounted for approximately 80% of Noranda's consolidated revenues for the year
ended December 31, 2002, with the balance coming from by-products and co-products that include silver, gold, platinum group metals, lead, selenium, tellurium, cadmium,
indium, cobalt, nickel sulphate and sulphuric acid.

The
principal markets for Noranda's products include the steel and foundry, construction, telecommunications, automotive, agricultural and chemical industries. The United States
was the principal market for Noranda's products in 2002, accounting for 43% of consolidated sales (2001  45%), with Canada accounting for 19% of consolidated
sales (2001  23%), Europe 24% of consolidated sales (2002  20%) and other countries 14% of consolidated sales
(2001  12%).



Copper is a metal with inherent characteristics of excellent electrical conductivity, heat transfer and resistance to corrosion. The principal use of copper is
for electrical wire and cable products, a sector which consumes approximately 60% of all refined copper. Other significant end-use markets are tubing for plumbing and
air-conditioning and copper alloy strips and rods used in the electrical/electronic, construction and transportation markets.

The
Company markets copper cathodes produced at its CCR refinery in Montreal-East, Quebec, and cathodes from anodes toll-refined in Chile and Europe, directly to
producers of industrial products. The Company also acts as the marketing agent for cathodes produced at Falconbridge's Kidd Creek refinery in Timmins, Ontario. In August 2001, Noranda Chile
assumed the marketing responsibilities for Falconbridge's Lomas Bayas operation. Altogether, sales of copper metal in 2002 were made to more than 50 customers in six countries.
Approximately 85% of Noranda's sales of copper metal in 2002 were made in North America and the balance were made in Europe and Asia.



Copper production is heavily dependent on mine concentrates and secondary recycled materials purchased from third parties. Mine concentrates are sourced globally
but recycled materials are primarily of North American origin. In 2002, more than two thirds of Noranda's Gaspé and Altonorte smelters' primary feedstocks came from third parties while
Falconbridge's facilities were mostly self-sufficient. In addition, approximately 6% of Noranda's Horne smelter's feed tonnage came from recycled electronics and other copper and precious
metal-bearing secondary materials, which were sourced from third parties.

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Antamina
copper concentrates are sold to customers globally.



Zinc is used in a wide range of industries. Its major use, accounting for approximately 60% of total consumption in North America, is for galvanizing steel sold
to the construction and automobile industries. Galvanizing involves coating steel with zinc to protect the steel from corrosion. Zinc is also used in the production of die-cast alloys for
precision machine parts, brass alloys used in a wide range of industrial parts and household wares, and zinc powders, oxides and dusts used in the manufacture of batteries, tires and pigments.

Noranda
acts as the marketing agent for Falconbridge's Kidd Creek operations and for the Noranda Income Fund's CEZ refinery. Most of the production from these facilities is sold directly
to the steel industry and other major consumers of zinc. The CEZ refinery and Falconbridge are jointly a major supplier of zinc metal, accounting for approximately 6% of total western world refined
production in 2002. In 2002, over 95% of Noranda's consolidated sales of zinc were in North America, with the balance sold to customers in Europe and Asia Pacific. Together with Falconbridge, the
galvanizing sector represented 60% of Noranda's consolidated zinc sales in 2002.



Over 70% of all lead metal is used in the production of lead-acid batteries for the automotive industry and back-up power systems for the
computer and telecommunications markets.

The
Company is engaged in the mining of lead and the refining and recycling of lead metal at its wholly-owned Brunswick Mine and Brunswick Smelter. The marketing of lead metal and its
alloys is carried out from offices in Toronto, Cleveland, Ohio and Zug, Switzerland. In 2002, approximately 90% of Noranda's consolidated lead metal sales were made in Canada and the
United States.



The raw material feed stream for the CEZ and Kidd Creek zinc refineries is managed through a combination of third-party purchases and the integrated mine
production of the Company and Falconbridge. This allowed Noranda to take advantage of transportation, cost differentials and the treatment capabilities of its refineries. Concentrate purchases
originate with both local mines and, subject to market conditions, foreign mines.

In
2002, approximately 55% of the Brunswick lead smelter feed was supplied by Noranda's Brunswick Mine, with the balance sourced from lead/silver foreign concentrates and metal-bearing
residues.

Antamina
zinc concentrates are sold to customers in Japan, Europe, Canada, Korea, Australia and Peru.



Sulphur dioxide gas is a by-product of smelting and refining operations. Most of the sulphur dioxide gas produced at Noranda's Canadian and Chilean
smelters is captured before stack emission and converted into sulphuric acid or liquid sulphur dioxide in order to comply with sulphur dioxide emission limits. The Canadian sulphuric acid production
is sold to NorFalco, which markets, transports and distributes sulphuric acid in North America. In 2002, NorFalco and its wholly-owned Canadian subsidiary marketed approximately 2.1 million
tonnes of sulphuric acid from Noranda, Falconbridge and third-party suppliers. Sulphuric acid produced at Noranda's Chilean smelter is sold by Noranda Chile Ltda. locally to mining companies
using this product for their copper leaching operations.



Aluminum is a metal with many desirable characteristics. It is ductile, malleable and an efficient conductor of heat and electricity. Although very reactive
chemically, aluminum resists corrosion and has a high strength-to-weight ratio.

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Alumina
(aluminum oxide) is produced from bauxite, the basic aluminum-bearing ore, by a chemical process. Aluminum is, in turn, produced from alumina by an electrolytic process which
uses large quantities of electrical energy to separate the aluminum from the oxygen in alumina. The smelting of one tonne of aluminum requires between 14 and 18.5 megawatt-hours of electric
energy. Depending upon quality, between four and five tonnes of bauxite are required to produce approximately two tonnes of alumina, which yield approximately one tonne of aluminum.

Our
aluminum products include primary aluminum in the form of 1,500 lb. standard ingots (sows), billet, electrical conductor rod and foundry alloy. Our aluminum fabricated
products include fin stock for the air conditioning, refrigeration and automotive industries; converter foil used in flexible packaging for the food, juice and pharmaceutical industries; conductor
strip for transformers; and household foil and automotive wheels.

In
2002, substantially all of Noranda's consolidated aluminum sales were made in North America.



Nickel is a metal with the characteristics of corrosion resistance, high strength over a wide range of temperatures, and high ductility. The principal uses for
nickel include stainless steel, nickel-based alloys, electroplating, low-alloy steel, foundry products and copper-based alloys. Nickel is also used in batteries and catalysts.

Falconbridge
markets and sells nickel and ferronickel to customers in 31 countries. Its largest markets are Western Europe, the United States and Asia Pacific, which in 2002
accounted for 58%, 18% and 22%, respectively, of Falconbridge's total nickel sales.



Noranda's Danville Québec magnesium plant has a design capacity of 58,000 tonnes of pure and alloy magnesium products and is owned 80% by
Noranda and 20% by Société générale de financement du Quebec. As a result of market conditions, the Company has announced the temporary
shutdown of these facilities.

Magnesium
is classified as a light metal. By volume, it is approximately two-thirds the weight of aluminum and one quarter the weight of steel. Magnesium is used in several
applications, including the production of aluminum alloys typically containing between 0.5% and 3.5% magnesium (can stock for aluminum beverage containers is the largest application) and
die-casting of component parts for the automotive, electronics and manufacturing industries. Magnesium die-cast alloys have excellent strength-to-weight
ratios and are attractive for many applications.



The Company's marketing and sales strategy is to sell our production at prices that are equal to or greater than the average cash price reported on Comex, the LME
or other relevant terminal markets. Premiums above the Comex or LME settlement price are negotiated based on product form and quality, packaging, delivery terms, supply commitments, delivery location
and availability of product. For the intermediate copper products sold by Noranda Chile Ltda. (blister and anodes), discounts are negotiated periodically and they are applied to the
corresponding LME or Comex prices. For products for which there is no terminal market, our objective is to obtain prices that equal or exceed benchmarks that reflect the average price realized in the
marketplace.

The
Company also buys metals for resale and custom feed materials for processing in its metallurgical facilities. In order to minimize metal price risk exposure on purchased metals and
fluctuations in inventory levels, and to obtain the average Comex/LME prices or better, we periodically use futures, forward or options contracts to hedge these risks. Generally, we do not hedge the
price we realize on the sale of our own production, and accept prices based on the market price prevailing around the time of delivery of these metals. From time to time, however, we may fix the metal
price associated with our own future production to lock in certain profits or cash flows.

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Fluctuations
in currency exchange rates, principally the Canadian/US dollar exchange rate, significantly affect our earnings and cash flows. Most of our revenues and debt are
denominated in US dollars, whereas a significant portion of our Canadian operating costs are incurred in Canadian dollars.

3.3   Trends, Risks and Uncertainties



As substantially all of Noranda's revenues are derived from the sale of copper, aluminum, nickel and zinc, our earnings are directly related to fluctuations in
the prices of these metals. The prices of these metals are subject to volatile price movements over short periods of time. Noranda generally does not hedge prices of the metals it produces. Market
prices can be affected by numerous factors beyond Noranda's control, including expectations for inflation, speculative activities, relative exchange rates to the US dollar, production
activities of Noranda's competitors, global and regional demand and supply, political and economic conditions and production costs in major producing regions. The prices for nickel, copper or other
metals produced by Noranda may decline significantly from current levels. A reduction in the prices of one or more of these metals could materially adversely affect the value and amount of Noranda's
reserves and its business, financial condition, liquidity and operating results.



The business of mining and processing of metals is generally subject to a number of risks and hazards, including unusual or unexpected geological conditions,
ground conditions, phenomena such as inclement weather conditions, floods and earthquakes and the handling of hazardous substances and emissions of contaminants. Such occurrences could result in
personal injury or death, damage to, or destruction of, mineral properties, processing or production facilities or the environment, monetary losses and possible legal liability. Noranda's business,
financial condition, liquidity and operating results could be materially adversely affected if any of these developments were to occur.

Although
Noranda maintains insurance to cover some of these risks and hazards to the extent available that Noranda believes is consistent with the industry practice, no assurance can be
given that such insurance will continue to be available, or that it will be available at economically feasible premiums. Noranda's property, business interruption and liability insurance may not
provide sufficient coverage for losses related to these or other risks or hazards. In such event, Noranda's business, financial condition, liquidity and results of operations could be materially
adversely affected.



Environmental legislation affects nearly all aspects of Noranda's operations worldwide. This type of legislation requires Noranda to obtain operating licenses and
imposes standards and controls on activities relating to mining, exploration, development, production, closure and the refining, distribution and marketing
of nickel and other metals products. Environmental assessments are required before initiating most new products or undertaking significant changes to existing operations. Compliance with environmental
legislation can require significant expenditures, including expenditures for clean up costs and damages arising out of contaminated properties. In addition to current requirements, Noranda expects
that additional environmental regulations will likely be implemented to protect the environment and quality of life, given issues of sustainable development and other similar requirements which
governmental and supragovernmental organizations and other bodies have been pursuing. Some of the issues currently under review by environmental regulatory agencies include reducing or stabilizing
various emissions, including sulphur dioxide and greenhouse gas emissions, mine reclamation and restoration, and water, air and soil quality.

Canada
ratified the Kyoto Protocol to the United Nations Framework Convention on Climate Change in late 2002. The protocol has not entered into force but may do so in the future. Various
levels of government in Canada are developing a number of policy measures in order to meet Canada's emission reduction obligations under the protocol. While the impact of the protocol and measures
cannot be quantified at this time, the likely effect will be to increase costs for fossil fuels, electricity and transportation, restrict industrial emission levels, impose added costs for emissions
in excess of permitted levels and increase costs for monitoring and reporting.

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Compliance
with these initiatives could have a material adverse effect on Noranda's business, financial condition, liquidity and operating results.

Further
changes in environmental laws, new information on existing environmental conditions or other events, including legal proceedings brought based upon such conditions or an
inability to obtain necessary permits, could have a material adverse effect on product demand, product quality and methods of production and distribution or could require increased financial reserves
or compliance expenditures or otherwise have a material adverse effect on Noranda's business, financial condition, liquidity and operating results.

Failure
to comply with environmental legislation may result in the imposition of fines and penalties, liability for clean up costs, damages and the loss of important permits. There can
be no assurance that Noranda will at all times be in compliance with all environmental regulations or that steps to bring Noranda into compliance would not materially adversely affect Noranda's
business, financial condition, liquidity or operating results.

In
view of the uncertainties concerning future removal and site restoration costs on Noranda's properties, the ultimate costs for future removal and site restoration to Noranda could
differ from the amounts estimated. The estimate for this future liability is subject to change based on amendments to applicable laws and legislation, the nature of ongoing operations and
technological innovations. Future changes, if any, due to their nature and unpredictability, could have a significant impact and would be reflected prospectively as a change in an accounting estimate.

In
addition, regulatory authorities in various jurisdictions around the world may require Noranda to post financial security to secure in whole or in part future reclamation and
restoration obligations in such jurisdictions. In some instances, Noranda has already provided this security. In other instances, such security
may be required to be posted upon the occurrence of certain events including if Noranda ceases to maintain a minimum investment grade credit rating, if the regulatory authority ceases to accept
alternative forms of comfort to secure the obligation or as a property nears the end of its operation. Although the posting of this security does not increase the future reclamation and restoration
costs (other than costs associated with posting such security), a portion of Noranda's credit may be required to back up these commitments, which could affect Noranda's liquidity.



Collective agreements covering our unionized hourly employees and workers at our Brunswick mine and smelters, Lachine general smelting, Raglan operations, Kidd
Creek metallurgical operations, Falcondo operations, Missouri primary aluminum reduction plant, Nikkelverk operations and Lomas Bayas operations are currently in place and will expire between 2004 and
2006. The supervisory, technical, professional and administrative employees at Lomas Bayas are not represented by a union but have historically acted collectively when renegotiating their individual
contracts of employment, each of which expires in June 2003. Our collective agreement covering unionized production workers at our Horne smelter expired on February 28, 2002 and on
June 18, 2002, those workers commenced a work stoppage. On May 7, 2003, we announced that those workers had voted in favour of accepting the terms of a new three year collective
agreement. Our collective agreement covering employees at our Brunswick bulk handling facility expired in March 2003, and collective agreements covering employees at Norandal's Salisbury
facility and our Altonorte smelter expire in November and December, 2003, respectively. We are proceeding to negotiate extensions to these agreements, however we cannot predict at this time whether we
will be able to reach new collective agreements with these employees without a work stoppage. Our collective agreements covering unionized production workers at our Kidd Creek metallurgical
operations, Falcondo operations, Matagami operations, and Arkansas foil plant and a collective agreement with employees at Micro Metallics Roseville facility expire between 2003 and 2005. A collective
agreement covering unionized workers at Noranda's New Madrid primary reduction plant expires in 2007. We cannot predict at this time whether we will be able to reach new collective agreements
with these or other employees without a work stoppage. From June 2001 to January 2002, we experienced a work stoppage in Sudbury, Ontario before a new collective bargaining agreement was
entered into with that operation's hourly rated employees. That strike adversely affected our results of operations for the third and fourth quarters of 2001 and the first quarter of 2002. The strike
at our Horne smelter, which commenced in June 2002, adversely affected our results of operations for 2002 and the first quarter of 2003.

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Any
lengthy work interruptions could materially adversely affect our business, financial condition, liquidity and results of operations.



Noranda's reported ore reserves as of year-end 2002 are estimated quantities of proven and probable ore that under present and anticipated conditions
can be legally and economically mined and processed by the extraction of their mineral content. Noranda determines the amount of its ore reserves in accordance with the requirements of the applicable
Canadian securities regulatory authorities and established mining standards. Noranda does not use outside sources to verify its reserves. The volume and grade of reserves actually recovered and rates
of production from Noranda's present ore reserves may be less than geological measurements of the reserves. Market price fluctuations in nickel, copper, other metals and exchange rates, and changes in
operating and capital costs may in the future render certain ore reserves uneconomic to mine. In addition, short-term operating factors relating to the mineral reserves, such as the need
for orderly development of ore bodies or the processing of new or different ore grades, may cause mineral reserves to be modified or Noranda's operations to be unprofitable in any particular fiscal
period.

No
assurance can be given that the indicated amount of ore will be recovered or that it will be recovered at the prices assumed by Noranda in determining ore reserves. Ore reserve
estimates are based on limited sampling and, consequently, are uncertain because the samples may not be representative of the entire ore body. As more knowledge and understanding of the ore body is
obtained, the reserve estimates may change significantly, either positively or negatively.

Noranda
prepares estimates of future production for particular operations. These production estimates are based on, among other things, reserve estimates; assumptions regarding ground
conditions and physical characteristics of ores, such as hardness and presence or absence of particular metallurgical characteristics; and estimated rates and costs of mining and processing. Noranda's
actual production may vary from estimates for a variety of reasons, including actual ore mined varying from estimates of grade, tonnage, dilution and metallurgical and other characteristics;
short-term operating factors relating to the ore reserves, such as the need for sequential development of ore bodies and the processing of new or different ore grades; risks and hazards
associated with mining, natural phenomena, such as inclement weather conditions, floods, and earthquakes; and unexpected labor shortages or strikes. No assurance can be given that production estimates
will be achieved. Failure to achieve production estimates could have a material adverse impact on Noranda's future cash flows, earnings, results of operations and financial condition.



Fluctuations in currency exchange rates, principally the Canadian/US dollar exchange rate and, to a lesser extent, Norwegian kroner, Euros, Yen and other
exchange rates, can significantly impact Noranda's earnings and cash flows. These exchange rates have varied substantially over time, including over the last five years. Most of Noranda's revenues and
debt are denominated in US dollars, whereas most of the operating costs at its Canadian sites are incurred in Canadian dollars. The costs at Falcondo, Lomas Bayas, and Collahuasi are incurred
principally in US dollars while Nikkelverk's costs are incurred in Norwegian kroner. Noranda's consolidated financial statements are expressed in Canadian dollars. Fluctuations in exchange
rates between the US dollar and the Canadian dollar and between the Canadian dollar and other currencies may give rise to foreign currency exposure, either favorable or unfavorable, which has
materially impacted and may in the
future materially impact Noranda's financial results. Noranda from time to time hedges a portion of its US dollar and other currency requirements to limit any adverse effect of exchange rate
fluctuations with respect to Noranda's Canadian dollar and other costs, but such hedges have not eliminated the potential material adverse effect of such fluctuations.

Excluding
the impact of Noranda's hedging activity, each Cdn$0.01 change in the annual average Canadian/US dollar exchange rate impacted Noranda's after tax earnings by
approximately $5 million.

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Noranda's exposure to changes in interest rates results from investing and borrowing activities undertaken to manage its liquidity and capital requirements.
Noranda has entered into interest rate swap agreements to manage the interest rate risk associated with a portion of its fixed-rate debt. The interest rate swap changes Noranda's exposure
to interest risk by effectively converting a portion of Noranda's fixed-rate debt to a floating rate. Noranda may elect in the future to enter into interest rate swaps to effectively
convert floating-rate debt to fixed-rate debt and enter into additional fixed-rate to floating-rate swaps. There can be no assurance that Noranda will
not be materially adversely affected by interest rate changes in the future, notwithstanding its use of interest rate swaps.

In
addition, Noranda's interest rate swaps, metals hedging and foreign currency and energy risk management activities expose Noranda to the risk of default by the counterparties to such
arrangements. Any such default could have a material adverse effect on Noranda's business, financial condition and results of operation.



Noranda's operations and facilities are intensive users of natural gas, electricity and oil. Procurement of these types of energy sources can be affected by
numerous factors beyond Noranda's control, including global and regional supply and demand, political and economic conditions and problems related to local production and delivery conditions.
Noranda's supply contracts typically provide that suppliers may be released from their delivery obligations to Noranda if certain "force majeure" events occur. Noranda's business operations could be
adversely affected, including loss of production and damage to Noranda's plants and equipment, if, even temporarily, the supply of energy to one or more of its facilities was interrupted.

A
prolonged shortage of supply of energy used in Noranda's operations could materially adversely affect its business, financial condition, liquidity and results of operations. As a
significant portion of Noranda's costs
relate to energy consumption, its earnings are directly related to fluctuations in the cost of natural gas, electricity and oil. Energy prices can be affected by numerous factors beyond Noranda's
control, including global and regional demand and supply, and applicable regulatory regimes. The prices for various sources of energy Noranda uses may increase significantly from current levels. An
increase in energy prices could materially adversely affect Noranda's business, financial condition, liquidity and operating results.



Some of Noranda's activities and related assets are located in countries outside North America, some of which may be considered to be, or may become, politically
or economically unstable. Exploration or development activities in such countries may require protracted negotiations with host governments, international organizations and other third parties,
including non-governmental organizations, and are frequently subject to economic and political considerations, such as taxation, nationalization, inflation, currency fluctuations and
governmental regulation and approval requirements, which could adversely affect the economics of projects. These projects and investments could be adversely affected by war, civil disturbances and
activities of foreign governments which limit or disrupt markets, restrict the movement of funds or supplies or result in the restriction of contractual rights or the taking of property, without fair
compensation.

Noranda
performs a thorough risk assessment on a country by country basis when considering foreign activities and attempts to conduct its business and financial affairs so as to protect
against political, legal, regulatory and economic risks applicable to operations in the various countries where it operates, but there can be no assurance that Noranda will be successful in so
protecting itself. These projects and investments could also be adversely affected by changes in Canadian laws and regulations relating to foreign trade, investment and taxation.



Global and regional demand for metals is influenced by regulatory and voluntary initiatives to restrict or eliminate the use of certain metals in particular
products or applications. Impacts of such measures can be

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global,
creating non-tariff barriers to international trade and affecting product design and specifications on a global basis. Such measures could affect the balance between supply and
demand and depress metal prices and treatment/refining charges. Metals with a limited number of major applications are most susceptible to changes in demand and price in response to such measures.



Noranda believes that the technology it uses to produce and process metals is significantly advanced and, in part due to high investment costs, subject only to
slow technological change. However, there can be no assurance that more economical production or processing technology will not be developed or that the economic conditions in which current technology
is applied will not change.



The nature of Noranda's business subjects it to numerous regulatory investigations, claims, lawsuits and other proceedings in the ordinary course of Noranda's
business. The results of these legal proceedings cannot be predicted with certainty. There can be no assurance that these matters will not have a material adverse effect on Noranda's results of
operations in any future period, and a substantial judgment could have a material adverse impact on Noranda's business, financial condition, liquidity and results of operations.



The Company receives fees (treatment and refining charges) calculated in US dollars for processing copper concentrate into refined metal. Fluctuations in
these treatment and refining charges result primarily from changes in the supply of, and demand for, concentrate, finished metal and by-products, all of which are beyond our control. A
shortage in the supply of concentrate will generally have a negative impact on the treatment and refining charges we realize. Changes in the US dollar/Canadian dollar and Chilean Peso/Canadian
dollar exchange rate will also affect our profitability, since our costs for treating and refining copper concentrate are principally in Canadian dollars and Chilean pesos.



Sulphur dioxide is a by-product from the smelting of copper, zinc, nickel and lead sulphide concentrates. We process sulphur dioxide into sulphuric
acid to meet our environmental commitments. Due to increasingly strict environmental standards world-wide for sulphur dioxide emissions, involuntary production of sulphuric acid by
smelters is growing. The balance of world acid production is largely based on elemental sulphur, whose supply is now a by-product of oil and gas production, and growing more rapidly than
demand. Long term, these factors may make it more difficult for us to obtain satisfactory prices for our sulphuric acid. However, our production of sulphuric acid cannot be reduced in response to low
prices, or dropping sales volumes, without a corresponding reduction in our production of metals.



Procurement of raw materials involves the risks typically connected with commercial transactions, which can include trade barriers, political instability and
problems due to local production conditions. In addition, our supply contracts provide that suppliers of concentrate may be released from their delivery obligations to us if certain "force majeure"
events occur. Our business operations could be adversely affected, at least temporarily, if supplies of raw materials are interrupted as a result of the imposition of trade barriers or other events
and if we are unable, on short notice, to shift to alternative sources of supply.

We
also process copper scrap, the availability of which in past years has been subject to significant fluctuations and the supply of which has been declining since the
mid-1990s. The availability of scrap, blister copper and other material we process can be significantly affected by fluctuations in prices.

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4.     DESCRIPTION OF THE BUSINESS

Noranda's operations explore for, develop, mine, process and market metals and minerals. Noranda conducts these activities through its five operating business
units: Aluminum, Canadian Copper and Recycling, Copper, Nickel and Zinc.

Noranda
is one of the world's largest producers of zinc and nickel and a significant producer of copper, primary and fabricated aluminum, lead, silver, gold, sulphuric acid and cobalt.
Noranda is also a major recycler of secondary copper, nickel and precious metals.

The
following simplified organization chart indicates the operational structure of Noranda:

NORANDA INC.(1),(2)

|Canadian Copper and Recycling  Horne smelter
  CCR refinery
  Micro Metallics Corporation
  Noranda Sampling Inc.
  Kidd Creek operations
(100% owned by Falconbridge)(3)                                                                              |  | Zinc  Brunswick mine
  Matagami mine operations
  Brunswick smelter
  CEZ Refinery (48.97%)(4)
  General Smelting of Canada
  NorFalco LLC(5)                                  
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Copper  Altonorte smelter (Noranda Chile Limitada)
  Compañía Minera Antamina S.A. (33.75%)
  Compañia Minera Doña Inés de Collahuasi, S.C.M.(3) (44% owned by Falconbridge)
  Compañia Minera Falconbridge Lomas Bayas (100% owned by Falconbridge)(3) |  | Other Investments and Principal Subsidiaries and Associates  American Racing Equipment, Inc.
  Novicourt Inc.(6) (62.1%)
  Magnola Metallurgy Inc. (80%)
  Noranda Magnesium Inc.
|Aluminum  Noranda Aluminum, Inc.
  Norandal USA, Inc.                                                                                                                                                                                                     |  |                                                                                                                                                                                      
|Nickel  Integrated Nickel Operations (100% owned by Falconbridge)(3)
 Raglan Mine
 Sudbury Mining and Metallurgical Divisions
 Nikkelverk Refinery
  Falconbridge Dominicana, C. Por A.
(85.26% owned by Falconbridge)(3)                              |  |                                                                                                                                                                                      

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Noranda had 15,000 employees at December 31, 2002. Capital expenditures totalled approximately $824 million in 2002. The following
table shows revenue by operating segment and the relative percentage of each operating segment's contribution to total revenue for the past three years:

|                              |  | 2002  |   | 2001 |  | 2000 
|----------------------------- |  | ----- | - | ---- |  | -----
|
|Aluminum                      |  | 1,039 |   | 17%  |  | 981  
|Canadian Copper and Recycling |  | 2,078 |   | 34%  |  | 2,318
|Copper                        |  | 1,173 |   | 19%  |  | 926  
|Nickel                        |  | 1,322 |   | 22%  |  | 1,206
|Zinc                          |  | 628   |   | 10%  |  | 707  
|Other                         |  | (150  | ) | (2)% |  | 14   
|                              |  |       |   |      |  |      
|Total Revenue                 |  | 6,090 |   | 100% |  | 6,152
|                              |  |       |   |      |  |      

4.1    Main Businesses

4.1.1  Canadian Copper and Recycling

Canadian Copper and Recycling ("CC&R") mines and procures copper and precious metal concentrates and secondary materials for processing at our copper smelters and
refineries and markets copper and related by-products. The business operates and manages the Kidd Creek operations under terms of a management services agreement. At December 31,
2002, CC&R employed approximately 2,959 people (2001  3,379).



Falconbridge
and its predecessors in title have been mining the Kidd Creek copper/zinc deposits since 1966. The Kidd Creek mining operation's principal copper/zinc properties in the
Timmins area are located in Kidd Township, Porcupine mining division, Ontario. The properties owned by Falconbridge comprise 14 patented half-lots covering 896 hectares of freehold
mining land. The Kidd Creek deposits are mined through two separate shafts, accessing mining areas known as the upper and lower mines, which access progressively deeper levels. In 2002, the upper mine
(formerly No. 1 and No. 2 mines) accounted for 50%, and the lower mine (formerly No. 3 mine) accounted for 50%, of the Kidd Creek mining operation's mine ore production.

Ore
production at the Kidd Creek mining operations ("Kidd Creek Mining") for 2002 was 2,230,000 tonnes (2001  1,977,000 tonnes) with copper ore
grades of 2.12% and zinc grades of 5.89%. Metals in concentrate produced during the year totalled 45,400 tonnes of copper (2001  42,300 tonnes), 104,100 tonnes
of zinc (2001  81,700 tonnes) and 3,671,000 ounces of silver (2001  2,865,000 ounces).

In
2000, Falconbridge approved the development of Mine D, the depth extension of the Kidd Creek ore body beyond the limits of the lower mine at 6,800 feet (2,070 metres) to
a depth of 10,200 feet (3,100 metres). Production from Mine D is scheduled to begin in 2004 and production is expected to reach 550,000 tonnes in 2005. At the end of 2002,
the Mine D project was close to 40% complete with an investment of $217 million incurred to date of a total project cost estimate of $640 million.

The
Kidd Creek ore body is intersected by a number of major faults and other discontinuities. Mining and the resulting stress redistribution cause periodic ground adjustment along these
faults resulting in seismic activity. Falconbridge has taken steps to minimize the impact of seismic activity on its Kidd Creek mining operations. These steps include the use of seismic monitoring
equipment and the development and use of safe and cost-effective mining systems and procedures. On occasion a seismic event will occur which has the potential to cause personal injury,
equipment damage or production interruption. Such events have been infrequent.

At
December 31, 2002, Falconbridge reported reserves of 23.7 million tonnes grading 2.11% copper and 6.3% zinc.

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The Kidd Creek mine's life is estimated to be approximately 10 years based on current proven and probable mineral reserves and the design
processing rate.



CC&R operates Noranda's Horne copper smelter located in Rouyn-Noranda, Quebec, the CCR refinery in Montreal-East, Quebec and Falconbridge's Kidd Creek
copper-zinc complex located in Timmins, Ontario.

In
November 2001, the Company announced its intention to temporarily close its Gaspé smelter, located in Murdochville, Quebec and recorded a $46 million
charge in 2001 to reduce its carrying value of the Gaspé smelter. In March 2002, the Company announced its decision to permanently shutdown the Gaspé smelter and
operations were terminated at the end of April 2002. The Company recorded an additional closure-related after-tax charge of $12 million in the second quarter of 2002

The
ore from Kidd Creek Mining is transported by a company-owned railway to the Kidd Creek metallurgical operations ("Kidd Creek Metallurgical"), located 27 kilometres southeast
of the mine. The mill produces copper and zinc concentrates, and treats all ores from the Kidd Creek Mining's mines in two of four circuits, with the remaining circuits available to process custom
ore. The copper concentrate produced at the mill and the copper concentrate shipped from Falconbridge's Sudbury Mines/Mill together with other copper custom feeds are fed into the smelter, which has
the capacity to produce 150,000 tonnes of blister copper per year.

CC&R
has the capacity to process approximately 1,360,000 tonnes per year of copper and precious metal-bearing feed materials at the Horne and Kidd Creek smelters. The capacity at the
closed Gaspé smelter was 340,000 tonnes. In 2002, we processed 1,206,000 tonnes of feed at the Horne and Kidd Creek smelters compared to 1,268,000 in 2001. An additional 100,000 tonnes
was treated at Gaspé in 2002. The unionized employees at the Horne smelter went on strike in mid-June 2002 and the smelter operated for the balance of 2002 at about
70% of normal capacity. Of the total volumes treated by the Horne smelter in 2002, approximately 31% of this feed was obtained from the Louvicourt, Antamina and Collahuasi mines and the balance was
sourced from third parties under contracts having a duration of one to three years. We also purchased some feed on a spot basis. In 2002, approximately 75% of our feed was procured from North America
and the balance mainly from South America. Anode and blister output from the Kidd Creek and Horne smelters totalled 291,100 tonnes in 2002 (2001  320,200
tonnes). Gaspé produced 29,600 tonnes until its closure in April 2002. All anodes produced at the Horne and Gaspé copper smelters were refined at our CCR refinery.
The 144,100 tonnes (2001  132,100 tonnes) of blister produced at the Kidd Creek smelter in 2002 were either refined at its refinery, which currently has the
capacity to produce 147,000 tonnes of copper cathode per year, or sold to outside refineries, including the Company's CCR refinery. In 2002, Kidd Creek sent approximately 9,000 tonnes of spent-copper
anode to the CCR facility. Sulphuric acid production in 2002 was 969,000 tonnes compared to 1,133,000 tonnes in 2001.

Our
CCR refinery processes copper anodes from the Horne and Altonorte smelters and other unrefined copper and precious metals from Noranda and third-party sources. In 2002, the refinery
produced 244,000 tonnes (2001  323,000 tonnes) of copper cathode, approximately 1.0 million ounces of gold
(2001  1.2 million), 40.5 million ounces of silver (2001  42.9 million) and other
by-products including selenium, tellurium, nickel sulphate, and a concentrate of platinum group metals. CCR's production was significantly impacted by the Horne strike and the
Gaspé closure. In 2002, the Kidd Creek refinery produced 145,300 tonnes of zinc (2001  140,100 tonnes) and 146,500 tonnes of copper cathode
(2001  127,800 tonnes). In addition to copper and zinc, the Kidd Creek refinery produces substantial amounts of silver laden anode slimes that are further
refined by third parties or CCR. During 2002, Kidd Creek Metallurgical established several production records, including copper smelter on line time, copper smelter throughput volumes, blister copper
output, copper cathode production, zinc cathode and metal production.

The
Kidd Creek zinc plant has the capacity to produce 147,000 tonnes of zinc per year. This capacity is sufficient to process Kidd Creek Metallurgical's zinc concentrates and custom feed
from other sources. Custom feed from other sources comprised approximately 30% of the total zinc plant feed in 2002 (2001  50%) and is expected to comprise
approximately 40% of the total plant feed in 2003. In April 2003, Falconbridge announced that the zinc refinery operations will shut down for 13 weeks during the summer as a result of
persistently low treatment charges combined with recent changes in currency exchange rates and higher costs relative to

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Falconbridge's
concentrate purchase and metal sales positions. This represents an extension to the shutdown of eight weeks previously announced by Falconbridge in February 2003.

On
February 18, 2003, the Company informed the union representing employees at the Horne smelter of its intention to eliminate 125 unionized positions.

CC&R
is committed to improving the financial performance and competitiveness of the Horne smelter. As such it is investing in a new recycling facility that will be dedicated to providing
the Horne smelter with a new source of recyclable materials. This new Canadian facility is expected to be operational in the second half of 2003.

Kidd
Creek Metallurgical is a leader in the recovery of copper, gold, silver and platinum group metals from the recycling of electronics and other copper and precious metal-bearing
secondary materials. These are processed largely at the Horne smelter and the CCR refinery. Our processing plants and technology allow us to treat large tonnages of recycled materials. In 2002,
recycled materials comprised 6% (2001  7%) of the feed for the copper smelters and approximately 6% of the copper
(2001  10%), 14% of the gold (2001  15%), 8% of the silver (2001  10%) and 95% of
the platinum group metals (2001  90%) produced by the CCR refinery. In September 2002, Kidd Creek Metallurgical reached agreement with its unionized
employees on a new three-year collective agreement.

Prior
to processing at the Horne smelter, Micro Metallics Corporation ("Micro") and Noranda Sampling Inc. receive and sample a portion of the electronics materials. Micro operates
facilities in California as well as one in Tennessee, which opened in 2001, and Noranda Sampling Inc. operates facilities in Rhode Island. Micro's Roseville and LaVergne facilities provide
asset management and recycling services for end-of-life electronic hardware to Hewlett-Packard, a strategic partner, and to other original equipment manufacturers. A new
Canadian recycling facility, to be built in Brampton, Ontario, will also process end-of-life electronic hardware.

4.1.2  Copper

The Copper business unit includes the operation of the Company's 33.75%-owned Antamina copper and zinc mine in Peru and the 100%-owned Altonorte copper smelter
located near Antofagasta, Chile. In addition, it includes Falconbridge's 44% stake in the Collahuasi copper mine in Chile and 100% interest in the Lomas Bayas operations.



Located in the Andes mountains in Peru, approximately 270 kilometres north of Lima and at an elevation of 4,300 metres, the Antamina deposit is one
of the largest copper/zinc orebodies in the world, with a milling rate of 70,000 tonnes per day. Antamina is expected to produce 272,000 tonnes of copper and 163,000 tonnes
of zinc annually over a 21-year mine life, producing an annual average of 675 million pounds of copper and 625 million pounds of zinc in the first 10 years.

A
capital investment of US$2,148 million was spent to bring Antamina into production. Of this amount, US$1,320 million was financed using senior project debt.

Noranda's
beneficial interest in Antamina is 33.75%, with the other shareholders comprising BHP Billiton PLC at 33.75%, Teck Cominco Limited at 22.5% and Mitsubishi Corporation
with a 10% interest.



Antamina began commercial production in October 2001. During 2002, Antamina produced 1,177,593 tonnes of copper concentrate grading 28.8% copper and
442,107 tonnes of zinc concentrate grading 52.1% zinc. In 2002, sales of fine copper contained in concentrates during 2002 were 350,001 tonnes and sales of zinc were 250,513 tonnes, representing
aggregate revenues to Noranda of $261 million. Substantially all the assets and shares of Antamina have been pledged to a group of international lenders as security for loans made to the
project. Noranda Inc. has guaranteed its 33.75% pro rata share of the loans until such time as the project

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achieves
completion, which involves the project satisfying certain financial, legal and operating tests prior to February 29, 2004 or, under certain circumstances, by February 28, 2005.
Upon completion, the loans will be non-recourse to the Company.



Antamina is classified as a copper-zinc-silver skarn deposit and occurs at the contact between a quartz monzonite intrusive of Tertiary
Age (< 70 million years) and limestone of Cretaceous Age (70-135 million years).

Proven
and probable mineral reserves total 530,000,000 tonnes with an average grade of 1.22% copper, 1.01% zinc, 0.029% molybdenum and 13.7 grams of silver per tonne. Proven and probable
mineral reserves are based on the mineral resource model after applying open-pit design and cut-off criteria. Measured and indicated resources, in addition to mineral reserves
in the current pit design, total 60,000,000 tonnes with an average grade of 0.48% copper, 0.25% zinc, 0.03% molybdenum and 5 grams of silver per tonne. Inferred mineral resources total
33,000,000 million tonnes with a grade of 0.78% copper, 0.99% zinc, 0.02% molybdenum and 13 grams of silver per tonne.

Proven
and probable mineral reserves are reported using a 0.7% copper equivalent cut-off and include all high-grade and low-grade stockpiles. Measured
and indicated mineral resources in addition to reserves were estimated for in-situ pit material and marginal stockpiles grading less than the 0.7% copper equivalent cut-off but
greater than a 0.5% copper equivalent cut-off. Inferred resources were estimated for all other in-pit material grading greater than 0.5% copper equivalent cut-off.

The
mineral resource and mineral reserve estimates were prepared under the supervision of Gord Stothart (P. Eng., Mine Manager, a qualified person as defined under
NI 43-101). Assumed metal prices were zinc US$0.50 per lb., copper US$0.90 per lb., molybdenum US$3.25 per lb. and silver US$5.00 per troy ounce.

At
planned operating rates, the proven and probable mineral reserves are equal to approximately 17 years of mine production. Mill operations are expected to continue for another
four years on stockpiled material. The mineral reserves decreased by 22.4 million tonnes in 2002 primarily due to production. Production of 26.7 million tonnes and mining write-downs of
1.9 million tonnes were slightly offset by resource upgrading gains of 6.2 million tonnes.



Noranda owns 100% of the Altonorte copper smelter located in northern Chile. The smelter recently completed a major modernization and expansion project, which
will double its capacity.

The
Altonorte custom smelter processes copper concentrate from third-party mines located mainly in Chile. Approximately 70% of the Altonorte smelter's production is refined at Codelco's
Chuquicamata refinery near Calama, Chile, a portion of which is returned to Noranda in the form of cathodes. The balance of the smelter's blister anode production is exported. The smelter's sulphuric
acid production is sold to customers located in the northern region of Chile. In 2002, Altonorte processed 452,070 tonnes of feed material, produced 147,060 tonnes of copper anodes and produced
322,812 tonnes of sulphuric acid.

Altonorte's
US$170 million Phase 3 expansion is expected to increase total annual throughput to approximately 820,000 tonnes, copper anode output capacity to approximately
290,000 tonnes and sulphuric acid capacity to 700,000 tonnes.



Falconbridge owns a 44% interest in Compañía Minera Doña Inés de Collahuasi S.C.M., an independent
corporation which owns the mining and water rights and other assets comprising the Collahuasi operation,
together with Anglo American Plc which also holds a 44% interest, and a Japanese consortium holding the remaining 12% interest.

A
capital investment of US$1,792 million was required to bring Collahuasi into commercial production. The financing requirement, including working capital, was approximately
US$1,870 million.

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The
property is located in northern Chile, about 180 kilometres southeast of the port of Iquique, at an elevation of 4,300 metres. It contains two separate porphyry copper
deposits, known as Ujina and Rosario, each with important secondary enrichment zones, and the Huinquintipa copper deposit located downstream from the Rosario deposit. In addition, the property
contains high-grade copper/silver vein systems at the adjacent deposit of La Grande.



Production is expected to average 350,000 tonnes per year of copper in concentrates and 50,000 tonnes per year of copper cathode during the initial
10 years of mine life. The mine site is serviced under a 20-year power supply contract with Empresa Nacional de Electricidad S.A., a Chilean electric utility company.
Commercial production at the Collahuasi operation began in January 1999.

During
2002, 130.2 million tonnes of material was mined (2001  139.2 million tonnes), 25.2 million tonnes of ore was milled at
the concentrator (2001  24.7 million tonnes) and 5.4 million tonnes of ore was processed at the copper oxide leaching plant
(2001  4.7 million tonnes). Falconbridge's share of copper produced during 2002 amounted to 185,000 tonnes of copper
(2001  193,135 million tonnes).

Since
commencing operations, the mine has operated the Ujina pit. Starting mid 2004 ore extraction will be transferred to the lower copper grade Rosario orebody.

The
transition to the Rosario orebody, which includes the construction of an overland conveyor to transport sulphide ore to the concentrator, and increasing the concentrator throughput
from 60,000 tonnes to 110,000 tonnes per day, has been approved and engineering construction and procurement activities are under development with scheduled completion by mid 2004. Total
capital expenditures associated with the transition and the expansion engineering are expected to be US$654 million.



As
of December 31, 2002, proven and probable mineral reserves totalled 1,838,748,000 tonnes with an average grade of 0.92% copper. Measured and indicated resources are in addition
to mineral reserves and totalled 477,971,000 tonnes with an average grade of 0.63% copper. Inferred mineral resources totalled 1,840,000,000 tonnes with a grade of 0.72% copper.

Proven
and probable mineral reserves are based on the mineral resource model after applying open-pit design and cut-off criteria. Proven and probable mineral
reserves are reported using an average 0.45% copper cut-off, depending on ore type, and include all stockpiled material above the cut-off grade. The assumed metal price was
US$0.95 per lb. of copper. Mineral resources are in addition to mineral reserves and are estimated using a 0.45% copper cut-off grade. Measured and indicated mineral resources consist of
material inside an encompassing pit outline based on a copper price of US$1.15 but excluding the mineral reserves contained in the interior US$0.95 pit outline. Inferred resources were estimated for
material contained in both pit designs.

At
planned operating rates, the proven and probable mineral reserves are equal to approximately 44 years of production. The mineral reserves decreased by
28.9 million tonnes in 2002 primarily due to production. Production of 30.7 million tonnes was slightly offset by mining gains in the various ore types of
1.8 million tonnes.



In July 2001, Falconbridge acquired 100% of the Lomas Bayas copper mine and adjacent Fortuna de Cobre copper deposit from Boliden Limited for a cash
payment of $100.7 million. Falconbridge is also required to pay US$15 million if it exercises its right to retain the Fortuna de Cobre deposit before the fifth anniversary of closing.

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The Lomas Bayas mine comprises seven exploitation concessions covering approximately 2,022 hectares. The Fortuna de Cobre deposit comprises
11 exploitation concessions covering approximately 1,217 hectares. Falconbridge also holds 20 exploitation concessions and six exploitation concession applications covering approximately
4,933 hectares between the Lomas Bayas mine and the Fortuna de Cobre deposit as well as 53 exploration concessions covering an area around the Fortuna de Cobre deposit.

The
Lomas Bayas mine is located in the Second Region of Chile, approximately 110 kilometres north-east of the port city of Antofagasta. The mine is situated at an
altitude of 1,500 metres in the Atacama desert. The Fortuna de Cobre deposit is situated 3 kilometres to the south of the Lomas Bayas mine.



Lomas Bayas currently operates one open pit mine. Heap-leach grade ore is crushed and placed on leach pads by a series of portable conveyors and a
stacking system. Lower grade ore that does not economically justify the cost of crushing and additional handling is placed directly on separate leach pads by mine haulage trucks. Solutions containing
sulphuric acid are then applied to leach the ores and copper recovery occurs by a solvent extraction-electrowinning process. The copper cathode is transported by truck and rail to the port at
Antofagasta and shipped to customers overseas. Lomas Bayas is serviced by the electrical grid of northern Chile under long-term contracts with a local electricity supplier.

In
2002, Lomas Bayas mined 26.7 million tonnes of ore from which 59,300 tonnes of copper cathode were produced.



As
of December 31, 2002, proven and probable mineral reserves totalled 397,349,000 tonnes with an average grade of 0.32% copper. Measured and indicated resources are in addition
to mineral reserves and totalled 171,361,000 tonnes with an average grade of 0.27% copper. Inferred mineral resources totalled 73,400,000 tonnes with a grade of 0.28% copper.

Proven
and probable mineral reserves are based on the mineral resource model after applying open-pit design and cut-off criteria. Proven and probable mineral
reserves are
reported using an average 0.10% soluble copper cut-off and include all stockpiled material above the cut-off grade. The assumed metal price was US$0.90 per lb. of copper.
Mineral resources are in addition to mineral reserves and are estimated using a 0.10% soluble copper cut-off grade. Measured and indicated mineral resources consist of material inside an
encompassing pit outline based on a copper price of US$1.15 but excluding the mineral reserves contained in the interior US$0.90 pit outline. Inferred resources were estimated for material contained
in both pit designs.

At
planned operating rates, the proven and probable mineral reserves are equal to approximately 14 years of production.

The
mineral reserves decreased by 48.2 million tonnes due to mine production of 23.5 million tonnes and the drop in the long-term copper price from US$0.95 to
US$0.90. Lomas Bayas is a very low grade deposit that is sensitive to the price of copper used to estimate the mineral reserves. Much of the material not included in the reserves was added to the
mineral resources, which increased by 19.4 million tonnes.

4.1.3  Zinc

Our Zinc business unit produces zinc concentrate and copper concentrates at our mines and procures and processes zinc concentrate at the CEZ refinery owned by the
Noranda Income Fund. The zinc business unit also produces lead concentrates at the Brunswick mine and procures and processes lead/silver concentrates and residues at the Brunswick smelter. Marketing
of the CEZ refinery and Falconbridge's zinc metal and related alloys, as well as the Company's lead metal and related alloys, is carried out through our head office in Toronto, Ontario and affiliated
marketing offices in Zug, Switzerland and Cleveland, Ohio. In addition, the zinc business unit operates the General Smelting of Canada foundry in Lachine, Quebec, which produces various lead and zinc
alloys and anodes. The zinc business unit also has a 65% interest in NorFalco LLC, a joint venture with Falconbridge that markets, transports and distributes sulphuric acid in North America.

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The Brunswick mine was developed and commenced operations in the early 1960s. Noranda Inc. acquired a controlling interest in the mine in 1971 and a 100%
interest in 1996. The mine is located approximately 27 kilometres southwest of Bathurst, New Brunswick. The Company has surface rights and 100% ownership of the mineral rights on 1,030
hectares comprising the No. 12 Crown Grant (Nos. 35097 and 34300).



The Brunswick orebody is hosted in steeply dipping volcanic and sedimentary rock units. The deposit comprises massive sulphides intimately associated with various
iron formation facies, with zinc, lead, copper and silver being the principal metals produced. The host rocks and the mineralization have undergone four significant deformation events, resulting in
intense folding and faulting.

Mineral
resource and mineral reserve estimates were prepared by Pierre Bernard (P. Geo., Chief Geologist) and Philip Bridson (P. Eng., Senior Planning Supervisor), each of whom is a
qualified person as defined in NI 43-101, and are based on assays from diamond drilling and geological interpretation of drilling and underground mapping of development areas. The
data is interpreted by the mine's geologists and used to develop a three-dimensional model of the geology, mineralization and underground development areas.

Proven
and probable reserves total 21.1 million tonnes averaging 9.12% zinc, 3.64% lead, 0.36% copper and 106 grams of silver per tonne. Measured and indicated resources in
addition to mineral reserves total 3.0 million tonnes with an average grade of 8.69% zinc, 3.34% lead, 0.34% copper and 95 grams of silver per tonne.

Mineral
resources are reported using a 7.5% (zinc + lead) cut-off with a minimum mining width of 2.5 metres. Dilution (planned and wall), extraction
recoveries and economics are applied to the mineral resource to arrive at the mineral reserves. The assumed metal prices and exchange rate were zinc US$0.44 per lb., copper US$0.90 per lb., lead
US$0.26 per lb., silver US$5.25 per troy ounce and Cdn$1.50 for US$1.00.

Approximately
3.5 million tonnes of proven mineral reserves were milled in 2002. At planned operating rates, the Brunswick mine has an estimated life of six years. The mineral
reserves decreased in 2002 by 4.4 million tonnes due to production of 3.5 million tonnes and the loss of 1.3 million tonnes as a result of the complete re-engineering
of all reserve blocks. The largest losses occurred in the North Regional Pillar and 1125 Main Zone due to bad ground conditions. The losses were partly offset by the addition of
0.4 million tonnes due to comprehensive in-house mining evaluations.



Production occurs on five main levels to a depth of 1,125 metres. Two shafts provide access. The No. 3 shaft is 1,337 metres deep and is used to hoist
personnel, ore and equipment. The No. 2 shaft is 963 metres deep and is used to hoist personnel and supplies. This shaft carries all compressed air and water services for the mine. The
remaining cage hoist is used intermittently as a backup to the No. 3 shaft facilities and a second means of egress from the mine.

Mining
methods are in transition, from primary/secondary mining of sub-level open stopes with delayed backfill to pillarless, pyramid-shaped open stope sequences and
end-slicing. The ore body consists of a series of sub-parallel ore lenses with an average dip of 70 degrees, a composite width of up to 200 metres, a maximum strike length of
1,300 metres and a maximum depth of 1,150 metres.

Ore
is processed in the concentrator using grinding, differential flotation, concentrate filtering and drying technologies to produce four products, including zinc, lead, bulk and copper
concentrate. Flotation tailings are sent to a paste plant for recovery and production of required amount of paste backfill. Residual tailings are sent to the tailings impoundment facility. Process
water is recycled back to the concentrator while the excess runs through an effluent treatment facility prior to discharge to the environment.

23

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There
were no production interruptions at the Brunswick mine during 2002 and as a result the Brunswick mine processed an average of 9,569 tonnes of ore per day
(2001  9,850 tonnes) and produced 277,000 tonnes of zinc contained in concentrate (2001  304,000 tonnes). Zinc
recoveries in the mill were 87.4% (2001  87.5%).

In
2002, work on the establishment of a new ore handling system to service the south end of the mine was completed. This system enables the mine to maintain production at the planned
level.

Construction
work on an improved milling system was completed in the fourth quarter of 2000 to implement an intermediate flotation stage between primary and secondary grinding,
consolidate the concentrator
grinding and flotation circuits, and to recycle water through the abandoned rockfill quarry. The project has resulted in higher recoveries, improved zinc concentrate grade and a higher ratio of zinc
concentrate to bulk concentrate.



The Bell-Allard zinc/copper mine commenced commercial production in January 2000 with an anticipated life of approximately five years.

The
mine is located 10 kilometres southwest of the town of Matagami in north-western Quebec, approximately two kilometres south of the Matagami concentrator. The
95-hectare property is covered by Mining Lease #830, which will, unless extended, expire on December 1, 2016. The lease permits exploitation of the mineral rights belonging to the
Crown. Noranda has owner's rights and obligations but may use the surface only for mining operations.



The Bell-Allard deposit is similar to other deposits that Noranda has mined in the Matagami area. It is a typical volcanogenic massive sulphide
deposit located at or near the contact between the Watson Lake Rhyolite and the overlying Wabassee Basalt. The deposit is sitting on top of its alteration zone and is intruded on by three main dyke
families. A tectonic overprint affects the deposit and drags the mineralization to the north, resulting in a gradual transition between pipe system and the massive sulphide lens.

The
mineral reserve estimate is prepared under the supervision of Martin Verreault (P. Eng., Chief Engineer and a qualified person as defined in NI 43-101) and based
on assays from underground definition drilling, geological interpretation of drill cores and underground mapping of development areas. The data is used to develop a three-dimensional model of the
geology, mineralization and underground development areas. Block grades are interpolated from drill hole assays using the Inverse Distance Squared method.

Proven
and probable mineral reserves are based on the mineral resource model after applying stope, engineering and dilution criteria. The minimum mining width used is 3.0 metres. Mineral
reserves are reported using a 9% zinc equivalent cut-off {(%Cu X 2) + %Zn $9%Zn}. The assumed metal prices and exchange rate were zinc US$0.50 per lb., copper US$0.90 per lb., lead US$0.26 per
lb., silver US$5.25 per
troy ounce and Cdn$1.50 for US$1.00.

As
of December 31, 2002, proven and probable reserves totalled 1.5 million tonnes averaging 14.33% zinc, 0.11% lead, 1.17% copper, 38.8 grams of silver per tonne and 0.52
grams of gold per tonne. No mineral resources are estimated. Approximately 669,000 tonnes of mineral reserves were milled in 2002. At planned operating rates, the Bell-Allard Mine has an
estimated life of two years. The mineral reserves were decreased by 0.7 million tonnes due to mine production in 2002. Some small reserve additions in satellite mining zones were balanced by
the removal of some marginal stope and pillar reserves in the main deposit.



There are four main production levels and two shafts provide access to the mine. The production shaft is 1,140 metres deep and is used mostly to hoist personnel,
ore and waste. This shaft carries all compressed air, water and fuel services for the mine. The 900-metre exhaust shaft is used to hoist equipment and supplies and serves as an emergency
exit. It also carries the paste fill line.

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A
longhole stoping method is used with a pillarless, pyramid-shaped open stope sequence. Paste fill is required to fill the empty stopes immediately after mining. The entire sulphide
envelope occurs at a vertical depth of between 900 and 1,175 metres. It is delimited over a strike length of approximately 300 metres and the deposit dips 45 to 60 degrees to the southwest.

Ore
is processed in the concentrator using grinding, differential flotation, concentrate filtering and drying technologies to produce zinc and copper concentrates. Approximately 45% of
the flotation tailings are used to produce paste backfill. Residual tailings are sent to the tailings impoundment facility where water runs through an effluent treatment facility prior to discharge to
the environment.

Most
of the zinc concentrate produced at the mine is shipped to the CEZ refinery, while the copper concentrate is shipped to the Horne smelter.

In
2002, Bell Allard produced 84,792 tonnes of zinc contained in concentrate (2001  88,754 tonnes). Zinc recoveries in the mill were 92.3%
(2001  92%).



The Brunswick smelter, located in Belledune, New Brunswick, is a lead smelter that processes lead concentrates from the Brunswick mine as well as a wide
range of offshore lead and lead/silver concentrates and residues. Consistent with our strategy of increasing our flexibility to treat complex feed materials, construction was completed on a new silver
refinery in the first quarter of 2001. The lead blast furnace was rebuilt in the fourth quarter of 2000, using the Mt. Isa furnace design. The new blast furnace has significantly decreased metal loss
and coke consumption in the production process.

The
Brunswick smelter also operates a battery recycling facility in Belledune, New Brunswick that processed 9,000 tonnes in 2002
(2001  5,000 tonnes). Most of the used batteries are sourced from the Atlantic Provinces with Quebec and the New England states providing the balance.

In
December 2002, the Company announced that the Brunswick smelter will change to a seasonal operation effective July 1, 2003. The plant will run for eight months a year on
Brunswick mine concentrates and third-party sulphates and cease to purchase third-party concentrate.



The CEZ refinery (in which Noranda has a 49% interest through its interest in the Noranda Income Fund) located in Valleyfield, Quebec procures and processes zinc
concentrate for the production of zinc metal and powders. It is located near the St. Lawrence Seaway and has access to road, rail and sea transportation links. In 2001 and 2002, over 80% of the zinc
concentrate processed at the CEZ refinery was sourced from mines owned or partly owned by Noranda, including the Brunswick mine, Bell-Allard mine and Antamina. The refinery's products are
marketed in the United States, Canada, Europe and Asia.

A
plant optimisation project increased nominal annual plant capacity from 225,000 tonnes to 255,000 tonnes in 1999. Further plant debottlenecking and continuous improvement
projects are proceeding and in 2002 the plant achieved output of 271,075 tonnes.

In
May 2002, Noranda sold the CEZ processing facility to the Noranda Income Fund (the "Fund") for a combination of cash and ordinary and priority units of the Fund. A portion of
these priority units were then sold by Noranda pursuant to a public offering. Noranda continues to own a 49% interest in the Fund. Over 50% of Noranda's interest in the Fund, representing 25% of the
outstanding equity of the Fund, is held as ordinary, units which are subordinated in respect of cash distributions to the priority units for a period of 15 years.

Noranda
has entered into a 15-year supply and processing agreement to sell to the refinery up to 550,000 tonnes of zinc concentrate annually, an amount expected to
support 100% of its annual production at planned rates for that period. The refinery pays Noranda for the concentrate based on the LME price for "payable zinc metal" contained in the concentrate less
a treatment charge or processing fee, initially set at Cdn$0.352 per pound of payable zinc metal. The processing fee is adjusted annually to reflect changes in certain costs.

25

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Pursuant
to various management agreements, Noranda will continue to operate and manage the refinery and also provides management, marketing and other administrative services to the Fund.



In April 1998, the Company, Falconbridge and DuPont agreed to form Noranda DuPont LLC, a joint venture to market, transport and distribute sulphuric
acid in North America. On June 29, 2001, Noranda DuPont LLC redeemed DuPont's 50% voting interest in Noranda DuPont LLC and its name was changed to NorFalco LLC.
NorFalco LLC purchases and resells to consumers all of the Company's and Falconbridge's Canadian sulphuric acid production.

NorFalco LLC
has developed an extensive distribution infrastructure of tank cars, trucks, marine tankers and terminals in order to supply approximately 2.1 million tonnes
of sulphuric acid to consumers in North America. Its staff is based at its head office near Cleveland, Ohio and at the office of its wholly-owned Canadian subsidiary, NorFalco Sales Inc., near
Toronto, Ontario. NorFalco is owned by Noranda (65%) and Falconbridge (35%).

4.1.4  Aluminum

Noranda Aluminum, Inc. ("Noranda Aluminum") operates five plants in the United States that produce primary aluminum and/or aluminum foil. In 2002,
approximately 91% (2001  91%) of sales were to U.S. customers. As of December 31, 2002, Noranda Aluminum had approximately 1,950
employees (2001  1,910).

Noranda
Aluminum's fabricated products operations purchase the majority of their primary metal requirements from third parties. This allows the primary reduction plant to optimize
product mix by selling value-added products to third parties.



Noranda Aluminum operates a primary aluminum reduction plant located adjacent to the Mississippi River, near New Madrid, Missouri. The plant has
three potlines that produced 236,458 tonnes of molten aluminum in 2002 (2001  220,200 tonnes), a carbon plant that produces anodes for the
reduction cells, and a cast house capable of producing 1,500 lb. standard ingots and value-added products such as billet, electrical conductor rod and foundry alloy.

A
US$73-million modernization project to convert the reduction plant to single-piece anode technology operating at increased amperages was completed in 2000. The
modernization has increased annual molten metal production capacity to 253,000 tonnes. The project has also reduced overall operating costs and improved environmental performance.

Alumina
requirements are supplied under medium-term contracts with third parties at prices that generally vary with aluminum prices. All of the alumina is purchased from
south-central U.S. suppliers.

The
Noranda Aluminum aluminum smelter in New Madrid, Missouri uses approximately 500 megawatts of power annually. Noranda Aluminum's existing 30-year power contract
expires May 31, 2003. A new contract, subject to final documentation, has been negotiated for a two-year period starting June 1, 2003. The new contract is based on market
terms which, depending on market conditions, could increase the plant's annual cost of electricity by $40 million over the prior contract.



Norandal USA, Inc. ("Norandal") operates four plants in the South-eastern United States that combine to serve a broad range of customer needs.
Norandal is the second largest producer of aluminum foil products in North America. In 2002, third-party shipments amounted to 128,000 tonnes (2001  112,400
tonnes).

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The original Huntingdon, Tennessee plant, which Norandal has operated since 1979, has an annual production capacity of 69,000 tonnes. It produces heavy-gauge foil from continuous cast
metal, serving the electrical, household foil and air conditioning fin stock markets. The Salisbury, North Carolina plant also operates continuous casters and has an annual production capacity of
43,000 tonnes of light foil. The Newport, Arkansas facility processes re-roll material into lighter gauge coated and uncoated foil. It can produce up to 20,000 tonnes annually. The
major products produced at the Salisbury and Newport plants are flexible packaging materials, air-conditioning fin stock and converter foil used in food containers.

In
2002, the Company completed construction of a modern aluminum foil plant at a cost of US$226 million (excluding financing) to reinforce Norandal's position as a leading,
low-cost supplier of heavy-gauge foil products. The foil plant is located adjacent to the existing Huntingdon plant and has an annual production capacity of approximately 90,000 tonnes of
heavy-gauge foil, bringing Norandal's total foil production capacity to 225,000 tonnes. The plant utilizes state-of-the-art technology in casting, rolling and
material handling. The new foil plant includes four new continuous casting machines, a high-speed, wide-width rolling mill with associated finishing equipment and an automated
product storage and retrieval system. The automated storage and retrieval system is designed to reduce cooling time and lower handling costs. The high speed, low-gauge casters and
wide-width rolling mill are designed to improve product quality, lower scrap rates and increase productivity.

4.1.5  Nickel



Falconbridge has been mining nickel/copper ores in the Sudbury area of northern Ontario since 1929. The Sudbury operations consist of the mines/mill business unit
("Sudbury Mines/Mill") and the smelter business unit ("Sudbury Smelter").

The
Sudbury Mines/Mill principal nickel/copper producing properties in the Sudbury area are located in the Townships of Falconbridge, Levack, Garson, Dowling, Blezard and Denison. The
properties comprise 2,670 hectares owned by Falconbridge and 14 hectares held under two licences of occupation of mining rights from the Province of Ontario. The licences of occupation are held in
perpetuity.



The Sudbury Mines/Mill operates four underground nickel/copper mines in the Sudbury area: the Craig, the Fraser, the Lindsley and the Lockerby mines. In 2002, the
Craig mine provided 43% of Sudbury Mine/Mill's ore production. Total mine production for 2002 was 3.7% higher than planned while nickel grades were approximately the same as planned.

Metal
in concentrate produced during 2002 amounted to 27,800 tonnes of nickel (2001  25,200 tonnes), 31,100 tonnes of copper
(2001  22,900 tonnes) and 690 tonnes of cobalt (2001  630 tonnes).

The
ore from Sudbury Mines/Mill is crushed and ground and the nickel/copper bearing sulphide materials contained in the ore are separated from waste materials at the Strathcona mill to
produce nickel/copper concentrate and copper concentrate. The Sudbury Mines/Mill total ore milled for 2002 was 2,295,000 tonnes (2001  1,946,000 tonnes). The
Strathcona mill has a capacity of approximately 10,000 tonnes of ore per day. The copper concentrate from the Strathcona Mill is delivered to Kidd Creek Metallurgical's mineral processing facilities
for smelting and refining. The nickel/copper concentrate from the Strathcona mill is delivered to the Sudbury smelter for smelting.



As
of December 31, 2002, proven and probable reserves totalled 17,126,000 tonnes averaging 1.33% nickel and 1.28% copper. Measured and indicated resources in addition to mineral
reserves total 16,833,000 tonnes

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27

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with an average grade of 2.38% nickel and 1.10% copper. Inferred resources totalled 22,100,000 tonnes grading 1.77% nickel and 2.39% copper.

Mineral
resources are reported using cut-off grades and minimum mining widths appropriate to the particular deposit and mining method. Dilution (planned, overbreak and fill)
and mining extraction recoveries are applied to the mineral resource to arrive at the mineral reserves. Assumed metal prices and exchange rate were nickel US$3.25 per lb., copper US$0.90 per lb. and
the Cdn$1.50 for US$1.00.

Approximately
2,152,000 tonnes of proven and probable mineral reserves were milled in 2002. At planned operating rates, the proven and probable mineral reserves are equal to
approximately eight years of production. It is anticipated that a portion of the mineral resources will be converted to mineral reserves and will extend the life of the operation. In 2002, the Sudbury
operation's proven and probable mineral reserves remained essentially unchanged despite production of 2.2 million tonnes. The 2002 production was replaced with an increase in reserves of
1.2 million tonnes at the Craig mine due to a lower cut-off grade, the upgrading and discovery of 0.8 million tonnes at the Thayer Lindsley mine and an additional
0.3 million tonnes due to the reinterpretation of 6 Zone at the Fraser mine.



The nickel/copper concentrate from the Strathcona mill is treated at the Sudbury smelter along with Raglan concentrates and custom feed from other sources. The
smelter produces a matte containing nickel, copper and cobalt, as well as silver, gold and platinum group metals. The Sudbury smelter has the capacity to produce approximately 130,000 tonnes of matte
per year. The matte produced is shipped by rail to Quebec City and by sea to the Nikkelverk refinery for further processing.

The
Sudbury smelter's output for 2002 from all sources was 57,900 tonnes of nickel (2001  54,900 tonnes), 20,500 tonnes of copper
(2001  17,900 tonnes) and 1,960 tonnes of cobalt (2001  1,790 tonnes). Copper concentrate sent to the Kidd Creek smelter
contained 21,700 tonnes of copper (2001  14,000 tonnes). Sulphuric acid produced as a result of smelting activity in Sudbury was 246,800 tonnes in 2002
(2001  224,600 tonnes).



The Raglan nickel/copper operation is located in Katinniq in Nunavik territory, Quebec, approximately 1,800 kilometres north of Montreal. Falconbridge has
explored the Raglan property since the 1960's and began development of the mine site in 1996 following receipt of environmental approvals and the conclusion of agreements with the local Inuit
population and the Province of Quebec regarding infrastructure funding. Commercial production at Raglan began on April 1, 1998. Raglan's annual production capacity is one million tonnes per
year of ore milled. Net production for 2002 totalled 24,600 tonnes of nickel (2001  24,600 tonnes), 6,500 tonnes of copper
(2001  6,900 tonnes) and 390 tonnes of cobalt (2001  320 tonnes).



As
of December 31, 2002, proven and probable reserves totalled 18,109,000 tonnes averaging 2.88% nickel and 0.79% copper. Measured and indicated resources in addition to mineral
reserves total 2,876,000 tonnes with an average grade of 1.95% nickel and 0.72% copper. Inferred resources total 3,400,000 tonnes grading 2.74% nickel and 0.87% copper.

Mineral
resources are reported using cut-off grades and minimum mining widths appropriate to the particular ore zone and mining method. Dilution (planned, overbreak and fill)
and mining extraction recoveries are applied to the mineral resource to arrive at the mineral reserves. Assumed metal prices and exchange rate were nickel US$3.25 per lb., copper US$0.90 per lb. and
the Cdn$1.50 for US$1.00.

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28

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Approximately 868,000 tonnes of proven mineral reserves were mined and milled in 2002. A reduced exploration program in 2002 resulted in the
discovery of approximately 0.25 million tonnes of mineral reserves in two individual lenses at Zone 2 and Katinniq. However, following a detailed recalculation, overall mineral reserves
decreased by 562,000 tonnes in 2002 and, when combined with production losses, overall mineral reserves decreased by 1.4 million tonnes. At planned operating rates, the proven and probable
mineral reserves are equal to approximately 18 years of production.



The ore from the Raglan mines is crushed, ground and treated at the Raglan mill to produce nickel/copper concentrate. Raglan concentrate is trucked to Deception
Bay for marine shipment to Quebec City and then transported by rail to the Sudbury smelter for treatment. There were six shipments from Deception Bay during 2002. No shipping occurs from
mid-March to early-June.

The
current capacity of the mill is 3,000 tonnes of ore throughput per day. Total ore milled in 2002 was 868,000 tonnes (2001  961,000 tonnes).



Falconbridge Nikkelverk, Aktieselskap ("Nikkelverk"), a wholly-owned subsidiary of Falconbridge, operates a refinery and a sulphuric acid plant at Kristiansand,
Norway. The refinery processes the matte produced by the Sudbury smelter as well as custom feed from other sources, which includes the treatment of the silver, gold and platinum group metals contained
in the matte and custom feed. The refinery has an annual capacity of approximately 85,000 tonnes of nickel, 38,000 tonnes of copper and 4,500 tonnes of cobalt. The sulphuric acid plant has a capacity
of approximately 100,000 tonnes of sulphuric acid per year. In 2002, the refinery produced 68,500 tonnes of nickel (2001  68,200 tonnes), 30,600 tonnes of copper
(2001  26,700 tonnes), 4,000 tonnes of cobalt (2001  3,300 tonnes) and 89,900 tonnes of sulphuric acid
(2001  86,400 tonnes). The Nikkelverk refinery operated at low levels during the third quarter of 2002 due to a shortage of feed from the feed suppliers and was
shutdown for three weeks in July/August, 2002.

Mattes
from the Sudbury smelter and from BCL Limited ("BCL") in Botswana were the main sources of nickel/copper feed materials for the Nikkelverk refinery during the year.

The
production of platinum group metals grew in importance during 2002 as production volumes expanded. In 2002, the refinery produced approximately 355,000 ounces of platinum group
metals (2001  234,000 ounces).

Expansion
of the refinery to 100,000 tonnes of nickel, 60,000 tonnes of copper and 5,000 tonnes of cobalt per year or higher is possible if market conditions warrant such expansion.



Falconbridge International Limited ("FIL"), an indirect wholly-owned subsidiary of Falconbridge with offices in Bridgetown, Barbados and Brussels,
Belgium, is responsible for managing the custom feed business outside Canada for the integrated nickel operations ("INO") of Falconbridge. Custom feed, or third-party primary smelter production
(matte) and secondary raw materials, provides a significant source of supply to the Sudbury smelter and the Nikkelverk refinery. In 2002, the Sudbury smelter's output from secondary raw materials
included 4,400 tonnes of nickel (2001  3,400 tonnes), 2,700 tonnes of copper (2001  1,800 tonnes) and 900 tonnes of cobalt
(2001  800 tonnes). FIL has entered into a long-term agreement (to at least the end of 2010) with BCL to treat complex nickel/copper matte from
BCL's smelter in Botswana. Under this agreement, BCL has agreed to deliver approximately 13,000 to 16,000 tonnes of nickel matte per year to the Nikkelverk refinery. The BCL matte
represented approximately 49% of the nickel and copper-bearing custom feeds processed at the Nikkelverk refinery in 2002 (2001  50%).

In
2002, custom feed represented approximately 25% of the nickel, 42% of the copper and 76% of the cobalt output at the Nikkelverk refinery
(2001  25%, 44% and 72% respectively).

29

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Falconbridge Dominicana, C. por A ("Falcondo"), which is 85.26%-owned by Falconbridge, has been mining and processing nickel laterite ore near the townsite of
Bonao, approximately 80 kilometres north-west of Santo Domingo, Dominican Republic, since 1971. The Government of the
Dominican Republic and Redstone Resources Inc. own approximately 10% and 4.1% respectively of Falcondo. The term of the mining concession at this site is for an unlimited period. Mine
production at Falcondo, which is carried out from the surface, totalled 3,040,600 tonnes of ore in 2002 (2,761,875 tonnes in 2001) at an average nickel grade of 1.23%
(2001  1.21%).



As
of December 31, 2002, proven and probable reserves totalled 64,120,000 tonnes averaging 1.15% nickel. Measured and indicated resources in addition to mineral reserves total
13,840,000 tonnes with an average grade of 1.53% nickel. Inferred resources total 6,400,000 tonnes grading 1.41% nickel.

Mineral
resources are reported using cut-off grades and minimum mining widths appropriate to the mining method. Dilution and mining extraction factors are applied to the
mineral resource to arrive at the mineral reserves. Assumed metal prices and exchange rate were nickel US$3.25 per lb., copper US$0.90 per lb. and Cdn$1.50 for US$1.00.

Approximately
3,041,000 tonnes of proven mineral reserves were mined in 2002. At planned operating rates, the proven and probable mineral reserves are equal to approximately
15 years of production. The proven and probable mineral reserves at Falcondo showed a net increase of 3.4 million tonnes after production of 3.0 million tonnes in 2002. The
increase is mainly due to the discovery of 1.5 million tonnes in previously undrilled areas and mining gains of 4.5 million tonnes through revision of previous estimates in the current
deposits. Separate bulk density factors have now been applied by ore type instead of using an overall average value for all deposits as in the past.



The ore mined at Falcondo is milled, smelted and refined at Falcondo's mineral processing facilities, which have a capacity of approximately 29,000 tonnes of
nickel contained in ferronickel per year. Falcondo's production of nickel in ferronickel for 2002 was 23,300 tonnes, compared to 21,700 tonnes in 2001.

As
a result of declining ferronickel prices and the high price of crude oil, Falcondo was shut down from October 2001 to January 2002. General maintenance work at the plant
facilities was carried out during the shutdown.

4.1.6  Exploration and Project Development(1)

The Company's and Falconbridge's exploration groups have been integrated. The combined team conducts world-wide exploration on behalf of the Company
and Falconbridge with the focus of the Company being primarily copper and copper-polymetallic exploration and the focus of Falconbridge being primarily the nickel and platinum group metals.

The
Company and Falconbridge have also integrated their respective project development groups. The integrated project group assumes primary responsibility for projects when they reach
the pre-feasibility stage.



The mandate of the Noranda exploration group is to discover strategically sized deposits with a life in excess of 15 years which are expected to provide a
15% return on equity after tax. The current focus is on copper exploration with the exception of copper-zinc exploration in the Quebec Abitibi region in support of the

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Canadian Copper and Recycling business unit. Exploration by the Company totalled approximately $19 million in 2002 ($38 million in 2001) and the
planned expenditures for 2003 total $11 million.

In
addition to exploration activities, the exploration group provides support to business development within the company through participation in advanced project evaluations.
Exploration management in Noranda is committed to environmentally and socially responsible exploration and to this end has implemented environmental and community relations training throughout the
group. The group also emphasizes utilization of best exploration technologies to achieve competitive advantage and application of Six Sigma to achieve efficient exploration.

Canadian
and international exploration is directed from the Company's corporate office in Toronto. Other exploration offices are located in:

Laval, Quebec
Brisbane, Australia
Hermosillo, Mexico

Matagami, Quebec
Belo Horizonte, Brazil

San Juan, Argentina
Santiago, Chile


During
2003, exploration projects are planned in Canada (Quebec and British Columbia), Mexico, Brazil, Chile, Argentina, Turkey, Papua New Guinea and Australia. Exploration
activity in other areas will be predicated on suitable acquisitions or new projects that meet corporate objectives. Currently, the permanent exploration staff of the Company comprises 67 employees,
including 44 geologists and geophysicists.



The acquisition of the El Pachón project from Cambior Inc. was completed in September 2001. The property is located in the province
of San Juan, Argentina at an elevation of 3,600 to 4,100 metres about three kilometres from the Chilean border. According to information contained in a feasibility study conducted by
Cambior Inc. in 1997, the El Pachón deposit has an indicated resource estimated at 990 million tonnes grading 0.61% copper using a cut-off grade of 0.40%.
Noranda's exploration focus is to identify higher grade resources within the known zone, and to identify any additional new porphyry systems. Exploration in 2002 consisted only of geological surveys
and limited geophysical and regional geochemical surveys due to the ongoing banking and financial crisis in Argentina. Diamond drilling, geological mapping and reinterpretation of the resource model
are planned in 2003.



The El Morro property is located in Region III, 140 kilometres east of the port of Huasco at an elevation of 4,000 to 4,300 metres. The La Fortuna zone on
the El Morro property contains an inferred mineral resource estimated at 466 million tonnes grading 0.61 percent copper and 0.50 grams per tonne gold at a copper cut-off of
0.4 percent copper. As a result of the 2002 drill program the inferred resource grew 14% compared to the 2001 total of 410 million tonnes at comparable grades.

The
estimate for the La Fortuna Zone has been determined in accordance with CIM Definitions on Mineral Resources and Mineral Reserves, and is summarized as follows:

|          |  | 0.3% Copper Cut-off |  | 0.4% Copper Cut-off |  | 0.5% Copper Cut-off
|--------- |  | ------------------- |  | ------------------- |  | -------------------
|
|Mixed     |  | 18,000              |  | 0.60                |  | 0.29               
|Supergene |  | 104,000             |  | 0.67                |  | 0.33               
|Primary   |  | 468,000             |  | 0.53                |  | 0.50               
|Total     |  | 590,000             |  | 0.56                |  | 0.46               

Noranda
has the right to earn a 70% interest in the El Morro property from Metallica Resources Inc. by completing work on the property totalling US$10 million by
September 14, 2004, paying US$10 million in cash to Metallica Resources Inc. on or before September 14, 2005 and by subscribing for shares of Metallica

31

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Resources Inc.
Noranda has also completed an initial payment of US$300,000 to Metallica Resources Inc. If either party dilutes its interest in the property to 10% or less, their interest
will convert to 2% net smelter royalty. Noranda subscribed for and purchased 918,563 shares of Metallica Resources Inc. at a price of Cdn$1.67 per share, thereby satisfying its share
subscription obligation under the terms of the joint venture agreement between the two companies.

Preliminary
financial analysis of the new resource as part of Noranda's internal review process indicated that the deposit would not provide suitable economical returns under reasonably
assumed conditions. The Company intends to maintain the property and satisfy its outstanding legal and environmental obligations.



The West Wall property is located in Region V, about 100 kilometres north of Santiago, Chile at an elevation of
3,000  3,700 metres, and is being explored under a joint venture with Minera Anglo-American Chile. Noranda has the right to earn up to a 60% interest by
completing prescribed work commitments, a cash payment of US$1 million and the completion of a feasibility study. A low grade porphyry resource was identified on the property in the 1980's by
Minera Anglo-American Chile. Noranda has discovered a new porphyry system, referred to as the Lagunillas zone, located 3 kilometres southwest of the known low grade resource. Diamond drilling
in 2002 indicates an accurate secondary enriched blanket of copper mineralization underlain by significant primary mineralization. The zone extends over an area of 1,200 metres north-south and ranges
from 350 to 450 metres in width. Additional drilling will be required to further test the potential of the discovery. Noranda has entered into an option agreement with BHP-Billiton on a
group of mineral concessions favourably located adjacent to the joint venture property. These concessions have been incorporated into the joint venture.



In January 2002, Noranda optioned three properties in Papua New Guinea from Highlands Pacific Ltd., an Australian company. The properties are
located in northern Papua New Guinea and all have near-surface porphyry copper-gold mineralization. The priority target is the Frieda River Property located
80 kilometres east of the border with West Papua (Irian Jaya).

The
Frieda River property contains existing mineral resources in three separate porphyry deposits (Horse-Ivaal-Trukai, Koki and Nena). Highlands Pacific Ltd. has estimated the
Horse-Ivaal-Trukai inferred resource at 125 MT at 0.88% copper and 0.515 grams of gold per tonne using a 0.7% copper cut-off grade. The Trukai porphyry zone which is an offset extension to
the Horse-Ivaal resource has not been closed off by drilling. As part of a 1996 prefeasibility study, Highlands Pacific Ltd. estimated an inferred resource of 274 million tonnes of 0.4%
copper and 0.3 grams per tonne gold, at a 0.2% copper cut-off grade for the Koki system and the Nena deposit is estimated to contain measured and indicated resources totalling
49.8 million tonnes at 2.2% copper and 0.6 grams of gold per tonne at a 0.5% copper cut-off grade.

Noranda's
agreement with Highlands Pacific Ltd. allows Noranda to earn a 72% interest in any or all of the properties by spending an aggregate of US$5 million over five
years and completing a feasibility study on an elected property or properties. The 72% interest is subject to reduction if the Papua New Guinea government exercises its right to acquire a 30%
interest in the project. During the option period, Noranda may acquire 72% of the Nena copper-gold deposit, which is located within the Frieda River Property, by paying
US$10.8 million and completing a feasibility study.

The
2002 diamond drill program consisted of six widely-spaced holes totalling 2,030 metres designed to test the mineralized systems in the Trukai porphyry.



The Perseverance deposits are located close to Noranda's existing mine infrastructure in Matagami, Quebec. A feasibility study on the Perseverance and Equinox
deposits has been completed under Noranda's internal review process. The Company has not yet taken a decision on the timing of any production.

The
Perseverance property is controlled under the terms of a joint venture agreement between Noranda and Société de Développement de la Baie
James ("SDBJ"). Under the terms of the agreement, Noranda holds a

32

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90%
interest in the property and SDBJ has the right to participate to the extent of a 10% interest in the property after completion of a positive feasibility study or to convert its interest to a 2%
net smelter royalty. Should SDBJ elect to participate, it will be required to fund its share of development costs. Should SDBJ convert its interest to a 2% net smelter royalty, Noranda will hold a
100% interest in the property and will have the option to reduce the royalty to a 1% net smelter royalty by making a payment of $1 million to SDBJ.

A
deep penetrating magneto-telluric geophysical survey was completed in the Perseverance area in late 2002. Preliminary results indicate at least two anomalies have been located.



In 2002, six holes were drilled at the Andrew zone as step outs on the 2001 program. Overall, results were negative. Due to the indications of the limited size of
the zone and limited extent of the high grade portion of the zone, the project was terminated.



The Lady Loretta project is located north of Mount Isa, in Queensland, Australia. After completing a preliminary feasibility on the project, Noranda exercised its
option to acquire a 75% interest in the Lady Loretta project in December, 2000 from its partner, BUKA Minerals Limited. Permitting is complete. Queensland government approval has been granted for the
transfer to BUKA Minerals Limited of the Lady Annie part of the property, defined as the Lady Annie sublease. Development has been postponed until zinc markets improve.



The Falconbridge exploration group is organized around four activities: exploration support for existing operations; project and business development support;
world-wide "greenfield" exploration and project generation; and technical support, technology and mineral reserve/resource evaluation and reporting.

The
mandate of the Falconbridge exploration group is to add mineral reserves at the existing operations; add new low cost nickel and platinum group metal mineral reserves through
exploration or acquisitions to enable Falconbridge to pursue profitable growth; ensure that technological advances in exploration methodology are used to improve efficiency; and conduct safe and
environmentally responsible exploration.

Exploration
in support of existing operations in Canada is conducted from an office in Sudbury and at the Kidd Creek mine site and from a field office at the Raglan site. Greenfield
exploration in North America is carried out from offices in Laval, Quebec. International greenfield exploration is conducted from Falconbridge's Toronto office and from offices in Brisbane, Australia,
Belo Horizonte, Brazil and Pretoria, South Africa and from a field office in Abidjan, Côte d'Ivoire. Administration, accounting, legal and technical support is provided from
Falconbridge's Toronto corporate office.

At
December 31, 2002, Falconbridge had a permanent exploration staff of 67, including 54 geologists and geophysicists.

Falconbridge's
exploration expenditures for the two years ended December 31, 2002 and its planned exploration expenditures for 2003 are as follows:

|                                     |       | 2003
(Planned) |    | 2002 |    | 2001
|------------------------------------ | ----- | -------------- | -- | ---- | -- | ----
|
|Support of core operations in Canada |       | 19             |    | 19   |    | 22  
|Exploration projects in Canada       |       | 4              |    | 5    |    | 5   
|Collahuasi                           |       | 0              |    | 0    |    | 1   
|Exploration projects outside Canada  |       | 6              |    | 10   |    | 12  
|                                     |       |                |    |      |    |     
|                                     | Total |                | 29 |      | 34 |     
|                                     |       |                |    |      |    |     

33

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The Sudbury area is one of the world's largest sources of nickel and contains significant copper, cobalt, silver, gold and platinum group metals. In addition to
its operating mines, Falconbridge has large property holdings covering favourable geology of the Sudbury Igneous Complex.

Exploration
programs conducted in 2001 and 2002 have resulted in the discovery of a new mineral resource at Nickel Rim South located 2.7 kilometres north of the airport at a depth
of approximately 1600 metres. Surface drilling to-date has defined an inferred resource consisting of 6.3 million tonnes of 1.7% nickel, 3.4% copper, 2.2 grams
per tonne platinum, 2.5 grams per tonne palladium and 1.5 grams per tonne gold. This project has entered the stage-gate process and a decision as to whether or not to proceed
with an underground exploration program is expected to be made in 2003.

In
2002, Falconbridge spent $11.9 million on exploration in support of the Sudbury operations and intends to spend $12.5 million in 2003. In addition, diamond drilling and
other exploration was carried out on certain of Falconbridge's properties by option and joint venture partners, who also have exploration programs planned for 2003.



A reduced exploration program in 2002 resulted in the discovery of approximately 250,000 tonnes of nickel and copper mineral reserves in two individual lenses at
Zone 2 and Katinniq. However, following a detailed recalculation, overall mineral reserves decreased by 561,000 tonnes in 2002 and, when combined with production losses, overall mineral reserves
decreased by 1.4 million tonnes.

The
Corporation spent $2.6 million in 2002 in support of the Raglan operation and plans to spend $4.4 million in 2003.



Exploration in the Timmins region in support of the Kidd Creek operations focuses primarily on two areas: within the immediate area of the mine and in a 150
square kilometre area in the townships located north of Kidd Creek mine. In addition Falconbridge conducts copper-zinc exploration joint ventures with other companies and focuses on areas
within 200 kilometres of Kidd Metallurgical's facilities.

Falconbridge
spent $2.7 million on its Timmins region exploration program in 2002 and intends to spend approximately $1.0 million in 2003. Regional exploration programs are
supplemented by additional funds supplied through joint venture initiatives with other companies.



Falconbridge is the operator of the joint venture with La Société pour le Développement Minier de la
Côte d'Ivoire, the state mining company of the Côte d'Ivoire, encompassing four significant nickel/cobalt bearing laterite deposits (Sipilou North, Foungouesso, Moyango
and Viala) and three other occurrences (Sipilou South, Yamatoulo and Touoba). Falconbridge has an 85% interest in the project.

Exploration
work has identified an indicated resource of 123.9 million tonnes of 1.57% nickel and 0.10% cobalt plus an inferred resource of 134.2 million
tonnes of 1.39% nickel and 0.12% cobalt. Hydrometallurgical exploitation of the resources is potentially viable provided several key requirements can be satisfied, such as the
development of a rail link to the coast.

Following
a coup d'état in December 1999, there has been a period of political turmoil in the Côte d'Ivoire that has included several changes in the
composition of the cabinet, including three changes in the position of Minister of Mines and Energy. A civil war is presently being waged and the future political situation in the country continues to
be uncertain.

34

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In 1998, Falconbridge entered into a joint venture agreement with Société Minière du Sud Pacifique S. A. and its
controlling shareholder, Société de Financement et d'Investissement de la Province Nord, for the evaluation and development of a 60,000 tonne per year nickel in
ferronickel mining and smelting complex. The project is based on the Koniambo deposit located in the Northern Province of New Caledonia near the provincial capital of Kone. Falconbridge
has a right to earn a 49% interest in the project.

A
work program leading to the production of a bankable feasibility study began in the fourth quarter of 1998. The prefeasibility study was completed by the second half of 2002 and is
currently under review. Further geological drilling has been undertaken in order to delineate a minimum of 10 years of measured resources and 15 years of indicated resources at a 2.0%
nickel cut-off grade. This drilling was completed in February 2003 and analysis of the new data is expected to be completed by May 2003. An environmental impact assessment is
also expected to be issued by the end of the second quarter of 2003.

In
2002, US$20.3 million was spent on the program, bringing the total expenditure to date to US$87.5 million. It is expected that work on the bankable feasibility study
will begin in the second half of 2003 and be completed by mid-2004. Total project cost through to the completion of the bankable feasibility study is expected to be US$123 million.



A feasibility study for the Montcalm nickel-copper property located near Timmins, Ontario is now underway and is tentatively scheduled for completion during the
second quarter of 2003. The study is based on an indicated mineral resource of 7.0 million tonnes grading 1.36% nickel and 0.67% copper and an inferred mineral resource of
0.7 million tonnes grading 1.7% nickel and 0.70% copper. The Company believes that Montcalm has the potential to produce 5 million tonnes at a rate of 750,000 tonnes
annually. The ore would be milled and concentrated at Kidd Creek Metallurgical, and could contribute up to 8,000 tonnes annually to nickel output from the Sudbury smelter.

4.2   Principal Subsidiaries and Associates

4.2.1 Falconbridge Limited

Falconbridge, directly and through its subsidiaries and associated companies, is engaged in the exploration, development, mining, processing and marketing of
metals and minerals. Falconbridge is also engaged in the custom feed business through the processing and recycling of third-party materials. Falconbridge's principal products are nickel, ferronickel,
copper, zinc and cobalt, in addition to other metals such as silver, gold, platinum group metals, cadmium, indium and sulphuric acid. Falconbridge's mining and mineral processing facilities are
located in Canada, Chile, Norway and the Dominican Republic.

Of
Falconbridge's total revenues in 2002 of $2,394 million (2001  $2,138 million), 28%
(2001  32%) were generated from sales to customers in the United States, 43% (2001  40%) from customers in Europe,
10% (2001  9%) from customers in Canada, and 19% (2001  19%) from customers in other countries. Nickel and ferronickel
accounted for 42% of sales (2001  41%), copper for 41% (2001  37%), zinc for 8%
(2001  10%), cobalt for 3% (2001  4%) and 6% (2001  8%) from other products.

The
Company believes that Falconbridge is the third-largest producer of refined nickel in the world. Approximately 32% of Falconbridge's combined nickel and ferronickel sales are used in
the manufacture of stainless steel.

The
strategic focus of Falconbridge continues to be in nickel and copper. While this focus is narrow compared to some of its larger competitors, Falconbridge believes it is important to
be a significant participant in two major businesses rather than a small player in a variety of sectors.

At
December 31, 2002, Falconbridge employed 6,457 people (2001  6,390) at its various locations around the world.

35

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The
Company owned, directly and indirectly at December 31, 2002, approximately 59.5%, and public shareholders owned approximately 40.5%, of the outstanding common shares of
Falconbridge.



Falconbridge's exploration expenditures for 2002 totalled $34 million (2001  $40 million). Total expenditures
of $29 million are planned for exploration in 2003. Exploration is carried out from offices in the Canadian provinces of Quebec and Ontario, and internationally from offices in Brazil,
Australia, the Ivory Coast and South Africa. At December 31, 2002, Falconbridge had a permanent exploration staff of 67, including 54 geologists and geophysicists.



Falconbridge participates in a number of exploration research projects designed to reduce the cost of mineral exploration. Projects include the areas of
geophysics, geology, geochemistry and remote sensing.

Falconbridge
also has metallurgical technology facilities at the Sudbury smelter, the Nikkelverk refinery, the Kidd Metallurgical Division and Falcondo. Research is conducted at these
facilities to provide mineral analyses, to develop new methods for treating ores and custom feed, to develop improved nickel, copper, cobalt and zinc products, and to develop environmentally sensitive
production technologies. The primary focus of research at the Sudbury Technology Centre is on developing new technologies in hydrometallurgy and pyrometallurgy for both nickel laterites and sulphides.
Pilot plant facilities for metallurgical testing are located at the Sudbury smelter, the Nikkelverk refinery, the Kidd Metallurgical Division and Falcondo.

Expenditures
on research and process development for the years ended December 31, 2002 and 2001 were $12.9 million and $16.9 million, respectively.



Falconbridge's marketing and sales activities are conducted through three subsidiaries located in Pittsburgh, U.S., Brussels, Belgium and Tokyo, Japan. These
operations market and sell nickel, ferronickel, cobalt and other products (including silver, gold and the platinum group metals) throughout the world. Sales and marketing support is provided from the
corporate offices in Toronto.

Falconbridge
has an agreement with the Company whereby the Company acts as the sales agent for the products, other than sulphuric acid and indium, of the Kidd Metallurgical Division.

4.2.2  Novicourt Inc.

The Company owns a 62.13% interest in Novicourt Inc. ("Novicourt"), a publicly traded Quebec company. Novicourt's primary asset is a 45% direct interest in
the Louvicourt copper/zinc mine located near Val-d'Or, Quebec. Novicourt also owns a 45% interest in the Louvaur Joint Venture, which carries out exploration on land surrounding the
Louvicourt deposit. Exploration efforts on the Louvicourt and Louvaur properties in 2002 did not yield successful results.

The
Louvicourt mine maintained production at a rate of over 4,000 tonnes of ore per day in 2002. Copper production from the Louvicourt mine in 2002 was 13% lower than in 2001, mainly due
to reduced ore production and lower copper ore grades averaging 3.1% (2001  3.4%). Copper production was 43,000 tonnes of accountable copper
(2001  50,000 tonnes) and zinc production was 20,000 tonnes of contained zinc (2001  18,000 tonnes). Due to
lower metal prices and lower production Novicourt's total net revenue in 2002 was $44.4 million, 4% below total net revenue of $46.3 million in 2001.



The proven and probable mineral reserves represent portions of the measured and indicated resources that are economically viable after allowing for
waste-rock dilution, for extraction losses and for historic mine-mill grade adjustment factors. The dilution estimate averages 12.7% based on assigning 10% to primary stopes
and 13% to secondary stopes. Mine recovery of 95% is applied to all stopes except some pillars where recovery is

36

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expected
to be lower. The mineral resources are estimated using a net smelter return cut-off of Cdn$38.00 per tonne. The assumed metal prices and exchange rate were zinc US$0.40 per lb.,
copper US$0.85 per lb., silver US$5.00 per troy ounce, gold US$300.00 per troy ounce and 1.51 Cdn$ for 1.00 US$.

Proven
and probable mineral reserves at December 31, 2002 totalled 2.6 million tonnes averaging 1.93% zinc, 2.97% copper, 25.4 grams of silver per tonne and 0.81 grams of
gold per tonne. Approximately 1.4 million tonnes of proven mineral reserves were milled in 2002. At planned operating rates, the mineral reserves at the Louvicourt Mine will be depleted in
2005.

Mineral
reserve estimates were prepared by Bernard Salmon (P. Eng. Chief Geologist, Louvicourt Mine) and Denis Fleury (P. Eng, Chief Engineer, Louvicourt Mine) and are based on assays
from diamond drilling and geological interpretation of drilling and underground mapping of development areas.

4.2.3 American Racing Equipment, Inc.

American Racing Equipment, Inc. ("ARE") is one of the largest after-market aluminum automotive wheel producers and distributors in the
United States. Aluminum wheels are manufactured at two plants in the Los Angeles, California area and one small plant in Querétaro, Mexico. In 2002, 2,547,000 wheels were
shipped by ARE (2,885,000 in 2001). Most of the aluminum automotive wheels distributed by ARE are produced under contracts with Chinese suppliers.

ARE
supplies the automotive after-market through a combination of company-owned and independent distribution outlets. ARE has a distribution network of 39 warehouses in North America and
employs approximately 1,000 people. Management at ARE is focused on improving efficiency and reducing costs while maintaining high levels of quality and customer satisfaction. During 2002, operations
were re-structured to focus on after-market wheels while gradually exiting the original equipment manufacturing business.

4.2.4  Magnola Metallurgy Inc.

In January 2003, Noranda announced its plans for an indefinite shutdown of its magnesium business, which is held by Magnola Metallurgy Inc., a
company owned 80% by Noranda, in response to major structural changes which have taken place in the global magnesium industry. An after-tax charge of $630 million has been reflected
in the Company's 2002 year-end financial results to reduce the carrying value of the magnesium project, as a result of the market conditions.

In
1997 when the decision to proceed with the Magnola project was made, magnesium offered very attractive growth opportunities, on the premise of its inherent
strength-to-weight characteristics and the potential demand in the automobile industry. Since that time, the rapidly increasing, low-cost Chinese production, which
now sells below the cash production costs of Western magnesium producers, has depressed prices.

At
the time of the announcement of the shutdown, there were approximately 380 employees located at the magnesium operations in Danville, Quebec.

In
2003, a further $30 million after-tax charge related to costs incurred to shut down the plant has been recorded in the first quarter. After the shutdown, the book
value of Noranda's magnesium business will be approximately $300 million.

37

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4.3    Statistical Tables

The following table set out Noranda's mine, smelter and refinery production, as well as the Company's primary aluminum production for the three years ended
December 31, 2002:

PRODUCTION VOLUMES

Mine Production  Metal in concentrate(1)

|                     |  | Noranda's Average Beneficial Interest
(%) |  | 2002(2) |  | 2001(2) |  | 2000(2)
|-------------------- |  | ----------------------------------------- |  | ------- |  | ------- |  | -------
|
|Copper               |  |                                           |  |         |  |         |  |        
|Kidd Creek           |  | 57.5                                      |  | 45,434  |  | 42,340  |  | 54,926 
|Sudbury Operations   |  | 57.5                                      |  | 31,050  |  | 22,858  |  | 20,990 
|Collahuasi           |  | 25.3                                      |  | 185,014 |  | 193,135 |  | 186,073
|Lomas Bayas          |  | 57.5                                      |  | 59,304  |  | 24,702  |  |       
|Raglan               |  | 57.5                                      |  | 6,500   |  | 6,915   |  | 6,308  
|Antamina             |  | 33.75                                     |  | 111,599 |  | 27,148  |  |       
|Louvicourt           |  | 28.0                                      |  | 19,527  |  | 22,479  |  | 22,079 
|Other                |  | 100                                       |  | 16,174  |  | 17,166  |  | 13,819 
|                     |  |                                           |  |         |  |         |  |        
|Total                |  |                                           |  | 474,602 |  | 356,743 |  | 304,195
|                     |  |                                           |  |         |  |         |  |        
|Noranda Inc.'s share |  |                                           |  | 328,071 |  | 217,589 |  | 162,827
|                     |  |                                           |  |         |  |         |  |        
|Zinc                 |  |                                           |  |         |  |         |  |        
|Brunswick            |  | 100                                       |  | 277,417 |  | 303,881 |  | 264,720
|Antamina             |  | 33.75                                     |  | 77,876  |  | 18,836  |  |       
|Kidd Creek           |  | 57.5                                      |  | 104,083 |  | 81,670  |  | 82,655 
|Louvicourt           |  | 28.0                                      |  | 9,004   |  | 8,049   |  | 8,205  
|Matagami             |  | 100                                       |  | 84,792  |  | 88,754  |  | 55,873 
|Other                |  | 100                                       |  |        |  | 8,101   |  | 25,014 
|                     |  |                                           |  |         |  |         |  |        
|Total                |  |                                           |  | 553,172 |  | 509,291 |  | 436,467
|                     |  |                                           |  |         |  |         |  |        
|Noranda Inc.'s share |  |                                           |  | 505,517 |  | 469,433 |  | 392,338
|                     |  |                                           |  |         |  |         |  |        
|Nickel               |  |                                           |  |         |  |         |  |        
|Sudbury Operations   |  | 57.5                                      |  | 27,833  |  | 25,226  |  | 23,234 
|Raglan               |  | 57.5                                      |  | 24,636  |  | 24,570  |  | 23,089 
|Falcondo             |  | 49.0                                      |  | 23,303  |  | 21,662  |  | 27,830 
|                     |  |                                           |  |         |  |         |  |        
|Total                |  |                                           |  | 75,772  |  | 71,458  |  | 74,153 
|                     |  |                                           |  |         |  |         |  |        
|Noranda Inc.'s share |  |                                           |  | 41,587  |  | 37,546  |  | 35,479 
|                     |  |                                           |  |         |  |         |  |        
|Cobalt               |  |                                           |  |         |  |         |  |        
|Sudbury Operations   |  | 57.5                                      |  | 690     |  | 630     |  | 667    
|Raglan               |  | 57.5                                      |  | 386     |  | 318     |  | 289    
|                     |  |                                           |  |         |  |         |  |        
|Total                |  |                                           |  | 1,076   |  | 948     |  | 956    
|                     |  |                                           |  |         |  |         |  |        
|Noranda Inc.'s share |  |                                           |  | 619     |  | 521     |  | 485    
|                     |  |                                           |  |         |  |         |  |        
|Lead                 |  |                                           |  |         |  |         |  |        
|Brunswick            |  | 100                                       |  | 76,177  |  | 83,127  |  | 71,342 
|                     |  |                                           |  |         |  |         |  |        
|Noranda Inc.'s share |  |                                           |  | 76,177  |  | 83,127  |  | 71,342 
|                     |  |                                           |  |         |  |         |  |        
|Silver(000 ounces)   |  |                                           |  |         |  |         |  |        
|Brunswick            |  | 100                                       |  | 6,228   |  | 7,051   |  | 6,552  
|Kidd Creek           |  | 57.5                                      |  | 3,671   |  | 2,865   |  | 2,437  
|Antamina             |  | 33.75                                     |  | 2,439   |  | 686     |  |       
|Other                |  | 100                                       |  | 597     |  | 776     |  | 747    
|                     |  |                                           |  |         |  |         |  |        
|Total                |  |                                           |  | 12,935  |  | 11,378  |  | 9,736  
|                     |  |                                           |  |         |  |         |  |        
|Noranda Inc.'s share |  |                                           |  | 11,273  |  | 9,966   |  | 8,406  
|                     |  |                                           |  |         |  |         |  |        

Smelter and Refinery Production(1)

|                           |  | Noranda's Average Beneficial Interest
(%) |  | 2002(2) |  | 2001(2) |  | 2000(2)
|-------------------------- |  | ----------------------------------------- |  | ------- |  | ------- |  | -------
|
|Copper smelted             |  |                                           |  |         |  |         |  |        
|Horne                      |  | 100                                       |  | 147,020 |  | 188,145 |  | 182,352
|Gaspé                      |  | 100                                       |  | 29,612  |  | 108,673 |  | 115,531
|Altonorte                  |  | 100                                       |  | 147,059 |  | 145,991 |  | 148,258
|Sudbury Operations         |  | 57.5                                      |  | 20,518  |  | 17,892  |  | 15,160 
|Kidd Creek                 |  | 57.5                                      |  | 144,094 |  | 132,100 |  | 124,529
|                           |  |                                           |  |         |  |         |  |        
|Total                      |  |                                           |  | 488,303 |  | 592,801 |  | 585,830
|                           |  |                                           |  |         |  |         |  |        
|Noranda Inc.'s share       |  |                                           |  | 418,326 |  | 525,305 |  | 516,963
|                           |  |                                           |  |         |  |         |  |        
|Copper refined             |  |                                           |  |         |  |         |  |        
|CCR                        |  | 100                                       |  | 244,252 |  | 323,023 |  | 313,412
|Kidd Creek                 |  | 57.5                                      |  | 146,526 |  | 127,824 |  | 122,987
|Nikkelverk                 |  | 57.5                                      |  | 30,632  |  | 26,722  |  | 25,307 
|Collahuasi                 |  | 25.3                                      |  | 26,678  |  | 26,180  |  | 25,579 
|Lomas Bayas                |  | 57.5                                      |  | 59,304  |  | 24,702  |  |       
|                           |  |                                           |  |         |  |         |  |        
|Total                      |  |                                           |  | 507,392 |  | 528,451 |  | 487,285
|                           |  |                                           |  |         |  |         |  |        
|Noranda Inc.'s share       |  |                                           |  | 395,531 |  | 436,008 |  | 401,566
|                           |  |                                           |  |         |  |         |  |        
|Zinc refined               |  |                                           |  |         |  |         |  |        
|CEZ(3)                     |  | 100                                       |  | 86,984  |  | 265,525 |  | 263,722
|Noranda Income Fund(3)     |  | 49.0                                      |  | 184,091 |  |        |  |       
|Kidd Creek                 |  | 57.5                                      |  | 145,309 |  | 140,073 |  | 141,375
|                           |  |                                           |  |         |  |         |  |        
|Total                      |  |                                           |  | 416,384 |  | 405,598 |  | 405,097
|                           |  |                                           |  |         |  |         |  |        
|Noranda Inc.'s share       |  |                                           |  | 260,672 |  | 342,565 |  | 335,399
|                           |  |                                           |  |         |  |         |  |        
|Nickel smelted             |  |                                           |  |         |  |         |  |        
|Sudbury Operations         |  | 57.5                                      |  | 57,854  |  | 54,892  |  | 47,439 
|                           |  |                                           |  |         |  |         |  |        
|Noranda Inc.'s share       |  |                                           |  | 33,260  |  | 30,191  |  | 24,052 
|                           |  |                                           |  |         |  |         |  |        
|Nickel refined             |  |                                           |  |         |  |         |  |        
|Nikkelverk                 |  | 57.5                                      |  | 68,530  |  | 68,221  |  | 58,679 
|Falcondo                   |  | 49.0                                      |  | 23,303  |  | 21,662  |  | 27,830 
|                           |  |                                           |  |         |  |         |  |        
|Total                      |  |                                           |  | 91,833  |  | 89,883  |  | 86,509 
|                           |  |                                           |  |         |  |         |  |        
|Noranda Inc.'s share       |  |                                           |  | 50,820  |  | 47,680  |  | 41,743 
|                           |  |                                           |  |         |  |         |  |        
|Cobalt smelted             |  |                                           |  |         |  |         |  |        
|Sudbury Operations         |  | 57.5                                      |  | 1,955   |  | 1,788   |  | 1,792  
|                           |  |                                           |  |         |  |         |  |        
|Noranda Inc.'s share       |  |                                           |  | 1,124   |  | 983     |  | 909    
|                           |  |                                           |  |         |  |         |  |        
|Cobalt refined             |  |                                           |  |         |  |         |  |        
|Nikkelverk                 |  | 57.5                                      |  | 3,994   |  | 3,314   |  | 3,431  
|                           |  |                                           |  |         |  |         |  |        
|Noranda Inc.'s share       |  |                                           |  | 2,296   |  | 1,823   |  | 1,740  
|                           |  |                                           |  |         |  |         |  |        
|Lead refined               |  |                                           |  |         |  |         |  |        
|Brunswick                  |  | 100                                       |  | 90,167  |  | 98,868  |  | 104,000
|                           |  |                                           |  |         |  |         |  |        
|Noranda Inc.'s share       |  |                                           |  | 90,167  |  | 98,868  |  | 104,000
|                           |  |                                           |  |         |  |         |  |        
|Aluminum                   |  |                                           |  |         |  |         |  |        
|Primary operations         |  | 100                                       |  | 236,459 |  | 220,234 |  | 220,031
|                           |  |                                           |  |         |  |         |  |        
|Noranda Inc.'s share       |  |                                           |  | 236,459 |  | 220,234 |  | 220,031
|                           |  |                                           |  |         |  |         |  |        
|Silver refined(000 ounces) |  |                                           |  |         |  |         |  |        
|CCR Refinery               |  | 100                                       |  | 40,439  |  | 42,943  |  | 44,387 
|                           |  |                                           |  |         |  |         |  |        
|Noranda Inc.'s share       |  |                                           |  | 40,439  |  | 42,943  |  | 44,387 
|                           |  |                                           |  |         |  |         |  |        
|Gold refined(000 ounces)   |  |                                           |  |         |  |         |  |        
|CCR Refinery               |  | 100                                       |  | 1,030   |  | 1,236   |  | 1,122  
|                           |  |                                           |  |         |  |         |  |        
|Noranda Inc.'s share       |  |                                           |  | 1,030   |  | 1,236   |  | 1,122  
|                           |  |                                           |  |         |  |         |  |        

---

38

---

The following tables present Noranda's metal sales and concentrate sales, as well as average realized prices for the three years ended
December 31, 2002.

SALES VOLUMES AND REALIZED PRICES

Metal Sales  payable metal(1)

|                           |  | Noranda's Beneficial Interest
(%) |  | 2002(2) |  | 2001(2) |  | 2000(2)
|-------------------------- |  | --------------------------------- |  | ------- |  | ------- |  | -------
|
|Copper                     |  |                                   |  |         |  |         |  |        
|CCR                        |  | 100                               |  | 271,150 |  | 331,592 |  | 366,733
|Kidd Creek                 |  | 57.5                              |  | 110,575 |  | 105,143 |  | 96,630 
|INO(4)                     |  | 57.5                              |  | 54,495  |  | 34,514  |  | 43,538 
|Collahuasi                 |  | 25.3                              |  | 45,496  |  | 37,476  |  | 20,533 
|Lomas Bayas                |  | 57.5                              |  | 60,265  |  | 27,415  |  |       
|                           |  |                                   |  |         |  |         |  |        
|Total                      |  |                                   |  | 541,981 |  | 536,140 |  | 527,434
|                           |  |                                   |  |         |  |         |  |        
|Noranda Inc.'s share       |  |                                   |  | 426,851 |  | 294,877 |  | 267,409
|                           |  |                                   |  |         |  |         |  |        
|Zinc                       |  |                                   |  |         |  |         |  |        
|Kidd Creek                 |  | 57.5                              |  | 145,411 |  | 141,671 |  | 138,125
|CEZ(5)                     |  | 100.0                             |  | 85,383  |  | 260,196 |  | 264,416
|Noranda Income Fund(5)     |  | 49.0                              |  | 187,569 |  |        |  |       
|                           |  |                                   |  |         |  |         |  |        
|Total                      |  |                                   |  | 418,363 |  | 401,867 |  | 402,541
|                           |  |                                   |  |         |  |         |  |        
|Noranda Inc.'s share       |  |                                   |  | 260,832 |  | 338,115 |  | 334,445
|                           |  |                                   |  |         |  |         |  |        
|Nickel                     |  |                                   |  |         |  |         |  |        
|INO(4)                     |  | 57.5                              |  | 71,153  |  | 65,239  |  | 61,879 
|                           |  |                                   |  |         |  |         |  |        
|Noranda Inc.'s share       |  |                                   |  | 40,906  |  | 35,881  |  | 31,373 
|                           |  |                                   |  |         |  |         |  |        
|Ferronickel                |  |                                   |  |         |  |         |  |        
|Falcondo                   |  | 49.0                              |  | 21,446  |  | 24,572  |  | 28,218 
|                           |  |                                   |  |         |  |         |  |        
|Noranda Inc.'s share       |  |                                   |  | 12,329  |  | 13,515  |  | 14,307 
|                           |  |                                   |  |         |  |         |  |        
|Cobalt                     |  |                                   |  |         |  |         |  |        
|Nikkelverk                 |  | 57.5                              |  | 2,932   |  | 2,316   |  | 2,614  
|                           |  |                                   |  |         |  |         |  |        
|Noranda Inc.'s share       |  |                                   |  | 1,686   |  | 1,274   |  | 1,325  
|                           |  |                                   |  |         |  |         |  |        
|Aluminum                   |  |                                   |  |         |  |         |  |        
|Primary operations         |  | 100                               |  | 242,289 |  | 223,105 |  | 224,828
|                           |  |                                   |  |         |  |         |  |        
|Noranda Inc.'s share       |  |                                   |  | 242,289 |  | 223,105 |  | 224,828
|                           |  |                                   |  |         |  |         |  |        
|Fabricated aluminum        |  |                                   |  |         |  |         |  |        
|Norandal                   |  | 100                               |  | 127,911 |  | 112,430 |  | 113,579
|                           |  |                                   |  |         |  |         |  |        
|Noranda Inc.'s share       |  |                                   |  | 127,911 |  | 112,430 |  | 113,579
|                           |  |                                   |  |         |  |         |  |        
|Aluminum wheels(000 units) |  |                                   |  |         |  |         |  |        
|American Racing Equipment  |  | 100                               |  | 2,547   |  | 2,885   |  | 3,548  
|                           |  |                                   |  |         |  |         |  |        
|Noranda Inc.'s share       |  |                                   |  | 2,547   |  | 2,885   |  | 3,548  
|                           |  |                                   |  |         |  |         |  |        
|Lead                       |  |                                   |  |         |  |         |  |        
|Brunswick                  |  | 100                               |  | 90,896  |  | 99,535  |  | 104,208
|                           |  |                                   |  |         |  |         |  |        
|Noranda Inc.'s share       |  |                                   |  | 90,896  |  | 99,535  |  | 104,208
|                           |  |                                   |  |         |  |         |  |        
|Gold(000 ounces)           |  |                                   |  |         |  |         |  |        
|CCR                        |  | 100                               |  | 953     |  | 1,128   |  | 966    
|                           |  |                                   |  |         |  |         |  |        
|Noranda Inc.'s share       |  |                                   |  | 953     |  | 1,128   |  | 966    
|                           |  |                                   |  |         |  |         |  |        
|Silver(000 ounces)         |  |                                   |  |         |  |         |  |        
|CCR                        |  | 100                               |  | 41,210  |  | 41,291  |  | 44,860 
|                           |  |                                   |  |         |  |         |  |        
|Noranda Inc.'s share       |  |                                   |  | 41,210  |  | 41,291  |  | 44,860 
|                           |  |                                   |  |         |  |         |  |        

Payable Metal in Concentrate(1)

|                                                          |  | Noranda's Beneficial Interest
(%) |  | 2002(2) |  | 2001(2) |  | 2000(2)
|--------------------------------------------------------- |  | --------------------------------- |  | ------- |  | ------- |  | -------
|
|Copper                                                    |  |                                   |  |         |  |         |  |        
|Collahuasi(3)                                             |  | 25.3                              |  | 142,028 |  | 154,382 |  | 177,126
|Kidd                                                      |  | 57.5                              |  |        |  |        |  | 8,959  
|Antamina(3)                                               |  | 33.75                             |  | 113,806 |  | 28,739  |  |       
|                                                          |  |                                   |  |         |  |         |  |        
|Total                                                     |  |                                   |  | 255,834 |  | 183,121 |  | 186,085
|                                                          |  |                                   |  |         |  |         |  |        
|Noranda Inc.'s share                                      |  |                                   |  | 195,458 |  | 113,649 |  | 94,345 
|                                                          |  |                                   |  |         |  |         |  |        
|Zinc                                                      |  |                                   |  |         |  |         |  |        
|Antamina(3)                                               |  | 33.75                             |  | 71,632  |  | 8,983   |  |       
|Kidd                                                      |  | 57.5                              |  | 3,007   |  |        |  | 99     
|Brunswick                                                 |  | 100                               |  | 210,487 |  | 175,609 |  | 97,205 
|Matagami                                                  |  | 100                               |  | 46,463  |  | 16,884  |  | 5,853  
|                                                          |  |                                   |  |         |  |         |  |        
|Total                                                     |  |                                   |  | 331,589 |  | 201,476 |  | 103,157
|                                                          |  |                                   |  |         |  |         |  |        
|Noranda Inc.'s share                                      |  |                                   |  | 330,311 |  | 201,476 |  | 103,108
|                                                          |  |                                   |  |         |  |         |  |        
|Silver(000's ounces)                                      |  |                                   |  |         |  |         |  |        
|Antamina                                                  |  | 33.75                             |  | 2,210   |  | 596     |  |       
|                                                          |  |                                   |  |         |  |         |  |        
|Noranda Inc.'s share                                      |  |                                   |  | 2,210   |  | 596     |  |       
|Average Realized Prices ($US per pound, except as noted) |  |                                   |  |         |  |         |  |        
|Copper                                                    |  |                                   |  | 0.74    |  | 0.73    |  | 0.83   
|Copper  Falconbridge                                     |  |                                   |  | 0.72    |  | 0.70    |  | 0.84   
|Zinc                                                      |  |                                   |  | 0.40    |  | 0.45    |  | 0.57   
|Zinc  Falconbridge                                       |  |                                   |  | 0.39    |  | 0.44    |  | 0.55   
|Nickel                                                    |  |                                   |  | 3.14    |  | 2.79    |  | 4.09   
|Ferronickel                                               |  |                                   |  | 3.16    |  | 2.85    |  | 3.98   
|Aluminum                                                  |  |                                   |  | 0.65    |  | 0.70    |  | 0.75   
|Lead                                                      |  |                                   |  | 0.23    |  | 0.25    |  | 0.24   
|Gold  (US$ per ounce)                                    |  |                                   |  | 308.00  |  | 272.11  |  | 279.95 
|Silver  (US$ per ounce)                                  |  |                                   |  | 4.60    |  | 4.40    |  | 5.01   
|Silver  Falconbridge  (US$ per ounce)                   |  |                                   |  | 4.61    |  | 4.39    |  | 5.03   
|Exchange Rate (US$1 = Cdn$1)                              |  |                                   |  | 1.57    |  | 1.55    |  | 1.49   

---

39

---

MINERAL RESERVES AND RESOURCES

Unless otherwise indicated, all estimates of mineral reserves and mineral resources:

Mineral
resources which are not reserves do not have demonstrated economic viability.

Mineral Reserves(1),(2),(3)

|                  |  |      |  |          |  |         |  | Grade
|----------------- |  | ---- |  | -------- |  | ------- |  | -----
|
|Noranda Inc.      |  |      |  |          |  |         |  |      
|Copper Deposits   |  |      |  |          |  |         |  |      
|Antamina(4)       |  | 33.8 |  | Proven   |  | 287,000 |  | 1.28 
|                  |  | 33.8 |  | Probable |  | 243,000 |  | 1.15 
|                  |  |      |  |         
|                  |  |      |  | Total    |  | 530,000 |  | 1.22 
|                  |  |      |  |         
|Zinc Deposits     |  |      |  |          |  |         |  |      
|Brunswick Mine(5) |  | 100  |  | Proven   |  | 18,710  |  | 0.37 
|                  |  | 100  |  | Probable |  | 2,349   |  | 0.22 
|                  |  |      |  |         
|                  |  |      |  | Total    |  | 21,059  |  | 0.36 
|                  |  |      |  |         
|Bell-Allard Mine  |  | 100  |  | Proven   |  | 1,173   |  | 1.21 
|                  |  | 100  |  | Probable |  | 329     |  | 1.05 
|                  |  |      |  |         
|                  |  |      |  | Total    |  | 1,502   |  | 1.17 
|                  |  |      |  |         
|Novicourt Inc.    |  |      |  |          |  |         |  |      
|Louvicourt(6)     |  | 28.0 |  | Proven   |  | 2,600   |  | 3.00 
|                  |  | 28.0 |  | Probable |  | 29      |  | 0.14 
|                  |  |      |  |         
|                  |  |      |  | Total    |  | 2,629   |  | 2.97 
|                 
|                  |  |      |  |          |  |         |  |      

40

---

|Falconbridge Limited(7) |  |      |  |          |  |           |  |      |  |      |  |      |  |      |  |      |  |   |  |  
|----------------------- |  | ---- |  | -------- |  | --------- |  | ---- |  | ---- |  | ---- |  | ---- |  | ---- |  | - |  | -
|Nickel Deposits         |  |      |  |          |  |           |  |      |  |      |  |      |  |      |  |      |  |   |  |  
|Sudbury                 |  | 59.5 |  | Proven   |  | 7,914     |  | 1.36 |  |     |  | 1.45 |  |     |  |     |  |  |  | 
|                        |  | 59.5 |  | Probable |  | 9,212     |  | 1.21 |  |     |  | 1.22 |  |     |  |     |  |  |  | 
|                        |  |      |  |         
|                        |  |      |  | Total    |  | 17,126    |  | 1.28 |  |     |  | 1.33 |  |     |  |     |  |  |  | 
|                        |  |      |  |         
|Raglan                  |  | 59.5 |  | Proven   |  | 6,691     |  | 0.81 |  |     |  | 3.04 |  |     |  |     |  |  |  | 
|                        |  | 59.5 |  | Probable |  | 11,418    |  | 0.78 |  |     |  | 2.78 |  |     |  |     |  |  |  | 
|                        |  |      |  |         
|                        |  |      |  | Total    |  | 18,109    |  | 0.79 |  |     |  | 2.88 |  |     |  |     |  |  |  | 
|                        |  |      |  |         
|Falcondo                |  | 50.8 |  | Proven   |  | 52,484    |  |     |  |     |  | 1.19 |  |     |  |     |  |  |  | 
|                        |  | 50.8 |  | Probable |  | 11,636    |  |     |  |     |  | 0.96 |  |     |  |     |  |  |  | 
|                        |  |      |  |         
|                        |  |      |  | Total    |  | 64,120    |  |     |  |     |  | 1.15 |  |     |  |     |  |  |  | 
|                        |  |      |  |         
|Copper Deposits         |  |      |  |          |  |           |  |      |  |      |  |      |  |      |  |      |  |   |  |  
|Kidd Creek(8)           |  | 59.5 |  | Proven   |  | 13,409    |  | 2.01 |  | 5.77 |  |     |  | 0.25 |  | 76.0 |  |  |  | 
|                        |  | 59.5 |  | Probable |  | 10,285    |  | 2.25 |  | 6.98 |  |     |  | 0.19 |  | 54.0 |  |  |  | 
|                        |  |      |  |         
|                        |  |      |  | Total    |  | 23,694    |  | 2.11 |  | 6.30 |  |     |  | 0.22 |  | 66.0 |  |  |  | 
|                        |  |      |  |         
|Lomas Bayas             |  | 59.5 |  | Proven   |  | 77,914    |  | 0.37 |  |     |  |     |  |     |  |     |  |  |  | 
|                        |  | 59.5 |  | Probable |  | 319,435   |  | 0.31 |  |     |  |     |  |     |  |     |  |  |  | 
|                        |  |      |  |         
|                        |  |      |  | Total    |  | 397,349   |  | 0.32 |  |     |  |     |  |     |  |     |  |  |  | 
|                        |  |      |  |         
|Collahuasi(8)           |  | 26.2 |  | Proven   |  | 310,254   |  | 1.02 |  |     |  |     |  |     |  |     |  |  |  | 
|                        |  | 26.2 |  | Probable |  | 1,528,494 |  | 0.90 |  |     |  |     |  |     |  |     |  |  |  | 
|                        |  |      |  |         
|                        |  |      |  | Total    |  | 1,838,748 |  | 0.92 |  |     |  |     |  |     |  |     |  |  |  | 
|                        |  |      |  |         

---

41

---

Mineral Resources(1) (in addition to Mineral Reserves)

|                      |  |      |  |           |  |           |  | Grade
|--------------------- |  | ---- |  | --------- |  | --------- |  | -----
|
|Noranda Inc.          |  |      |  |           |  |           |  |      
|Copper Deposits       |  |      |  |           |  |           |  |      
|Antamina              |  | 33.8 |  | Measured  |  | 25,000    |  | 0.50 
|                      |  |      |  | Indicated |  | 35,000    |  | 0.47 
|                      |  |      |  |          
|                      |  |      |  | Total     |  | 60,000    |  | 0.48 
|                      |  |      |  |          
|                      |  |      |  | Inferred  |  | 33,000    |  | 0.78 
|                     
|Zinc Deposits         |  |      |  |           |  |           |  |      
|Brunswick Mine        |  | 100  |  | Measured  |  | 1,190     |  | 0.18 
|                      |  |      |  | Indicated |  | 1,792     |  | 0.45 
|                      |  |      |  |          
|                      |  |      |  | Total     |  | 2,982     |  | 0.34 
|                     
|Falconbridge Limited  |  |      |  |           |  |           |  |      
|Nickel Deposits       |  |      |  |           |  |           |  |      
|Sudbury Operations    |  | 59.5 |  | Measured  |  | 85        |  | 1.27 
|                      |  |      |  | Indicated |  | 16,748    |  | 1.10 
|                      |  |      |  |          
|                      |  |      |  | Total     |  | 16,833    |  | 1.10 
|                      |  |      |  |          
|                      |  |      |  | Inferred  |  | 22,100    |  | 2.39 
|                     
|Raglan                |  | 59.5 |  | Measured  |  | 289       |  | 0.41 
|                      |  |      |  | Indicated |  | 2,587     |  | 0.76 
|                      |  |      |  |          
|                      |  |      |  | Total     |  | 2,876     |  | 0.72 
|                      |  |      |  |          
|                      |  |      |  | Inferred  |  | 3,400     |  | 0.87 
|                     
|Falcondo              |  | 50.8 |  | Measured  |  |          |  |     
|                      |  |      |  | Indicated |  | 13,840    |  |     
|                      |  |      |  |          
|                      |  |      |  | Total     |  | 13,840    |  |     
|                      |  |      |  |          
|                      |  |      |  | Inferred  |  | 6,400     |  |     
|                     
|Copper Deposits       |  |      |  |           |  |           |  |      
|Kidd Creek Operations |  | 59.5 |  | Measured  |  |          |  |     
|                      |  |      |  | Indicated |  | 100       |  | 2.96 
|                      |  |      |  |          
|                      |  |      |  | Total     |  | 100       |  | 2.96 
|                      |  |      |  |          
|                      |  |      |  | Inferred  |  | 14,100    |  | 3.36 
|                     
|Lomas Bayas           |  | 59.5 |  | Measured  |  | 13,754    |  | 0.27 
|                      |  |      |  | Indicated |  | 157,607   |  | 0.27 
|                      |  |      |  |          
|                      |  |      |  | Total     |  | 171,361   |  | 0.27 
|                      |  |      |  |          
|                      |  |      |  | Inferred  |  | 73,400    |  | 0.28 
|                     
|Collahuasi            |  | 26.2 |  | Measured  |  | 48,205    |  | 0.57 
|                      |  |      |  | Indicated |  | 429,766   |  | 0.63 
|                      |  |      |  |          
|                      |  |      |  | Total     |  | 477,971   |  | 0.63 
|                      |  |      |  |          
|                      |  |      |  | Inferred  |  | 1,840,000 |  | 0.72 
|                     

42

---

The reconciliation of mineral reserves at each of the mines as at December 31, 2001 to December 31, 2002 are as follows:

RECONCILIATION OF MINERAL RESERVES(1),(2)

|            |  |            |  | Noranda Inc.'s beneficial interest (%) |  | December 31, 2001
(000 mt) |  | Ore treated in 2002
(000 mt) |   | Additions/revisions
(000 mt) |   | December 31, 2002
(000 mt)
|----------- |  | ---------- |  | -------------------------------------- |  | -------------------------- |  | ---------------------------- | - | ---------------------------- | - | --------------------------
|Copper      |  |            |  |                                        |  |                            |  |                              |   |                              |   |                           
|Antamina    |  | Proven     |  | 33.8                                   |  | 305,300                    |  | (26,700                      | ) | 8,400                        |   | 287,000                   
|            |  | Probable   |  | 33.8                                   |  | 247,100                    |  |                             |   | (4,100                       | ) | 243,000                   
|Collahuasi  |  | Proven     |  | 26.2                                   |  | 321,508                    |  | (22,097                      | ) | 10,843                       |   | 310,254                   
|            |  | Probable   |  | 26.2                                   |  | 1,546,150                  |  | (8,593                       | ) | (9,063                       | ) | 1,528,494                 
|Lomas Bayas |  | Proven     |  | 59.5                                   |  | 90,904                     |  | (8,556                       | ) | (4,434                       | ) | 77,914                    
|            |  | Probable   |  | 59.5                                   |  | 354,659                    |  | (14,986                      | ) | (20,238                      | ) | 319,435                   
|Kidd Creek  |  | Proven     |  | 59.5                                   |  | 14,697                     |  | (2,202                       | ) | 914                          |   | 13,409                    
|            |  | Probable   |  | 59.5                                   |  | 10,285                     |  |                             |   |                             |   | 10,285                    
|Louvicourt  |  | Proven     |  | 28.0                                   |  | 3,969                      |  | (1,485                       | ) | 116                          |   | 2,600                     
|            |  | Probable   |  | 28.0                                   |  | 102                        |  |                             |   | (73                          | ) | 29                        
|           
|Nickel      |  |            |  |                                        |  |                            |  |                              |   |                              |   |                           
|Sudbury     |  | Proven     |  | 59.5                                   |  | 9,906                      |  | (2,076                       | ) | 84                           |   | 7,914                     
|            |  | Probable   |  | 59.5                                   |  | 7,113                      |  | (76                          | ) | 2,175                        |   | 9,212                     
|Raglan      |  | Proven     |  | 59.5                                   |  | 7,136                      |  | (869                         | ) | 424                          |   | 6,691                     
|            |  | Probable   |  | 59.5                                   |  | 12,404                     |  |                             |   | (986                         | ) | 11,418                    
|Falcondo    |  | Proven     |  | 50.8                                   |  | 48,982                     |  | (3,041                       | ) | 6,543                        |   | 52,484                    
|            |  | Probable   |  | 50.8                                   |  | 11,716                     |  |                             |   | (80                          | ) | 11,636                    
|           
|Zinc        |  |            |  |                                        |  |                            |  |                              |   |                              |   |                           
|Brunswick   |  | Proven     |  | 100.0                                  |  | 23,481                     |  | (3,493                       | ) | (1,278                       | ) | 18,710                    
|            |  | Probable   |  | 100.0                                  |  | 1,949                      |  |                             |   | 400                          |   | 2,349                     
|Bell-Allard |  | Proven     |  | 100.0                                  |  | 1,853                      |  | (664                         | ) | (16                          | ) | 1,173                     
|            |  | Probable   |  | 100.0                                  |  | 317                        |  | (5                           | ) | 17                           |   | 329                       
|           
|Magnesium   |  | Magnola(3) |  |                                        |  |                            |  |                              |   |                              |   |                           
|            |  | Probable   |  | 80.0                                   |  | 57,520                     |  | (153                         | ) | (57,367                      | ) |                          

---

43

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The following table sets out the Company's share of the amount of metals and minerals contained in Noranda's mineral reserves:

Metal Contained in Reserves(1)  Noranda Inc.'s Share

|                             
|-----------------------------
|
|
|Wholly-owned                 
|Zinc Deposits                
|                             
|                             
|                             
|                             
|Divided Interest             
|Copper Deposits              
|                             
|                             
|                             
|                             
|Falconbridge                 
|Nickel Deposits              
|                             
|                             
|Copper Deposits              
|                             
|                             
|                             
|                             
|                             
|Totals  Noranda Inc.'s share
|Proven & Probable            
|                             

*  Troy ounce.

44

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Exploration & Advanced Projects(1)

|                                      |                       |  |           |           | Grade
|------------------------------------- | --------------------- |  | --------- | --------- | -----
|
|Noranda Inc.                          |                       |  |           |           |      
|Zinc Deposits                         |                       |  |           |           |      
|Perseverance, Quebec                  | 90.0                  |  | Measured  |           | 4.36 
|                                      |                       |  | Indicated |           | 0.76 
|                                      |                       |  |          
|                                      |                       |  | Total     |           | 5.12 
|                                      |                       |  |          
|Lady Loretta, Australia(2)            | 75.0                  |  | Measured  |           | 8.5  
|                                      | 75.0                  |  | Indicated |           | 3.1  
|                                      |                       |  |          
|                                      |                       |  | Total     |           | 11.6 
|                                      |                       |  |          
|                                      |                       |  | Inferred  |           | 0.1  
|Copper Deposits                       |                       |  |           |           |      
|El Pachón, Argentina(3)               | 100.0                 |  | Indicated |           | 990.0
|El Morro, Chile(3)                    | 70.0                  |  | Inferred  |           | 466.0
|El Pilar, Mexico                      | 100.0                 |  | Inferred  |           | 139.0
|Frieda River, Papua New Guinea(3),(4) | 72.0                  |  |           |           |      
|                                      | Horse/Ivaal/Trukai(5) |  |           | Indicated |      
|                                      |                       |  | Inferred  |           | 138.0
|                                      | Koki                  |  |           | Inferred  |      
|                                      | Nena                  |  |           | Proven    |      
|                                      |                       |  | Probable  |           | 7.6  
|                                      |                       |  |          
|                                      |                       |  | Total     |           | 49.8 
|                                      |                       |  |          
|                                      |                       |  | Inferred  |           | 1.2  
|                                     
|                                      |                       |  |           |           |      

45

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|Falconbridge Limited         |      |  |           |  |       |  |      |  |      |  |      |  |   |  |    |  |     |  |   |  |     
|---------------------------- | ---- |  | --------- |  | ----- |  | ---- |  | ---- |  | ---- |  | - |  | -- |  | --- |  | - |  | ----
|Nickel Deposits              |      |  |           |  |       |  |      |  |      |  |      |  |   |  |    |  |     |  |   |  |     
|Nickel Rim South, Ontario(6) | 59.5 |  | Inferred  |  | 6.3   |  | 3.4  |  |     |  | 1.7  |  |  |  | 14 |  | 1.5 |  |  |  | 0.03
|Onaping Depth, Ontario(5)    | 59.5 |  | Indicated |  | 14.6  |  | 1.15 |  |     |  | 2.52 |  |  |  |   |  |    |  |  |  | 0.06
|                             |      |  | Inferred  |  | 1.2   |  | 1.2  |  |     |  | 3.6  |  |  |  |   |  |    |  |  |  | 0.07
|Montcalm, Ontario            | 59.5 |  | Indicated |  | 7.0   |  | 0.67 |  |     |  | 1.36 |  |  |  |   |  |    |  |  |  | 0.06
|                             |      |  | Inferred  |  | 0.7   |  | 0.70 |  |     |  | 1.7  |  |  |  |   |  |    |  |  |  | 0.07
|Ivory Coast, West Africa     | 50.6 |  | Indicated |  | 123.9 |  |     |  |     |  | 1.57 |  |  |  |   |  |    |  |  |  | 0.10
|                             |      |  | Inferred  |  | 134.0 |  |     |  |     |  | 1.4  |  |  |  |   |  |    |  |  |  | 0.12
|Koniambo, New Caledonia(5)   | 29.1 |  | Measured  |  | 2.2   |  |     |  |     |  | 2.20 |  |  |  |   |  |    |  |  |  | 0.05
|                             |      |  | Indicated |  | 118.8 |  |     |  |     |  | 2.15 |  |  |  |   |  |    |  |  |  | 0.06
|                             |      |  |          
|                             |      |  | Total     |  | 121.0 |  |     |  |     |  | 2.15 |  |  |  |   |  |    |  |  |  | 0.06
|                             |      |  |          
|                             |      |  | Inferred  |  | 190.0 |  |     |  |     |  | 2.1  |  |  |  |   |  |    |  |  |  | 0.08
|Copper Deposits              |      |  |           |  |       |  |      |  |      |  |      |  |   |  |    |  |     |  |   |  |     
|Mine D, Ontario(7)           | 59.5 |  | Inferred  |  | 14.1  |  | 3.40 |  | 4.90 |  |     |  |  |  |   |  |    |  |  |  |    
|Fortuna de Cobre, Chile(8)   | 59.5 |  | Measured  |  | 61.0  |  | 0.35 |  |     |  |     |  |  |  |   |  |    |  |  |  |    
|                             |      |  | Indicated |  | 206.0 |  | 0.31 |  |     |  |     |  |  |  |   |  |    |  |  |  |    
|                             |      |  |          
|                             |      |  | Total     |  | 267.0 |  | 0.32 |  |     |  |     |  |  |  |   |  |    |  |  |  |    
|                             |      |  |          
|                             |      |  | Inferred  |  | 127.0 |  | 0.26 |  |     |  |     |  |  |  |   |  |    |  |  |  |    
|                            

46

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4.4    Environment

By their nature, our activities have the potential to adversely affect the environment. At December 31, 2002, we had provided approximately
$372 million in our accounts for future site restoration and closure costs at our operations, including $101 million provided in 2002.

4.5    Technology

Noranda is involved in the development, acquisition and application of technologies to improve the performance of its mining and metallurgical businesses and
create opportunities for business growth. The Noranda Technology Centre, located in Pointe-Claire, Quebec, has been the Company's main research and development facility. In late 2002, a process was
started to integrate the activities of the technology groups of Noranda (Pointe-Claire Quebec) and Falconbridge (Sudbury, Ontario) and allow them to benefit from all available synergies. The primary
technology site will be located in the Falconbridge technology facility in Sudbury with a focus on the needs of the Nickel and the Copper business units. Additional research and development support
will be moved to the operating sites of Noranda and Falconbridge. Other business units will receive support on an as needed basis. The site at Pointe-Claire will be closed down by the end of 2003.

Expenditures
by Noranda on research and process development for the two years ended December 31, 2002 and 2001 were $8 million and $20 million, respectively.
Including expenditures made by Falconbridge, the investment in research and technology made by both companies in 2002 was $21 million and $37 million in 2001.

4.6   Labour Relations

In 2002, we signed collective agreements in respect of the following operations:





Subsequent
to December 31, 2002, we signed collective agreements in respect of the following operations:



47

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On
May 7, 2003, we announced that unionized employees at our Horne smelter had voted in favour of accepting the terms of a new three-year collective agreement.

Collective
bargaining agreements for the following operations are scheduled to expire in 2003 in the months indicated:



4.7    Legal Proceedings

The United States Department of Justice has convened a grand jury to investigate possible criminal antitrust violations by Noranda, Falconbridge and other
sulphuric acid producers in the United States. To the Company's knowledge, no decision has been made by the Department of Justice as to whether it will bring charges or close the investigation.
In addition, several federal and state class action suits have been filed in the United States alleging antitrust violations in connection with the sale of sulphuric acid in the
United States by Noranda, Falconbridge and NorFalco LLC. The complaints allege that Noranda, Falconbridge and NorFalco LLC conspired with certain alleged
co-conspirators to fix the price of sulphuric acid in the United States. In each action, the plaintiffs claim prices for sulphuric acid were artificially inflated and therefore the
plaintiffs paid more than they otherwise would have paid for sulphuric acid in the absence of the alleged price fixing conspiracy. Each complaint seeks unspecified treble damages, attorney fees and
costs. Noranda denies engaging in any such conspiracy and has asserted that its actions relating to the sale of sulphuric acid during the period in question were lawful. Noranda intends to vigorously
defend these actions.

5.     FORWARD-LOOKING STATEMENTS

Certain statements included or incorporated by reference in this Annual Information Form constitute "forward-looking statements" within the meaning of the
United States Private Securities Litigation Reform Act of 1995, Section 21E of the United States Securities Exchange Act of 1934, and Section 27A of the
United States Securities Act of 1933. Such statements represent the Company's internal projections, expectations or belief concerning, among other things, future operating results and various
components thereof, or the Company's future economic performance.

The
projections, estimates and beliefs contained in such forward-looking statements necessarily involve known and unknown risks and uncertainties which may cause the Company's actual
performance and financial results in future periods to differ materially from any estimates or projections of future performance or results expressed or implied by such forward-looking statements.
These risks and uncertainties include, among other things, volatility of commodity metal prices, foreign currency risks, fluctuations in copper treatment and refining fees, supply and demand in the
market for sulphuric acid, risks inherent in the Company's procurement of raw materials, changes in production and processing technology, imprecision in estimating the timing, costs and levels of
production associated with mining properties, uninsurable risks inherent in the mining business, the Company's ability to replace and expand mineral reserves, imprecision of mineral reserves and
recovery estimates, political and economic conditions in the countries in which the Company operates, changes in Canadian and foreign laws and regulations, the Company's ability to maintain good
relations with its employees, general economic and business conditions, and such other risks and uncertainties described from time to time in the Company's reports and filings with the Canadian
securities authorities. Accordingly, the Company cautions that events or circumstances could cause actual results to differ materially from those predicted.

48

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6.     SELECTED FINANCIAL INFORMATION

The following selected financial information should be read in conjunction with our consolidated financial statements, including the notes thereto. We refer you
to the information contained in the "Auditors' report, Consolidated financial statements and Notes to financial statements" sections on pages 30 through 60 inclusive of the
Noranda Inc. Annual Report 2002, which information is incorporated into this annual information form by reference.

|                                                                                                                      |          | Year Ended December 31
|--------------------------------------------------------------------------------------------------------------------- | -------- | ----------------------
|
|
|Revenues                                                                                                              |          | $                     
|Operating income before depreciation and restructuring costs                                                          |          |                       
|Net earnings (loss)                                                                                                   |          |                       
|Total assets                                                                                                          |          |                       
|Total long-term debt (excluding current portion and liability element of convertible debentures)                      |          |                       
|Minority interests                                                                                                    |          |                       
|Liability element of convertible debentures                                                                           |          |                       
|Preferred shares                                                                                                      |          |                       
|Total long-term debt (excluding current portion and liability element of convertible debentures) and preferred shares |          |                       
|Total shareholders' equity                                                                                            |          |                       
|Total minority interest, convertible subordinated debentures and shareholder's equity                                 |          |                       
|
|                                                                                                                     
|EARNINGS (LOSS) PER COMMON SHARE                                                                                      |          |                       
|Basic                                                                                                                 |          | $                     
|Diluted                                                                                                               |          |                       
|DIVIDENDS                                                                                                             |          |                       
|Per common share                                                                                                      |          |                       
|Per preferred share                                                                                                   |          |                       
|                                                                                                                      | Series F |                       
|                                                                                                                      | Series G |                       
|
|                                                                                                                     

49

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The
price trends for Noranda's principal products are shown in the following table. The prices represent published market prices and are not necessarily indicative of the actual amounts
received by Noranda:

AVERAGE PRICES

|                           |  | 2002 |  | 2001 |  | 2000
|-------------------------- |  | ---- |  | ---- |  | ----
|Zinc (US¢/lb)
LME cash     |  | 0.35 |  | 0.40 |  | 0.51
|Copper (US¢/lb)
LME cash   |  | 0.71 |  | 0.72 |  | 0.82
|Aluminum (US¢/lb)
LME cash |  | 0.61 |  | 0.66 |  | 0.70
|Silver (US$/oz)
London Fix |  | 4.60 |  | 4.37 |  | 4.95
|Nickel (US$/lb)
LME cash   |  | 3.07 |  | 2.70 |  | 3.92
|Lead (US¢/lb)
LME cash     |  | 0.21 |  | 0.22 |  | 0.21
|                           |  |      |  |      |  |     
|US $1.00  Cdn $           |  | 1.57 |  | 1.55 |  | 1.49
|                           |  |      |  |      |  |     

Noranda's
consolidated results for each of the last eight quarterly periods were as follows:

QUARTERLY CONSOLIDATED RESULTS($ millions, except for earnings per share)

|                               |  | Revenues |       | Operating income before depreciation and restructuring costs |   | Earnings (loss) |  | Earnings (loss) per Common Share Basic and Diluted |     
|------------------------------ |  | -------- | ----- | ------------------------------------------------------------ | - | --------------- |  | -------------------------------------------------- | ----
|2002                           |  |          |       |                                                              |   |                 |  |                                                    |     
|For the Year ended December 31 |  | $        | 6,090 |                                                              | $ | 789             |  | $                                                  | (700
|4th quarter                    |  |          | 1,399 |                                                              |   | 243             |  |                                                    | (673
|3rd quarter                    |  |          | 1,388 |                                                              |   | 97              |  |                                                    | (70 
|2nd quarter                    |  |          | 1,668 |                                                              |   | 235             |  |                                                    | 42  
|1st quarter                    |  |          | 1,635 |                                                              |   | 214             |  |                                                    | 1   
|2001                           |  |          |       |                                                              |   |                 |  |                                                    |     
|For the Year ended December 31 |  | $        | 6,152 |                                                              | $ | 541             |  | $                                                  | (92 
|4th quarter                    |  |          | 1,436 |                                                              |   | 134             |  |                                                    | (84 
|3rd quarter                    |  |          | 1,457 |                                                              |   | 89              |  |                                                    | (60 
|2nd quarter                    |  |          | 1,647 |                                                              |   | 163             |  |                                                    | 28  
|1st quarter                    |  |          | 1,612 |                                                              |   | 155             |  |                                                    | 24  

7.     DIVIDEND POLICY

We have a policy of paying quarterly dividends on our outstanding common shares. This policy is reviewed from time to time based upon and subject to our earnings,
financial requirements and general economic circumstances.

The
annual dividend rate on our common shares has been set by the Board of Directors at $0.80 per common share.

Any
determination to declare a dividend on our common shares will be made by the Board of Directors in its discretion.

50

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8.     MANAGEMENT'S DISCUSSION AND ANALYSIS

We refer you to the information contained in the "Management's Discussion and Analysis" section on pages 13 through 28 inclusive of the
Noranda Inc. Annual Report 2002, which information is incorporated into this Annual Information Form by reference.

9.     MARKET FOR SECURITIES

Our common shares are listed and posted for trading on the Toronto Stock Exchange and on The New York Stock Exchange (trading symbol "NRD"). Our
Series F Preferred Shares, Series G Preferred Shares and Series H Preferred Shares are listed and posted for trading on the Toronto Stock Exchange.

10.   DIRECTORS AND OFFICERS

10.1 Directors

The names, committee memberships (as at the date hereof), municipalities of residence, principal occupations within the five preceding years and periods of
service of our directors as directors of the Company are as follows:

|Name (Committee Memberships)
and Municipality of Residence        |  | Principal Occupation                                                                                                                                                                                                                                                                                |  | Director since
|----------------------------------------------------------------- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | --------------
|Alex G. Balogh(3)
Oakville, Ontario                               |  | Corporate Director; a non-executive Deputy Chairman, Noranda Inc. since July 1997; executive Deputy Chairman, Noranda Inc. prior thereto. Chairman of Falconbridge Limited, a Noranda Inc. subsidiary,
since June 1994                                                                              |  | 1994          
|André Bérard, O.C.(1, 4)
Verdun, Quebec                           |  | Chairman of the Board, National Bank of Canada (Banking) since March 2002; Chairman of the Board and Chief Executive Officer prior thereto                                                                                                                                                          |  | 1990          
|Jack L. Cockwell(4)
Toronto, Ontario                              |  | Group Chairman, Brascan (Real estate, financial services and power generation Company, with investments in the resource sector) since February 2002; President and Chief Executive Officer from August 1997 to
February 2002; President and Chief Executive Officer, Brascan Limited prior thereto  |  | 1981          
|V. Maureen Kempston Darkes, O.C., O.O.(2)
Miami, Florida U.S.A.   |  | GM Group Vice-President and President Latin America, Africa, Mid-East Operations, General Motors Corporation (International motor vehicle manufacturer) since January 2002; President and General Manager, General
Motors of Canada Limited prior thereto                                           |  | 1998          
|The Honourable J. Trevor Eyton, O.C., Q.C.(4)
Cheltenham, Ontario |  | Director of Brascan since February 2000; Chairman, Group Advisory Board, Brascan from April 1999 to February 2000; Senior Group Chairman, Brascan from August 1997 to April 1999; Chairman, Brascan
Limited prior thereto; and Member of the Senate of Canada                                       |  | 1981          
|J. Bruce Flatt(3)
Toronto, Ontario                                |  | President and Chief Executive Officer, Brascan since February 2002; President and Chief Executive Officer, Brookfield Properties Corporation (Commercial property company) from April 2000 to February 2002;
President and Chief Operating Officer, Brookfield Properties Corporation prior thereto |  | 2001          
|                                                                  |  |                                                                                                                                                                                                                                                                                                     |  |               

51

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|A.L. (Al) Flood, C.M.(1, 4)
Thornhill, Ontario                               |  | Retired Chairman, and Chief Executive Officer, Canadian Imperial Bank of Commerce (Banking) from 1999 to 2000; Chairman and Chief Executive Officer prior thereto                                                                                                                                                                                              |  | 1999
|---------------------------------------------------------------------------- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ----
|Norman R. Gish(2, 4)
Calgary, Alberta                                        |  | President, Gish Consulting Inc. (Pipeline, energy and international marketing advisory services) since April 2001; Chairman and Chief Executive Officer, Alliance Pipeline Ltd. (Natural gas transmission)
from January 2001 to March 2001; Chairman, President and Chief Executive Officer from October 1999 to December 2000; Chairman prior thereto         |  | 2001
|Robert J. Harding, F.C.A.(2, 4)
Toronto, Ontario                             |  | Chairman, Brascan since August 1997, a non-executive Deputy Chairman, Noranda Inc. from October 2001 to October 2002, and a non-executive Deputy Chairman of Falconbridge Limited since
February 2002; a non-executive Chairman, Noranda Inc. from October 1998 to September 2001; President and Chief Executive Officer, Brascan Limited prior to August 1997 |  | 1995
|David W. Kerr
Toronto, Ontario                                               |  | Chairman, Noranda; Director of Falconbridge Limited; Chairman of the Board and Chief Executive Officer, Noranda Inc. prior to 2001; President and Chief Executive Officer, Noranda from November 1997 to
September 2001; Chairman and Chief Executive Officer prior thereto                                                                                    |  | 1987
|James W. McCutcheon, Q.C.(2, 3)
Toronto, Ontario                             |  | Counsel, McCarthy Tétrault LLP (Law firm)                                                                                                                                                                                                                                                                                                                      |  | 1993
|The Honourable Frank J. McKenna, P.C., Q.C.(1, 2)(5)
Cap-Pelé, New Brunswick |  | Counsel, McInnes Cooper (Law firm) since January 1998; Premier of the Province of New Brunswick prior to October 1997                                                                                                                                                                                                                                          |  | 1998
|George E. Myhal(1)
Toronto, Ontario                                          |  | President and Chief Executive Officer, Brascan Financial Corporation (Financial services)                                                                                                                                                                                                                                                                      |  | 1999
|Derek Pannell(3)
Toronto, Ontario                                            |  | President and Chief Executive Officer, Noranda; Deputy Chairman of Falconbridge Limited                                                                                                                                                                                                                                                                        |  | 2002

---

The term of office of each director will expire at the next annual meeting of our common shareholders.

52

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10.2  Officers

The names, municipalities of residence and positions of our officers are set out below. For those of our officers who have not held management or senior positions
with us or associated companies for the past five years, the principal occupations of such persons during the past five years are also set out below.

|Name and Municipality of Residence    |  | Position                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|------------------------------------- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|David W. Kerr
Toronto, Ontario        |  | Chairman, Noranda Inc.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|Alex G. Balogh
Oakville, Ontario      |  | Deputy Chairman, Noranda Inc.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|Derek G. Pannell
Toronto, Ontario     |  | President and Chief Executive Officer, Noranda Inc.; Deputy Chairman of Falconbridge Limited.                                                                                                                                                                                                                                                                                                                                                                                                                             
|Bill Brooks
Franklin, TN              |  | President, Noranda Aluminum since August 1998; Prior thereto President Norandal, USA Inc.; President, Primary Operations.                                                                                                                                                                                                                                                                                                                                                                                                 
|M. Brent Chertow
Newmarket, Ontario   |  | President, Canadian Copper and Recycling, Noranda Inc. since August, 2002; Senior Vice-President, Canadian Copper and Recycling of Noranda Inc. from April 2002 to August, 2002; Vice-President, Metallurgical
Plant Operations from September 2001 to April 2002; Vice-President and General Manager, Sudbury Smelter Complex of Falconbridge Limited from February 2000 to September 2001 and Vice-President and General Manager, Kidd
Metallurgical Division prior thereto.                                            
|George R. Jones
Toronto, Ontario      |  | President, Zinc since August, 2002                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|Fernando E. Porcile
Santiago, Chile   |  | President, Copper effective September, 2002; Senior Vice-President, Copper from April 2002 to September 2002 Vice-President, Project Development of BHPBilliton Base metals from August 2001 to
March 2002; President of Compañia Minera Cerro Colorado Limitada from January 2000 to August 2001; Prior thereto, Vice-President, Engineering and Development of Rio Algom Limited since August 1997 to December 1999 and
Executive Vice-President of Compañia Minera Cerro Colorado Limitada from July 1996 to July 1997.
|Robert Sippel
Oakville, Ontario       |  | President, Magnesium since August, 2002.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|Lars-Eric Johansson
Oakville, Ontario |  | Executive Vice President and Chief Financial Officer since June, 2002; Senior Vice-President and Chief Financial Officer of Falconbridge Limited from September 1989 to June 2002; Prior to joining Falconbridge,
held successively senior positions with several of the Boliden Group of companies, including Boliden AB, Sala International AB, and BT Industries AB; Vice-President, Controller and Treasurer of Boliden Minerals AB in 1983.                                                                          
|Brian Barr
Toronto, Ontario           |  | Senior Vice-President, Special Projects, and Executive Chairman of American Racing Equipment effective August, 2002; formerly Managing Director Rudolf Wolff & Co., Noranda's metal trading company in London,
England; Prior to 2000, Managing Director of Gentra Limited and senior officer of Royal Trust, both based in England.                                                                                                                                                                                      
|Tony Hannaford
Oakville, Ontario      |  | Senior Vice-President, Technology since April 2002; Vice President, Metallugical Technology Falconbridge Limited from 1995 to 2002; from 1987 to 1994 Newmont Gold; 1974 - 1987 O'okiep Copper Co.;
1970 - 1974 Trojan Nickel Mine.                                                                                                                                                                                                                                                                                       
|                                      |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           

53

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|Peter G.J. Kukielski
Toronto, Ontario   |  | Senior Vice-President, Projects since September 2001; Engineering and Commissioning Manager, Antamina Project at Billiton PLC from October 1997 to August 2001.                                                                                                                                                                                                       
|--------------------------------------- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Katherine Rethy
Toronto, Ontario        |  | Senior Vice-President, Information Services, Procurement and Logistics since April 2002; Senior Vice President, Shared Business Services from October 1999 to April 2002; Vice President Logistics from
August 1996 to October 1999.                                                                                                                                  
|Martin G.R. Schady
Mississauga, Ontario |  | Senior Vice-President, Business Development.                                                                                                                                                                                                                                                                                                                          
|Paul Severin
Oakville, Ontario          |  | Senior Vice President, Exploration effective April 2002; Vice-President, Exploration from February 1995 to April 2002; 1993-1995 Director Canadian Exploration and Ore Reserves; 1990-1993 Regional
Exploration Manager, Sudbury; 1988-1990 Senior District Geologist, Sudbury; 1974-1988 various Mining and Exploration roles within Corporation Falconbridge Copper.
|Jeffery A. Snow
Toronto, Ontario        |  | Senior Vice-President and General Counsel since April 2002; Senior Vice-President, Corporate Affairs at Falconbridge Limited from October 2001 to April 2002; Vice-President, Legal at Falconbridge Limited
from April 1998 to October 2001; Vice-President and General Manager, CCR copper refinery at Noranda Inc. from October 1996 to April 1998.                 
|Rick Burdett
Burlington, Ontario        |  | Vice-President, Information Services, Noranda Inc., since May 2000; Business Information Systems Leader E I Dupont de Nemours from January 1994 to April 2000.                                                                                                                                                                                                        
|Denis Couture
Toronto, Ontario          |  | Vice-President, Public Affairs and Communications since October 1999; Vice-President, Communications and Government Relations, Domtar Inc. (Pulp and paper company) prior thereto.                                                                                                                                                                                    
|John Doyle
Pickering, Ontario           |  | Vice-President, Taxation since July 2002; Director, Taxation for Falconbridge Limited from 1989 to July 2002.                                                                                                                                                                                                                                                         
|Michael R. Frilegh
Toronto, Ontario     |  | Vice-President, Treasurer                                                                                                                                                                                                                                                                                                                                             
|André Joron
Markham, Ontario            |  | Vice-President, Human Resources since May 1, 2001; Vice-President, Human Resources, Hudson's Bay Company (Retail Chain).                                                                                                                                                                                                                                              
|Edward H. Laks
Aurora, Ontario          |  | Vice President, Performance/Six Sigma since July 2001; General Manager Operations, Canadian National Railway prior thereto                                                                                                                                                                                                                                            
|Robert Telewiak
Oakville, Ontario       |  | Vice-President, Environment, Safety and Health since April 2002; Vice-President, Environment at Falconbridge Limited from March 1998 to April 2002; Director, Environmental Affairs at Falconbridge Limited
prior thereto.                                                                                                                                            
|Julie Galloway
Toronto, Ontario         |  | Associate General Counsel and Corporate Secretary.                                                                                                                                                                                                                                                                                                                    

As of March 1, 2002, our directors and senior officers, as a group, beneficially owned, directly or indirectly, or exercised control or
direction over less than 1% of our outstanding common shares and less than 1% of each class of voting securities of any of our subsidiaries. The information as to securities beneficially owned or over
which control or direction is exercised, not being within our knowledge, has been furnished by our directors and senior officers individually.

We
understand that Brascan and associated companies own 94,120,813 common shares (or approximately 40% of our outstanding common shares) and convertible debentures convertible into
2,722,323 of our common

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shares.
Brascan is a public company listed on the Toronto, New York and Brussels stock exchanges. Brascan's major shareholder is EdperPartners Limited ("EdperPartners") who, together with its
shareholders, collectively own, directly or indirectly, exercise control or direction over, or have options and warrants to acquire, approximately 27.1 million Class A Limited Voting
Shares, representing approximately 15% of the outstanding Class A Limited Voting Shares of Brascan on a fully diluted basis, and 85,120 Class B Limited Voting Shares, representing all of
the Class B Limited Voting Shares of Brascan. Messrs. Cockwell, Flatt, Harding and Myhal, directors of the Company, Mr. Kerr, a director and executive officer of the Company,
Mr. Pannell, a director and an executive officer of the Company, and Messrs. Regent and Schady, executive officers of the Company, are shareholders of EdperPartners.

11.   ADDITIONAL INFORMATION

Upon request to the Secretary of the Company at its registered office, BCE Place, 181 Bay Street, Suite 200, Toronto, Ontario M5J 2T3, the Company
will provide any person with a copy of:



A
copy of any of these documents may be obtained without charge at any time when a preliminary short form prospectus has been filed in respect of a distribution of any securities of the
Company or any securities of the Company are in the course of a distribution pursuant to a short-form prospectus. At any other time, any document referred to in (i), (ii) or
(iii) above may be obtained by security holders of the Company without charge and by any other person upon payment of a reasonable charge.

The
Management Information Circular dated March 1, 2003 contains additional information concerning the Company, including directors' and officers' remuneration and indebtedness,
principal holders of the Company's securities, and options to purchase securities. The Company's 2002 Consolidated Financial Statements also contain additional financial information and are included
in the Noranda Inc. 2002 Annual Report.

12.   GLOSSARY OF TERMS

|                           |  |                                                                                                                                                                                                                                                                                                                            
|-------------------------- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|anode                      |  | a rectangular plate of metal cast in a shape suitable for refining by the electrolytic process. An anode is the finished product of the copper smelting process.                                                                                                                                                           
|bankable feasibility study |  | a comprehensive study of a deposit in which all geological, engineering, operating, economic and other relevant factors are considered in sufficient detail that it could reasonably serve as a basis for a financial decision by a financial institution
to finance the development of the deposit for mineral production.
|blister copper             |  | a crude form of copper (assaying about 99%) produced in a smelter, which requires further refining before being used for industrial purposes.                                                                                                                                                                              
|capacity                   |  | the design number of units that can be produced in a given time period based on operations with a normal number of shifts and maintenance interruptions.                                                                                                                                                                   
|cathode                    |  | a rectangular plate of metal, produced by electrolytic refining, which is melted into commercial shapes such as billets, ingots, etc. A cathode is typically the finished product of the copper refining process.                                                                                                          
|                           |  |                                                                                                                                                                                                                                                                                                                            

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|Comex                         |  | The New York Commodity Exchange.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|----------------------------- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|concentrate                   |  | a product containing valuable minerals from which most of the waste material in the ore has been separated.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|ferronickel                   |  | an alloy containing nickel and iron (approximately 38% nickel and 62% iron in the case of ferronickel produced by Falcondo). The volumes produced are expressed in terms of the nickel contained.                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|LME                           |  | London Metal Exchange.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|matte                         |  | a mixture of metal sulphides enriched with nickel, cobalt, copper, silver, gold and platinum group metals.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|mill                          |  | a plant where ore is ground and undergoes physical or chemical treatment to extract and produce a concentrate of the valuable minerals.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|mineral resource(1)           |  | a concentration or occurrence of natural, solid, inorganic or fossilized organic material in or on the Earth's crust in such form and quantity and of such a grade of quality that it has reasonable prospects for economic extraction. The location,
quantity, grade, geological characteristics and continuity of a mineral resource are known, estimated or interpreted from specific geological evidence and knowledge.                                                                                                                                                                                                                                
|inferred mineral resource(1)  |  | part of a mineral resource for which quantity and grade or quality can be estimated on the basis of geological evidence and limited sampling and reasonably assumed, but not verified, geological and grade continuity. The estimate is based on limited
information and sampling gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes.                                                                                                                                                                                                                                                       
|indicated mineral resource(1) |  | part of a mineral resource for which quantity, grade or quality, densities, shape and physical characteristics, can be estimated with a level of confidence sufficient to allow the appropriate application of technical and economic parameters, to
support mine planning and evaluation of the economic viability of the deposit. The estimate is based on detailed and reliable exploration and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits,
workings and drill holes that are spaced closely enough for geological and grade continuity to be reasonably assumed.                      
|measured mineral resource(1)  |  | part of a mineral resource for which quantity, grade or quality, densities, shape, physical characteristics are so well established that they can be estimated with confidence sufficient to allow the appropriate application of technical and economic
parameters, to support production planning and evaluation of the economic viability of the deposit. The estimate is based on detailed and reliable exploration, sampling and testing information gathered through appropriate techniques from locations
such as outcrops, trenches, pits, workings and drill holes that are spaced closely enough to confirm both geological and grade continuity.
|                              |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            

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|mineral reserve(1)          |  | economical mineable part of a measured or indicated mineral resource demonstrated by at least a preliminary feasibility study. This study must include adequate information on mining, processing, metallurgical, economic and other relevant factors that
demonstrate, at the time of reporting, that economic extraction can be justified. A mineral reserve includes diluting materials and allowances for losses that may occur when the material is mined.
|--------------------------- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|NI 43-101                   |  | National Instrument 43-101 of the Canadian Securities Administrators                                                                                                                                                                                                                                                                                                                                                                                           
|probable mineral reserve(1) |  | economical mineable part of an indicated, and in some circumstances a measured mineral resource demonstrated by at least a preliminary feasibility study. This study must include adequate information on mining, processing, metallurgical, economic, and
other relevant factors that demonstrate, at the time of reporting, that economic extraction can be justified.                                                                                       
|proven mineral reserve(1)   |  | economical mineable part of a measured mineral resource demonstrated by at least a preliminary feasibility study. This study must include adequate information on mining, processing, metallurgical, economic, and other relevant factors that demonstrate,
 at the time of reporting, that economic extraction is justified.                                                                                                                                  
|platinum group metals       |  | platinum, palladium, rhodium and related metals present in some nickel/copper ores.                                                                                                                                                                                                                                                                                                                                                                            
|refinery                    |  | a plant where concentrates or matte are processed into one or more refined metals.                                                                                                                                                                                                                                                                                                                                                                             
|smelter                     |  | a plant in which concentrates are processed into an upgraded product.                                                                                                                                                                                                                                                                                                                                                                                          
|SX-EW                       |  | solvent extraction-electrowinning is a metallurgical technique, so far applied only to copper ores, in which metal is dissolved from the rock by organic solvents and recovered from solution by electrolysis.                                                                                                                                                                                                                                                 

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