Document:

EX-4.2

Exhibit 4.2

Constitution of

Rio Tinto Limited

(ACN 004 458 404)

(As adopted by special resolution passed on 24 May 2000 and amended by

special resolutions passed on 18 April 2002, 29 April 2005, 27 April 2007

and 24 April 2008)

i

 

Table of Contents

	 	 	 	 	 	 	 
	 	 	MEMORANDUM OF ASSOCIATION
	 	 	1	 
	 	 	RULES
	 	 	7	 
	 	 	PRELIMINARY
	 	 	7	 
	1.	 	Replaceable rules do not apply
	 	 	7	 
	2.	 	Interpretation
	 	 	7	 
	 	 	BUSINESS
	 	 	15	 
	3.	 	What business may be undertaken
	 	 	15	 
	 	 	CAPITAL
	 	 	15	 
	4.	 	Share capital
	 	 	15	 
	 	 	SHARES
	 	 	16	 
	5.	 	Issue of shares with special rights
	 	 	16	 
	5A	 	DLC Dividend Share
	 	 	16	 
	6.	 	Preference shares
	 	 	17	 
	7.	 	Separate Approvals of Class Rights Actions
	 	 	18	 
	8.	 	Dividends on Special Voting Share and Equalisation Share
	 	 	21	 
	9.	 	Obligation for calls
	 	 	21	 
	10.	 	Shares at the disposal of the Board
	 	 	21	 
	11.	 	Directors may participate
	 	 	21	 
	12.	 	Power to pay commission and brokerage
	 	 	21	 
	13.	 	Surrender of shares
	 	 	22	 
	14.	 	Joint holders
	 	 	22	 
	15.	 	Non-recognition of equitable interests, etc
	 	 	23	 
	 	 	MODIFICATION OF RIGHTS
	 	 	23	 
	16.	 	How special rights may be varied
	 	 	23	 
	 	 	THE SEAL
	 	 	23	 
	17.	 	Affixing the Seal
	 	 	23	 
	18.	 	Official Seal
	 	 	23	 
	19.	 	Share Seal
	 	 	23	 
	 	 	SHARE CERTIFICATES
	 	 	24	 
	20.	 	Issue of certificates
	 	 	24	 
	21.	 	Contents of certificates
	 	 	24	 
	22.	 	Entitlement to certificates
	 	 	24	 

Page (i)

 

	 	 	 	 	 	 	 
	23.	 	Delivery of certificates
	 	 	24	 
	24.	 	Renewal of certificates
	 	 	24	 
	25.	 	Computerised share transfer system
	 	 	25	 
	 	 	CALLS
	 	 	25	 
	26.	 	Calls and notice of calls
	 	 	25	 
	27.	 	When a call is made
	 	 	25	 
	28.	 	Interest on the late payment of calls
	 	 	26	 
	29.	 	Instalments
	 	 	26	 
	30.	 	Payment in advance of calls
	 	 	26	 
	31.	 	Non-receipt of notice of call
	 	 	26	 
	 	 	TRANSFER AND TRANSMISSION OF SECURITIES
	 	 	26	 
	32.	 	Form of transfer
	 	 	26	 
	33.	 	Effecting a transfer
	 	 	26	 
	34.	 	Instrument of transfer and certificate to be left at Office or Branch
Office
	 	 	27	 
	35.	 	Board may refuse to register
	 	 	27	 
	36.	 	Company to retain instrument of transfer
	 	 	28	 
	37.	 	Closing Register and Branch Register
	 	 	28	 
	38.	 	Cancellation of old and issue of new certificate
	 	 	28	 
	39.	 	Transmission upon death
	 	 	28	 
	40.	 	Transmission by operation of law
	 	 	29	 
	41.	 	Board may refuse registration of transmissions
	 	 	29	 
	 	 	FORFEITURE AND LIEN
	 	 	29	 
	42.	 	Notice requiring payment of sums payable
	 	 	29	 
	43.	 	Content of Notice
	 	 	29	 
	44.	 	Forfeiture on non-compliance with notice
	 	 	29	 
	45.	 	Notice of forfeiture
	 	 	29	 
	46.	 	Disposal of forfeited shares
	 	 	30	 
	47.	 	Annulment of forfeiture
	 	 	30	 
	48.	 	Liability notwithstanding forfeiture
	 	 	30	 
	49.	 	Company’s lien or charge
	 	 	30	 
	50.	 	Sale of shares to enforce lien
	 	 	30	 
	51.	 	Title of shares forfeited or sold to enforce lien
	 	 	31	 
	 	 	INCREASE AND REDUCTION OF CAPITAL
	 	 	31	 

Page ii

 

	 	 	 	 	 	 	 
	52.	 	Power to alter share capital
	 	 	31	 
	53.	 	Rights attached to subdivided shares
	 	 	32	 
	54.	 	Board may give effect to alteration of share capital
	 	 	32	 
	55.	 	New Capital subject to same provisions as original capital
	 	 	32	 
	56.	 	Power to reduce capital
	 	 	32	 
	 	 	GENERAL MEETINGS
	 	 	32	 
	57.	 	Annual general meetings
	 	 	32	 
	58.	 	Notice of general meeting
	 	 	32	 
	59.	 	Omission to give and non-receipt of notice
	 	 	32	 
	 	 	PROCEEDINGS OF MEETINGS
	 	 	32	 
	60.	 	Business of general meeting
	 	 	32	 
	61.	 	Quorum
	 	 	33	 
	62.	 	Adjournment in absence of quorum
	 	 	33	 
	63.	 	Chairman
	 	 	33	 
	64.	 	Acting Chairman
	 	 	33	 
	65.	 	General conduct of meeting
	 	 	33	 
	66.	 	Amendments to resolutions
	 	 	34	 
	67.	 	Adjournment
	 	 	34	 
	68.	 	Voting
	 	 	34	 
	69.	 	Declaration of vote on a show of hands
	 	 	35	 
	70.	 	Demand for poll
	 	 	35	 
	71.	 	Taking a poll
	 	 	35	 
	72.	 	Continuance of business after demand for poll
	 	 	36	 
	73.	 	Notice of adjournment
	 	 	36	 
	 	 	VOTES OF MEMBERS
	 	 	36	 
	74.	 	Voting rights of members
	 	 	36	 
	75.	 	Voting rights of personal representatives, etc
	 	 	37	 
	76.	 	How votes may be given
	 	 	37	 
	77.	 	Appointment of proxies
	 	 	38	 
	78.	 	Form and execution of instrument of proxy
	 	 	39	 
	79.	 	Board to issue forms of proxy
	 	 	39	 
	80.	 	Attorneys of members
	 	 	39	 
	81.	 	Validity of vote
	 	 	39	 
	82.	 	Rights of member indebted to Company in respect of other shares
	 	 	39	 

Page iii

 

	 	 	 	 	 	 	 
	 	 	DIRECTORS
	 	 	40	 
	83.	 	Number of Directors
	 	 	40	 
	84.	 	Share qualification of Directors
	 	 	40	 
	85.	 	Election or appointment of additional Director
	 	 	40	 
	86.	 	Continuing Directors to act in certain circumstances
	 	 	40	 
	87.	 	Directors who are employees of the Company
	 	 	40	 
	88.	 	Company Auditor may not act as Director
	 	 	41	 
	89.	 	Remuneration of Directors
	 	 	41	 
	90.	 	Remuneration of directors for extra services
	 	 	41	 
	91.	 	Retirement benefits
	 	 	41	 
	92.	 	Travelling and other expenses
	 	 	41	 
	93.	 	Directors may contract with company
	 	 	41	 
	94.	 	Director may hold other office under the Company
	 	 	42	 
	95.	 	Directors may lend to the Company
	 	 	42	 
	 	 	ELECTION OF DIRECTORS
	 	 	42	 
	96.	 	Retirement of Directors:
	 	 	42	 
	 	 	ALTERNATE DIRECTORS
	 	 	44	 
	97.	 	Director may appoint Alternate Director
	 	 	44	 
	 	 	VACATION OF OFFICE OF DIRECTOR
	 	 	45	 
	98.	 	Vacation of office by Director
	 	 	45	 
	 	 	PROCEEDINGS OF DIRECTORS
	 	 	46	 
	99.	 	Procedures relating to Directors’ meetings
	 	 	46	 
	100.	 	Meetings by telephone or other means of communication
	 	 	46	 
	101.	 	Convening of meetings
	 	 	46	 
	102.	 	Votes at meetings
	 	 	46	 
	103.	 	Chairman
	 	 	46	 
	104.	 	Powers of meetings
	 	 	47	 
	105.	 	Delegation of powers to Committees
	 	 	47	 
	106.	 	Proceedings of Committees
	 	 	47	 
	107.	 	Validity of acts
	 	 	47	 
	108.	 	Resolution in writing
	 	 	47	 
	109.	 	Directors includes Alternate Directors
	 	 	48	 
	 	 	POWERS OF THE BOARD
	 	 	48	 

Page iv

 

	 	 	 	 	 	 	 
	110.	 	General powers of the Board
	 	 	48	 
	111.	 	Powers to give effect to Sharing Agreement
	 	 	48	 
	112.	 	Board’s power to borrow
	 	 	48	 
	113.	 	Power to authorise debenture holders, etc, to make calls
	 	 	48	 
	114.	 	Management of the affairs of the Company
	 	 	49	 
	 	 	EXECUTIVE OFFICERS
	 	 	50	 
	115.	 	Powers of executive officers
	 	 	50	 
	116.	 	Delegation to executive director
	 	 	50	 
	 	 	MINUTES
	 	 	51	 
	117.	 	Minutes
	 	 	51	 
	 	 	DIVIDENDS AND RESERVES
	 	 	51	 
	118.	 	Declaration of dividend
	 	 	51	 
	118 A.	 	Waiver of dividend
	 	 	52	 
	119.	 	Reserve fund
	 	 	52	 
	120.	 	Investment of reserve funds:
	 	 	53	 
	121.	 	Dividends in specie
	 	 	53	 
	122.	 	Share Investment plans
	 	 	53	 
	123.	 	Dividend Plans
	 	 	54	 
	124.	 	Transfer of shares
	 	 	55	 
	125.	 	Retention of dividends
	 	 	55	 
	126.	 	Dividends on which a Company has a charge
	 	 	56	 
	127.	 	How dividends are payable
	 	 	56	 
	128.	 	Notice of dividend
	 	 	56	 
	129.	 	Unclaimed dividends
	 	 	56	 
	 	 	CAPITALISATION OF PROFITS
	 	 	56	 
	130.	 	Power to capitalise profits
	 	 	56	 
	131.	 	Employee Share Plan
	 	 	56	 
	132.	 	Appropriation and application of amounts to be capitalised
	 	 	57	 
	 	 	NOTICES
	 	 	57	 
	133.	 	Service of notices
	 	 	57	 
	134.	 	Member may notify Company of address for service
	 	 	57	 
	135.	 	Member not known at registered address
	 	 	57	 
	136.	 	When notice deemed to be served
	 	 	58	 
	137.	 	Signature to notice
	 	 	58	 

Page v

 

	 	 	 	 	 	 	 
	138.	 	Reckoning of period of notice
	 	 	58	 
	139.	 	Notice to transferor binds transferee
	 	 	58	 
	140.	 	Service on deceased members
	 	 	58	 
	 	 	PAYMENTS BY THE COMPANY
	 	 	58	 
	141.	 	Payments by the Company
	 	 	58	 
	 	 	WINDING UP
	 	 	60	 
	142.	 	Distribution in specie
	 	 	60	 
	143.	 	Capital rights on a liquidation
	 	 	60	 
	 	 	INDEMNITY
	 	 	65	 
	144.	 	Indemnity of officers
	 	 	65	 
	145.	 	Change of control
	 	 	66	 
	146.	 	Restricted securities
	 	 	75	 
	147.	 	Unmarketable parcels
	 	 	75	 

Page vi

 

Corporations Act

Company Limited by Shares

MEMORANDUM OF ASSOCIATION OF RIO TINTO LIMITED

(ACN 004 458 404)

	1.	 	The name of the Company is Rio Tinto Limited.
	 
	2.	 	The objects for which the Company is established are all or any of the following:-
	 
	(1)	 	To enter into, operate and carry into effect the Agreement with Rio Tinto plc known as the DLC
Merger Sharing Agreement and a Deed known as the CRA Deed Poll Guarantee with full power to:

	 	(i)	 	Agree any amendment or termination or abrogation of all or any of the terms of that Agreement
or Deed in accordance with the terms thereof;
	 
	 	(ii)	 	Enter into, operate and carry into effect any further or other agreements or arrangements with
or in connection with Rio Tinto plc; and
	 
	 	(iii)	 	Do all such things as in the opinion of the Board of Directors of the Company are necessary
or desirable for the furtherance of this object or for the furtherance, maintenance or development
of the relationship with Rio Tinto plc constituted by or arising out of any agreement or
arrangement mentioned in or made in accordance with this sub-clause.

	(2)	 	To acquire and hold shares, stocks, debentures, debenture stock, bonds, unsecured notes,
obligations and securities of any company incorporated or carrying on business in Australia or in
the United Kingdom or in any other place and of any government, sovereign public body or authority
supreme, municipal, local or otherwise.
	 
	(3)	 	To acquire any such shares, stocks, debentures, debenture stocks, bonds, unsecured notes,
obligations and securities by original subscription, tender, purchase, exchange or otherwise and to
subscribe for the same, either conditionally or otherwise, and hold in trust, sell, mortgage,
charge, deal with and otherwise acquire or dispose of the same on commission or otherwise.
	 
	(4)	 	To apply for, purchase, or otherwise acquire concessions, grants or rights of any kind from any
person, firm or corporation or any supreme, municipal, local or other authority and to comply with
the conditions of any concession or grant obtained and to sell, lease or otherwise deal with the
same or any interest therein and to work, exploit and otherwise turn to account the same or any
part thereof.
	 
	(5)	 	To guarantee the capital dividends or interest of or upon any shares, stocks, debentures,
debenture stock, bonds or other securities or any obligation or contract entered into by any
company, association, body, person or authority.

Page 1

 

	(6)	 	To undertake and execute trusts and agencies of all kinds, and to accept money, securities and
property of all kinds for safe custody or otherwise, and to undertake any transaction and carry on
any business commonly undertaken or carried on by financiers, bankers, brokers, underwriters,
concessionaries, contractors, agents, capitalists or merchants and to transact and carry on all
kinds of guarantee, agency, commission and mercantile business.
	 
	(7)	 	To prospect for, explore, quarry, develop, excavate, dredge for, open, work, win, purchase or
otherwise obtain, uranium, lead, zinc, copper, sulphur, tin, silver, alumina, zircon, rutile,
ilmenite, monazite, ores or aluminium, iron, gold, platinum, coal, precious stones, atomic minerals
or deposits, oil, pyrites, asbestos, wolfram and all other minerals, metals and substances and
minerals, and other rights, properties and works.
	 
	(8)	 	To carry on business as proprietors of and to purchase, take on lease, or in exchange or
otherwise acquire, for any estate term or interest therein and to manage supervise and control mineral and other properties, lands and hereditaments of any tenure, mines, mining and other rights
or options thereon, and grant, concessions, leases, claims, charters, privileges, licences or
authorities of an over lands and mines and mineral, oil-bearing, natural gas-bearing, agricultural
and other properties and also mining, dredging, water and other rights.

	(9)	 	To raise, win, get, quarry, crush, smelt, calcine, refine, dress, amalgamate, manipulate and
otherwise treat, prepare for market, sell dispose of and deal in ores, metals, fluxes, tailings,
concentrates, slimes, mineral substances and other product of mines either in a manufactured state
or otherwise, and any materials or substances resulting from or to be obtained in the process of
crushing, smelting, calcining, dressing or amalgamating the same and either free form or in
combination with other substances.
	 
	(10)	 	To apply for, purchase, or otherwise acquire, concessions, grants or rights of any kind from
any person, firm or corporation or any supreme, municipal, local or other authority, and to comply
with the conditions of any concession or grant obtained, and to sell, lease or otherwise deal with
the same or any interest therein and to work, exploit and otherwise turn to account for the same of
any part thereof.
	 
	(11)	 	To carry on business as ship owners, railway proprietors, motor car, lorry and coach
proprietors and garage proprietors, carriers and haulers, bankers, storekeepers, wharfingers,
cartage and storage contractors, and building and general contractors, and to buy, sell or
otherwise deal in real or personal property of any kind.
	 
	(12)	 	To carry on business as manufacturers of and dealers in and exporters and importers of goods
and merchandise of all kinds and merchants generally.
	 
	(13)	 	To advance, deposit and lend money, securities and property to or with such persons and on
such terms as may seem expedient, and to discount, buy, sell and deal in bills, notes, warrants,
coupons, and other negotiable or transferable securities or documents.
	 
	(14)	 	To apply for, purchase or otherwise acquire any patents, brevets d’invention, licences,
concessions and the like, conferring any exclusive or non-exclusive or limited right to use, or any
secret or other information as to any invention which may seem capable of being used for any of the
purposes of the Company, or the acquisition of which may seem calculated directly or indirectly to
benefit this Company, and to use, exercise, develop or

Page 2

 

	 	 	grant licences in respect of, or otherwise turn to account the property, rights or information so
acquired, and also to acquire, use and register trade marks, trade names, registered or other
designs, rights of copyright or other rights or privileges in relation to any business for the time
being carried on by the Company.

	(15)	 	To manufacture and deal in all kinds of articles and things required for the purposes of any
such business as aforesaid, or commonly dealt in by persons engage in such business.
	 
	(16)	 	To purchase or otherwise acquire for any estate or interest any property, assets or rights of
any kind which may appear to be necessary, or convenient for any business of the Company, and to
develop and turn to account and deal with the same in such manner as may be thought expedient.
	 
	(17)	 	To borrow and raise money and to secure or discharge any debt or obligation or binding on the
Company in such manner as may be thought fit, and in particular by mortgages and charges upon the
undertaking and all or any of the property and assets (present or future) and the uncalled capital
of the Company, or by the creation and issue on such terms as may be thought expedient of
debentures, debenture stock or other securities of any description.
	 
	(18)	 	To purchase with a view to closing or re-selling or otherwise dealing with the whole or in
part any business or properties which may be deemed likely to injure by competition or otherwise
any business or branch of business which the Company is authorised to carry on.
	 
	(19)	 	To promote any company whose objects shall include the acquisition of all or any of the
assets or liabilities of the Company, or the promotion of which shall be considered to be
calculated to advance directly or indirectly the objects of this Company or the interests of its
members.
	 
	(20)	 	To lend money to subsidise and otherwise assist any company, firm or person in any case in
which such subsidy, assistance or loan may be considered likely, directly or indirectly, to further
the objects of this Company or the interests of its members.

	(21)	 	To guarantee the payment of premiums on any sinking fund or endowment policy or policies taken
out by any company having objects similar to the objects of the Company to secure the discharge of
any mortgage charge or debenture of such company and to guarantee the payment of the principal and
of any interest in respect of any such mortgage, charge or debenture and to charge the Company’s
assets accordingly.
	 
	(22)	 	To sell, lease, grant licences, easements and other rights over an in any other manner deal
with or dispose of the undertaking, property, assets, rights and effects of the Company or any part
thereof for such consideration as may be thought fit, and in particular for stocks, shares or
securities of any other company.
	 
	(23)	 	To take all necessary or proper steps in Parliament and with the authorities, national, local,
municipal or otherwise, of any place in which the Company may have interests, and to carry on any
negotiations or operations for the purpose of, directly or indirectly, carrying out the objects of
the Company, or effecting any modification in the constitution of the Company, or furthering the
interests of its members, and to oppose any such steps taken

Page 3

 

	 	 	by any other company, firm or person which may be considered likely, directly or indirectly, to
prejudice the interests of the Company or its members.

	(24)	 	To subscribe or guarantee money for any national, charitable, benevolent, public, general,
commercial or useful object, of for any exhibition, or for any purpose which may be considered
likely, directly or indirectly to further the objections of the Company or the interests of any of
its members.
	 
	(25)	 	To grant or otherwise provide or contribute towards the provisions of pensions or other
allowances or gratuities to or for the benefit of any Directors, officer, employee or ex-employee
of the Company or its predecessors in business, or the relations, connections or dependents of any
such persons, and to establish or support associations, institutions, clubs, funds and trusts which
may be considered calculated to benefit any such persons or otherwise advance the interests of the
Company or its members.
	 
	(26)	 	To invest any moneys of the Company not for the time being required for the general purposes
of the Company in such investments (other than shares in the Company) as may be thought proper, and
to hold, sell or otherwise deal with such investments.
	 
	(27)	 	To carry out and perform as separate and independent objects all or any of the objects set out
in the Third Schedule to the Companies Act 1958 AND IT IS HEREBY DECLARED that this paragraph shall
operate independently of and without prejudice to the provisions of Section 15 of the Companies Act
1958.
	 
	(28)	 	To carry out and perform any of the objects of the Company in any part of the world, AND IT IS
HEREBY DECLARED that the Company shall have power to carry out and perform any of the matters
abovementioned (whether in one or different paragraphs) apart from any other of the said matters
and that none of the above descriptions shall be limited or restrained by reference to the name of
the Company or to matters of the same or some similar kind elsewhere in this Clause referred to or
shall be otherwise limited or restrained by any other part of this Clause nor by any inference to
be drawn from such other part and so that wherever such construction is possible the objects
specified in this Clause may be construed in as wide a sense as if each of the paragraphs hereof
defined the objects of a separate and independent company.

	3.	 	The share capital of the company may, without limitation, be divided into ordinary shares,
one Special Voting Share, one Equalisation Share and one DLC Dividend Share.
	 
	4.	 	The liability of the members is limited.
	 
	5.	 	A special resolution altering or amending any of the provisions listed in Rule 7(a)(vii) of
the Company’s Rules (each a “Rio Tinto Limited Entrenched Provision”) does not have any effect
unless and until the holder of the Special Voting Share (as defined in the Rules) has
consented in writing to the alteration or amendment. A reference in this Clause to a
special resolution altering or amending any Rio Tinto Limited Entrenched Provision includes
a reference to any resolution of any type which has the effect of altering, adding to or
omitting any Rio Tinto Limited Entrenched Provision or any other effect which is equivalent
or substantially similar to that effect (which for the avoidance of doubt shall be taken to
include ratification of any breach of any such Rio Tinto Limited Entrenched Provision).

Page 4

 

	6.	 	A special resolution altering or amending sub-Clause (1) of Clause 2, Clause 5 or this Clause
6 of this Memorandum (each an “Entrenching Provision”) does not have any effect unless and
until the holder of the Special Voting Share (as defined in the Rules) has consented in
writing to the alteration or amendment. A reference to this Clause to a special resolution
altering or amending this Clause includes a reference to any resolution of any type which has
the effect of altering, adding to or omitting this Clause or any other effect which is
equivalent or substantially similar to that effect (which for the avoidance of doubt shall be
taken to include ratification of any breach of any such Entrenching Provision).

WE, the several persons whose names, addresses and occupations are subscribed, are desirous of
being formed into a Company in pursuance of this Memorandum of Association and we respectively
agree to take the number of shares in the capital of the Company set opposite our respective names.

	 	 	 	 	 
	Names, addresses and	 	 	 	Number of shares taken
	occupation of subscribers	 	Signature of subscribers	 	by each subscriber
	 
	 	 	 	 
	John Miller Rodd

360 Collins Street

Melbourne

Solicitor

	 	John Rodd
	 	One
	 
	 	 	 	 
	Hugh Oliver Clark

360 Collins Street

Melbourne

Solicitor

	 	H O Clark
	 	One
	 
	 	 	 	 
	Total Number of Shares

	 	 	 	Two

DATED this 16th day of December, 1959.

WITNESS to the above signatures:

G H Fewster, Solicitor

360 Collins Street, Melbourne

Page 5

 

Note: The share capital of the Company was:

(1) on incorporation:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Date	 	Amount	 	Number of Shares	 	Par Value
	 
	17/12/59
	 	₤	5,000,000	 	 	 	5,000,000	 	 	₤	1	 

(2) subsequently increased to:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Date	 	Amount	 	Number of shares	 	Par Value
	 
	27.10.60
	 	₤	10,000,000	 	 	 	10,000,000	 	 	₤	1	 
	06.01.61
	 	₤	10,000,000	 	 	 	40,000,000	+ 	 	 	5/-	 
	16.07.62
	 	₤	15,000,000	 	 	 	60,000,000	 	 	 	5/-	 
	31.03.65
	 	₤	20,000,000	 	 	 	80,000,000	 	 	 	5/-	 
	30.11.66
	 	$	60,000,000	 	 	 	120,000,000	 	 	50 cents
	09.10.70
	 	$	125,000,000	 	 	 	250,000,000	 	 	50 cents
	26.09.73
	 	$	225,000,000	 	 	 	450,000,000	 	 	50 cents
	06.05.80
	 	$	300,000,000	 	 	 	600,000,000	 	 	50 cents
	03.05.83
	 	$	1,500,000,000	 	 	 	750,000,000	 	 	$	2*	
	02.05.89
	 	$	3,000,000,000	 	 	 	1,500,000,000	 	 	$	2	 

 

			
	+	 	Each share subdivided into 4 shares of 5/- each.
	 
	*	 	Capital reconstruction on 9.5.83 from 50 cent shares to $2 shares.

Page 6

 

Corporations Act

Company Limited by Shares

RULES of RIO TINTO LIMITED

ACN 004 458 404

PRELIMINARY

	1.	 	The replaceable rules in the Corporations Act shall not apply to the Company.
	 
	2.	 	Interpretation

	 	(a)	 	In these Rules unless the context requires otherwise:

	 	(i)	 	“Aggregate Publicly-held Ordinary Shares” means all of the Publicly-held Rio
Tinto Limited Ordinary Shares and all of the Publicly-held Rio Tinto plc Ordinary
Shares;
	 
	 	(ii)	 	“Alternate Director” means a person appointed from time to
time as an Alternate Director in accordance with these Rules;
	 
	 	(iii)	 	“Applicable Regulation” means, in the case of the Company,
applicable Australian laws and regulations (including listing rules) and, in
the case of Rio Tinto plc, applicable English laws and regulations (including
listing rules and guidelines with which companies listed on the London Stock
Exchange customarily comply), in each case for the time being in force and
taking account of all waivers or variations from time to time applicable (in
particular situations or generally) to the Company or, as the case may be, Rio
Tinto plc;
	 
	 	(iv)	 	“Associate” in relation to

	 	(A)	 	any Interest in Rio Tinto plc shall mean any person acting in concert as
defined by the City Code on Takeovers and Mergers; and
	 
	 	(B)	 	the Company is as defined in Part 1.2 Division 2 of the Law;

	 	(v)	 	“Auditor” means the auditor or auditors appointed by the
Company from time to time;
	 
	 	(vi)	 	“Australian dollars” means the lawful currency from time to
time of Australia;
	 
	 	(vii)	 	“Board” means the board of Directors of the Company (or a
duly appointed committee of that board) from time to time;
	 
	 	(viii)	 	“Board of Rio Tinto plc” means the board of directors of Rio Tinto plc (or a
duly appointed committee of that board) from time to time;
	 
	 	(ix)	 	“Branch Office” means any office at which a Branch Register is kept;
	 
	 	(x)	 	“Branch Register” means any branch register of members kept pursuant to these
Rules;

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	 	(xi)	 	“Business Day” when used in the definition of “Liquidation Exchange Rate” means a day
on which banks are ordinarily open for business in both London and Melbourne, excluding
Saturdays and Sundays but for all other purposes has the meaning ascribed to it in the
Listing Rules;
	 
	 	(xii)	 	“call” includes any instalment of a call and any amount due on allotment of any share;
	 
	 	(xiii)	 	“capital” means share capital;
	 
	 	(xiv)	 	“Chairman” includes an Acting Chairman under Rule 64;
	 
	 	(xv)	 	“Class Rights Action” means, in relation to the Company or Rio Tinto plc, any of the
actions listed in Rule 7(a);
	 
	 	(xvi)	 	“Committee” means a Committee to which powers have been delegated by the Board pursuant
to Rule 105;
	 
	 	(xvii)	 	“Companies Act” means the Companies Act 1985 (United Kingdom);
	 
	 	(xviii)	 	“Companies Act Subsidiary” has the meaning ascribed to the term “subsidiary” in section
736 of the Companies Act as at the date of adoption of these Rules and when used in relation to
a company means any such subsidiary of that company from time to time;
	 
	 	(xix)	 	“the Company” means Rio Tinto Limited;
	 
	 	(xx)	 	“Constitution” means these Rules and the Memorandum;
	 
	 	(xxi)	 	“Corporations Act” means the Corporations Act 2001 (Cth);
	 
	 	(xxii)	 	“Corporations Act Subsidiary” has the meaning given to “subsidiary” in section 9 of the
Corporations Act as at the date of the Sharing Agreement and when used in relation to a body
corporate means any subsidiary of that body corporate from time to time;
	 
	 	(xxiii)	 	“Deed Poll Guarantee” means the deed executed by the Company for the benefit of certain
present and future creditors of Rio Tinto plc (as amended from time to time);
	 
	 	(xxiv)	 	“Deputy Chairman” means a person appointed to the Office of Deputy Chairman in
accordance with Rule 63;
	 
	 	(xxv)	 	“Director” means a person appointed or elected from time to time to the office of
Director of the Company in accordance with these Rules and includes any Alternate Director duly
acting as a Director;
	 
	 	(xxvi)	 	“DLC Dividend Share” means the DLC Dividend Share issued in accordance with Rule 5A
until it is cancelled, redeemed or otherwise ceases to exist or until it converts to an
Ordinary Share in accordance with these Rules or the Corporations Act;
	 
	 	(xxvii)	 	“Entrenching Provision” has the meaning ascribed to that term in Clause 6 of the
Company’s Memorandum;

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	 	(xxviii)	 	“Equalisation Fraction” means the Equalisation Ratio expressed as a fraction with the
numerator being the number relating to the Ordinary Shares of the Company and the denominator being
the number relating to the Rio Tinto plc Ordinary Shares;
	 
	 	(xxix)	 	“Equalisation Ratio” means the ratio of the dividend, capital and voting rights per Ordinary
Share to the dividend, capital and voting rights per Rio Tinto plc Ordinary Share as set out in the
Sharing Agreement and as adjusted from time to time in accordance with the Sharing Agreement;
	 
	 	(xxx)	 	“Equalisation Share” means the equalisation share in the Company;
	 
	 	(xxxi)	 	“Excluded Rio Tinto plc Holder” means any person who is a Relevant Person (other than a
Permitted Person) (both as defined in Article 64 of the Rio Tinto plc Articles) on whom a notice
has been served under Article 64(E) of the Rio Tinto plc Articles or on whom a direction notice has
been served under Article 63 of the Rio Tinto plc Articles which in either case has not been
complied with to the satisfaction of the directors of Rio Tinto plc or withdrawn;
	 
	 	(xxxii)	 	“Home Branch” means the state office of Australian Stock Exchange Limited designated to the
Company by Australian Stock Exchange Limited as its Home Branch for administrative purposes;
	 
	 	(xxxiii)	 	“Joint Decision” means, in relation to a general meeting, a resolution put to the vote of
the meeting on a Joint Decision Matter;
	 
	 	(xxxiv)	 	“Joint Decision Matter” means any of the following:

	 	(A)	 	the appointment or removal of a Director of the Company and/or a director of Rio Tinto plc;
	 
	 	(B)	 	the receipt or adoption of the annual accounts of the Company and/or Rio Tinto plc (if
shareholders are to be asked to vote on the receipt or adoption of such accounts);
	 
	 	(C)	 	a change of name by the Company and/or Rio Tinto plc;
	 
	 	(D)	 	any proposed acquisition or disposal and any proposed transaction with a substantial
shareholder, director or other related party which (in any case) is required under Applicable
Regulation to be authorised by shareholders;
	 
	 	(E)	 	the appointment or removal of the Auditors of the Company and/or the auditors of Rio Tinto plc;
	 
	 	(F)	 	the creation of a new class of shares (or securities convertible into, exchangeable for or
granting rights to subscribe for or purchase shares of a new class) in the Company or Rio Tinto
plc;
	 
	 	(G)	 	a change in the corporate status or reregistration of the Company or Rio Tinto plc;
	 
	 	(H)	 	a matter referred to in Clause 9.2 of the Sharing Agreement; and

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	 	(I)	 	any other matter which the Board and the Board of Rio Tinto plc each decide
(generally or in a particular case) should be decided upon by Joint Decision;

	 	(xxxv)	 	“Law” means the Corporations Law as at the date of the Sharing Agreement as defined
by Section 13(2) of the Corporations (Victoria) Act 1990 as at that date and includes a
reference to the Corporations Regulations as at that date;
	 
	 	(xxxvi)	 	“Limiting Restriction” has the meaning ascribed to it in Rule 2(b);
	 
	 	(xxxvii)	 	“Liquidation Exchange Rate” means, as at any date, the closing mid-point spot
Australian dollar-sterling exchange rate on the Business Day before such date (as
published in the London Edition of the Financial Times, or such other point of reference
as the Auditor and the liquidator of Rio Tinto plc (or, as the case may be, the Auditor of
Rio Tinto plc and the liquidator of the Company or the liquidators of both the Company and
Rio Tinto plc) may determine);
	 
	 	(xxxviii)	 	“the Listing Rules” means the Listing Rules of Australian Stock Exchange
Limited;
	 
	 	(xxxix)	 	“London Stock Exchange” means London Stock Exchange Ltd or any successor to that
body;
	 
	 	(xl)	 	“Market Value” for the purposes of Rule 7 means, (in the case of the
Company) in respect of an issue of a relevant share or security, the weighted average
sale price derived from the Australian Stock Exchange and (in the case of Rio Tinto
plc) the middle market quotation derived from the London Stock Exchange Daily
Official List in each case on the dealing day immediately preceding the date on which
any such issue is publicly announced except that in the case of an allotment of
Ordinary Shares by way of dividend it shall mean the weighted average sale price of
an Ordinary Share derived from the Australian Stock Exchange over the five Business
Days prior to the books closing date in respect of that dividend and in the case of
an allotment of Rio Tinto plc Ordinary Shares pursuant to Article 128 of the Rio
Tinto plc Articles it shall mean the value of a Rio Tinto plc Ordinary Share as
defined in Article 128(D) of the Rio Tinto plc Articles;
	 
	 	(xli)	 	“Matching Offers” means offers by way of rights either by both the Company and Rio
Tinto plc to their respective holders of ordinary shares or by the Company on its own or
by Rio Tinto plc on its own to both the holders of Ordinary Shares and the holders of Rio
Tinto plc Ordinary Shares which, so far as is practicable, take place contemporaneously
and which the Auditors have certified do not materially disadvantage a holder of an
Ordinary Share in comparison with a holder of a Rio Tinto plc Ordinary Share and which the
auditors of Rio Tinto plc have certified do not

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	 	 	 	materially disadvantage a holder of a Rio Tinto plc Ordinary Share in comparison with a holder
of an Ordinary Share;

	 	(xlii)	 	“member” means a member of the Company in accordance with the Corporations Act;
	 
	 	(xliii)	 	“members present” (or a “member present”) means members (or a member) present at a
general meeting of the Company in person or by duly appointed representative, proxy
or attorney;
	 
	 	(xliv)	 	“Memorandum” means the Company’s Memorandum of Association as altered from time to
time;
	 
	 	(xlv)	 	“Office” means the registered office from time to time of the Company;
	 
	 	(xlvi)	 	“Ordinary Shares” means the ordinary shares in the Company on issue from time to
time;
	 
	 	(xlvii)	 	“person” and words importing persons shall include partnerships, associations and
corporations, unincorporated and incorporated by Ordinance, Act of Parliament or
registration as well as individuals;
	 
	 	(xlviii)	 	“procedural resolution” comprises any resolution put to a general meeting which
was not included in the notice of such meeting but nevertheless falls to be
considered by that meeting;
	 
	 	(xlix)	 	“proper SCH transfer” has the meaning given to that term in Section 9 of the
Corporations Act;
	 
	 	(l)	 	“Publicly-held Rio Tinto Limited Ordinary Shares” means Ordinary Shares the
beneficial owners of which are not members of the Rio Tinto plc Group;
	 
	 	(li)	 	“Publicly-held Ordinary Shares” means, in relation to the Company,
Publicly-held Rio Tinto Limited Ordinary Shares and, in relation to Rio Tinto plc,
Publicly-held Rio Tinto plc Ordinary Shares;
	 
	 	(lii)	 	“Publicly-held Rio Tinto plc Ordinary Shares” means Rio Tinto plc Ordinary
Shares the beneficial owners of which are not members of the Rio Tinto Limited Group;
	 
	 	(liii)	 	“Publicly-held Rio Tinto plc Voting Shares” means Rio Tinto plc Ordinary Shares the
beneficial owners of which are not members of the Rio Tinto Limited Group;
	 
	 	(liv)	 	“Publicly-held Shares” means, in relation to the Company, Publicly-held
Ordinary Shares and, in relation to Rio Tinto plc, Publicly-held Rio Tinto plc Voting
Shares;
	 
	 	(lv)	 	“Register” means the Register of members of the Company to be kept pursuant
to the Corporations Act;
	 
	 	(lvi)	 	“Rio Tinto Limited Entrenched Provision” has the meaning ascribed to that
term in Clause 5 of the Company’s Memorandum;

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	 	(lvii)	 	“Rio Tinto Limited Group” means the Company and its Corporations Act Subsidiaries
from time to time and a member of the Rio Tinto Limited Group means any one of them;
	 
	 	(lviii)	 	“RTL Shareholder SVC” means RTL Shareholder SVC Limited, a company incorporated in
England with registered number 3115178 whose registered office is at Princes House,
95 Gresham Street, London EC2V 7LY or such other company which replaces RTL
Shareholder SVC Limited pursuant to the terms of the Rio Tinto Limited Shareholder
Voting Agreement;
	 
	 	(lix)	 	“Rio Tinto Limited Shareholder Voting Agreement” means the agreement
entered into between RTL Shareholder SVC, The Law Debenture Trust Corporation p.l.c.,
Rio Tinto plc and the Company relating, amongst other things, to how the Rio Tinto
plc Special Voting Share is to be voted (as amended from time to time);
	 
	 	(lx)	 	“Rio Tinto plc” means Rio Tinto plc, a company incorporated in the United
Kingdom with its registered office at 6 St James’s Square,
London SW1Y 4LD, England;
	 
	 	(lxi)	 	“Rio Tinto plc Articles” means the Articles of Association of Rio Tinto plc as
amended from time to time;
	 
	 	(lxii)	 	“Rio Tinto plc Deed Poll Guarantee” means the deed executed by Rio Tinto plc for the
benefit of certain present and future creditors of the Company (as amended from time to
time);
	 
	 	(lxiii)	 	“Rio Tinto plc Entrenched Provision” has the meaning ascribed to that term in the Rio
Tinto plc Articles;
	 
	 	(lxiv)	 	“Rio Tinto plc Equalisation Share” means the equalisation share of 10p in the capital of
Rio Tinto plc the rights attaching to which are set out, inter alia, in Articles 3 and 60
of the Rio Tinto plc Articles;
	 
	 	(lxv)	 	“Rio Tinto plc Group” means Rio Tinto plc and its Companies Act Subsidiaries from
time to time and a member of the Rio Tinto plc Group means any of them;
	 
	 	(lxvi)	 	“Rio Tinto plc Ordinary Shares” means the ordinary shares of 10p each in Rio Tinto plc
on issue from time to time;
	 
	 	(lxvii)	 	“RTP Shareholder SVC” means RTP Shareholder SVC Pty Limited (ACN 070 481 908) a company
incorporated in Victoria with its registered office at 27th Floor, 530 Collins Street,
Melbourne, Victoria, Australia or such other company which replaces RTP Shareholder SVC
Pty Limited pursuant to the terms of the Rio Tinto plc Shareholder Voting Agreement;
	 
	 	(lxviii)	 	“Rio Tinto plc Shareholder Voting Agreement” means the agreement between the RTP
Shareholder SVC, The Law Debenture Trust Corporation p.l.c., the Company, RTP Australian
Holdings Limited and Rio Tinto plc relating, amongst other things, to how the Special
Voting Share and the Ordinary Shares held by Tinto Holdings Australia Pty Limited

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	 	 	 	(ACN 004 327 922) or beneficially owned by any other member of the Rio Tinto plc Group are to
be voted (as amended from time to time);

	 	(lxix)	 	“Rio Tinto plc Special Voting Share” means the special voting share of 10p in Rio Tinto
plc;
	 
	 	(lxx)	 	“Rio Tinto plc Voting Shares” means Rio Tinto plc Ordinary Shares and any shares
issued by Rio Tinto plc from time to time (other than the Rio Tinto plc Special Voting
Share) where, in relation to any matter or at any time the holders of those shares would,
if that matter were to be considered at a general meeting of Rio Tinto plc at that time,
be entitled to vote on that matter;
	 
	 	(lxxi)	 	“SCH” means the securities clearing house as referred to in the Corporations Act;
	 
	 	(lxxii)	 	“SCH business rules” has the meaning given to that term in Section 9 of the
Corporations Act;
	 
	 	(lxxiii)	 	“Seal” means the common seal of the Company;
	 
	 	(lxxiv)	 	“Secretary” means a person appointed as Secretary of the Company and includes any
person appointed to perform the duties of Secretary;
	 
	 	(lxxv)	 	“securities” includes shares, rights to shares or stock, options to acquire shares and
other securities with rights of conversion to equity and debentures, debenture stock,
notes and other like obligations;
	 
	 	(lxxvi)	 	“Sharing Agreement” means the agreement entered into between the Company and Rio Tinto
plc entitled “DLC Merger Sharing Agreement” (as amended from time to time);
	 
	 	(lxxvii)	 	“special resolution” means a special resolution of the Company in accordance with the
Corporations Act;
	 
	 	(lxxviii)	 	“Special Voting Share” means the special voting share in the Company described in
Rules 7, 8 and 74;
	 
	 	(lxxix)	 	“sterling” means the lawful currency from time to time of the United Kingdom;
	 
	 	(lxxx)	 	“these Rules” means these Rules as altered or added to from time to time and any
reference to a Rule by number is a reference to the Rule of that number in these Rules;
	 
	 	(lxxxi)	 	“Trustee” means a person or persons appointed to perform the duties of a trustee for
the holders of debentures or debenture stock issued by the Company;
	 
	 	(lxxxii)	 	“wholly owned subsidiary”, in relation to a body corporate, means a body corporate
none of whose members is a person other than the first mentioned body corporate, a wholly
owned subsidiary of the first mentioned body corporate or a nominee of the first mentioned
body corporate or its wholly owned subsidiary;

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	 	(lxxxiii)	 	“writing” and “written” includes printing, typing, lithography and other
modes of reproducing words in a visible form including, without limitation, any
representation of words in a physical document or in an electronic communication or
form or otherwise.

	 	(b)	 	A reference to “Limiting Restriction” refers to the limit (if any) on offers for cash
(otherwise than pro-rata by way of rights to existing holders of Ordinary Shares or holders of Rio
Tinto plc Ordinary Shares) of shares or other securities existing under restrictions for the time
being applicable to the Company or Rio Tinto plc under Applicable Regulation, and for the purpose
of ascertaining the most Limiting Restriction at any time in any situation:

	 	(i)	 	a restriction applicable to the Company shall be treated as also applicable to Rio Tinto plc
(converting the restrictions, expressed in terms of a number of shares in the Company, into a
number of Rio Tinto plc shares by application of the Equalisation Ratio), and vice versa in
relation to a restriction applicable to Rio Tinto plc;
	 
	 	(ii)	 	a restriction expressed in terms of a nominal amount of Rio Tinto plc’s equity share capital
shall be treated as if it related to the number of Rio Tinto plc Ordinary Shares represented by
that nominal amount and then converted into a number of Ordinary Shares by application of the
Equalisation Ratio and any restriction in relation to the Company shall be similarly treated;
	 
	 	(iii)	 	a restriction (when expressed as a number of Ordinary Shares or Rio Tinto plc Ordinary
Shares) that, under Applicable Regulation, has been derived by application of a percentage to a
number or nominal amount of Ordinary Shares and/or number or nominal amount of Rio Tinto plc
Ordinary Shares rather than to the number of the Aggregate Publicly-held Ordinary Shares (taking
into account the application of the Equalisation Ratio as described in paragraphs (i) and (ii)
above) shall be adjusted to the number that would have been derived from the application of such
percentage to the number of the Aggregate Publicly-held Ordinary Shares (after so taking into
account the application of the Equalisation Ratio); and
	 
	 	(iv)	 	any restriction under Applicable Regulation which comes into force in relation to either the
Company or Rio Tinto plc after the date of the Sharing Agreement which does not fall within (i),
(ii) or (iii) above shall be applied to the Aggregate Publicly-held Ordinary Shares in the way in
which the Board and the Board of Rio Tinto plc agree best reflects the rationale underlying
paragraphs (i), (ii) and (iii) above.

	 	(c)	 	Any reference to an “equivalent resolution” considered by holders of Publicly-held Rio
Tinto plc Voting Shares means the resolution considered at the most nearly contemporaneous
general meeting of Rio Tinto plc which bears a close relationship to the relevant resolution
being considered at a general meeting of the Company. For example, but without limitation, a
resolution to appoint or remove an individual as a director of Rio Tinto plc, to appoint or
remove the auditors of Rio

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	 	 	 	Tinto plc or to receive and adopt the accounts of Rio Tinto plc would, if no
resolution considering such matters in relation to the Company were put to the Rio
Tinto plc general meeting, be the “equivalent resolution” to a resolution relating
to the appointment or removal of the same individual as a Director of the Company,
the appointment or removal of the same international firm of auditors as the
Auditors or the receipt or adoption of the Company’s accounts as the case may be.
	 
	 	(d)	 	References to offers by way of rights include offers which are subject to such
exclusions or other arrangements as the Board or (where relevant) the Board of Rio Tinto
plc may deem necessary or expedient in relation to fractional entitlements or legal or
practical problems under the laws of, or the requirements of any recognised regulatory body
or any stock exchange in, any territory.
	 
	 	(e)	 	A reference to the Corporations Act or any other statute or regulations or to the City
Code on Takeovers and Mergers is to be read as though the words “as modified or
substituted” were added to the reference unless the context otherwise requires.
	 
	 	(f)	 	A reference to the Listing Rules or to the SCH business rules is to the Listing Rules
or to the SCH business rules (as the case may be) as are in force from time to time in
relation to the Company after taking into account any waiver or exemption which is in force
either generally or in relation to the Company.
	 
	 	(g)	 	Unless otherwise defined in these Rules, words which are given a special meaning by the
Corporations Act have the same meaning in these Rules.
	 
	 	(h)	 	Except where the contrary intention appears, words in the singular include the
plural and vice versa.
	 
	 	(i)	 	Except where the contrary intention appears, words importing one gender include any
other gender.
	 
	 	(j)	 	The references to notices in Rules 133 to 140 (both inclusive) include not only formal
notices of meeting but also all documents and other communications from the Company to the
members but do not include cheques.
	 
	 	(k)	 	A special resolution shall be effective for any purpose for which an ordinary
resolution is expressed to be required under any provision of these Rules.
	 
	 	(l)	 	The headings and sidenotes do not affect the construction of these Rules.

BUSINESS

	3.	 	What business may be undertaken
	 
	 	 	At any time it thinks fit the Company may undertake any kind of business which it is either
expressly or by implication authorised to undertake by the Memorandum or these Rules.

CAPITAL

	4.	 	Share capital
	 
	 	 	The share capital of the Company may, without limitation, be divided into ordinary shares,
one Special Voting Share, one Equalisation Share and one DLC Dividend Share.

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SHARES 

	5.	 	Issue of shares with special rights
	 
	 	 	Without prejudice to any special rights previously conferred on the holders of existing

shares and subject to Rule 7, any shares in the capital of the Company (whether forming
part of the original capital or not) may be issued with preferred, deferred or other
special rights or restrictions, whether in regard to dividends, voting, return of share
capital, payment of calls or otherwise, as the Board may from time to time determine
provided that the rights attaching to shares of a class other than Ordinary Shares shall be
expressed at the date of issue.

	5A	 	DLC Dividend Share

	 	(a)	 	Without limiting Rule 5, but notwithstanding anything else in this Constitution, the
Board may issue a share (a “DLC Dividend Share”) in the capital of the Company to Rio Tinto
plc or a wholly owned subsidiary of Rio Tinto plc on the following terms:

	 	(i)	 	the DLC Dividend Share does not confer on its holder any right:

	 	(A)	 	to vote or to attend or be heard at any general meeting;
	 
	 	(B)	 	to redemption or, in a winding-up, to repayment of capital; or
	 
	 	(C)	 	subject to Rule 5A(a)(ii), to participate in assets or profits of the Company; or
	 
	 	(D)	 	to receive notices, reports, profit and loss accounts or balance sheets;

	 	(ii)	 	the holder of the DLC Dividend Share shall not be entitled to receive a dividend on
the share unless and until the following conditions have been satisfied:

	 	(A)	 	the Board in its absolute discretion resolves to pay the dividend on the DLC Dividend Share;
	 
	 	(B)	 	the legal and beneficial owner of the DLC Dividend Share at the time of
declaration and payment of the dividend is Rio Tinto plc or a wholly owned subsidiary of
Rio Tinto plc;
	 
	 	(C)	 	in the case of the first dividend to be paid on the DLC Dividend Share, there has been
at least one dividend paid on Ordinary Shares since the date of issue of the DLC Dividend
Share;
	 
	 	(D)	 	in the case of subsequent dividends paid on the DLC Dividend Share, there has been
at least one dividend paid on Ordinary Shares since the date of payment of the last
dividend on the DLC
Dividend Share;
	 
	 	(E)	 	(Deleted); and
	 
	 	(F)	 	in the Company’s financial year in which the dividend is to be paid, at
least one dividend has been paid on Ordinary Shares, and

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	 	(iii)	 	upon the earlier of:

	 	(A)	 	the registration of a transfer of the DLC Dividend Share to a person other
than Rio Tinto plc or a wholly owned subsidiary of Rio Tinto plc; and
	 
	 	(B)	 	a person other than Rio Tinto plc or a wholly owned subsidiary of Rio
Tinto plc becoming the beneficial owner of the DLC Dividend Share,

	 	 	 	the DLC Dividend Share will convert to an Ordinary Share, and the Board may, at its absolute discretion, issue such a DLC Dividend Share
from time to time provided that, at any one time, there is only one DLC Dividend
Share in the capital of the Company on issue.

	6.	 	Preference shares
	 
	 	 	If the Company at any time proposes to create and issue any preference shares:

	 	(a)	 	the preference shares may be issued on the terms that they are, or at the option of the
Company are, liable to be redeemed whether out of profits or otherwise;
	 
	 	(b)	 	the preference shares confer on the holders the right to convert the preference shares
into Ordinary Shares if and on the basis the Board determines at the time of issue of the
preference shares;
	 
		(c)		(i) the preference shares confer on the holders a right to receive out of the
profits of the Company available for dividend a preferential dividend at the rate (which
may be subject to an index) and on the basis determined by the Board at the time of issue
of the preference shares;

	 	 		(ii) in addition to the preferential dividend, the preference shares may participate with
the Ordinary Shares in dividends declared by the Board if and to the extent the Board
determines at the time of issue of the preference shares; and

	 
	 	 		(iii) the preferential dividend may be cumulative if and to the extent the Board determines
at the time of issue of the preference shares;

	 	(d)	 	the preference shares are to confer on the holders:

	 	(i)	 	the right on redemption and in a winding up to payment in cash in priority to any other
class of shares of:

	 	(A)	 	the amount paid or agreed to be considered as paid on each share; and
	 
	 	(B)	 	the amount (if any) equal to the aggregate of any dividend accrued (whether
declared or not) but unpaid and of any arrears of dividends; and

	 	(ii)	 	the right, in priority to any payment of dividend on any other class of shares,
to the preferential dividend;

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	 	(e)	 	the preference shares do not confer on the holders any further rights to participate in
assets or profits of the Company;
	 
	 	(f)	 	the holders of the preference shares have the same rights as the holders of Ordinary
Shares to receive notices, reports, profit and loss accounts and balance sheets and to
attend and be heard at all general meetings, but are not to have the right to vote at
general meetings except as follows:

	 	(i)	 	on any question considered at a general meeting if, at the date of the meeting,
the dividend on the preference shares is in arrears;
	 
	 	(ii)	 	at a general meeting on a proposal:

	 	(A)	 	to reduce the share capital of the Company;
	 
	 	(B)	 	that affects rights attached to the preference shares;
	 
	 	(C)	 	to wind up the Company;
	 
	 	(D)	 	for the disposal of the whole of the property, business and undertaking of the Company;

	 	(iii)	 	on a resolution to approve the terms of a buy-back agreement; and
	 
	 	(iv)	 	on any question considered at a general meeting held during the winding up of the Company; and

	 	(g)	 	the Company may issue further preference shares ranking pari passu in all respects with
(but not in priority to) other preference shares already issued and the rights of the
issued preference shares are not to be deemed to have been varied by the further issue.

	7.	 	Separate Approvals of Class Rights Actions

	 	(a)	 	The following matters shall constitute Class Rights Actions if undertaken by either the
Company or Rio Tinto plc:

	 	(i)	 	the offer to the holders of its existing ordinary shares generally of shares or
other securities for subscription or purchase:

	 	(A)	 	by way of rights (otherwise than by Matching Offers), where the proposed offer
(when aggregated with (1) any previous offers by either the Company or Rio Tinto plc of
shares or other securities for cash by way of rights or otherwise, but not under Matching
Offers, (2) any sales, other than intra Rio Tinto plc Group sales, by a member of the Rio
Tinto plc Group of Ordinary Shares, and (3) any sales, other than intra Rio Tinto Limited
Group sales, by a member of the Rio Tinto Limited Group of Rio Tinto plc Ordinary Shares,
in each case in the relevant period) exceeds the then most Limiting Restriction that for
the time being would be applicable were shares or other securities of the relevant
description proposed to be offered in fact offered for cash otherwise than pro-rata by way
of rights to existing shareholders of the relevant class either by the Company or by Rio
Tinto plc; or

Page 18

 

	 	(B)	 	otherwise than by way of rights, at below Market Value;

	 	(ii)	 	the reduction or, if permitted by law, redemption of the company’s ordinary share capital by
way of a capital repayment to holders of its ordinary shares or a cancellation of unpaid ordinary
share capital;
	 
	 	(iii)	 	the purchase by the company of its own ordinary shares (except for such a purchase at,
around or below prevailing market prices for those shares where the purchase occurs in accordance
with Applicable Regulation);
	 
	 	(iv)	 	the voluntary liquidation of the company;
	 
	 	(v)	 	an adjustment to the Equalisation Ratio otherwise than in accordance with paragraph 5 of
Schedule 2 to the Sharing Agreement;
	 
	 	(vi)	 	the amendment to the terms of, or termination of, the Sharing Agreement, the Rio Tinto Limited
Shareholder Voting Agreement or the Rio Tinto plc Shareholder Voting Agreement other than, in the
case of the Rio Tinto Limited Shareholder Voting Agreement or the Rio Tinto plc Shareholder Voting
Agreement, to conform such agreement with the terms of the Sharing
Agreement or in any case, by way of formal or technical amendment which is not materially
prejudicial to the interests of the shareholders of the Company or Rio Tinto plc or is necessary to
correct any inconsistency or manifest error or is by way of an amendment agreed between the Company
and Rio Tinto plc pursuant to Clause 17.6 of the Sharing Agreement or the equivalent provision of
any such document;
	 
	 	(vii)	 	any amendment to, or removal of, or the alteration of the effect of (which for the avoidance
of doubt shall be taken to include the ratification of any breach of), all or any of the following
(each of which is a Rio Tinto Limited Entrenched Provision):

	 	(A)	 	any of sub-clause (2)(1), clause 5 or clause 6 of the Memorandum;
	 
	 	(B)	 	the definitions in Rule 2(a) of “Aggregate Publicly-held Ordinary Shares”, “Applicable
Regulation”, “Associate”, “Australian dollars”, “Board of Rio Tinto plc”, “Class Rights Action”,
“Companies Act Subsidiary”, “Corporations Act Subsidiary”, “Rio Tinto Limited Entrenched
Provision”, “Rio Tinto Limited Group”, “RTL
Shareholder SVC”, “Rio Tinto Limited Shareholder Voting Agreement”,
“Deed Poll Guarantee”, “Entrenching Provision”, “Equalisation
Fraction”, “Equalisation Ratio”, “Equalisation Share”, “Excluded Rio
Tinto plc Holder”, “Joint Decision”, “Joint Decision Matter”,
“Limiting Restriction”, “Liquidation Exchange Rate”, “Market Value”,
“Matching Offers”, “Ordinary Shares”, “procedural resolution”,
“Publicly-held Rio Tinto Limited Ordinary Shares”, “Publicly-held
Ordinary Shares”, “Publicly-held Rio Tinto plc Ordinary Shares”,
“Publicly-held Rio Tinto plc Voting Shares”, “Publicly-held Shares”,
“Rio Tinto plc”, “Rio Tinto plc Articles”, “Rio Tinto plc
Equalisation Share”, “Rio Tinto plc Deed Poll Guarantee”,

Page 19

 

	 	 	 	“Rio Tinto plc Entrenched Provision”, “Rio Tinto plc Group”, “Rio Tinto plc Ordinary
Shares”, “Rio Tinto plc Special Voting Share”, “RTP Shareholder SVC”, “Rio Tinto plc
Shareholder Voting Agreement”, “Sharing Agreement”, “Special Voting Share”, and “sterling”;
	 
	 	(C)	 	this Rule 7 (class rights actions);
	 
	 	(D)	 	Rule 8 (dividends on Special Voting Share and Equalisation Share);
	 
	 	(E)	 	Rule 16 (variation of class rights);
	 
	 	(F)	 	Rule 35(c) (Refusal to register transfer of Special Voting Share and Equalisation Share);
	 
	 	(G)	 	Rule 66 (amendments to resolutions);
	 
	 	(H)	 	Rule 70 (demand for poll);
	 
	 	(I)	 	Rule 71 (taking a poll);
	 
	 	(J)	 	Rule 74 (voting rights of members);
	 
	 	(K)	 	Rule 77 (appointment of proxies);
	 
	 	(L)	 	Rule 85 (election or appointment of additional Director);
	 
	 	(M)	 	Rule 96(a), (b), (c), the proviso in brackets in (d), (e)(ii), (g) and (h)
(retirement and nomination of Directors);
	 
	 	(N)	 	Rule 97, third sentence only (Alternate Directors);
	 
	 	(O)	 	Rule 98(f) (vacation of office of Directors if ceasing to be a Rio Tinto plc director);
	 
	 	(P)	 	Rule 108 (resolution of Directors in writing);
	 
	 	(Q)	 	Rule 111 (giving effect to Sharing Agreement);
	 
	 	(R)	 	Rule 143 (capital rights on a liquidation); and
	 
	 	(S)	 	Rule 145 (change of control);

	 	(viii)	 	any amendment to, or removal of, or alteration of the effect of (which for the
avoidance of doubt shall be taken to include the ratification of any breach of), any Rio
Tinto plc Entrenched Provision; and
	 
	 	(ix)	 	the doing of anything which the Board and the Board of Rio Tinto plc each decide
(either in a particular case or generally) should be treated as a Class Rights Action.

	 	(b)	 	Any Class Rights Action by the Company (apart from those specified in sub-paragraph
(vii) of paragraph (a) of this Rule) shall be deemed to be a variation of the rights of
the Special Voting Share and shall accordingly be effective only with the consent in
writing of the holder of the Special Voting Share and without such consent shall not be
done or caused or permitted to be done.

Page 20

 

	 	(c)	 	Any Class Rights Action by the Company comprising or including an amendment to any Rio
Tinto Limited Entrenched Provision shall be effective only with the approval of a special
resolution on which the holder of the Special Voting Share shall be entitled to vote but
only in accordance with Rule 74(c)(i) and the Rio Tinto plc Shareholder Voting Agreement.
Any other Class Rights Action by the
Company shall (in addition to the consent required under paragraph (b) of this
Rule) be effective only with such approval of the shareholders of the Company
(apart from the holder of the Special Voting Share) as is required by Applicable
Regulation and the Sharing Agreement.

	8.	 	Dividends on Special Voting Share and Equalisation Share

	 	(a)	 	The Special Voting Share does not entitle its holder to any dividends.
	 
	 	(b)	 	Subject to the special rights attached to any preference shares having a preferred
right to participate as regards dividends up to but not beyond a specified amount in a
distribution (but in priority to the payment of any dividends on other classes of share),
the Equalisation Share shall carry such dividends as are declared or paid on the
Equalisation Share in accordance with Schedule 1 and Schedule 2 to the Sharing Agreement.
	 
	 	(c)	 	Subject to the special rights for the time being attached to other classes of share,
the profits of the Company available for distribution and resolved to be distributed shall
subject to the Corporations Act be distributed by way of dividend among the holders of
Ordinary Shares.

	9.	 	Obligation for calls
	 
	 	 	Without limiting the generality of Rule 5, the Board may make arrangements on the issue of
shares for a difference between the holders of those shares in the amount of calls to be
paid and the time of payment of those calls.
	 
	10.	 	Shares at the disposal of the Board
	 
	 	 	Except as provided by contract or these Rules to the contrary, all unissued shares shall be
under the control of the Board which may grant calls or options on those shares, issue
option certificates in respect of those shares, allot or otherwise dispose of those shares
on the terms and conditions and for the consideration and for or at the time it thinks fit.
	 
	11.	 	Directors may participate
	 
	 	 	Any Director or any person who is an associate of a Director for the purposes of the
Listing Rules may participate in any issue by the Company of shares, rights to shares or
options to acquire shares or other securities unless the Director is precluded from
participating by the Listing Rules.
	 
	12.	 	Power to pay commission and brokerage
	 
	 	 	The Company may at any time pay a commission to any person in consideration of that person
subscribing or agreeing to subscribe, whether absolutely or conditionally, for any shares
in the Company or procuring or agreeing to procure subscriptions, whether absolute or
conditional, for any shares in the Company. The commission may be paid or satisfied in

Page 21

 

	 	 	cash or in shares, debentures or debenture stock of the Company or otherwise. The Company may in
addition to or instead of commission pay any brokerage permitted by law.
	 
	13.	 	Surrender of shares
	 
	 	 	The Board may, in its discretion, accept a surrender of shares by way of compromise of any
question as to whether or not those shares have been validly issued or in any other case
where the surrender is within the powers of the Company. Any shares surrendered may be
sold or re-issued in the same manner as forfeited shares.
	 
	14.	 	Joint holders
	 
	 	 	Where two or more persons are registered as the holders of any shares, they shall be
deemed to hold the shares as joint tenants with benefits of survivorship subject to the
following provisions:
	 
	 	 	Number of Holders: 

	 	(a)	 	the Company is not bound to register more than three persons as the holders of
the shares (except in the case of trustees executors or administrators of a deceased
shareholder);

	 	 	Liability for payments: 

	 	(b)	 	the joint holders of the shares shall be liable severally as well as jointly in
respect of all payments which ought to be made in respect of the shares;

	 	 	Death of joint holder: 

	 	(c)	 	on the death of any one of the joint holders, the survivor shall be the only person
recognised by the Company as having any title to the shares but the Board may require
evidence of death;

	 	 	Power to give receipt: 

	 	(d)	 	any one of the joint holders may give a receipt for any dividend, bonus or return of
capital payable to the joint holders;

	 	 	Notices to joint holders: 

	 	(e)	 	only the person whose name stands first in the Register or Branch Register as one of
the joint holders of the shares shall be entitled, if the Company is required by the
Corporations Act or the Listing Rules to issue certificates for shares, to delivery of a
certificate relating to the shares or to receive notices from the Company and any notice
given to that person shall be deemed notice to all the joint holders; and

	 	 	Votes of joint holders: 

	 	(f)	 	any one of the joint holders may vote at any meeting of the Company either personally
or by duly authorised representative, proxy or attorney, in respect of the shares as if
that joint holder was solely entitled to the shares. If more than one of the joint holders
are present at any meeting personally or by duly authorised representative, proxy or
attorney, the joint holder who is present whose name stands first in the Register or Branch
Register in respect of the shares shall alone be entitled to vote in respect of the shares.

Page 22

 

	15.	 	Non-recognition of equitable interests, etc
	 
	 	 	Except as otherwise provided in these Rules, the Company shall be entitled to treat the
registered holder of any share as the absolute owner of the share and accordingly shall
not, except as ordered by a Court of competent jurisdiction or as required by statute, be
bound to recognise (even when having notice) any equitable or other claim to or interest in
the share on the part of any other person.

MODIFICATION OF RIGHTS

	16.	 	How special rights may be varied
	 
	 	 	Subject to Rule 7, whenever the capital of the Company is divided into different classes of
shares, all or any of the rights and privileges attached to any class may be varied or
abrogated, and any repayment of capital in respect of any class of shares may be effected
by a special resolution approving the proposed variation, abrogation or repayment passed at
a special meeting of the holders of the issued shares of the class affected by a majority
of not less than three-fourths of the holders present and voting either in person or by
representative proxy or attorney or (if a quorum is not present at the special meeting or
if the resolution is not passed by the necessary majority) by consent in writing signed by
the holders of at least three-fourths of the issued shares of the class within two calendar
months from the date of the special meeting; provided that no approval or consent shall be
required in respect of the redemption of any redeemable preference shares in accordance
with the relevant terms of issue. All the provisions in these Rules as to general meetings
shall apply to the special meeting. For the purposes of this Rule, any member who on a poll
personally or by representative, proxy or attorney votes at a special meeting in favour of
a resolution approving a proposed variation, abrogation or repayment shall be deemed to
have consented in writing to the variation, abrogation or repayment.

THE SEAL

	17.	 	Affixing the Seal
	 
	 	 	The Board shall provide for the safe custody of the Seal, which may only be used by the
authority of the Board. Every instrument to which the Seal is affixed shall be signed by a
Director and countersigned by the Secretary or by a second Director or by another person
appointed by the Board for the purpose. The Board may determine either generally or in any
particular case that a signature may be affixed by a mechanical means specified in the
determination.
	 
	18.	 	Official Seal
	 
	 	 	The Company may from time to time exercise the powers conferred by the Corporations Act in
relation to Official Seals and those powers shall be vested in the Board. The Directors
may from time to time appoint persons to affix any Official Seal and to sign and date any
instrument to which an Official Seal has been affixed.
	 
	19.	 	Share Seal
	 
	 	 	The Company may have one or more duplicates of the Seal which shall be facsimiles of the
Seal with the addition on their faces of the words “Share Seal” and which shall be 

Page 23

 

	 	 	known as Share Seals. Any certificate for shares issued under a Share Seal shall be deemed
to be sealed with the Seal.

SHARE CERTIFICATES

	20.	 	Issue of certificates

	 	(a)	 	If the Board wishes to issue certificates for shares or where the Company is
required by the Corporations Act or the Listing Rules to issue certificates for shares,
share certificates shall be issued under the Seal or a Share Seal or, in the case of shares
on any Branch Register, under the Seal, a Share Seal or the Official Seal of the Company
for use in the place in which the Branch Register is kept.
	 
	 	(b)	 	Certificates issued with a
printed facsimile of the Seal, the Official Seal or a Share Seal shall be deemed to have
been duly issued under the Seal or the Official Seal or a Share Seal (as the case may be).
	 
	 	(c)	 	Subject to paragraph (d) of this Rule, each certificate for shares shall bear the
autographic signatures of one Director and of the Secretary or some other person appointed
by the Board for that purpose, provided that in the case of a certificate issued under an
Official Seal the certificate may alternatively bear the autographic signature of at least
one person appointed by the Board for that purpose.
	 
	 	(d)	 	Notwithstanding anything contained in this Rule, the Board may resolve either
generally or in a particular case or cases that any signature need not be autographic
but may be affixed by some mechanical means specified in the resolution.

	21.	 	Contents of certificates
	 
	 	 	Where the Company is required by the Corporations Act or the Listing Rules to issue
certificates for shares, every share certificate shall be in the form and state those
matters which the Board may from time to time determine.
	 
	22.	 	Entitlement to certificates
	 
	 	 	Subject to paragraph (e) of Rule 14, where the Company is required by the Corporations Act
or the Listing Rules to issue certificates for shares, every member shall be entitled,
without payment, to one certificate for the shares registered in that member’s name or to
several certificates in reasonable denominations, each for a part of the shares.
	 
	23.	 	Delivery of certificates
	 
	 	 	The Company may send any certificate to a member by prepaid post addressed to the member
at that member’s registered address or as is otherwise directed by the member, and a
statement signed by the Secretary or another officer of the Company appointed by the Board
as to the due posting of the certificate shall be conclusive evidence of delivery.
	 
	24.	 	Renewal of certificates
	 
	 	 	Where the Company is required by the Corporations Act or the Listing Rules to issue
certificates for shares:

Page 24

 

	 	(a)	 	and a certificate is worn out or defaced, upon production of the certificate the Board
may order it to be cancelled and may issue a new certificate;
	 
	 	(b)	 	and a certificate is
lost, stolen or destroyed, upon the giving of any indemnity and any evidence that the
certificate has been lost, stolen or destroyed which the Board may require and upon the
payment of any fee the Board may from time to time determine, a new certificate may be
issued in lieu of the lost, stolen or destroyed certificate. A certificate issued to
replace a certificate which has been lost, stolen or destroyed shall be endorsed as having
been issued in replacement for a lost, stolen or destroyed certificate. Where a certificate
is treated under the Corporations Act as though it were destroyed, the certificate will be treated
as though it were destroyed for the purposes of these Rules.

	25.	 	Computerised share transfer system
	 
	 	 	If the Company participates, or to enable the Company to participate, in any computerised
or electronic share transfer system introduced by or acceptable to Australian Stock
Exchange Limited, the Board may:

	 	(a)	 	subject to the Corporations Act, the Listing Rules and
the SCH business rules:

	 	(i)	 	provide that shares may be held in certificated or
uncertificated form and make any provision it thinks fit, including for the issue or
cancellation of certificates, to enable shareholders to hold shares in uncertificated form
and to convert between certificated and uncertificated holdings;
	 
	 	(ii)	 	provide that some or
all members shall not receive or shall not be entitled to receive a share certificate in
respect of some or all of the shares which the member holds in the Company;
	 
	 	(iii)	 	accept
any instrument of transfer or transfer document in accordance with the requirements of the
share transfer system; and

	 	(b)	 	notwithstanding any other provision in these Rules, do all
things necessary, required or authorised by the Corporations Act, the Listing Rules or the
SCH business rules in connection with the share transfer system.

CALLS

	26.	 	Calls and notice of calls
	 
	 	 	Subject to the terms upon which any shares may have been issued, the Board may, from time
to time, makes calls as it thinks fit upon the members in respect of all moneys unpaid on
their shares. Each member shall be liable to pay the amount of each call in the manner
specified and at the time and place appointed by the Board. Calls may be made payable by
instalments.
	 
	27.	 	When a call is made
	 
	 	 	A call shall be deemed to have been made at the time when the resolution of the Board
authorising the call was passed. Subject to the Listing Rules, the call may be revoked at
the discretion of the Board at any time prior to the date on which payment in respect of
any call is due.

Page 25

 

	28.	 	Interest on the late payment of calls
	 
	 	 	If any sum (or part of any sum) payable in respect of a call is not paid on or before the
date appointed for payment, the member from whom the sum is due shall pay interest on the
unpaid amount from the due date to the date of payment at the rate the Board from time to
time determines. The Board may waive the whole or part of any interest paid or payable
under this Rule.
	 
	29.	 	Instalments
	 
	 	 	If, by the terms of an issue of shares, any amount is payable in respect of any shares by
instalments, every instalment shall be payable as if it were a call duly made by the Board
of which due notice had been given, and all provisions of these Rules with respect to the
payment of calls and of interest or to the forfeiture of shares for non-payment of calls or
with respect to liens or charges shall apply to the instalment and to the shares in respect
of which it is payable.
	 
	30.	 	Payment in advance of calls
	 
	 	 	The Board may, if it thinks fit, receive from any member all or any part of the moneys
unpaid on all or any of the shares held by that member beyond the sums actually called up
and then due and payable either as a loan repayable or as a payment in advance of calls. If
it so elects the Company may pay interest on the moneys advanced at the rate and on the
terms agreed by the Board and the member paying the sum in advance.
	 
	31.	 	Non-receipt of notice of call
	 
	 	 	The non-receipt of a notice of any call by, or the accidental omission to give notice of
any call to, any member shall not invalidate the call.

TRANSFER AND TRANSMISSION OF SECURITIES

	32.	 	Form of transfer
	 
	 	 	No transfer of any shares rights to shares or options to acquire shares shall be registered
unless:

	 	(a)	 	a proper instrument of transfer, in writing in the usual or common form or in
any form the Board may from time to time prescribe or in a particular case accept, duly
stamped (if necessary), is delivered to the Company;
	 
	 	(b)	 	the transfer is a proper SCH
transfer, which is to be in the form required or permitted by the Corporations Act or the
SCH business rules; or
	 
	 	(c)	 	the transfer has been effected by any other electronic system
established or recognised by the Listing Rules in which the Company participates in
accordance with the rules of that system.

	33.	 	Effecting a transfer
	 
	 	 	If required by the Corporations Act, the Listing Rules or the Board, an instrument of
transfer shall be signed by or on behalf of the transferor and the transferee. Except in
the case of a proper SCH transfer, the transferor shall be deemed to remain the holder of
the securities transferred until the name of the transferee is entered in the Register. A
proper SCH

Page 26

 

	 	 	transfer is taken to be recorded in the appropriate register, and the name of the
transferee to be registered as the holder of the securities comprised in the proper SCH transfer,
at the time provided for in the SCH business rules.
	 
	34.	 	Instrument of transfer and certificate to be left at Office or Branch Office
	 
	 	 	Every instrument of transfer shall be left for registration at the Office (or in the case
of shares on a Branch Register, at the Office or the relevant Branch Office) or any other
place the Board determines from time to time. The instrument of transfer shall be
accompanied by the certificate (if any) for the securities to be transferred and any other
evidence which the Board may require to prove the title of the transferor, the transferor’s
right to transfer the securities, due execution of the transfer or due compliance with the
provisions of any law relating to stamp duty. The Board may waive the production of the
certificate (if any) in any case which it considers appropriate. The preceding requirements
of this Rule do not apply in respect of a proper SCH transfer.
	 
	35.	 	Board may refuse to register

	 	(a)	 	Subject to the Corporations Act, the Listing Rules and the SCH business rules, the
Board may refuse to register any transfer of securities:

	 	(i)	 	if the Company has a lien on
the securities in accordance with the Listing Rules;
	 
	 	(ii)	 	where it is permitted to do so by
the Listing Rules;
	 
	 	(iii)	 	where it is required to do so in accordance with a law related to
stamp duty; or
	 
	 	(iv)	 	where it is required to do so pursuant to a court order; or
	 
	 	(v)	 	if the
registration of the transfer would result in a contravention of, or failure to observe the
provisions of, any applicable law or the Listing Rules.

	 	 	Notice of refusal of transfer

	 	(b)	 	Notwithstanding the preceding paragraph, the Board may not refuse to register any
proper SCH transfer except as permitted by the Corporations Act, the Listing Rules or the
SCH business rules. Subject to the Corporations Act and the Listing Rules, the decision of
the Board relating to the registration of a transfer is absolute. If the Board refuses to
register a transfer, the Board shall give the lodging party written notice of the refusal
and the precise reasons for the refusal within the maximum period permitted by the Listing
Rules. Failure to give notice of refusal to
register any transfer as may be required under the Corporations Act or the Listing Rules
does not invalidate the decision of the Board.

Page 27

 

	 	(c)	 	The Board shall refuse to register any transfer of:

	 	(i)	 	the Special Voting Share unless the transfer is to a new RTP Shareholder SVC in
accordance with the terms of the Rio Tinto plc Shareholder Voting Agreement; or
	 
	 	(ii)	 	the Equalisation Share unless the transfer is to a member of the Rio Tinto plc
Group or a trustee for the benefit of a member or members of the Rio Tinto plc
Group.

	 	(d)	 	The decision of the Board relating to the registration of such a transfer shall be
absolute.

	36.	 	Company to retain instrument of transfer

Every instrument of transfer which is registered shall, for any period determined by the
Board, be retained by the Company after which, the Company may destroy it, provided that
any instrument of transfer which the Board refuses to register shall (except in the case of
fraud) be returned on demand to the person depositing it or to the transferee provided the
demand is made within twelve calendar months after the giving of notice by the Company of
its refusal to register the instrument of transfer. The preceding requirements of this Rule
do not apply in respect of a proper SCH transfer.

	37.	 	Closing Register and Branch Register

Subject to the Corporations Act, the Listing Rules and the SCH business rules, the transfer
books and the Register and each Branch Register may be closed during such time as the Board
thinks fit and the Board may specify a time by reference to which the entitlement of
persons to vote at any general meeting of the Company is to be determined.

	38.	 	Cancellation of old and issue of new certificate

Subject to Rule 34, and to the Corporations Act, the Listing Rules and the SCH business
rules, on every application to register the transfer of any shares or to register any
person as a member in respect of any shares transmitted to that person by operation of law
or otherwise, the certificate (if any) specifying the shares in respect of which
registration is required shall be delivered up to the Company for cancellation and upon
registration the certificate shall be cancelled and if the Company is required by the
Corporations Act, the Listing Rules or the SCH business rules to issue certificates for shares a new certificate specifying the shares transferred or transmitted shall be issued
and sent to the transferee or transmittee. If the registration of any transfer is required
in respect of some only of the shares specified in the certificate (if any) delivered up to
the Company and if the Company is required by the Corporations Act, the Listing Rules or
the SCH business rules to issue certificates for shares a new certificate specifying the
remaining untransferred shares shall be issued and sent to the transferor.

	39.	 	Transmission upon death

Subject to the Corporations Act, the Listing Rules and the SCH business rules, the trustee,
executor or administrator of a deceased member (who is not one of several joint holders)
shall be the only person recognised by the Company as having any title to the shares
registered in the name of the deceased member, provided that if the member, having sold

Page 28

 

some or all of those shares, has delivered a signed transfer of the shares sold to the
transferee or to a member of a stock exchange acting in connection with that sale, and the transfer
is not registered before the death of the member, the Board may, subject to compliance by the
transferee with these Rules, register the transfer notwithstanding that the Company has notice of
the member’s death.

	40.	 	Transmission by operation of law

Subject to the Corporations Act, the Listing Rules and the SCH business rules, a person to
whom the right to any shares has devolved by will or by operation of law, upon producing
the certificate for shares (if any) and any other evidence the Board may require of title
or
that the person sustains the character in respect of which the person proposes to act under
this Rule, may be registered as a member in respect of the shares or may (subject to the
provisions in these Rules relating to transfers) transfer the shares.

	41.	 	Board may refuse registration of transmissions

The Board shall have the same right to refuse to register a person entitled by transmission
to any shares or the person’s nominee as if the person or the person’s nominee were the
transferee named in an ordinary transfer presented for registration.

FORFEITURE AND LIEN 

	42.	 	Notice requiring payment of sums payable

If any member fails to pay any sum payable on or in respect of any shares, either for
allotment money, calls or instalments, on or before the day appointed for payment, the
Board may, at any time after the day specified for payment whilst any part of the sum
remains unpaid, serve a notice on the member requiring that member to pay the sum or so
much of the sum as remains unpaid together with interest accrued and all expenses incurred
by the Company by reason of the non-payment.

	43.	 	Content of Notice

The notice shall name a day on or before which the sum, interest and expenses (if any) are
to be paid and the place or places where payment is to be made. The notice shall also state
that, in the event of non-payment at or before the time and at the place appointed, the shares in respect of which the sum is payable will be liable to be forfeited, and such
other information as required by the Corporations Act, the Listing Rules and SCH business
rules.

	44.	 	Forfeiture on non-compliance with notice

If there is non-compliance with the requirements of any notice given pursuant to Rule 42,
any shares in respect of which notice has been given may, at any time after the day
specified in the notice for payment whilst any part of allotment moneys, calls,
instalments, interest and expenses (if any) remains unpaid, be forfeited by a resolution of
the Board to that effect. The forfeiture shall include all dividends, interest and other
moneys payable by the Company in respect of the forfeited shares and not actually paid
before the forfeiture.

	45.	 	Notice of forfeiture

When any share is forfeited, notice of the resolution of the Board shall be given to
the member in whose name it stood immediately prior to the forfeiture, and an entry of
the

Page 29

 

forfeiture and the date of forfeiture shall be made in the Register or Branch Register as the case
may be. Failure to give notice or make the entry as required by this Rule shall not invalidate the
forfeiture.

	46.	 	Disposal of forfeited shares

Any forfeited share shall be deemed to be the property of the Company and the Board may
sell, re-allot or otherwise dispose of or deal with the share in any manner it thinks fit
and, in the case of re-allotment, with or without any money paid on the share by any former
holder being credited as paid up.

	47.	 	Annulment of forfeiture

The Board may, at any time before any forfeited share is sold, re-allotted or otherwise
disposed of, annul the forfeiture of the share upon any condition it thinks fit.

	48.	 	Liability notwithstanding forfeiture

Any member whose shares have been forfeited shall, notwithstanding the forfeiture, be
liable to pay and shall forthwith pay to the Company all sums of money owing upon or in
respect of the forfeited shares at the time of forfeiture, together with interest from that
time until payment at the rate the Board from time to time determines and expenses. The
Board may enforce the payment or waive the whole or part of any sum paid or payable under
this Rule as it thinks fit.

	49.	 	Company’s lien or charge

The Company shall have a first and paramount lien or charge for unpaid calls, instalments
and any amounts the Company is called upon by law to pay in respect of the shares of a
member upon shares registered in the name of the member or joint members in respect of
which the calls or instalments are due and unpaid (whether presently payable or not) or in
respect of which the amounts are paid and upon the proceeds of sale of the shares.

The lien
or charge shall extend to all dividends and bonuses from time to time declared in respect
of the shares; provided that if the Company registers a transfer of any shares upon which
it has a lien or charge without giving the transferee notice of its claim, the shares shall
be freed and discharged from the lien or charge of the Company. The Company may do all
things necessary or appropriate under the SCH business rules to protect or enforce any lien
or charge.

	50.	 	Sale of shares to enforce lien

	 	(a)	 	Subject to paragraph (b), for the purpose of enforcing a lien or charge, the Board may
sell the shares which are subject to the lien or charge in any manner it thinks fit, but no
sale shall be made:

	 	(i)	 	until notice in writing of the intention to sell has been served on
the member in whose name the shares are registered or the member’s representatives; and
	 
	 	(ii)	 	default has been made in payment of the part of the amount in respect of which the
lien exists as is presently payable for fourteen days after the giving of notice.

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	 	(b)	 	In respect of any shares which are CHESS approved securities, for the purpose of
enforcing a lien or charge, the Board may sell the shares which are subject to the lien or
charge in accordance with the SCH business rules.

	51.	 	Title of shares forfeited or sold to enforce lien

	 	(a)	 	In the case of a sale or a re-allotment of forfeited shares or of the sale of shares to
enforce a lien or charge, an entry in the minute book of the Board that the shares have
been forfeited, sold or re-allotted in accordance with these Rules shall be sufficient
evidence of that fact as against all persons entitled to the shares immediately before the
forfeiture, sale or re-allotment of the shares. The Company may receive the purchase money
or consideration (if any) given for the shares on any sale or re-allotment.

	 	(b)	 	In the case of re-allotment, a certificate signed by a Director or the Secretary to the
effect that the shares have been forfeited and the receipt of the Company for the price of
the shares shall constitute a good title to them.
	 
	 	(c)	 	In the case of a sale, the Company may appoint a person to execute, or may otherwise
effect, a transfer in favour of the person to whom the shares are sold. 
	 
	 	(d)	 	Upon the issue
of the receipt or the transfer being executed or otherwise effected the person to whom the shares have been re-allotted or sold shall be registered as the holder of the shares,
discharged from all calls or other money due in respect of the shares prior to the
re-allotment or purchase and the person shall not be bound to see to the regularity of the
proceedings or to the application of the purchase money or consideration; nor shall the
person’s title to the shares be affected by any irregularity or invalidity in the
proceedings relating to the forfeiture, sale or reallotment.
	 
	 	(e)	 	The net proceeds of any sale or re-allotment shall be applied first in payment of all
costs of or in relation to the enforcement of the lien or charge or the forfeiture (as the
case may be) and of the sale or re-allotment, next in satisfaction of the amount in respect
of which the lien exists as is then payable to the Company (including interest) and the
residue (if any) paid to the person registered as the holder of the shares immediately
prior to the sale or re-allotment or to the person’s executors, administrators or assigns
as the person or the person’s executors, administrators or assigns shall direct upon the
production of any evidence as to title required by the Board.
	 
	 	(f)	 	If a certificate for the shares is not produced to the Company, the Board may, where
the Company is required by the Corporations Act or the Listing Rules to issue
certificates for shares, issue a new certificate distinguishing it from the certificate
(if any) which was not produced.

INCREASE AND REDUCTION OF CAPITAL 

	52.	 	Power to alter share capital

The Company in general meeting may from time to time alter its share capital in any one or
more of the ways provided for, and in the manner prescribed, by the Corporations Act.

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	53.	 	Rights attached to subdivided shares
	 
	 	 	Whenever any shares are subdivided, the Company may by special resolution determine that as
between the holders of the shares resulting from the subdivision one or more of the shares
shall have some preference or special advantage as regards dividends, capital, voting or
otherwise as compared with the other shares.
	 
	54.	 	Board may give effect to alteration of share capital
	 
	 	 	The Board may do all acts and things required to give effect to any resolution authorising
alteration of the share capital of the Company and, without limitation, may make provision
for the issue of fractional certificates or sale of fractions of shares and distribution of
net proceeds as it thinks fit.
	 
	55.	 	New Capital subject to same provisions as original capital
	 
	 	 	Except so far as otherwise provided by the conditions of issue or by these Rules, any
capital raised by the creation and issue of new shares shall be considered part of the
original capital and shall be subject to the provisions of these Rules and the Listing
Rules.
	 
	56.	 	Power to reduce capital
	 
	 	 	Subject to Rule 7, the Company may from time to time reduce its capital (including, without
limitation, any capital redemption reserve fund or fund representing moneys paid upon the
issue of options) in any manner allowed by law and the Listing Rules.

GENERAL MEETINGS

	57.	 	Annual general meetings
	 
	 	 	General meetings of the Company may be convened and held at the times and places and in the
manner determined by the Board and in accordance with the requirements of the Corporations
Act. The general meetings before which the annual accounts of the

Company are to be laid shall be called annual general meetings.
	 
	58.	 	Notice of general meeting
	 
	 	 	Notice of a general meeting may be given by the Board in the form and in the manner the
Board thinks fit.
	 
	59.	 	Omission to give and non-receipt of notice
	 
	 	 	The non-receipt of a notice of any general meeting by, or the accidental omission to give
notice to, any person entitled to notice shall not invalidate any resolution passed at
that meeting.

PROCEEDINGS OF MEETINGS

	60.	 	Business of general meeting
	 
	 	 	The business of an annual general meeting shall be to receive and consider the accounts and
reports required by the Corporations Act to be laid before each annual general meeting, to
elect Directors in the place of those retiring under these Rules, when relevant to appoint
an Auditor, and to transact any other business which, under these Rules, is required to be
transacted at any annual general meeting. All other business transacted at

Page 32

 

	 	 	an annual general meeting and all business transacted at other general meetings shall be
deemed special. The Auditor shall be entitled to attend and be heard on any part of the business of
a meeting which concerns the Auditor.
	 
	61.	 	Quorum
	 
	 	 	The quorum for a general meeting shall be two members present. No business shall be
transacted at any general meeting (other than an adjourned meeting under Rule 62) except
the election of a chairman and the adjournment of the meeting unless the requisite quorum
is present at the commencement of business.
	 
	62.	 	Adjournment in absence of quorum
	 
	 	 	If, within 5 minutes from the time appointed for a general meeting (or such longer interval
as the chairman of the meeting may think fit to allow), a quorum is not present, or if
during the meeting a quorum ceases to be present, the meeting, if convened on the
requisition of members, shall be dissolved. In any other case it shall stand adjourned to
such other day and such time and place as may have been specified for that purpose in the
notice convening the meeting or (if none was specified) as the chairman of the meeting may
determine. If at such adjourned meeting a quorum is not present within 5 minutes from the
time appointed for holding the meeting, the members present in person or by proxy shall be
a quorum.
	 
	63.	 	Chairman

	 	(a)	 	The person entitled to take the chair at any general meeting shall be the person who
immediately before the general meeting is the Chairman of the Board or failing that person,
a Deputy Chairman.
	 
	 	(b)	 	If there is no such Chairman or Deputy Chairman, or if at any meeting neither is
present within 5 minutes after the time appointed for holding the meeting and willing to
act, the Directors present shall choose one of their number to be chairman of the meeting.
If no Director is present or if all Directors present decline to take the chair, the
members present and entitled to vote shall choose one of their number to be chairman of the
meeting.

	64.	 	Acting Chairman
	 
	 	 	If during any general meeting the chairman appointed pursuant to Rule 63 is unwilling to
act as chairman for any part of the proceedings, the chairman may withdraw as chairman
during the relevant part of the proceedings and may nominate any person who immediately
before the general meeting was a Director or who has been nominated for election as a
Director at the meeting to be Acting Chairman of the meeting during the relevant part of
the proceedings. Upon the conclusion of the relevant part of the proceedings the Acting
Chairman shall withdraw and the chairman shall resume acting as chairman of the meeting.
	 
	65.	 	General conduct of meeting
	 
	 	 	The chairman of any general meeting shall be responsible for the general conduct of
meetings of the Company and for the procedures to be adopted at those meetings. Except as
otherwise required by the Corporations Act or by these Rules, the chairman of any

Page 33

 

	 	 	general meeting may at any time the chairman considers it necessary or desirable for the
proper and orderly conduct of the meeting demand the cessation of debate or discussion on any
business, question, motion or resolution being considered by the meeting and require the business,
question, motion or resolution to be put to a vote of the members present. The chairman may require
the adoption of any procedures which are in the chairman’s opinion necessary or desirable for the
proper and orderly casting or recording of votes at any general meeting of the Company, whether on
a show of hands or on a poll.
	 
	66.	 	Amendments to resolutions

	 	(a)	 	If an amendment is proposed to any resolution under consideration but is, in good
faith, ruled out of order by the chairman of the meeting, the proceedings on the
substantive resolution shall be not be invalidated by any error in such ruling. In the case
of a resolution duly proposed as a special resolution, no amendment to that resolution
(other than a mere clerical amendment to correct a patent error) may be considered or voted
upon.
	 
	 	(b)	 	In the case of any resolution duly proposed as an ordinary resolution, no amendment
thereto (other than a mere clerical amendment to correct a patent error or an amendment to
conform such resolution to a resolution duly proposed at the nearly contemporaneous general
meeting of Rio Tinto plc) may be considered or voted upon unless written notice (in a
physical document) of the proposed amendment is received by the Company at least 48 hours
prior to the time appointed for holding the relevant meeting or adjourned meeting or (in
the absence of any such notice) the chairman of the meeting in the chairman’s absolute
discretion rules that the amendment shall be considered.

	67.	 	Adjournment
	 
	 	 	The Chairman of a general meeting or of an adjourned meeting may at any time during the
course of the meeting adjourn from time to time and place to place the meeting or any
business, motion, question or resolution being considered or remaining to be considered by
the meeting or any debate or discussion and may adjourn any business, motion, question,
resolution, debate or discussion either to a later time at the same meeting or to an
adjourned meeting. If the Chairman exercises a right of adjournment of a meeting pursuant
to this Rule, the Chairman shall have the sole discretion to decide whether to seek the
approval of the members present to the adjournment and, unless the Chairman exercises that
discretion, no vote shall be taken by the members present in respect of the adjournment. No
business shall be transacted at any adjourned meeting other than the business which might
properly have been transacted at the meeting from which the adjournment took place. Where a
meeting is adjourned sine die, the time and place for the adjourned meeting shall be fixed
by the Directors.
	 
	68.	 	Voting
	 
	 	 	Every question submitted to a general meeting shall be decided in the first instance by a
show of hands of the members present and entitled to vote unless prior to that time a poll
is properly demanded or required pursuant to Rule 70. In the case of an equality of votes,
the Chairman shall, both on a show of hands and at a poll, have a casting vote in addition

Page 34

 

	 	 	to the vote or votes to which the Chairman may be entitled as a member or as a proxy, attorney or
duly appointed representative of a member.
	 
	69.	 	Declaration of vote on a show of hands
	 
	 	 	At any meeting, unless a poll is demanded, a declaration by the Chairman that a resolution
has been passed or lost, having regard to the majority required, and an entry to that
effect in the book to be kept of the proceedings of the Company, signed by the Chairman of
that or the next succeeding meeting, shall be conclusive evidence of the fact, without
proof of the number or proportion of the votes recorded in favour of or against the
resolution.
	 
	70.	 	Demand for poll
	 
	 	 	Subject to Rule 71 at any general meeting, a resolution (other than a procedural
resolution) put to the vote of the meeting on which the holder of the Special Voting Share
is entitled to vote shall be decided on a poll. A poll may be demanded by:

	 	(i)	 	the chairman of the meeting;
	 
	 	(ii)	 	shareholders in accordance with the Corporations Act; or
	 
	 	(iii)	 	the holder of the Special Voting Share.

	71.	 	Taking a poll

	 	(a)	 	A poll on a resolution on which the holder of the Special Voting Share is entitled to
vote shall be taken either immediately or at such subsequent time (not being more than 30
days from the date of the meeting) and place as the Chairman may direct and may remain open
for so long as the Chairman may determine. Any poll may close at different times for
different classes of shareholder or for different shareholders of the same class entitled
to vote on the relevant resolution.
	 
	 	(b)	 	A poll validly demanded on the choice of a Chairman or on a question of adjournment
shall be taken forthwith. A poll demanded on any other question shall be taken either
immediately or at such subsequent time (not being more than 30 days from the date of the
meeting) and place as the Chairman may direct. No notice need be given of a poll not taken
immediately. The demand for a poll or requirement that a poll be taken shall not prevent
the continuance of the meeting for the transaction of any business other than the business
on which the poll has been demanded, or is required.
	 
	 	(c)	 	On a question of adjournment, a poll may only be demanded by the chairman of the
meeting.
	 
	 	(d)	 	A demand for a poll may, before the poll is taken, be withdrawn but only with the
consent of the Chairman of the meeting. If a demand for a poll is so withdrawn:-

	 	(i)	 	before the result of a show of hands is declared, the meeting shall continue as
if the demand was not made; or

	 
	 	(ii)	 	after the result of a show of hands is
declared, the demand shall not be taken to have invalidated the result of that show
of hands.

Page 35

 

	 	(e)	 	In the case of any dispute as to the admission or rejection of a vote, the Chairman
shall determine the dispute and the Chairman’s determination made in good faith shall be
final and conclusive.
	 
	 	(f)	 	On a poll, a person entitled to more than one vote need not use all that person’s
votes or cast all the votes that person has or uses in the same way.

	72.	 	Continuance of business after demand for poll
	 
	 	 	A demand for a poll or requirement that a poll be taken shall not prevent the continuance
of a meeting for the transaction of any business other than the question on which a poll
has been demanded or is required.
	 
	73.	 	Notice of adjournment
	 
	 	 	When a meeting is adjourned for 30 days or more or sine die, not less than seven days’
notice of the adjourned meeting shall be given in like manner as in the case of the
original meeting.

VOTES OF MEMBERS

	74.	 	Voting rights of members

	 	(a)	(i)	 	Subject to the Listing Rules and provisions of these Rules with regard to any
special rights or restrictions as to voting attached by or in accordance with these Rules
to any class of shares, and subject to Rules 14 and 82, on a show of hands every member who
is entitled to vote and is present in person shall have one vote and on a poll every member
who is present in person or by proxy shall have one vote for every Ordinary Share of the
Company of which that person is the holder and the Specified Number (as defined in
paragraph (b) or (c) below) of votes for the Special Voting Share of which that person is
the holder.

	 	(ii)	 	The Equalisation Share does not entitle its holder to attend or vote at any
general meeting.

	 	(b)	 	The holder of the Special Voting Share shall be entitled to attend at any general
meeting and, subject to the provisions below, to cast on a poll the Specified Number of
votes (some of which may be cast for and others against any resolution in such numbers as
the holder may determine). The Specified Number of votes in relation to a resolution of the
Company on a Joint Decision shall be the total number of votes attaching to Publicly-held
Rio Tinto plc Voting Shares which were cast on the poll on the equivalent resolution at the
nearly contemporaneous general meeting of Rio Tinto plc (other than those cast by or on
behalf of any Excluded Rio Tinto plc Holder or by any person on whom a notice pursuant to
Rule 145(D) has been served and not withdrawn or complied with in accordance with these
Rules) divided by the Equalisation Fraction, minus the number of votes attached to the
Ordinary Shares which are not Publicly-held Rio Tinto Limited Ordinary Shares and which are
validly cast in accordance with the Rio Tinto plc Shareholder Voting Agreement.

Page 36

 

	 	(c)	 	The Specified Number of votes which may be cast in relation to a resolution of the
Company which is not a Joint Decision shall be zero except that:

	 	(i)	 	on any resolution to amend, remove or otherwise alter any Rio Tinto Limited Entrenched Provision, any
Entrenching Provision or on any resolution to amend, remove or otherwise alter the effect
of any provision in the Memorandum or these Rules which the Board and the Board of Rio
Tinto plc agree should be treated as a Class Rights Action, the Specified Number of votes
shall be equal to 34% (rounded up to the next highest whole number) of the aggregate number
of votes attaching to all other classes of issued shares in the Company which could be cast on such resolution, and such
votes (if cast) may only be cast against such resolution; and
	 
	 	(ii)	 	on any procedural resolution put to a general meeting at which a Joint Decision Matter is to be considered,
the Specified Number of votes which may be cast shall be the maximum number of votes
attached to the Publicly-held Rio Tinto plc Voting Shares (excluding any Publicly-held Rio
Tinto plc Voting Shares which are held by or on behalf of any Excluded Rio Tinto plc Holder
or by or on behalf of any person on whom a notice has been served pursuant to Rule 145(D)
and not withdrawn or complied with in accordance with these Rules which was cast on a
resolution on a Joint Decision Matter at the nearly contemporaneous general meeting of Rio
Tinto plc (or, if the nearly contemporaneous general meeting of Rio Tinto plc has not been
held and such votes counted by the beginning of the relevant general meeting of the
Company, the maximum number of such votes as are authorised to be so cast upon proxies
lodged with Rio Tinto plc) by such time as the Chairman may determine divided by the
Equalisation Fraction and rounded up to the nearest whole number, minus the number of votes
attached to the Ordinary Shares which are not Publicly-held Rio Tinto Limited Ordinary
Shares and which are validly cast in accordance with the Rio Tinto plc Shareholder Voting
Agreement.

	 	(d)	 	The Special Voting Share shall not entitle its holder to vote on any show of
hands.

	75.	 	Voting rights of personal representatives, etc.
	 
	 	 	Any person entitled under Rules 39 or 40 to transfer any shares may vote at any general
meeting in the same manner as if the person were the registered holder of the shares;
provided that at least twenty-four hours before the time of holding the meeting at which
the person proposes to vote the person has satisfied the Board of the person’s right to
transfer the shares, unless the Board has previously admitted the person’s right to vote at
the meeting in respect of the shares.
	 
	76.	 	How votes may be given
	 
	 	 	Votes at a general meeting may be given personally or by representative, proxy or
attorney, as provided in these Rules.

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	77.	 	Appointment of proxies

	 	(a)	 	Any member may appoint not more than two proxies to vote at a general meeting on that
member’s behalf and may direct the proxy or proxies to vote either for or against each or
any resolution.
	 
	 	(b)	 	A proxy need not be a member of the Company.
	 
	 	(c)	 	Where a member appoints two proxies, the appointment shall be of no effect unless each
proxy is appointed to represent a specified proportion of the member’s voting rights.
	 
	 	(d)	 	Except in relation to a proxy deposited by the holder of the Special Voting Share, the
instrument appointing a proxy (and the power of attorney, if any, under which it is signed
or proof of the power of attorney to the satisfaction of the Board) shall, as regards
shares on the Register, be deposited duly stamped (if necessary) at the Office or any other
place the Board may determine or lodged by any electronic means authorised by the Board and
permitted by the Corporations Act and, as regards shares on a Branch Register, be deposited
duly stamped (if necessary) at the Office or Branch Office or any other place the Board may
determine or lodged by any electronic means authorised by the Board and permitted by the
Corporations Act, not later than forty-eight hours (or such lesser period as the Directors
may determine and stipulate in the notice of meeting) before the poll at which the person
named in the instrument proposes to vote.
	 
	 	(e)	 	The Directors may determine and stipulate that the latest time by which a proxy may be
validly deposited differs in relation to holders of the same class of share.
	 
	 	(f)	 	No instrument appointing a proxy shall, except as provided in this Rule, be valid after the
expiration of twelve months after the date of its execution.
	 
	 	(g)	 	Any member who is or who intends to be absent or resident abroad may deposit at the
Office an instrument duly stamped (if necessary) appointing a proxy and that appointment
shall be valid for all meetings during the member’s absence or residence abroad and until
revocation.
	 
	 	(h)	 	A proxy received from the holder of the Special Voting Share will be valid if it is
received before the close of the poll to which it relates.
	 
	 	(i)	 	An instrument of proxy relating to more than one meeting (including any adjournment
thereof) having once been so delivered for the purpose of any meeting shall not require
again to be delivered for the purposes of any subsequent meeting to which it relates.
	 
	 	(j)	 	When two or more valid but differing instruments of proxy are executed in respect of
the same share for use at the same meeting, the one which is last executed shall be treated
as replacing and revoking the others as regards that share. If the
Company is unable to determine which was last executed none of them shall be
treated as valid in respect of that share.

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	78.	 	Form and execution of instrument of proxy
	 
	 	 	An instrument appointing a proxy shall be in writing under the hand of the appointor or the
attorney of the appointor or, if the appointor is a corporation, under its common seal or
under the hand of a duly authorised officer or may be signed by any method authorised by
the Board and permitted by the Corporations Act and may be in the usual or common form or
in such other form as the Board may from time to time prescribe or accept. The instrument
of proxy shall be deemed to include the right to demand or join in demanding a poll and
shall (except to the extent to which the proxy is specially directed to vote for or against
any proposal) include power to the proxy to act generally at the meeting for the person
giving the proxy. An instrument appointing a proxy shall, unless the contrary is stated, be
valid for any adjournment of the meeting as well as for the meeting to which it relates and
need not be witnessed.
	 
	79.	 	Board to issue forms of proxy
	 
	 	 	The Board shall, at the cost of the Company, issue with every notice of general meeting of
members or any class of members forms of proxy for use by the members. Each form shall
leave blank the name of the first proxy to be appointed but may include the names of any of
the Directors or of any other persons as suggested proxies. The forms may be worded so that
a proxy may be directed to vote either for or against each or any of the resolutions to be
proposed.
	 
	80.	 	Attorneys of members
	 
	 	 	Any member may, by duly executed power of attorney, appoint an attorney to act on that
member’s behalf at all or certain specified meetings of the Company. Before the attorney is
entitled to act under the power of attorney, the power of attorney or proof of the power of
attorney to the satisfaction of the Board shall, as regards shares on the Register, be
produced for inspection at the Office or such other place as the Board may determine from
time to time and, as regards shares on a Branch Register, be produced for inspection at the
Office or Branch Office or such other place as the Board may determine from time to time
together, in each case, with evidence of the
due execution of the power of attorney as required by the Board. The attorney may be
authorised to appoint a proxy for the member granting the power of attorney.
	 
	81.	 	Validity of vote
	 
	 	 	A vote given in accordance with the terms of an instrument of proxy or power of attorney
shall be valid notwithstanding the previous death or unsoundness of mind of the principal
or revocation of the instrument of proxy or power of attorney or transfer of the shares in
respect of which the vote is given, provided no notice in writing of the death, unsoundness
of mind, revocation or transfer has been received at the Office before the meeting. A proxy
shall not be revoked by the principal attending and taking part in the meeting, unless the
principal actually votes at the meeting on the resolution for which the proxy is proposed
to be used.
	 
	82.	 	Rights of member indebted to Company in respect of other shares
	 
	 	 	Subject to any restrictions from time to time affecting the right of any member or class
of members to attend any meeting, a member holding a share or shares in respect of which

Page 39

 

	 	 	for the time being no moneys are due and payable to the Company shall be entitled to be
present at any general meeting and to vote and be reckoned in a quorum notwithstanding that moneys
are then due and payable to the Company by that member in respect of other shares held by that
member; provided that, upon a poll, a member shall only be entitled to vote in respect of shares
held by the member upon which, at the time when the poll is taken, no moneys are due and payable to
the Company.

DIRECTORS

	83.	 	Number of Directors
	 
	 	 	The number of Directors (not including Alternate Directors) shall not be less than three
nor more than the number the Board may from time to time determine. All Directors shall be
natural persons.
	 
	84.	 	Share qualification of Directors
	 
	 	 	Unless otherwise determined by the Company in general meeting, a Director shall not be
required to hold any share qualification. A Director who is not a member of the Company
shall nevertheless be entitled to attend and speak at general meetings.
	 
	85.	 	Election or appointment of additional Director
	 
	 	 	The Company may by ordinary resolution elect (and the Directors shall also have power at
any time to appoint) any person to be a Director either to fill a casual vacancy or as an
additional Director, but so that:

	 	(i)	 	the total number of Directors shall not as a result of such appointment exceed the maximum number (if any) fixed by or in accordance with these
Rules; and
	 
	 	(ii)	 	the appointment of such Director shall not take effect before such Director
has been duly appointed as a director of Rio Tinto plc.

	 	 	Any person so appointed by the Directors shall hold office only until the next annual
general meeting and shall then be eligible for election, but shall not be taken into
account in determining the number of Directors who are to retire by rotation at such
meeting.
	 
	86.	 	Continuing Directors to act in certain circumstances
	 
	 	 	If at any time the number of Directors falls below the minimum number fixed by these Rules,
the continuing Directors may, except in an emergency, only act for the purpose of
increasing the number of Directors to the minimum number or of calling a general meeting of
the Company.
	 
	87.	 	Directors who are employees of the Company
	 
	 	 	The office of a Director who is an employee of the Company or of any related corporation
shall become vacant upon that Director ceasing to be an employee of the Company or any
related corporation provided that any such person shall be eligible for reappointment or
reelection as a Director of the Company.

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	88.	 	Company Auditor may not act as Director
	 
	 	 	No person may be appointed as a Director or Alternate Director if the appointment would
result in a person who, or a firm which, is then the Auditor becoming prohibited by the
Corporations Act from acting as an Auditor of the Company.
	 
	89.	 	Remuneration of Directors
	 
	 	 	As remuneration for their services the Directors shall be paid out of the funds of the
Company a sum determined by the Board payable at the time and in the manner determined by
the Board but the aggregate remuneration paid to all the non-executive Directors in any
year together with remuneration paid to those Directors by Rio Tinto plc or by any
subsidiary of the Company or of Rio Tinto plc for their services as a non-executive
director of that entity may not exceed $2,000,000 per annum. For the purposes of this Rule,
any remuneration paid in sterling shall count towards the $2,000,000 limit as if £1 =
$2.75. The Company may in general meeting from time to time fix any other amount as the
maximum aggregate remuneration to be paid to all the non-executive Directors in any year.
The expression “remuneration” where used in this Rule does not include the remuneration
which may otherwise be payable to a Director pursuant to Rules 90, 91 or 92. Any payment
made to a Director pursuant to Rule 144 and any amount paid by the Company by way of
premium in respect of a contract insuring a Director against liability incurred by that
person as a Director of the Company or of a wholly owned subsidiary shall not constitute
remuneration for the purposes of this Rule.
	 
	90.	 	Remuneration of directors for extra services
	 
	 	 	Any Director who serves on any committee, or who devotes special attention to the business
of the Company, or who otherwise performs services which in the opinion of the Board are
outside the scope of the ordinary duties of a Director, or who at the request of the Board
engages in any journey on the business of the Company, may be paid extra remuneration as
determined by the Board.
	 
	91.	 	Retirement benefits
	 
	 	 	Any Director may be paid a retirement benefit, as determined by the Board, in accordance
with the Corporations Act. The Board is authorised to make arrangements with any Director
with respect to the payment of a retirement benefit in accordance with this Rule.
	 
	92.	 	Travelling and other expenses
	 
	 	 	Every Director shall, in addition to any other remuneration provided for in these Rules, be
entitled to be paid from Company funds all reasonable travel, accommodation and other
expenses incurred by the Director in attending meetings of the Company or of the Board or
of any Committees or while engaged on the business of the Company or in the execution of
any other duties as Director.
	 
	93.	 	Directors may contract with company

	 	(a)	 	A Director shall not be disqualified by the office of Director from contracting or
entering into any arrangement with the Company either as vendor, purchaser or otherwise
and no contract or arrangement entered into with the Company by a Director nor any
contract or arrangement entered into by or on behalf of the

Page 41

 

	 	 	 	Company in which a Director is in any way interested shall be avoided for that
reason. A Director shall not be liable to account to the Company for any profit
realised by any contract or arrangement, by reason of holding the office of
Director or of the fiduciary relationship established by the office.
	 
	 	(b)	 	Except where a Director is constrained by the Corporations Act, a Director may be
present at a meeting of the Board while a matter in which the Director has a material
personal interest is being considered and may vote in respect of that matter.
	 
	 	(c)	 	A Director who is interested in any contract or arrangement may, notwithstanding the
interest, participate in the execution of any document evidencing or otherwise connected
with the contract or arrangement.

	94.	 	Director may hold other office under the Company

	 	(a)	 	A Director may hold any other office or position under the Company (except that of
Auditor) in conjunction with the office of Director, on terms and at a remuneration in
addition to remuneration (if any) as a Director, as the Board shall approve. A Director may
be or become a director of or hold any other office or position under any corporation
promoted by the Company, or in which it may be interested, whether as a vendor or
shareholder or otherwise, and the Director shall not be accountable for any benefits
received as a Director or member of or holder of any other office or position under that
corporation. The Board may exercise the voting power conferred by the shares in any
corporation held or owned by the Company as the Board thinks fit (including the exercise of
the voting power in favour of any resolution appointing the Directors or any of the
directors of that corporation or voting or providing for the payment of remuneration to the
directors of that corporation) and a Director of the Company may vote in favour of the
exercise of those voting rights notwithstanding that the Director is, or may be about to be
appointed, a director of that other corporation and may be interested in the exercise of
those voting rights.

	95.	 	Directors may lend to the Company
	 
	 	 	Any Director may lend money to the Company at interest with or without security or may,
for a commission or profit, guarantee the repayment of any money borrowed by the Company
and underwrite or guarantee the subscription of shares or securities of the Company or of
any corporation in which the Company may be interested without being disqualified in
respect of the office of Director and without being liable to account to the Company for
the commission or profit.

ELECTION OF DIRECTORS

	 	 	Subject to Rule 85 the following provisions shall apply to all the Directors:
	 
	96.	 	Retirement of Directors:

	 	(a)	 	At each annual general meeting,

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	 	(i)	 	any Director who was elected or last re-elected a Director at or before the annual
general meeting held in the third calendar year before the current year shall retire by
rotation; and
	 
	 	(ii)	 	such further Directors (if any) shall retire by rotation as would bring
the number retiring by rotation up to one-third of the number of Directors in office at the
date of the notice of meeting (or, if their number is not a multiple of three, then the
number nearest but not greater than one-third).
	 
	 	A retiring Director who stands for
re-election shall retain office until the announcement of the result of the poll on the
resolution to reappoint that Director.

Selection of Directors to retire by rotation

	 	(b)	 	The further Directors required to retire by rotation in accordance with Rule 96(a)(ii)
shall be those of the other Directors subject to retirement by rotation who
have been longest in office since their last re-election and so that as between persons who
became or were last re-elected Directors on the same day, those to retire shall (unless they
otherwise agree among themselves) be determined by the alphabetical order of their names. A
retiring Director shall be eligible for re-election.

Who must retire:

	 	(c)	 	The length of time a Director has been in office shall be computed from the Director’s
last election or appointment. A retiring Director who was previously elected shall be
eligible for re-election. A retiring Director who was previously appointed under Rule 85 or
Rule 86 shall be eligible for election. Notwithstanding anything contained elsewhere in
these Rules, a Director shall retire from office at the conclusion of the third annual
general meeting after which the Director was elected or re-elected except that where a
Director stands for re-election, that Director shall retain office until the announcement
of the poll on the resolution to reappoint that Director.

Removal of Director whilst in office

	 	(d)	 	The Company in general meeting may at any time by resolution remove any appointed or
elected Director before the expiration of that Director’s period of office and, if desired,
elect another person by way of replacement (provided that such person is also elected as a
director of Rio Tinto plc at the same time).

Nomination of Directors:

	 	(e)	 	No person other than a Director retiring at the meeting shall, unless recommended by the
Directors for election, be eligible for election as a Director at any general meeting unless within
the period referred to in paragraph (f) of this Rule 96 there has been lodged at the Office,
notices in writing:

	 	(i)	 	signed by a member, other than the person to be proposed, duly qualified to
attend and vote at the relevant meeting of that member’s intention to propose a person for
election; and

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	 	(ii)	 	signed by the person to be proposed of that person’s willingness to be
elected as a Director of the Company and as a director of Rio Tinto plc.

	 	(f)	 	The period within which the notices referred to in paragraph (e) of this Rule 96 must
be lodged at the Office is not less than 35 Business Days nor more than 55 Business Days
(inclusive of the date on which the notice is given) before the earlier of the dates
appointed for:

	 	(i)	 	the general meeting of the Company; and
	 
	 	(ii)	 	the nearly contemporaneous
general meeting of Rio Tinto plc,

	 	 	 	provided that, if this would result in the latest date
for lodgement of the notices being later than the latest date (the “ASX Date”) on which, in
accordance with the Listing Rules, the Company must accept a nomination for election as a
director at that general meeting of the Company, the latest time for lodgement of the
notices shall be the ASX Date.
	 
	 	(g)	 	The Directors shall nominate for election as a Director at a general meeting of the
Company any person duly nominated for election at the nearly contemporaneous general
meeting of Rio Tinto plc.
	 
	 	(h)	 	The Company at the meeting at which a Director retires under any provision of these
Rules may by ordinary resolution fill the office being vacated by electing the retiring
Director or some other person eligible for election. In default the retiring Director shall be deemed to have been re-elected except in any of the following
cases:

	 	A 	 	where at such meeting it is expressly resolved not to fill such office or
a resolution for the re-election of such Director is put to the meeting and lost;
	 
	 	B 	 	where such Director has given notice in writing to the Company that such Director is unwilling to be re-elected;
	 
	 	C 	 	where the default is due to the moving of a resolution in contravention of the next following Rule;
	 
	 	D 	 	where such Director has attained the retiring age specified in section 201C of the Corporations Act;
	 
	 	E 	 	where such Director has not been, or is not deemed to have
been, re-elected as a director of Rio Tinto plc.

ALTERNATE DIRECTORS

	97.	 	Director may appoint Alternate Director
	 
	 	 	Subject to Rule 88, each Director shall have power from time to time to appoint any person
(including any other Director) approved by a majority of co-Directors to act as an
Alternate Director in the Director’s place, whether for a stated period or periods or until
the happening of a specified event or from time to time, whenever by absence or illness or
otherwise the Director is unable to attend to duties as a Director. The appointment shall
be in writing and signed by the Director and a copy of the appointment shall be given by
the appointing Director to the Company by forwarding or delivering it to the Office. The

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	 	 	appointment shall take effect immediately upon receipt of the appointment at the Office and
approval by a majority of co-Directors and upon that same person’s appointment as an alternate
director of Rio Tinto plc. The following provisions shall apply to any Alternate Director:

	 	(a)	 	the Alternate Director may be removed or suspended from office upon receipt at the Office of a
notice in writing (including, without limitation, a letter, telegram, telex, facsimile transmission
or other form of visible communication) from the Director by whom the Alternate Director was
appointed to the Company;
	 
	 	(b)	 	the Alternate Director shall be entitled to receive notice of
meetings of the Board and to attend and vote at the meetings if the Director by whom the Alternate
Director was appointed is not present;
	 
	 	(c)	 	the Alternate Director shall be entitled to exercise all
the powers (except the power to appoint an Alternate Director) and perform all the duties of a
Director, in so far as the Director by whom the Alternate Director was appointed had not exercised
or performed them;
	 
	 	(d)	 	the Alternate Director shall not be required to hold any share qualification
in the Company;
	 
	 	(e)	 	the Alternate Director shall not, unless the Board otherwise determines,
(without prejudice to the right to reimbursement for expenses pursuant to Rule 92) be entitled to
receive any remuneration as a Director from the Company, and any remuneration (not including
remuneration authorised by the Board or reimbursement for expenses) paid to the Alternate Director
by the Company shall be deducted from the remuneration of the Director by whom the Alternate
Director was appointed;
	 
	 	(f)	 	the office of the Alternate Director shall be vacated if the Director
by whom the Alternate Director was appointed vacates office or dies;
	 
	 	(g)	 	the Alternate Director
shall not be taken into account in determining the number of Directors or rotation of Directors;
and
	 
	 	(h)	 	the Alternate Director shall, while acting as a Director, be responsible to the Company for
the Alternate Director’s own acts and defaults and shall not be deemed to be the agent of the
Director by whom the Alternate Director was appointed.

VACATION OF OFFICE OF DIRECTOR

	98.	 	Vacation of office by Director
	 
	 	 	The office of a Director shall be vacated:

	 	(a)	 	if the Director becomes an insolvent under administration, suspends payment generally
to creditors or compounds with or assigns the Director’s estate for the benefit of
creditors;
	 
	 	(b)	 	if the Director becomes of unsound mind or a person whose person or estate
is liable to be dealt with in any way under the laws relating to mental health;

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	 	(c)	 	if the Director resigns office by notice in writing to the Company addressed to it at
the Office;
	 
	 	(d)	 	if the Director is removed from office pursuant to paragraph (d) of Rule
96;
	 
	 	(e)	 	if the Director is removed from office pursuant to the Corporations Act;
	 
	 	(f)	 	if the
Director ceases to be a director of Rio Tinto plc;
	 
	 	(g)	 	if Director is prohibited from being
a Director by reason of the operation of the Corporations Act; or
	 
	 	(h)	 	if without the
approval of the Board, neither the Director nor any Alternate Director appointed by that
Director is present at meetings of the Board for six consecutive months and the remaining
Directors for the time being in Australia have not within seven days of having been
personally served by the Secretary with a notice giving particulars of the absence resolved
that special leave of absence be granted.

PROCEEDINGS OF DIRECTORS

	99.	 	Procedures relating to Directors’ meetings
	 
	 	 	Subject to the provisions of these Rules, the Board may meet together for the dispatch of
business, adjourn and otherwise regulate its meetings as it thinks fit. Until otherwise
determined by the Board, three Directors shall form a quorum. It shall not be necessary to
give notice of a meeting of Directors to any Director who is for the time being neither in
Australia nor in the United Kingdom. Any Director may waive notice of any meeting and any
such waiver may be retroactive.
	 
	100.	 	Meetings by telephone or other means of communication
	 
	 	 	The Directors may meet either in person or by telephone or by other means of communication
by which all persons participating in the meeting are able to hear the entire meeting and
to be heard by all other persons attending the meeting. A meeting conducted by telephone or
other means of communication shall be deemed to be held at the place agreed upon by the
Directors attending the meeting, provided that at least one of the Directors present at the
meeting was at that place for the duration of the meeting.
	 
	101.	 	Convening of meetings
	 
	 	 	The Board may at any time and the Secretary, upon the request of a Director, shall,
convene a meeting of the Board.
	 
	102.	 	Votes at meetings
	 
	 	 	Questions arising at any meeting of the Board shall be decided by a majority of votes, and,
in the case of an equality of votes, the Chairman shall (except when only two Directors are
competent to vote on the question then at issue) have a second or casting vote.
	 
	103.	 	Chairman

	 	(a)	 	The Board may elect from their number a Chairman and a Deputy Chairman (or two or more
Deputy Chairmen) and determine the period for which each is to hold office. If no Chairman
or Deputy Chairman shall have been appointed or if at any meeting of the Directors, no
Chairman or Deputy Chairman is present within 5

Page 46

 

	 	 	 	minutes after the time appointed for holding the meeting, the Directors present may choose one of
their number to be the Chairman of the meeting.
	 
	 	(b)	 	If at any time there is more than one Deputy Chairman the right in the absence of the
Chairman to preside at a meeting of the Board or of the Company shall be determined as
between the Deputy Chairmen present (if more than one) by seniority in length of
appointment or otherwise as resolved by the Board.

	104.	 	Powers of meetings
	 
	 	 	A meeting of the Board at which a quorum is present shall be competent to exercise
all or any of the authorities, powers and discretions for the time being vested in or
exercisable by the Board generally by or under these Rules.
	 
	105.	 	Delegation of powers to Committees
	 
	 	 	The Board may, by resolution or by power of attorney or writing under the Seal, delegate
any of its powers to Committees consisting of Directors or any other person or persons as
the Board thinks fit to act either in Australia or elsewhere. Any Committee formed or
person or persons appointed to the Committee shall, in the exercise of the powers
delegated, conform to any regulations that may from time to time be imposed by the Board. A
delegate of the Board may be authorised to sub-delegate any of the powers for the time
being vested in the delegate.
	 
	106.	 	Proceedings of Committees
	 
	 	 	The meetings and proceedings of any Committee shall be governed by the provisions of these
Rules for regulating the meetings and proceedings of the Board so far as they are
applicable and are not superseded by any regulations made by the Board under Rule 105.
	 
	107.	 	Validity of acts
	 
	 	 	All acts done at any meeting of the Board or by a Committee or by any person acting as a
Director shall, notwithstanding that it is afterwards discovered that there was some defect
in the appointment of the Directors or the Committee or the person acting as a Director or
that they or any of them were disqualified, be as valid as if every person had been duly
appointed and was qualified, and continued to be a Director or a member of the Committee
(as the case may be).
	 
	108.	 	Resolution in writing
	 
	 	 	A resolution in writing of which notice has been given to all Directors and which is signed
by a majority of the Directors shall be as valid and effectual as a resolution duly passed
at a meeting of the Directors and may consist of several documents in the like form each
signed by one or more Directors. A telegram, telex, facsimile transmission or other
document produced by mechanical or electronic means and bearing a signature of a Director
printed with that Director’s authority by mechanical or electronic means shall for the
purposes of this Rule 108 be deemed to be a document in writing signed by the Director.

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	109.	 	Directors includes Alternate Directors
	 
	 	 	For the purposes of Rule 108 the references to “Directors” include any Alternate Director
for the time being present in Australia or the United Kingdom who is appointed by a
Director not for the time being present in Australia or the United Kingdom or who is unable
by reason of illness to sign the resolution in question but do not include any other
Alternate Director.

POWERS OF THE BOARD

	110.	 	General powers of the Board
	 
	 	 	The management and control of the business and affairs of the Company shall be vested in
the Board, which (in addition to the powers and authorities conferred upon them by these
Rules) may exercise all powers and do all acts and things as are within the scope of the
Memorandum and are not by these Rules or by law directed or required to be exercised or
done by the Company in general meeting.
	 
	111.	 	Powers to give effect to Sharing Agreement
	 
	 	 	The Company having entered into the Sharing Agreement and the Deed Poll Guarantee, the
Directors are authorised and directed to carry into effect the
provisions of the Sharing Agreement, the Deed Poll Guarantee and any further or other
agreements or arrangements mentioned in or contemplated by such agreements. Subject to the
Corporations Act, nothing done by any Director in good faith pursuant to such authority and
obligations shall constitute a breach of the fiduciary duties of such Director to the
Company or members of the Company. In particular, but without limitation:

	 	(i)	 	the Directors are authorised to agree to enter into a guarantee on behalf of the
Company in relation to indebtedness of any member of the Rio Tinto plc Group;
	 
	 	(ii)	 	the
Directors are authorised to provide Rio Tinto plc and any officer, employee or agent of Rio
Tinto plc with any information relating to the Company; and
	 
	 	(iii)	 	subject to the terms of
the Sharing Agreement, the Directors are authorised to do all or any of those matters
referred to in Clause 2(1)(ii) and (iii) of the Memorandum.

	112.	 	Board’s power to borrow
	 
	 	 	Without limiting the generality of Rule 110, the Board may exercise all the powers of the
Company to borrow money, to charge any property or business of the Company or all or any
of its uncalled capital and to issue debentures or give any other security for a debt,
liability or obligation of the Company or of any other person.
	 
	113.	 	Power to authorise debenture holders, etc, to make calls
	 
	 	 	Without limiting the generality of Rule 110, if any uncalled capital of the Company is
included in or charged by any debenture, mortgage or other security, the Board may, by
instrument under the Seal, authorise the person in whose favour the debenture, mortgage or
other security is executed or any other person in trust for that person to make calls on

Page 48

 

	 	 	the members in respect of that uncalled capital and to sue in the name of the Company or otherwise
for the recovery of moneys becoming due in respect of calls made and to give valid receipts for
those moneys, and that authority shall subsist during the continuance of the debenture, mortgage or
other security, notwithstanding any change in the Directors, and shall be assignable if expressed
to be.
	 
	114.	 	Management of the affairs of the Company

	 	(a)	 	The Board may from time to time provide for the management of the affairs of the
Company in the manner it thinks fit and the provisions contained in paragraphs (b), (c),
(d) and (e) of this Rule shall be without prejudice to the general powers conferred by this
paragraph.
	 
	 	Powers of attorney:
	 
	 	(b)	 	The Board may at any time by power of attorney under the Seal appoint any persons to
be attorneys of the Company for the purposes and with the powers, authorities and
discretions (not exceeding those vested in or exercisable by the Board under these Rules)
and for the period and subject to the conditions the Board thinks fit, and any appointment
may (if the Board thinks fit) be made in favour of the members or any of the members of
any Local Board, Committee or agency established or in favour of any company or of the
members, directors, nominees or managers of any company or firm or otherwise in favour of
any fluctuating body of persons whether nominated directly or indirectly by the Board.
Any power of attorney may contain provisions for the protection or convenience of
persons dealing with the attorneys as the Board thinks fit.
	 
	 	Sub-delegation:
	 
	 	(c)	 	A delegate or attorney may be authorised by the Board to sub-delegate all or any of the
powers, authorities and discretions for the time being vested in that
delegate or attorney.
	 
	 	Branch Register:
	 
	 	(d)	 	The Company may, in the exercise of the powers conferred by the Corporations Act, cause
to be kept in any place outside Victoria a Branch Register of members.
Subject to the Corporations Act, the Listing Rules and the SCH business rules, the
Board may from time to time determine which members or class of members may be
registered on any Branch Register and appoint an authority in any place in which a
Branch Register is kept to keep the Branch Register and enter and remove
particulars of shares transferred from or to the Register or any other Branch
Register and approve or reject transfers in the Branch Register, and every
authority if authorised by the Board may, in respect of transfers or other entries
proposed to be registered in the Branch Register for which the authority is
appointed, exercise all the powers of the Board in the same manner and to the same
extent and effect as if the Board was actually present and exercised those powers.

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Local boards

	 	(e)	(i)  	The Board may establish any local boards or agencies for managing any of the
affairs of the Company, either in the United Kingdom, Australia or elsewhere, and may
appoint any persons to be members of such local boards, or any managers or agents, and may
fix their remuneration.
	 
	 		(ii)  	The Board may delegate to any local board, manager or agent any of the powers,
authorities and discretions vested in the Directors, with power to sub-delegate,
and may authorise the members of any local boards, or any of them, to fill any
vacancies in that board and to act despite vacancies.
Any such appointment or delegation may be made upon such terms and subject
to such conditions as the Directors think fit.
	 
	 		(iii)  	The Board may remove any person so appointed, and may annul or vary any such
delegation, but no person dealing in good faith and without notice of any such
annulment or variation shall be affected by it.

 EXECUTIVE OFFICERS

	115.	 	Powers of executive officers

	 	(a)	 	Subject to the Corporations Act, the Directors may from time to time appoint any one or
more of their body to be the holder of any executive office (including, where considered
appropriate, the office of Chairman or Deputy Chairman) on such terms and for such period
as they may determine. Subject to the terms of any contract entered into in any particular
case, the Directors may at any time revoke or vary the terms of any such appointment.
	 
	 	(b)	 	The appointment of any Director to the office of Chairman or Deputy Chairman or Chief
Executive or Deputy Chief Executive or Managing or Joint Managing or Deputy or Assistant
Managing Director shall automatically determine if that person ceases to be a Director (but
without prejudice to any claim for damages for breach of any contract of service between
that person and the Company).
	 
	 	(c)	 	The appointment of any Director to any other executive office shall not automatically
determine if that person ceases from any cause to be a Director, unless the contract or
resolution under which that person holds office shall expressly state otherwise, in which
case that determination shall be without prejudice to any claim for damages for breach of
any contract of service between
that person and the Company.

	116.	 	Delegation to executive director
	 
	 	 	The Directors may delegate to any Director holding any executive office any of the powers
exercisable by them as Directors upon such terms and conditions and with such restrictions
as they think fit, and either collaterally with or to the exclusion of their own powers,
and may from time to time revoke, withdraw, alter or vary all or any of such powers.

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MINUTES

	117.	 	Minutes
	 
	 	 	The Board shall cause minutes to be duly entered in books provided for that purpose or
(provided reasonable precautions are taken for guarding against falsification and for
facilitating its discovery) to be duly recorded in any other manner:

	 	(a)	 	of the names of the Directors present at each meeting of the Board and of any Committees;
	 
	 	(b)	 	of all orders made by the Board and any Committees; and
	 
	 	(c)	 	of all resolutions and proceedings of general meetings of the Company and of meetings of the Board and any Committees;
	 
	 	and the minutes of
any meeting of the Board or of any Committee or of the Company, if purporting to be signed
by the chairman of the meeting or by the chairman of the next succeeding meeting, shall be
prima facie evidence of the matters stated in the minutes.

DIVIDENDS AND RESERVES

	118.	 	Declaration of dividend

	 	(a)	 	The Board may from time to time declare dividends to be paid to the members and the
Board may fix the time for payment of any dividend. No dividend shall carry interest as
against the Company. No dividend shall (unless permitted by the
Corporations Act) be payable otherwise than out of profits and a declaration by the
Board as to the amount of the profits available for dividend shall be conclusive.
	 
	 	(b)	 	The dividend declared shall (subject to the Listing Rules, Rule 118A, Rule 123(a)(iii)
and the rights of or any restrictions on the holders of the Equalisation Share and any
other shares created or raised under any special arrangements as to dividend) be payable on
all shares in proportion to the amount of capital for the time being and from time to time
paid up in respect of the shares and may be declared at a rate per annum in respect of a
specified period; provided that (for the purposes of this Rule only) no amount paid on a
share in advance of calls or the due date for the payment of any instalment shall be
treated as paid on that share. The Board may declare one dividend on all shares of any one
class or may declare at any one meeting of the Board two or more dividends so that each
dividend is declared on any shares of that class to the exclusion of any other shares but
so that the amount payable (out of the total of the amount of all dividends declared at
that meeting) on all shares of the relevant class is (subject as mentioned above) in the
proportions specified above.
	 
	 	(c)	 	Dividends shall be declared in Australian currency, but the Board may determine that
any dividend payable to some or all of the members shall be paid in a currency or
currencies other than Australian currency and for that purpose the Board may (in its
absolute discretion) at the time of declaration of the dividend stipulate a date on which
it shall determine the rate or rates at which the amount of dividend in Australian currency
shall be converted into the other currency or currencies for the

Page 51

 

	 	 	 	purpose of the payment. Payment in another currency or currencies of the amount of any
declared dividend converted pursuant to this Rule shall be deemed as between the Company and any
member to whom payment is made, and as against all other members, to be an adequate and proper
payment of the amount of the dividend.

	 	(d)	 	Provided the Directors act in good faith they shall not incur any liability to the
holders of any shares of any class for any loss they may suffer by the lawful payment, on
any other class of shares having rights ranking after or pari passu with those shares, of
any such dividend as aforesaid.

	118A.	 	Waiver of dividend

	 	(a)	 	A member may request prior to the declaration of a dividend by the Company (Relevant
Dividend) that the Relevant Dividend should not be declared and paid in respect of all or any of
the shares registered in the name of the member (Relevant Shares).
	 
	 	(b)	 	No such request shall be
effective in relation to a Relevant Dividend unless:

	 	(i)	 	the request is in writing signed by or on behalf of the member;
	 
	 	(ii)	 	the request specifies the shares to which it shall apply;
	 
	 	(iii)	 	the request is delivered to the Company and approved by the Board prior to (and not after) declaration
of the Relevant Dividend,

	 
	 	and the Board may give or withhold approval in its absolute discretion.

	 	(c)	 	Subject to paragraph (d) of this Rule 118A, if a request is effective in relation to a
Relevant Dividend then, notwithstanding any other Rule, the Relevant Dividend shall not be
declared and shall not be payable in respect of the Relevant Shares to which the request
applies, and the member shall not be entitled to have the Relevant Dividend declared and
paid on those shares, and in respect of those shares the member shall have no debt or claim
or other right or entitlement of any kind whatsoever to the Relevant Dividend against the
Company.
	 
	 	(d)	 	If prior to transfer books close for the Relevant Dividend any shares to which an
effective request applies are sold or transferred by a member to another person, or
otherwise become registered in the name of another person, the request shall cease to apply
upon the earlier of:

	 
	 	(A)	 	the Company receiving notice in writing of the sale; or 
	 
	 	(B)	 	the
other person being registered as the new holder of the shares
	 
	 	 to the intent that the
transferee of such shares shall be entitled to the declaration and payment of such Relevant
Dividend.

	119.	 	Reserve fund
	 
	 	 	The Board may create a reserve or reserves out of profits of the Company or may create any
reserve or reserves contemplated by the Sharing Agreement by setting aside, in priority to
any dividend, any sum it thinks fit for the purpose of meeting contingencies, equalising
dividends and providing a reserve for any purpose for which the profits of the

Page 52

 

	 	 	Company may be applied, and may divide any of the sums set aside into special accounts as
it thinks fit and may (subject to the Sharing Agreement) at any time resort to that reserve
for dividends or bonuses.

	120.	 	Investment of reserve funds:

	 	(a)	 	The Board may invest any sums representing the whole or any part of any reserve as a
fund in shares or securities or other investments as in its absolute discretion it thinks
fit and may from time to time deal with, vary or dispose of the whole or any part of the
investment for the benefit of the Company. Any income derived from or accretions to those
shares, securities or other investments may either be carried to the credit of the reserve
fund represented by those shares, securities or other investments or be dealt with as
profits arising from the business of the Company.
	 
	 	(b)	 	The Board shall have full power to
employ in the business of the Company the whole or part of any reserve not invested as a
fund and without being bound to keep the representative assets separate from other assets
of the Company.

	121.	 	Dividends in specie
	 
	 	 	When declaring a dividend, the Board may:

	 	(a)	 	direct payment of the dividend wholly or in part by the distribution of specific assets
or documents of title and, in particular, of fully paid up shares, debentures or debenture
stock of the Company or any other corporation. Where any
difficulty arises in regard to the distribution, the Board may settle that difficulty as it
thinks expedient and in particular may issue fractional certificates and may fix the value
for distribution of those specific assets and may determine that cash payments shall be
made to any members upon the basis of the value fixed in order to adjust the rights of all
parties and may vest any specific assets in trustees upon trusts for the persons entitled
to the dividend as the Board considers expedient; or
	 
	 	(b)	 	direct that the dividend be
payable to particular shareholders wholly or partly out of any particular fund or reserve
or out of profits derived from any particular source and to the remaining shareholders
wholly or partly out of any other particular fund or reserve or out of profits derived from
any other particular source and may make the direction notwithstanding that by doing so the
dividend will form part of the assessable income for taxation purposes of some shareholders
and will not form part of the assessable income of others; or
	 
	 	(c)	 	where the Company in
general meeting has approved the adoption of a dividend reinvestment plan, determine and
announce that each member entitled to participate in the dividend may elect to have the
payment of the dividend applied and satisfied in respect of all, or a number of shares less
than all, of the shares held by the member by the subscription for and allotment of fully
paid up shares in accordance with the dividend reinvestment plan.

	122.	 	Share Investment plans

	 	(a)	 	A general meeting of the Company may resolve to authorise the Directors to establish
and maintain a plan (including the establishment of rules) for the issue

Page 53

 

	 	 	 	and allotment of fully paid ordinary shares as an alternative to a cash dividend to be
known as the Share Investment Plan (in this Rule, a “SIP”).

	 	(b)	 	Pursuant to a SIP established under this Rule, any member may elect for a specified
period or for a period to be determined by specified notice (in either case determined by
the Directors and prescribed in the rules of the SIP) that cash dividends shall not be paid
on all or some of the Ordinary Shares held by that member designated by the member in
accordance with the rules of the SIP (in this Rule, “SIP shares”) and that the member’s
dividend entitlement and be satisfied by the allotment of shares paid up from the Company’s
share premium account.
During that period SIP shares will be entitled to participate in the SIP subject to
the rules of the SIP. The SIP and the rules of the SIP shall not be inconsistent
with these Rules and in the event of an inconsistency these Rules shall prevail.
	 
	 	(c)	 	The Directors are authorised to vary the rules of the SIP established in accordance
with paragraph (a) of this Rule at their discretion and to suspend or terminate the SIP at
their discretion. The SIP may also be suspended, terminated or varied by resolution of a
general meeting of the Company.
	 
	 	(d)	 	The Directors shall allot and issue shares in accordance with the SIP to any member who
makes it a valid election in respect of the designated shares entitled to participate in
the SIP. The Directors shall, and are authorised to, allot and issue the shares in such
manner as may be required by the rules of the SIP from time to time. However, unless and
until otherwise required by the rules of the SIP:

	 	(i)	 	the shares shall be issued directly to the members participating in the SIP as
fully paid ordinary shares for whose issue no consideration is payable to the
Company; and
	 
	 	(ii)	 	no amount shall be credited to the capital account of the Company
in connection with the issue of the shares.

	123.	 	Dividend Plans

	 	(a)	 	The Board may establish and maintain one or more dividend plans (including the
establishment of rules) pursuant to which members may elect with respect to some or all of
their shares (subject to the rules of the relevant plan):

	 	(i)	 	to reinvest either in whole or in part dividends paid or payable or which may become
payable by the Company to the member in cash by subscribing for shares in the capital of
the Company;
	 
	 	(ii)	 	to receive a dividend from the company by way of the allotment of shares
paid up from the Company’s capital account or by way of the allotment of shares issued
directly to members as fully paid ordinary shares for whose issue no consideration is
payable to the Company;
	 
	 	(iii)	 	that the dividends from the Company not be declared or paid
and that instead a payment or distribution other than a dividend be made by the Company;

Page 54

 

	 	(iv)	 	that the cash dividends from the Company not be paid and that instead a cash
dividend be received from a related corporation nominated by the Board;
	 
	 	(v)	 	to participate in a dividend selection plan, including not limited to a plan pursuant
to which members may elect to receive a dividend from the Company or any related
corporation which is less in amount but franked to a greater extent than the
ordinary cash dividend declared by the Company or any related corporation or to
receive a dividend from the Company or any related corporation which is greater in
amount but franked to a lesser extent than the ordinary cash dividend declared by
the Company or any related corporation.

	 	(b)	 	Pursuant to a dividend plan established in accordance with paragraph (a) of this Rule,
any member may elect for a specified period or for a period to be determined by specified
notice (in either case determined by the Directors and prescribed in the rules of the plan)
that all or some of the Ordinary Shares held by that member and designated by the member in
accordance with the rules of the plan (the “designated shares”) will participate in the
dividend plan. During that period the designated shares will be entitled to participate in
the dividend plan subject to the rules of the dividend plan.
	 
	 	(c)	 	In the event of any inconsistency between any dividend plan established in accordance
with paragraph (a) of this Rule or the rules of any dividend plan and these Rules these
Rules shall prevail.
	 
	 	(d)	 	The Directors are authorised to do all things which they consider to be desirable or
necessary for the purpose of implementing every dividend plan established in accordance
with paragraph (a) of this Rule.
	 
	 	(e)	 	The Directors are authorised to vary the rules of any dividend plan established in
accordance with paragraph (a) of this Rule at their discretion and to suspend or terminate
any dividend plan at their discretion. Any dividend plan may also be suspended, terminated
or varied by resolution of a general meeting of the Company.

	124.	 	Transfer of shares
	 
	 	 	Subject to the Corporations Act and the SCH business rules, a transfer of shares which is
registered after the transfer books close for dividend purposes but before a dividend is
payable shall not pass the right to any dividend declared before the books are closed.

	125.	 	Retention of dividends
	 
	 	 	The Board may retain the dividends payable on shares which any person is under Rules 39 or
40 entitled to transfer until that person becomes registered as a member in respect of
those shares or duly transfers them.

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	126.	 	Dividends on which a Company has a charge
	 
	 	 	The Board may retain any dividends payable on shares over which the Company has a lien or
charge and may apply the dividend in or towards satisfaction of the calls, instalments or
sums owing in respect of the shares over which the lien or charge exists.

	127.	 	How dividends are payable
	 
	 	 	Payment of any dividend may be made in any manner and by any means as determined by the
Board. Without prejudice to any other method of payment which the Board may adopt any
dividend may be paid by cheque or warrant made payable to the member entitled to the
dividend or in the case of joint holders to the member whose name stands first in the
Register in respect of the joint holding. Payment of any dividend may be made by sending
the cheque, warrant or other means of payment to the member entitled to the dividend
through the post to the address of the member in the Register, and upon posting every
payment of any dividend shall be at the risk of the member.

	128.	 	Notice of dividend
	 
	 	 	Notice of the declaration of any dividend shall be given to members in any manner the
Board may determine.

	129.	 	Unclaimed dividends
	 
	 	 	All unclaimed dividends may be invested or otherwise made use of by the Board for the
benefit of the Company until claimed or otherwise disposed of according to law.

CAPITALISATION OF PROFITS

	130.	 	Power to capitalise profits
	 
	 	 	The Board may, subject to Rule 7, resolve that the whole or any portion of any sum forming
part of the undivided profits of the Company or standing to the credit of any reserve or
other account (including without limitation any capital account) and available for
distribution or capitalisation be capitalised and that the amount capitalised be
appropriated to the members (subject to Rule 141 and Rule 143) in the respective
proportions in which they would be entitled to receive if it distributed by way of dividend
and be applied on their behalf either in paying up the amounts for the time being unpaid on
any issued shares held by them, or in paying up in full unissued shares or other securities
of the Company (of an aggregate nominal amount equal to the amount capitalised) to be
issued to them accordingly, or partly in one way and partly in the other.
	 
	131.	 	Employee Share Plan
	 
	 	 	The Board may, in addition to its powers under Rule 130, resolve to apply the whole or a
portion of any sum, standing to the credit of any reserve or other account in paying up in
full unissued shares of the Company to be issued to holders of shares, options or other
securities of the Company in accordance with, or to give effect to, the terms of any plan
for the issue of shares, rights to shares or options to acquire shares to or for the
benefit of employees which has been approved by the Company by special resolution in
general meeting.

Page 56

 

	132.	 	Appropriation and application of amounts to be capitalised
	 
	 	 	The Board may specify the manner in which any fractional entitlements and any difficulties
relating to distribution are to be dealt with and, without limiting the generality of the
foregoing, may specify that fractions are to be disregarded or that
any fractional entitlements are to be increased to the next whole number or that payments
in cash in lieu of fractional entitlements be made. The Board shall make all necessary
appropriations and applications of the amount to be capitalised pursuant to Rules 130 and
131 and all necessary allotments and issues of fully paid up shares or debentures. Where
required, the Board may appoint a person to sign a contract on behalf of the members
entitled upon a capitalisation to any shares or debentures, which provides for the issue to
them, credited as fully paid up of any further shares or debentures, or for the payment up
by the Company on their behalf of the amounts or any part of the amounts remaining unpaid
on their existing shares by the application of their respective proportions of the sum
resolved to be capitalised.

NOTICES

	133.	 	Service of notices
	 
	 	 	A notice may be given by the Company to any member, or in the case of joint holders to the
member whose name stands first in the Register, personally, by leaving it at the member’s
registered address or by sending it by prepaid post or facsimile transmission addressed to
the member’s registered address or, in any case, by other electronic means determined by
the Board.
	 
	134.	 	Member may notify Company of address for service
	 
	 	 	A registered holder of shares may notify the Company of an address in Australia or in the
United Kingdom or, in the case of a registered holder of shares on a Branch Register
situated outside Australia or the United Kingdom, in the country, state or place where that
Branch Register is kept (as the case may be) as a place at which the member will accept
service of notices, which shall be deemed to be the member’s registered place of address.
	 
	135.	 	Member not known at registered address
	 
	 	 	Where a member does not have a registered place of address or where the Company has a bona
fide reason to believe that a member is not known at the member’s registered address and
the Company has subsequently made an enquiry at the registered address of the member as to
the whereabouts of the member, and the enquiry either elicits no response or a response
indicating that the member or the member’s present whereabouts are unknown, all future
notices shall be deemed to be given to the member if the notice is exhibited in the Office
for a period (not including weekends and public holidays) of forty-eight hours (and shall
be deemed to be duly served at the commencement of that period) unless and until the member
informs the Company of a registered place of address or that the member has resumed
residence at the member’s registered place of address or notifies the Company of a new
address to which the Company may send the member notices (which new address shall be deemed
to be the member’s registered place of address).

Page 57

 

	136.	 	When notice deemed to be served
	 
	 	 	Any notice sent by post shall be deemed to have been served at the expiration of
twenty-four hours after the envelope containing the notice is posted and, in proving
service, it shall be sufficient to prove that the envelope containing the notice was
properly addressed and posted. Any notice served on a member personally or left at the
member’s registered place of address shall be deemed to have been served at the time of
service. Any notice served on a member by telex is deemed to have been served on receipt by
the Company of the answerback code of the recipient at the end of the transmission. Any
notice served on a member by facsimile transmission
is deemed to have been served when the transmission is sent.
	 
	137.	 	Signature to notice
	 
	 	 	The signature to any notice to be given by the Company may be written or printed.
	 
	138.	 	Reckoning of period of notice
	 
	 	 	Where a given number of days’ notice or notice extending over any other period is required
to be given, the period of notice shall in each case be exclusive of the day on which it is
served or deemed to be served and of the day on which the meeting is to be held.
	 
	139.	 	Notice to transferor binds transferee
	 
	 	 	Every person who, by operation of law, transfer or any other means becomes entitled to be
registered as the holder of any shares shall be bound by every notice which, prior to the
person’s name and address being entered in the Register in respect of those shares, was
duly given to the person from whom the person derives title to those shares.
	 
	140.	 	Service on deceased members
	 
	 	 	A notice delivered or sent by post to the registered place of address of a member pursuant
to these Rules shall (notwithstanding that the member be then dead and whether or not the
Company has notice of the member’s death) be deemed to have been duly served in respect of
any registered shares, whether held solely of jointly with other persons by that member,
until some other person is registered in the member’s stead as the holder or joint holder
and the service shall for all purposes be deemed to be sufficient service of the notice or
document on the member’s heirs, executors or administrators and all persons (if any)
jointly interested with the member in the shares.

PAYMENTS BY THE COMPANY

	141.	 	Payments by the Company
	 
	 	 	Whenever any law for the time being of any country, state, territory or place imposes or
purports to impose any immediate or future or possible liability on the Company to make any
payment or empowers any government or taxing authority or government official to require
the Company to make any payment in respect of any shares, rights to shares or options to
acquire shares registered in the Register or a Branch Register as held either jointly or
solely by any member or in respect of any transfer of those shares, rights to shares or
options to acquire shares or in respect of any interest, dividends, bonuses or other moneys
due or payable or accruing due or which may become due or payable to that

Page 58

 

	 	 	member by the Company on or in respect of any shares, rights to shares or options to
acquire shares or for or on account or in respect of any member, whether in consequence of:

	 	(a)	 	the death of that member;
	 
	 	(b)	 	the non-payment of any income tax or other tax by that member;
	 
	 	(c)	 	the non-payment of any estate, probate, succession, death, stamp or other duty by the member or the
trustee, executor or administrator of that member or by or out of the member’s estate;
	 
	 	(d)	 	any assessment of income tax against the Company in respect of interest or dividends paid or payable to
that member;
	 
	 	(e)	 	or any other act or thing, the Company in every case:

	 	(i)	 	shall be fully indemnified from all liability by that member or that member’s trustee, executor or administrator
and by any person who becomes registered as the holder of the shares on the distribution of the
deceased member’s estate;
	 
	 	(ii)	 	shall have a lien or charge upon the shares for all moneys paid by the Company in respect of the shares under or in consequence of any law;
	 
	 	(iii)	 	shall have a lien upon all dividends, bonuses and other moneys payable in respect of the shares registered in the
Register or a Branch Register as held either jointly or solely by that member for all moneys paid
or payable by the Company in respect of the shares under or in consequence of any law, together with interest at a rate the Board may determine from
time to time from the date of payment to the date of repayment, and may deduct or set off against
any dividend, bonus or other moneys payable any moneys paid or payable by the Company together with
interest;
	 
	 	(iv)	 	may recover as a debt due from that member or that member’s trustee, executor or
administrator or any person who becomes registered as the holder of the shares on the distribution
of the deceased member’s estate wherever constituted or situated, any moneys paid by the Company
under or in consequence of any law which exceed any dividend, bonus or other money then due or
payable by the Company to that member together with interest at a rate the Board may determine from
time to time from the date of payment to the date of repayment; and
	 
	 	(v)	 	except in the case of a proper SCH transfer, may, if any money is paid or payable by the Company under any law, refuse to
register a transfer of any securities by the holder or the holder’s trustee, executor or
administrator until the money and interest is set off or deducted or, in case the money and
interest exceeds the amount of any dividend, bonus or other money then due or payable by the
Company to the holder, until the excess is paid to the Company but notwithstanding the foregoing
the Company may not

Page 59

 

	 	 	 	refuse to register any proper SCH transfer except as permitted by the Corporations Act, the
Listing Rules or the SCH business rules.

	 	 	Nothing contained in this Rule shall prejudice or affect any right or remedy which any law
confers or purports to confer on the Company, and, as between the Company and every member,
every member’s trustee, executor, administrator and estate, wheresoever constituted or
situated, any right or remedy which that law confers or purports to confer on the Company
shall be enforceable by the Company.

WINDING UP

	142.	 	Distribution in specie

	 	(a)	 	If the Company is wound up, whether voluntarily or otherwise, with the sanction of a
special resolution, the liquidators may divide among the contributories in specie or kind
any part of the assets of the Company, and may vest any part of the assets of the Company
in trustees upon any trusts for the benefit of the contributories or any of them as the
liquidators shall think fit.

	 	 	Liability to calls:

	 	(b)	 	If any shares to be divided in accordance with Rule 142(a) involve a liability to calls
or otherwise, any person entitled under the division to any of the shares may by notice in
writing within ten days after the passing of the special resolution, direct the liquidators
to sell that person’s proportion and pay that person the net proceeds and the liquidators
shall, if practicable, act accordingly.

	 	 	Ratification of payment of fee to liquidators:

	 	(c)	 	No commission or fee shall be payable to the liquidators in a voluntary liquidation,
unless the payment of the commission or fee has been ratified by a general meeting of the
Company and the amount of the proposed payment has been specified in the notice calling the
meeting.

	143.	 	Capital rights on a liquidation
	 
	 	 	On a return of assets on liquidation, the assets of the Company remaining available for
distribution among members, after giving effect to preferential rights attached to any
preference shares issued by the Company and to the rights of other shares having a
preferred right to participate as regards capital up to but not beyond a specified amount
in a distribution, and to any provision of the Corporations Act, shall be applied:

	 	(a)	 	first in paying to the holder of the Equalisation Share (if any) the nominal amount paid up
on such share and then in paying amounts (if any)
standing to the credit of the holder of the Equalisation Share in any reserve set up in the
books of the Company pursuant to paragraph 3.6.2(a) of Schedule 2 to the Sharing Agreement;
and
	 
	 	(b)	 	then in paying to relevant holders of the Ordinary Shares any amounts standing to
the credit of any reserve for their benefit set up in the books of the Company pursuant to
paragraphs 3.6.2(b) or (c) of Schedule 2 of the Sharing Agreement; and

Page 60

 

	 	(c)	 	then in paying to the holder of the Special Voting Share the nominal amount paid up on such
share; and
	 
	 	(d)	 	any surplus remaining after application of the assets in accordance with the preceding
paragraphs shall be applied in making payments to the holder of the Equalisation Share and/or
the holders of Ordinary Shares in accordance with their entitlements, which shall be
determined as follows:-

	 	(i)	 	The liquidator of the Company shall draw up accounts as at earliest date (the “Reference
Date”) on which the liquidator is able to make a final distribution to creditors and members
of the Company to show the gross amount which would be available for distribution to the
holders of Ordinary Shares on the liquidation of the Company after payment in full of any
amount standing to the credit of:

	 	(A)	 	the holder of the Equalisation Share in any reserve set up in the books of the Company
pursuant to paragraph 3.6.2(a) of Schedule 2 to the Sharing Agreement; and
	 
	 	(B)	 	the holders of Ordinary Shares in any reserve set up in the books of the Company under
paragraphs 3.6.2(b) or 3.6.2(c) of Schedule 2 to the Sharing Agreement

	 	 	 	and to calculate the amount thereof available for distribution to holders of Publicly-held
Rio Tinto Limited Ordinary Shares or the amount (expressed as a negative sum) of the
shortfall which would need to be obtained before the holders of Publicly-held Rio Tinto
Limited Ordinary Shares would receive any payment by way of distribution (in either case
the “Company’s Own Distribution Amount”), on the assumption that distribution to the
Company’s creditors and members on liquidation took place on the Reference Date. The
liquidator of the Company shall certify the result of such calculation to Rio Tinto plc.
	 
	 	(ii)	 	Whether or not proceedings have been commenced for the liquidation of Rio Tinto plc, Rio
Tinto plc shall be required under the Sharing Agreement to instruct the Relevant Officer for
the time being of Rio Tinto plc to draw up accounts as at the Reference Date of all assets
(valued as if Rio Tinto plc was in liquidation and those assets were to be realised by a
liquidator of Rio Tinto plc in an orderly manner) and liabilities which would be admissible to
proof if Rio Tinto plc was in liquidation at the Reference Date (other than the asset or
liability represented by any Equalisation Payment (as defined in paragraph 4.2 of Schedule 2
to the Sharing Agreement) to be made in accordance with the Sharing Agreement or any payment
on the Rio Tinto plc Equalisation Share under Article 3(C)(e) or 3(C)(f) of the Rio Tinto plc
Articles) to show the gross amount which would be available for distribution to holders of Rio
Tinto plc Ordinary Shares on the liquidation of Rio Tinto plc (if it were to occur on the
Reference Date) after payment in full of any amount standing to the credit of:

Page 61

 

	 	(A)	 	the holder of the Rio Tinto plc Equalisation Share in any reserve set up in the books of Rio
Tinto plc pursuant to paragraph 3.6.2(a) of Schedule 2 to the Sharing Agreement; or
	 
	 	(B)	 	the holders of Rio Tinto plc Ordinary Shares in any reserve set up in the books of Rio Tinto
plc under paragraphs 3.6.2(b) or 3.6.2(c) of Schedule 2 to the Sharing Agreement

	 	 	 	and to calculate the amount thereof available for distribution to holders of Publicly-held
Rio Tinto plc Ordinary Shares or the amount (expressed as a negative sum) of the shortfall
which would need to be obtained before the holders of Publicly-held Rio Tinto plc Ordinary
Shares would receive any payment by way of
distribution (in either case, the “Rio Tinto plc Own Distribution Amount”) on the
assumption that the distribution to Rio Tinto plc’s creditors and members on liquidation
took place on the Reference Date. Rio Tinto plc is obliged under the Sharing Agreement to
instruct the Relevant Officer of Rio Tinto plc to certify the result of such calculation to
the Company.

	 	(iii)	 	The liquidator of the Company shall make and certify to Rio Tinto plc the results of the
following calculation as at the Reference Date and agree such calculation with the Relevant
Officer of Rio Tinto plc, which calculation shall be expressed in Australian dollars, with any
sterling amounts being converted to Australian dollars at the Liquidation Exchange Rate as at
the Reference Date:

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 		 
	 

	 	(COD + Rio Tinto plcOD)
	 	x	 	COS	 
	 

	 	 	 	 	 	 	 
	 

	 	 	 	 	 	(Rio Tinto plcOS  ̧ EF) + COS	 

	 	 	 	where:
	 
	 	 	 	COD = the Company’s Own Distribution Amount;
	 
	 	 	 	COS = the number of Publicly-held Rio Tinto Limited Ordinary Shares in
issue on the Reference Date;
	 
	 	 	 	EF = the Equalisation Fraction;
	 
	 	 	 	Rio Tinto plcOD = the Rio Tinto plc Own Distribution Amount; and
	 
	 	 	 	Rio Tinto plcOS = the number of Publicly-held Rio Tinto plc Ordinary
Shares in issue on the Reference Date.
	 
	 	 	 	The result of such calculation is referred to below as the
“Adjusted Company Distribution Amount”.

	 	(iv)	 	If the Adjusted Company Distribution Amount is equal to or more than the Company’s Own
Distribution Amount then the assets remaining available for distribution (which shall include
any distribution made on the Rio Tinto plc Equalisation Share pursuant to Article 3(C)(e) or
3(C)(f) of the Rio Tinto plc Articles, any amounts paid by Rio Tinto plc under paragraph 4.2.4
of Schedule 2 to the Sharing Agreement and any amounts paid by Rio Tinto plc from reserves set
up in the books of Rio Tinto plc under paragraph

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	 	 	 	3.6.2(a) of Schedule 2 to the Sharing Agreement) shall belong to and be
distributed among the holders of Ordinary Shares rateably according to the
numbers of Ordinary Shares held by them.

	 	(v)	 	If the Adjusted Company Distribution Amount is equal to or more than zero, but is less than
the Company’s Own Distribution Amount, the liquidator of the Company shall pay out of the
assets available for distribution an amount by way of return of capital on the Equalisation
Share in priority to any amounts payable to the holders of Ordinary Shares such that (taking
account of any tax payable on the making or receipt of the distribution of that amount, after
allowing for any offsetting tax credits, losses or deductions) the ratio of the amount
available for distribution on each Publicly-held Rio Tinto Limited Ordinary Share:

	 	(1)	 	apart from in each case any undistributed amounts resulting from the payment by Rio Tinto plc
to a member of the Rio Tinto Limited Group or the Company to a member of the Rio Tinto plc
Group of any reserves under paragraph 3.6.2(a) of Schedule 2 to the Sharing Agreement or any
amounts credited to any reserve in the books of the Company for the benefit of holders of
Ordinary Shares or any amounts credited to any reserve in the books of Rio Tinto plc for the
benefit of holders of Rio Tinto plc Ordinary Shares, in each case under paragraphs 3.6.2(b)
and 3.6.2(c) of
Schedule 2 to the Sharing Agreement; and
	 
	 	(2)	 	on the assumption that distribution to the Company’s members and creditors and Rio Tinto
plc’s members and creditors took place on the Reference Date; and
	 
	 	(3)	 	after taking into account the amounts available for distribution on each Publicly-held Rio
Tinto plc Ordinary Share prior to such payment

	 	 	 	to the amount available for distribution on each Publicly-held Rio Tinto plc Ordinary Share
(converting sterling amounts to Australian dollar amounts by application of the Liquidation
Exchange Rate as at the Reference Date) is equal to the Equalisation Ratio (and the balance
of the assets of the Company available for distribution remaining after any such payment on
the Equalisation Share, shall belong to and be distributed among the holders of Ordinary
Shares rateably according to the numbers of Ordinary Shares held by them).
	 
	 	(vi)	 	If the Adjusted Company Distribution Amount is zero or a negative amount and the Company’s
Own Distribution Amount is a positive amount then the liquidator of the Company shall pay out
of the assets available for distribution an amount by way of return of capital on the
Equalisation Share in priority to any amounts payable to the holders of Ordinary Shares such
that (taking account of any tax payable on the making or receipt of the

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	 	 	 	distribution of that amount, after allowing for any offsetting tax credits, losses or
deductions) the amount available for distribution to holders of Publicly-held Rio Tinto
Limited Ordinary Shares on the assumption that distribution to the Company’s members and
creditors took place on the Reference Date, is zero.

	 	(vii)	 	If the Company’s Own Distribution Amount is zero or a negative amount and the Rio Tinto plc
Own Distribution Amount is zero or a negative amount, then no distribution shall be made by
the liquidator of the Company on the Equalisation Share or to holders of Ordinary Shares.
	 
	 	(viii)	 	In making the calculations referred to in this paragraph (d), the Relevant Officer of Rio
Tinto plc and the liquidator of the Company shall:

	 	(A)	 	in relation to the Company, take into account the distributions which fall to be made on
Ordinary Shares which are not Publicly-held Rio Tinto Limited Ordinary Shares it being
acknowledged that the per share distributions on the Publicly-held Rio Tinto Limited Ordinary
Shares will be the same as the distributions on the non Publicly-held Rio Tinto Limited
Ordinary Shares;
	 
	 	(B)	 	in relation to Rio Tinto plc, take into account the distributions which fall to be made on
Rio Tinto plc Ordinary Shares which are not Publicly-held Rio Tinto plc Ordinary Shares it
being acknowledged that the per share distributions on the Publicly-held Rio Tinto plc
Ordinary Shares will be the same as the distributions on the non Publicly-held Rio Tinto plc
Ordinary Shares.

	 	(ix)	 	In this paragraph (d) “Relevant Officer” of Rio Tinto plc shall mean the auditor of Rio Tinto
plc or if Rio Tinto plc is in liquidation, the liquidator of Rio Tinto plc.
	 
	 	(x)	 	In this paragraph (d) “the gross amount which would be available for distribution” to
shareholders means such amount ignoring any distribution on the Equalisation Share or Rio
Tinto plc Equalisation Share or any Equalisation Payment (as defined in paragraph 4.2 of
Schedule 2 to the Sharing Agreement) made in accordance with the Sharing Agreement and any tax
payable on the making of the Equalisation Payment or distribution and both “the gross amount
which would be available for distribution” and “the amount available for distribution” refer
to such amount before deduction of any amount in respect of tax required to be deducted or
withheld from the distribution to ordinary shareholders by or on behalf of the company
paying or making the distribution but net of any tax payable by that company on the
distribution to its ordinary shareholders.
	 
	 	(xi)	 	The certificates which the liquidator of the Company is required to produce under this
paragraph (d) and the Relevant Officer of Rio Tinto plc is required to produce under the
Sharing Agreement (the “Certificates”) shall be produced within 6 weeks after the Reference
Date and the Company

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	 	 	 	shall procure that all necessary instructions are given to the liquidator of the Company to
ensure that such certificates are produced within that time. The liquidator of the Company
and the Relevant Officer of Rio Tinto plc shall then agree the calculations in such
Certificates within 4 weeks of the date on which all such Certificates are produced. If the
liquidator of the Company and the Relevant Officer of Rio Tinto plc are unable to agree to
the calculations in the Certificates within such time, then the dispute shall be referred
to an independent firm of accountants agreed by the liquidator of the Company with the
Relevant Officer of Rio Tinto plc (or failing agreement within 7 days of the end of that 4
week period, appointed, on the application of either the Company or Rio Tinto plc, by the
President for the time being of the Institute of Chartered Accountants in England). The
firm so appointed shall act as experts and not as arbitrators and shall be instructed to
make its determination within 4 weeks of its appointment. The costs of such firm are to be
borne as such firm decides. Once the calculations in the Certificates have been agreed by
the liquidator of the Company with the Relevant Officer of Rio Tinto plc or determined by
the independent accountants, they shall be conclusive and binding.

	 	(xii)	 	If Rio Tinto plc goes into liquidation after the Company has gone into liquidation but
before the liquidator of the Company has made a distribution under any of paragraphs (v) or
(vi) then the Reference Date shall be the later of:

	 	(A)	 	the earliest date on which the liquidator of Rio Tinto plc is able to make a final
distribution to creditors and members of Rio Tinto plc; or
	 
	 	(B)	 	the earliest date on which the liquidator of the Company is able to make a final distribution
to creditors and members of the Company;

	 	 	 	and the Relevant Officer of Rio Tinto plc shall be the liquidator of Rio Tinto plc
and not the auditor of Rio Tinto plc.

INDEMNITY

	144.	 	Indemnity of officers

	 	(1)	 	The Company shall indemnify each officer of the Company and each officer of each wholly owned
subsidiary of the Company out of the assets of the Company to the relevant extent against any
liability incurred by the officer in the conduct of the business of the Company or in the
conduct of the business of such wholly owned subsidiary of the Company (as the case may be) or
in the actual or purported execution or discharge of the duties of the officer.
	 
	 	(2)	 	To the extent permitted by law, the Company may pay amounts by way of premium in respect of
any contract effecting insurance on behalf or in respect of an officer or employee of any
relevant company, including (without limitation) insurance against liability incurred by the
officer or employee in the conduct of the business of the

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	 	 	 	relevant company or in the actual or purported execution or discharge of the duties of the officer
or employee.

	 	(3)	 	In this Rule:
	 
	 	(a)	 	“officer” means:

	 	(i)	 	a director, secretary or executive officer, or
	 
	 	(ii)	 	a person appointed as a trustee by, or acting as a trustee at the express request of, the
Company or a wholly owned subsidiary of the Company.

	 	(b)	 	“duties “ includes duties and powers arising by reason of, or otherwise in connection with
the appointment or nomination of the person by the Company or any relevant company to any
other corporation.
	 
	 	(c)	 	“liability” means all costs, charges, losses, damages, expenses, penalties and liabilities.
	 
	 	(d)	 	“to the relevant extent” means:

	 	(i)	 	to the extent the Company is not precluded by law from doing so;
	 
	 	(ii)	 	where the liability is incurred in the conduct of the business of another corporation or in
the discharge of the duties of the officer in relation to another corporation, to the extent
and for the amount that the officer is not entitled to be indemnified and is not actually
indemnified out of the assets of that corporation; and
	 
	 	(iii)	 	to the extent and for the amount that the officer is not otherwise entitled to be
indemnified and is not otherwise actually indemnified.

	 	(e)	 	“relevant company” means the Company, any holding company of the Company, any body (whether
or not incorporated) in which the Company or such holding company (or any predecessors of the
Company or such holding company of the Company) has or had any interest (whether direct or
indirect), any body that is in any way allied to or associated with the Company, and Rio Tinto
plc and any of its subsidiaries.

	145.	 	Change of control

	A.	 	The purpose of this Rule is to place restrictions upon any person (other than a Permitted
Person as defined below) who is entitled to or interested in shares in the Company or Rio
Tinto plc or both which would otherwise enable such person to cast on a poll (directly, or
indirectly through the Special Voting Share and Ordinary Shares held by any member of the Rio
Tinto plc Group) 20 per cent or more of the votes generally exercisable on a Joint Decision at
general meetings of the Company. If the person is only entitled to or interested in shares of
one of Rio Tinto plc or Rio Tinto Limited, the restrictions only apply if that person is able
to cast on a poll 30 per cent or more of the votes generally exercisable at general meetings
of that company (excluding any votes attaching to the Special Voting Share or the Rio Tinto
plc Special Voting Share).

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	 	 	The restrictions include suspension of rights to attend and vote at general meetings, and
suspension of the right to receive dividends and distributions. In certain circumstances
the Board can compel divestment of the shares.

	B.	 	In this Rule:

	 	(i)	 	“Accepting Shareholder” means any person who has, in respect of the whole of that person’s
Entitlement to Ordinary Shares or Interest in Rio Tinto plc Voting Shares or both, accepted or
given irrevocable undertakings to accept offers made under a takeover bid which complies with
Chapter 6 of the Corporations Act or under a takeover offer which complies with the City Code
on Takeovers and Mergers (or both);
	 
	 	(ii)	 	“Additional Entitlement” means any Relevant Interest which would, but for sections 38, 39,
40, 41, 42 and 43 of the Law, result in a person having an Entitlement;
	 
	 	(iii)	 	“ADR Depositary” means a custodian or depositary or that person’s nominee, approved by the
Directors, under contractual arrangements with the Company by which such person or nominee
holds Ordinary Shares and such person or another person issues American Depositary Receipts
evidencing rights in relation to those shares or a right to receive them;
	 
	 	(iv)	 	“concert parties” means persons acting in concert within the meaning of the City Code on
Takeovers and Mergers from time to time;
	 
	 	(v)	 	“Entitlement” means the entitlement in respect of shares resulting through a person being
entitled to those shares as that term is defined in section 609 of the Law;
	 
	 	(vi)	 	“Holder” is as defined in paragraph (I) below;
	 
	 	(vii)	 	“Interest” in relation to shares in Rio Tinto plc, means:

	 	(a)	 	any interest in Rio Tinto plc Voting Shares which would be taken into account in determining
for the purposes of Part VI of the Original Act whether a person has a notifiable interest
(including any interest which that person would be taken as having for those purposes); and
	 
	 	(b)	 	any interest in Rio Tinto plc Voting Shares mentioned in Section 209(1)(a), (b), (c), (d),
(e), (f), (g) or (h) of the Original Act (except that of a bare trustee) or mentioned in
section 208(4)(b) of the Original Act (but on the basis that the entitlement there referred to
could arise under an agreement within the meaning in section 204(5) and (6) of that Act),

	 	 	 	and “Interested” shall be construed accordingly;

	 	(viii)	 	the “Original Act” means the Companies Act 1985 of the United Kingdom as in force at the
date of adoption of this Rule and notwithstanding any repeal, modification or re-enactment
thereof after that date including for the avoidance of doubt, any amendment, replacement or
repeal by regulations made by the Secretary of State pursuant to section 210A of that Act to
the definition of relevant share capital in section 198(2) or to the provisions as to what is
taken to be an

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	 	 	 	interest in shares in section 208 or as to what interests are to be disregarded in section 209 or
the percentage giving rise to a notifiable interest in section 199(2);

	 	(ix)	 	“Permitted Holding” means:

	 	(a)	 	any Entitlement to Ordinary Shares, arising as a result of two or more persons becoming
Associates, in relation to the acquisition of which an exemption or declaration under section
655A of the Corporations Act is in force, with the effect that the acquisition of such
Entitlement would not breach section 606 of the Corporations Act;
	 
	 	(b)	 	any Entitlement to shares in the Company or any Interest in Rio Tinto plc Voting Shares held
solely by a person as a bare trustee or by a person who, if the incidents of that person’s
Entitlement or Interest were governed by the laws of Australia, would in the opinion of the
Directors be regarded as a bare trustee in respect of that Entitlement or Interest;
	 
	 	(c)	 	any Entitlement of a person to shares in the Company or any Interest of a person in any Rio
Tinto plc Voting Shares which under arrangements approved by the Directors of the Company and
directors of Rio Tinto plc respectively have been allotted or issued with a view to that
person (or purchasers from that person)
offering the same to the public within a period not exceeding three months from the date of
the relevant allotment or issue;
	 
	 	(d)	 	any Entitlement of a person to shares in the Company or any Interest of a person in any Rio
Tinto plc Voting Shares which the Directors are satisfied is held by virtue only of that
person being entitled to exercise or control the exercise of 20% or more of the voting power
at general meetings of a company which is a Permitted Person; and
	 
	 	(e)	 	any Entitlement or Interest of a Permitted Person, other than RTL Shareholder SVC or RTP
Shareholder SVC;

	 	(x)	 	“Permitted Person” means:

	 	(a)	 	any member of the Rio Tinto Limited Group;
	 
	 	(b)	 	any member of the Rio Tinto plc Group;
	 
	 	(c)	 	RTL Shareholder SVC;
	 
	 	(d)	 	RTP Shareholder SVC;
	 
	 	(e)	 	an ADR Depositary, acting in that capacity;
	 
	 	(f)	 	The Depositary Trust Company or any successor and/or the nominee of either of them acting in
the capacity of a clearing agency in respect of dealings in American Depositary Receipts;
	 
	 	(g)	 	a Recognised Person;
	 
	 	(h)	 	a trustee (acting in that capacity) of any employee incentive scheme of the Company or of Rio
Tinto plc;

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	 	(i)	 	any person (an “Offeror”) who has made an offer to acquire all the outstanding Rio Tinto plc
Ordinary Shares (other than those already owned by the Offeror) which may, if the Offeror so
decides, be conditional upon an offer which has been made by the Offeror or by a related
entity (as defined in the Law) of the Offeror (on terms which satisfy each of sub-paragraphs
(I), (II) and (III) of Article 64(B)(xii)(i) of the Rio Tinto plc Articles) to acquire all the
outstanding Ordinary Shares (other than those already owned by the Offeror) becoming
unconditional and shall:

	 	(I)	 	be unconditional when made or contain only such conditions as are mandatory under the City
Code on Takeovers and Mergers;
	 
	 	(II)	 	disclose the highest price or value of consideration given for Ordinary Shares by the Offeror
or its Associates and for Rio Tinto plc Ordinary Shares by the Offeror and its concert parties
since the beginning of the period commencing 12 months before the date on which the Offeror
became a Relevant Person and include a cash offer (or an offer with a cash alternative) to
acquire all the Rio Tinto plc Ordinary Shares (other than those already directly or indirectly
owned by the Offeror) at a price per Rio Tinto plc Ordinary Share which (subject to paragraph
(xviii)) is not less than the higher of:

	 	(aa)	 	the highest price or value of consideration paid or given for Ordinary Shares by the Offeror
or its Associates since the beginning of the period commencing 12 months before the date on
which the Offeror became a Relevant Person divided by the Equalisation Fraction as at the date
of the offer and converted into sterling. Such conversion shall be made at the closing
mid-point spot sterling-Australian dollars exchange rate on the date on which the Offeror
became a Relevant Person as published in the Financial Times; and
	 
	 	(bb)	 	the highest price or value of consideration paid or given for Rio Tinto plc Ordinary Shares
by the Offeror or its concert parties in sterling (or equivalent, converted into sterling by a
method comparable to that set out in sub-paragraph (aa)) since the beginning of the period
commencing 12 months before the date on which the Offeror or any of its Associates or concert
parties became a Relevant Person,

	 	 	 	provided that if no such shares have been acquired by the Offeror or any of its Associates
or concert parties during that period the price (subject to paragraph (xviii)) shall be not
less than the higher of:

	 	(cc)	 	the weighted average sale price derived from the Australian Stock Exchange in respect of
Ordinary Shares on the Business Day preceding the date on which the offer is announced divided
by the Equalisation Ratio as at that

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	 	 	 	Business Day and converted into sterling at the closing mid-point spot sterling-Australian
dollar exchange rate as at such date as published in the Financial Times; and

	 	(dd)	 	the middle market quotation derived from the London Stock Exchange Daily Official List in
respect of an Rio Tinto plc Ordinary Share on the dealing day preceding the date on which the
offer is announced; and

	 	(III)	 	comply with the provisions of the City Code on Takeovers and Mergers as if it were an offer
made under Rule 9 of that Code;

	 	 	 	provided that if the terms of any such offer would, at the time it would be required to be
made, be illegal or contravene any applicable law or regulatory requirements (including the
Corporations Act) then the offer shall be on such terms as may be necessary to comply with
such applicable law or regulatory requirement but otherwise shall approximate as far as is
possible the requirements set out in (I) to (III) above and provided further that
references to the price paid for an Ordinary Share or a Rio Tinto plc Ordinary Share shall
be deemed to include the price paid for an interest through an American Depositary Receipt
representing such a share converted into sterling or Australian dollars as appropriate at
the closing mid point exchange rate of the purchase currency and sterling or Australian
dollars (as appropriate) on the date of acquisition of such interest obtained from the
Financial Times (in the case of Rio Tinto plc Ordinary Shares) or from the Australian
Financial Review (in the case of Ordinary Shares);
	 
	 	(j)	 	any person who:

	 	(I)	 	owns directly or indirectly Publicly-held Rio Tinto Limited Ordinary Shares which carry the
right to cast more than 50 per cent of the total votes attaching to all Publicly-held Rio
Tinto Limited Ordinary Shares capable of being cast on a poll at a General Meeting; and
	 
	 	(II)	 	owns directly or indirectly Publicly-held Rio Tinto plc Voting Shares which carry the right
to cast more than 50 per cent of the total votes attaching to all Publicly-held Rio Tinto plc
Voting Shares capable of being cast on a poll at a general meeting of Rio Tinto plc,

	 	 	 	and has reached that level of ownership either by receiving acceptances under an offer to
acquire all the outstanding Ordinary Shares and Rio Tinto plc Ordinary Shares (other than
those already owned by that person) or as a result of a compromise or arrangement approved
by the Court under Part 5.1 of the Corporations Act or a scheme of arrangement approved by
the High Court of England or by any combination of these;

	 	(k)	 	any concert party or Associate of an Offeror;

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	 	(xi)	 	“Recognised Person” means a clearing house or a nominee of a recognised clearing house or of a
recognised investment exchanges who is designated as mentioned in section 185(4) of the Original
Act;
	 
	 	(xii)	 	“Relevant Holding” means an Interest in Rio Tinto plc Voting Shares or an Entitlement to
Ordinary Shares or both (disregarding any part of that Interest or Entitlement which is a Permitted
Holding) which together would otherwise enable its holder to cast on a poll (either directly as a
member of the Company or through any votes which may be cast by the holder of the Special Voting
Share to reflect votes which such holder is entitled to cast at a general meeting of Rio Tinto plc
in respect of Rio Tinto plc Voting Shares) 20 per cent or more of the total votes attaching to all
share capital of the Company of all classes on a Joint Decision (assuming that all the
Publicly-held Rio Tinto plc Ordinary Shares including those comprised in such Interest were voted
on the equivalent resolution at the nearly contemporaneous general meeting of Rio Tinto plc and
counted in calculating the votes attached to the Special Voting Share on such decision), AND IN
ADDITION if the Interest or Entitlement is in one company only then

	 	(a)	 	if it does not include any Interest in Rio Tinto plc Voting Shares, the Entitlement to Ordinary
Shares or other shares of the Company (other than the Special Voting Share) carry the right on a
poll to cast 30 per cent or more of the total votes attaching to all share capital of the Company
of all classes (apart from the Special Voting Share) taken as a whole and capable of being cast on
a poll at a general meeting of the Company; or
	 
	 	(b)	 	if it does not include any Entitlement to Ordinary Shares, the Interest in Rio Tinto plc Voting
Shares (other than the Rio Tinto plc Special Voting Share) carry the right on a poll to cast 30 per
cent or more of the total votes attaching to all share capital of Rio Tinto plc of all classes
(apart from the Rio Tinto plc Special Voting Share) taken as a whole and capable of being cast at a
general meeting of Rio Tinto plc;

	 	(xiii)	 	“Relevant Interest” means a relevant interest in respect of a share as that term is defined
by the Law;
	 
	 	(xiv)	 	“Relevant Person” means any person (whether or not identified) who has a Relevant Holding or
any Excluded Rio Tinto plc Holder;
	 
	 	(xv)	 	“Relevant Shares” means all the Ordinary Shares to which a Relevant Person or an Excluded Rio
Tinto plc Holder has an Entitlement;
	 
	 	(xvi)	 	“Required Disposal” means a disposal or disposals of such a number of Relevant Shares (or
interests therein) as will cause a Relevant Person to cease to be a Relevant Person, not being a
disposal to another Relevant Person (other than a Permitted Person) or a disposal which constitutes
any other person (other than a Permitted Person) a Relevant Person;
	 
	 	(xvii)	 	references to the Australian Financial Review include, if that newspaper ceases to be
published or fails to publish the relevant information, any other daily newspaper circulating in
Melbourne nominated by the Board which does publish the relevant

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	 	 	 	information, and references to the Financial Times means the London Edition and includes, if that
newspaper ceases to be published or fails to publish the relevant information, any other daily
newspaper circulating in London nominated by the Board which does publish the relevant information;

	 	(xviii)	 	references in paragraphs (aa), (bb), (cc) and (dd) of paragraph (B)(x)(i)(II) to “price” or
“value of consideration” mean such price or value:

	 	(a)	 	adjusted to reflect the effect of any share consolidation or subdivision, allotment of shares,
rights issue, issue of options, issue of convertible securities or reduction of capital which
occurred after that price or consideration was paid or given and before the offer to acquire all
the Rio Tinto plc Ordinary Shares referred to in paragraph (B)(x)(i)(II) occurred; and
	 
	 	(b)	 	adjusted to reflect the net amount of any dividend which had been declared or announced at the
time the price or consideration was paid or given if the shares acquired were at that time
trading cum-dividend and at the time of the offer the shares are trading ex-dividend or vice versa,

	 	 	 	and the certificate of the Auditor stating the appropriate amount of an adjustment required by (a)
or (b) shall be conclusive.

	C.	 	Subject to paragraphs (I) and (J) below, the provisions of Part 6.7 of Chapter 6 of the Law
other than section 716 shall apply in relation to the Company as if those provisions extended to
Additional Entitlements and accordingly the rights and obligations arising under that Part shall
apply in relation to the Company, its members and all persons having an Entitlement, as extended by
this paragraph; but so that Additional Entitlements shall, when disclosed to the Company, be
entered in a separate register kept by the Company for that purpose. The rights and obligations
created by this paragraph in respect of any
Entitlement (including, but not limited to, Additional Entitlements) are in addition to and
separate from those arising under Chapter 6C of the Corporations Act.
	 
	D.	 	If, to the knowledge of the Directors, any person other than a Permitted Person is or
becomes a Relevant Person (including, without limitation, by virtue of being deemed to be one), the
Directors shall give notice to that Relevant Person (other than a person referred to in paragraph
(G) below) and to any other person who appears to the Directors to have Entitlements to the
Relevant Shares and, if different, to the registered holders of those shares. The notice shall:

	 	(i)	 	set out the restrictions referred to in paragraph (E) below;
	 
	 	(ii)	 	state that the addressee of the notice is required to make a Required Disposal or
procure that a Required Disposal is made by a time specified in the notice being such time
as the Directors shall consider most appropriate not being less than 7 days nor more than
60 days after the date on which the notice is given to the addressee (the “Specified
Time”) unless by that time either:

	 	(a)	 	the Relevant Person has become a Permitted Person; or

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	 	(b)	 	the Directors have resolved in good faith that either the
person stated in the notice to be a Relevant Person is not a Relevant Person
or the addressee does not have an Entitlement to the shares which would
otherwise have to be disposed of; and

	 	(iii)	 	set out such other requirements or restrictions as the Directors shall
consider necessary to ensure that by the Specified Time there is no Relevant Person
(other than a Permitted Person) in relation to the Relevant Shares concerned.

	 	 	If the Relevant Shares are held by an ADR Depositary, the notice shall also state that:

	 	(a)	 	a specified purchaser or purchasers (the “Relevant Purchaser(s)”) (excluding the ADR
Depositary itself) or Holder or Holders (the “Relevant Holder(s)”), as the case may be, is
or are believed or deemed to be Relevant Persons or is or are believed or deemed to be
purchasers or Holders through which a Relevant Person or Relevant Persons has or have an
Entitlement in either case as specified in the notice; and
	 
	 	(b)	 	the Directors believe that each Relevant Purchaser or Relevant Holder or the Relevant
Person or Relevant Persons believed or deemed to have an Entitlement through such Relevant
Purchaser or Relevant Holder, as the case may be, is or are deemed to have an Entitlement
in a specific number of Relevant Shares.

	 	 	The Directors may extend the period in which any such notice is required to be complied
with by up to 30 days and may withdraw any such notice (whether before or after the
expiration of the period referred to) if it appears to them that there is no Relevant
Person in relation to the shares concerned.

	E.	 	A holder of a Relevant Share on whom a notice has been served in accordance with paragraph (D)
above shall not in respect of that share be entitled, until such time as the Directors
are satisfied that no Relevant Person has an Entitlement to that share or the notice has been
withdrawn:

	 	(a)	 	to attend or vote at any general meeting of the Company or meeting of any class of shares of
the Company, or to exercise any other right conferred by membership in relation to any such meeting
(this restriction being in addition to the provisions of Rule 74(b));
	 
	 	(b)	 	to receive any dividend or other distribution which would otherwise be payable in respect of a
Relevant Share, which shall be retained by the Company without any liability to pay interest when
the money or distribution is finally paid or given to the member; or
	 
	 	(c)	 	to elect to receive shares in lieu of any dividend or distribution referred to in (b) above.

	 	 	If the requirements of any notice under paragraph (D) above have not been complied with by
the Specified Time (or such later time as may be permitted pursuant to that paragraph) then
the Directors shall take such action as is within their power to ensure that a Required
Disposal is made as soon as is reasonably practicable and, for this purpose, they shall
make such arrangements as they deem appropriate including, without limitation, appointing

Page 73

 

	 	 	any person on behalf of the holder or holders of the Relevant Shares to execute any documents, to
take such other action as that person may deem necessary or expedient and to receive and give good
discharge for the purchase price. Brokerage, stamp duty and any other costs of the transfer shall
be paid out of the sale proceeds. The net proceeds of any sale under this paragraph shall be paid
to the shareholder who held the Relevant Shares sold under this paragraph provided that the
shareholder has delivered to the Company such documents or information as may be reasonably
required by the Directors. Upon the name of the purchaser being entered in the Register in
purported exercise of the powers under this paragraph, the validity of the sale by way of a
Required Disposal shall not be challenged by any person. The Directors may not authorise a Required
Disposal of any Ordinary Shares held by an Accepting Shareholder during a period in which offers
for both Ordinary Shares and Rio Tinto plc Voting Shares remain open for acceptance.

	F.	 	Without prejudice to the provisions of the Law or the Corporations Act, the Directors may assume
without enquiry that a person is not a Relevant Person unless the information contained in the
registers kept by the Company under the Corporations Act or under the Law (as applied and extended
by this Rule), including the separate register to be kept under paragraph (C) above, appear to the
Directors to indicate to the contrary or the Directors have reason to believe otherwise, in which
circumstances the Directors shall make reasonable enquiries to discover whether any person is a
Relevant Person.
	 
	G.	 	The Directors shall not be obliged to give any notice required under this Rule to be given to
any person if they do not know either that person’s identity or address. The absence of such a
notice in those circumstances and any accidental error in or failure to give any notice to any
person to whom notice is required to be given under this Rule shall not prevent the implementation
of, or invalidate, any procedure under this Rule.
	 
	H.	 	If any Director has reason to believe that a person (not being a Permitted Person) is a
Relevant Person, the Director shall inform the other Directors.
	 
	I.	 	Paragraph (C) shall not apply to an ADR Depositary when acting in that capacity. A person
(a “Holder”) who has an Entitlement evidenced by an American Depositary Receipt shall be
deemed for the purposes of this Rule to have an Entitlement to the number of shares in the
Company in respect of which rights are evidenced by such Receipt and not (in the absence of
any other reason why the Holder would be so treated) in the remainder of the shares in the
Company held by the ADR Depositary.
	 
	J.	 	Paragraph (C) of this Rule shall not apply to a Recognised Person acting in its capacity as
such. Where a Recognised Person has an Entitlement in that capacity under arrangements recognised
by the Company for the purposes of this Rule any person who has rights in relation to shares in the
Company in which such a Recognised Person has an Entitlement shall be deemed to
have an Entitlement in the number of shares in the Company for which such a Recognised Person is or
may become liable to account to that person and any Entitlement which (by virtue of being a tenant
in common in relation to an interest in shares in the Company so held by such a Recognised Person)
that person would otherwise be treated for the purposes of this Rule as having in a larger number
of shares in the Company shall (in the absence of any other reason) be disregarded.

Page 74

 

	K.	 	This Rule shall apply notwithstanding any provision in any other of these Rules which is
inconsistent with or contrary to it.

	146.	 	Restricted securities

	 	(a)	 	If the Company at any time has on issue share capital classified by the Home Branch
as restricted securities, the Company must refuse to acknowledge, deal with, accept or
register any sale, assignment or transfer of those restricted securities which is or
might be in breach of the Listing Rules or any escrow agreement entered into by the
Company under the Listing Rules in relation to those restricted securities.
	 
	 	(b)	 	If there is a breach of any escrow agreement entered into by the Company under the
Listing Rules in relation to shares classified by the Home Branch as restricted securities,
the holder of the shares in question ceases to be entitled to any dividends and to any
voting rights in respect of those shares for so long as the breach subsists, despite any
rights attached to those shares.
	 
	 	(c)	 	The holders of shares which are classified by the Home Branch as restricted securities
and which are subject to escrow restrictions at the commencement of the winding up of the
Company rank on a return of capital behind all other shares in the Company.

	147.	 	Unmarketable parcels
	 
	147.1	 	Application of this Rule

	 	 	The provisions of this Rule 147 have effect notwithstanding any provision in this
Constitution to the contrary.
	 
	147.2	 	Definitions
	 
	 	 	For the purposes of this Rule 147 the following definitions apply, unless the context
requires otherwise:

	 	(a)	 	Divestment Notice has the meaning set out in Rule 147.3.
	 
	 	(b)	 	Notified Member means a member who has been sent a Divestment Notice.
	 
	 	(c)	 	Prescribed Member means a member who holds less than a Marketable Parcel of shares in
the Company but does not include a Prescribed New Member.
	 
	 	(d)	 	Prescribed New Member means a member who holds less than a Marketable Parcel of shares
in the Company where:

	 	(i)	 	that holding is a new holding created by the transfer of a parcel of shares that was
less than a Marketable Parcel at the time a proper SCH transfer was initiated or a paper
based transfer was lodged; and
	 
	 	(ii)	 	the transfer referred to in paragraph (i) occurred after the date on which this Rule
came into effect.

	 	(e)	 	Specified Period has the meaning set out in Rule 147.3.
	 
	 	(f)	 	The terms ‘Marketable Parcel’ and ‘Takeover’ have the same meaning as they are given in
the Listing Rules and the terms ‘Certificated Holding’, ‘CHESS Holding’,

Page 75

 

	 	 	 	‘Holding Adjustment’ and ‘Issuer Sponsored Holding’ have the same meaning as
they are given in the SCH business rules.

	 	(g)	 	Where, under this Rule 147, powers are conferred on the Secretary, such powers may be
exercised either by the Secretary or by any person nominated by the Secretary.

	147.3	 	Service of a Divestment Notice

	 	(a)	 	If the Secretary determines that a member is a Prescribed Member or a Prescribed New
Member, the Secretary may, by notice in writing (a Divestment Notice), notify the member
that the member is a Prescribed New Member or a Prescribed Member (as the case may be).
	 
	 	(b)	 	A Divestment Notice must state that the Company intends to dispose of the Notified
Member’s shares in accordance with this Rule 147 after the expiry of the time period
specified in the Divestment Notice (the Specified Period). The
Specified Period must be:

	 	(i)	 	in the case of a Divestment Notice notifying the member that the member is a
Prescribed Member — at least six weeks from the date the Divestment Notice was
sent; and
	 
	 	(ii)	 	in the case of a Divestment Notice notifying the member that the member is a
Prescribed New Member — at least seven days from the date the Divestment Notice
was sent.

	 	(c)	 	Subject to 147.3(d), each Notified Member is deemed irrevocably to have appointed the
Company as the member’s agent to sell all of their shares to an arm’s length purchaser,
following the end of the Specified Period in the relevant Divestment Notice, and to receive
the sale proceeds on behalf of the member, though nothing in this Rule obliges the Company
to sell those shares. For the purposes of such a sale, the Company may initiate a Holding
Adjustment to move all shares held by a member from a CHESS Holding to an Issuer Sponsored
Holding or a Certificated Holding or take any other action the Company considers necessary
or desirable to effect the sale and transfer of the shares.
	 
	 	(d)	 	Where a Prescribed Member gives written notice to the Company before the end of the
Specified Period in the relevant Divestment Notice that the member desires its shareholding
to be exempted from this Rule 147, the Company must not sell that shareholding as a result
of that Divestment Notice.
	 
	 	(e)	 	The Secretary may, in respect of any sale of a member’s shares in the Company under
this Rule 147:

	 	(i)	 	execute on behalf of such member an instrument of transfer of all of the member’s
shares in the Company in such manner and form as the Secretary considers necessary and to
deliver such share transfer to the purchaser; and

Page 76

 

	 	(ii)	 	take any other action on behalf of any such member or the Company as the
Secretary considers necessary to effect the sale and transfer of those shares.

	 	(f)	 	Notwithstanding any other provision of this Rule 147, none of the provisions of this
Rule 147 shall apply in respect of any of the Equalisation Share, the Special Voting Share
or the DLC Dividend Share.

	147.4	 	Rights of purchaser

	 	(a)	 	A certificate under the hand of the Secretary to the effect that shares sold under this
Rule 147 have been duly sold will discharge the purchaser from all liability in respect of
the purchase of those shares.
	 
	 	(b)	 	A purchaser of shares sold under this Rule 147 will, upon being entered in the Register
as the holder of the shares, have title to the shares which is not affected by any
irregularity or invalidity in the actions of the Company pursuant to this Rule 147 and will
not be bound to see to the application of the purchase money or other consideration.

	147.5	 	Sale Proceeds to members

	 	(a)	 	Subject to paragraph 147.5 (b), if:

	 	(i)	 	a member’s shares in the Company are sold by the Company on the member’s behalf
under this Rule 147; and
	 
	 	(ii)	 	any certificate relating to the shares the subject of the sale has been
received by the Company (or the Company is satisfied that the certificate has been
lost or destroyed),

	 	 	 	the Company must, within 60 days after completion of the sale, cause the proceeds
of sale to be sent to the member entitled to those proceeds by sending a cheque
made payable to the member through the post to the address of that member in the
Register (or, in the case of joint holders, to that one whose name stands first in
the Register in respect of the joint holding). Payment of any money under this Rule
147 is at the risk of the member to whom it is sent.
	 
	 	(b)	 	In the case of a sale of Prescribed New Member’s shares in accordance with this Rule
147, the Company is entitled to deduct (and keep) from the proceeds of sale, the costs of
the sale as determined by the Company. In any other case, the
Company or a purchaser must bear the costs of sale. The costs of sale include all
stamp duty, brokerage and government taxes and charges (except for tax on income or
capital gains of the member) payable by the transferor.

	147.6	 	Member’s remedy
	 
	 	 	The remedy of any member to whom this Rule 147 applies in respect of the sale of that
member’s shares is hereby expressly limited to a right of action in damages against the
Company to the exclusion of any other right, remedy or relief against any other person.

Page 77

 

	147.7	 	Suspension of rights
	 
	 	 	Unless the Directors determine otherwise, where a Divestment Notice is sent to a Prescribed
New Member in accordance with Rule 147.3, then, notwithstanding any other provision in this
Constitution, the rights to receive dividend and to vote attaching to the shares of the
member the subject of the Divestment Notice are suspended until the shares are transferred
to a new holder or the member ceases to be a Prescribed New Member. Any dividends that
would, but for this Rule 147.7, have been paid to a member must be held by the Company and
paid to the member within 60 days after the later of the date the shares of the member are
transferred or the date the member ceases to be a Prescribed New Member.
	 
	147.8	 	Determination binding
	 
	 	 	Any determination made by or on behalf of the Company (including any determination made by
the Secretary) under this Rule 147, shall be binding on, and conclusive against (in the
absence of a manifest error), a member.
	 
	147.9	 	Company’s power to sell
	 
	 	 	Notwithstanding anything else:

	 	(a)	 	subject to paragraph 147.9(b), the provisions of this Rule 147 may be invoked in
respect of Prescribed Members only once in any 12 month period; and
	 
	 	(b)	 	from the date on which there is publicly announced a Takeover in respect of the
Company’s shares until the close of the offers under that Takeover, the Company’s powers
under this Rule 147 to sell the shares of a Prescribed Member cease to have any force or
effect.

Page 78EX-4.2

Exhibit 4.2

Dated 7 October 2005

RIO TINTO LIMITED

SHARE SAVINGS

PLAN

	 	 	 	 	 	 	 
	 
	 	•       Adopted by Directors
	 	29 August 2001
	 	 
	 
	 	•       Amended by Directors
	 	30 May 2002, 2 August 2002,

18 September 2003, 5 October 2004

and 7 October 2005	 	 

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	1
	 	DEFINITIONS	 	 	1	 
	2
	 	OFFERS OF OPTIONS	 	 	4	 
	3
	 	APPLICATION FOR OPTIONS	 	 	5	 
	4
	 	SCALING DOWN	 	 	6	 
	5
	 	GRANT OF OPTIONS	 	 	6	 
	6
	 	LIMITS	 	 	7	 
	7
	 	EXERCISE	 	 	8	 
	8
	 	EXERCISE OF OPTIONS - SPECIAL CIRCUMSTANCES	 	 	8	 
	9
	 	TAKEOVERS AND REORGANISATIONS	 	 	9	 
	10
	 	NEW OPTIONS	 	 	10	 
	11
	 	EXERCISE OF OPTIONS	 	 	11	 
	12
	 	ADJUSTMENT OF OPTIONS	 	 	12	 
	13
	 	ADMINISTRATION	 	 	13	 
	14
	 	GENERAL	 	 	13	 
	15
	 	SHARE APPRECIATION RIGHT ALTERNATIVE	 	 	14	 
	16
	 	ALTERATIONS TO THIS PLAN	 	 	14	 
	17
	 	GOVERNING LAW	 	 	14	 
	18
	 	LANGUAGE OF PLAN	 	 	14	 
	19
	 	TERMINATION OR SUSPENSION OF THE PLAN	 	 	14	 

i

 

	1	 	DEFINITIONS
	 
	1.1	 	In this Plan, the words and expressions set out below shall bear the following respective
meanings, namely:
	 
	 	 	“Application Date” means in relation to any Offer, the date specified by the Directors as
the last day for receipt of applications (which shall not be less than 14 days after the
Offer Date).
	 
	 	 	“Application Form” means the form used by a Qualifying Employee who has received an Offer to
confirm the amount he would like to save each month under his Savings Contract and the
length of the Savings Contract.
	 
	 	 	“the Auditors” means the auditors for the time being of the Company.
	 
	 	 	“Australian Stock Exchange” means the Australian Stock Exchange Limited.
	 
	 	 	“Business Day” means a day on which the Australian Stock Exchange is open for the
transaction of business.
	 
	 	 	“the Company” means Rio Tinto Limited, ACN 004 458 404.
	 
	 	 	“Control” has the meaning given to that term by section 50AA of the Corporations Act.
	 
	 	 	“Corporations Act” means the Corporations Act 2001 in force from time to time in Australia.
	 
	 	 	“Date of Grant” means the date on which the Directors resolve that an Option is granted.
	 
	 	 	“the Directors” means the Board of directors of the Company or a duly authorised committee
of it.
	 
	 	 	“Employee” means an employee (including a director holding a salaried employment or office)
of any member of the Group; and “Employment” and “ceasing Employment” shall have a
corresponding meaning.
	 
	 	 	“Exchange Rate” means, as between two currencies, the wholesale markets spot rate closing
price as quoted in The Australian Financial Review on any date determined by the Company or,
any other published exchange rate determined by the Directors.
	 
	 	 	“Exercise Date” means the date when an Option is effectively exercised upon compliance with
the provisions of Rule 11.1 below.
	 
	 	 	“Gain” means the amount by which the Market Value on the Exercise Date of the Option exceeds
the Option Exercise Price.
	 
	 	 	“the Group” means the Company and the Participating Companies.
	 
	 	 	“Listing Rules” means the Listing Rules of the Australian Stock Exchange.
	 
	 	 	“Market Value” means in relation to an Ordinary Share on any day:

	 	(a)	 	where shares of the same class are not admitted to the Australian Stock
Exchange, its market value as determined by the Directors; and
	 
	 	(b)	 	where shares of the same class are so listed, the weighted average of the
prices at which Ordinary Shares were traded on that day on the Australian Stock
Exchange.

	 	 	“Monthly Contribution” means the monthly contribution agreed to be paid by an Option Holder
under a Savings Contract and calculated in accordance with the Application Form.

 - 1 - 

 

	 	 	“New Option” means an Option granted pursuant to Rule 10.
	 
	 	 	“Notional Repayment Amount” means the amount of the aggregate Monthly Contributions which
will have been paid under a Savings Contract at the Relevant Anniversary including, for the
purposes of calculating the number of Ordinary Shares to be comprised in the Option, a bonus
payment (referred to in these Rules as the “Bonus”) equal to such number of Monthly
Contributions as determined by the Directors, not exceeding the equivalent of the bonus
which would be payable if this Plan were a UK Inland Revenue approved savings-related share
option scheme at the relevant Offer Date;
	 
	 	 	“Offer” means a general invitation to Qualifying Employees to apply for an Option.
	 
	 	 	“Offer Date” means the date on which an Offer is made.
	 
	 	 	“Old Option” means an Option released pursuant to Rule 10.4.
	 
	 	 	“Option” means a right to acquire Ordinary Shares granted to a Qualifying Employee under
this Plan and for the time being subsisting.
	 
	 	 	“Option Holder” means a person holding an Option or, where the context requires or permits,
his legal personal representatives.
	 
	 	 	“Option Exercise Price” means the price payable per Ordinary Share on exercise of an Option
(expressed in Australian dollars), as determined by the Directors, being not materially less
than 80 per cent of the average of the Market Values on the three Business Days immediately
preceding the Offer Date or such other date determined by the Directors;
	 
	 	 	“Ordinary Shares” means fully paid Ordinary Shares in the capital of the Company for the
time being.
	 
	 	 	“Participating Company” means any Subsidiary and any company in which the Company has Voting
Power of not less than 20% and which the Directors have approved for participation in the
Plan.
	 
	 	 	“this Plan” means this plan in its present form or as from time to time altered in
accordance with the Rules.
	 
	 	 	“Qualifying Employee” means as at such date as the Directors may prescribe (being as near as
conveniently practicable to the relevant Offer Date), any person who:

	 	(a)	 	had immediately prior to that date been in the employment of a Participating
Company and had been in such employment for a continuous period of at least six months
(or such other period as the Directors may from time to time prescribe of not more than
five years from the Date of Grant); and
	 
	 	(b)	 	is not then under notice of termination of such employment (whether given or
received); and
	 
	 	(c)	 	is not eligible to participate in any other savings-related scheme operated by
the Company at the date prescribed by the Directors as set out above; or

	 	 	who is an Employee and is nominated individually or as a member of a class by the Directors
as eligible to participate in the Plan.
	 
	 	 	No directors of the Company are eligible to participate unless such participation or the
grant of an Option under this Plan to the director has been approved by shareholders in
general meeting where such approval is required by law or under the Listing Rules.
	 
	 	 	“Registrar” means the registrar of the Company for the time being.

 - 2 - 

 

	 	 	“Related Savings Contract” means in relation to any Option, a Savings Contract in respect of
which a duly signed proposal is delivered to the Company in accordance with Rule 3.2.
	 
	 	 	“Relevant Anniversary” means in relation to any Related Savings Contract, the third or fifth
anniversary, as the case may be and as specified at the date of the Offer, of its starting
date (as postponed by reason of any failure to pay a contribution on or before its due date
as permitted by these Rules.)
	 
	 	 	“Rules” means these rules as changed from time to time.
	 
	 	 	“Savings Contract” means a savings contract entered into under or in connection with the
Plan, or any other savings related share option plan operated by the Company, with a Savings
Institution nominated by the Directors.
	 
	 	 	“Savings Institution” means:

	 	(a)	 	in relation to Offers received in Australia, the Australian authorised deposit
taking institution(s) (being a body authorised under the Australian Banking Act 1959 to
carry on business in Australia); or
	 
	 	(b)	 	in relation to Offers received outside Australia, the institution(s),

	 	 	appointed by the Directors to administer the Savings Contracts under the Plan from time to
time.
	 
	 	 	“Share Appreciation Right” means the right to acquire the number of Shares as calculated in
accordance with Rule 15.
	 
	 	 	“Subsidiary” has the meaning given to that term by Division 6 of Part 1.2 of the
Corporations Act.
	 
	 	 	“Voting Power” has the meaning given to that term by section 610 of the Corporations Act.

	1.2	 	References to Rules are to Rules of this Plan.
	 
	1.3	 	Special schedule(s)
	 
	 	 	The Rules of the Plan are subject, in the case of each Qualifying Employee, to any special
schedules adopted by the Directors which are appropriate to the jurisdiction in which the
Qualifying Employee is employed at the Date of Grant or such other provisions as the
Directors notify him will apply.
	 
	1.4	 	Objects
	 
	 	 	The object of the Plan is to:

	 	(a)	 	provide an incentive for Qualifying Employees to remain in their employment in
the long term;
	 
	 	(b)	 	recognise the ongoing ability of Qualifying Employees and their expected
efforts and contribution in the long term to the performance and success of the Group,
and
	 
	 	(c)	 	provide Qualifying Employees with the opportunity to acquire Options, and
ultimately Ordinary Shares, in accordance with these Rules.

 - 3 - 

 

	1.5	 	Interpretation
	 
	 	 	Headings are for convenience only and do not affect the interpretation of these Rules and,
unless the context otherwise requires:-

	 	(a)	 	references to any legislation or any provision of any legislation includes
any modification or re-enactment of the legislation or any legislative provision
substituted for, and all legislation and statutory instruments and regulations issued
under, the legislation;
	 
	 	(b)	 	words denoting the singular include the plural and vice versa;
	 
	 	(c)	 	words denoting a gender include the other genders;
	 
	 	(d)	 	reference to any document or agreement includes reference to that document or
agreement as amended, novated, supplemented, varied or replaced from time to time;
	 
	 	(e)	 	where any word or phrase is given a defined meaning in these Rules, any part of
speech or other grammatical form of that word or phrase has a corresponding meaning,
and
	 
	 	(f)	 	where any act or thing must be done on a particular day or within a particular
period, that act or thing must be done before, and that period will end at, 5.00 pm
Melbourne time on the relevant day.

	2	 	OFFERS OF OPTIONS
	 
	2.1	 	Subject to the restrictions in this Plan, the Directors may from time to time make an Offer
to some or all Qualifying Employees. Each Offer may be limited to such maximum number of
Ordinary Shares over which Options may be granted as shall be specified by the Directors
provided that this Rule will not oblige the Directors to make an Offer to Qualifying Employees
in a territory where the Offer would be contrary to any laws or regulations applying to that
territory.
	 
	2.2	 	Other than in circumstances considered by the Directors to be exceptional, an Offer shall
only be made within the 42 days next following:

	 	2.2.1	 	the preliminary announcement of the Company’s final or half-year results in
respect of any financial year;
	 
	 	2.2.2	 	any day on which changes to the legislation or regulations affecting savings
related share option plans are announced, effected or made.

	2.3	 	The Directors may make an Offer by whatever means (whether by notice, advertisement, circular
or otherwise and whether addressed to Qualifying Employees generally or individually) they
think fit, provided always that any such Offer is made in accordance with the Corporations
Act, the Listing Rules and the Company’s Constitution. Each Offer shall constitute an
invitation to each Qualifying Employee to apply on or before the relevant Application Date for
the grant of an Option over such number of Ordinary Shares as may be appropriate pursuant to
the provisions of Rule 5. In making the Offer, the Directors shall specify and include in the
Offer the following or details thereof:

	 	2.3.1	 	eligibility;
	 
	 	2.3.2	 	the Option Exercise Price or how it is to be calculated and the currency in
which it is to be paid;

 - 4 - 

 

	 	2.3.3	 	the prescribed Application Form and the Application Date;
	 
	 	2.3.4	 	whether the Directors have exercised their discretion under Rule 15;
	 
	 	2.3.5	 	how the Notional Repayment Amount is calculated;
	 
	 	2.3.6	 	the length or lengths of the Savings Contracts that the Directors decide will
apply in respect of that Offer and whether a Qualifying Employee will be able to choose
the length of Savings Contracts applicable to him;
	 
	 	2.3.7	 	the maximum number, if any, of Ordinary Shares over which options may be
granted to each Qualifying Employee in respect of this Offer;
	 
	 	2.3.8	 	the minimum and maximum Monthly Contributions which are payable under the
Savings Contract;
	 
	 	2.3.9	 	a statement that if the Notional Repayment Amount is not sufficient for an
Option Holder to exercise his Option to the full extent permitted, he is entitled to
make up any shortfall from his own funds;
	 
	 	2.3.10	 	a summary or a copy of these Rules; and
	 
	 	2.3.11	 	any other information or documents required to be notified by the Corporations Act or
the Listing Rules.

	3	 	APPLICATION FOR OPTIONS
	 
	 	 	Each application for an Option must:

	 
	3.1 	 	
be made on the prescribed Application Form in accordance with any related instructions;
	 
	3.2	 	be accompanied by a duly signed proposal for a Savings Contract which will oblige the
Qualifying Employee concerned to make contributions of an aggregate amount of not more and not
less than that permitted under Rule 2.3.8 above, when aggregated with any Monthly Contribution
he makes under any other Savings Contract. The minimum contribution will be determined by the
Directors. The maximum contribution will be agreed in local currency (converted at the
Exchange Rate) and will be the lesser of an amount determined by the Directors and an amount
calculated by multiplying the Option Exercise Price by the maximum number of shares in Rio
Tinto plc which may be acquired under The Rio Tinto plc Share Savings Plan; and
	 
	3.3	 	be accompanied by an authority for the contributions payable thereunder to be deducted from
the Qualifying Employee’s remuneration and paid to the Savings Institution under the terms of
the Savings Contract.
	 
	3.4	 	Terms of the Savings Contract

	 	3.4.1	 	Monthly Contributions made by Qualifying Employees in response to Offers
received in New Zealand will be held by the Company in trust for those Qualifying
Employees in an account of the Savings Institution established solely for the purpose
of depositing Monthly Contributions paid by those Qualifying Employees.
	 
	 	3.4.2	 	Monthly Contributions made by Qualifying Employees in response to all other
Offers will be held in individual accounts of the Savings Institution established
solely for the purpose of depositing those Monthly Contributions.

	 	 	The interest earned on the Monthly Contributions paid by a Qualifying Employee shall also be
credited to the relevant account established for that Qualifying Employee under this Rule
3.4.

 - 5 - 

 

	3.5	 	Number of Ordinary Shares
	 
	 	 	Each Qualifying Employee’s application will be for an Option over the largest whole number
of Ordinary Shares which can be acquired at the Option Exercise Price with the Notional
Repayment Amount which would be available under his Savings Contract on the Relevant
Anniversary.
	 
	3.6	 	Modification of application
	 
	 	 	If an application for a Savings Contract specifies a Monthly Contribution which, when added
to any other Monthly Contributions already being made by the Qualifying Employee, under the
Plan or contribution being made under any other savings-related share schemes operated by
the Company, exceeds the maximum permitted (whether under Rule 6.1 or any limit specified in
the Offer), the Directors are authorised to modify the Application Form to reduce the
Monthly Contribution to the maximum amount permitted under the Rules.
	 
	4	 	SCALING DOWN
	 
	4.1	 	If following any Offer, valid applications are received for a total number of Ordinary Shares
in excess of any maximum number specified by the Directors in that Offer or any limitation
under Rule 6.2, the Directors shall scale down applications by taking, at their absolute
discretion, any one or more of the following steps until the number of Ordinary Shares
available equals or exceeds the number of Ordinary Shares applied for:

	 	4.1.1	 	by reducing the proposed Monthly Contributions pro rata to an amount not less
than the minimum specified in the Offer; or
	 
	 	4.1.2	 	by treating the Bonus as wholly or partly excluded from the calculation of the
Notional Repayment Amount and then, so far as necessary, by reducing the proposed
Monthly Contributions pro rata to the excess over the minimum Monthly Contribution
specified in the Offer and then, so far as necessary, selecting by lot.

	 	 	The Directors may apply such other procedure or modify the procedures described in this Rule
4 in such a manner as they see fit.
	 
	5	 	GRANT OF OPTIONS
	 
	5.1	 	The Company may, as soon as practicable after each Application Date but not later than 30
days (or 42 days if applications are scaled down) after the first date by reference to which
the Market Value was established for the purpose of the relevant Offer, accept the application
of a Qualifying Employee by granting to the Qualifying Employee who has applied for an Option
pursuant to the relevant Offer (provided that he is then a Qualifying Employee and that his
application has not been withdrawn) an Option at the applicable Option Exercise Price over the
least of:

	 	5.1.1	 	the number of Ordinary Shares which are the subject of such application;
	 
	 	5.1.2	 	any lesser number in respect of which such application is accepted in order to
ensure, on a basis of equitable scaling down under Rule 4, that the total number of
Ordinary Shares over which Options are granted pursuant to the related Offer does not
exceed any number specified in that Offer; and
	 
	 	5.1.3	 	the number of Ordinary Shares over which an Option may be granted under Rule
6.1.

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	5.2	 	No payment shall be required for the grant of any Option. Each Option shall be granted by
means of a resolution of the Directors and evidenced by a certificate or statement under the
autographic or facsimile signature of a Director or the Secretary or any assistant or deputy
Secretary of the Company.
	 
	5.3	 	Except for the transmission of an Option on the death of an Option Holder to his personal
representatives, neither an Option nor any rights in respect of it may be transferred,
assigned or otherwise disposed of by an Option Holder to any other person.
	 
	5.4	 	In the event of excess applications, each valid application for an Option and proposal for a
Savings Contract shall be deemed to have been modified or withdrawn in accordance with the
steps taken under Rule 4.
	 
	5.5	 	Restrictions on grant

	 	5.5.1	 	No Option may be granted to anyone who, at the Date of Grant, is no longer a
Qualifying Employee. Any purported grant in breach of this Rule is invalid.
	 
	 	5.5.2	 	Any Option which is purported to be granted in excess of the limits in Rule 6
will take effect as an Option which would not exceed those limits.
	 
	 	5.5.3	 	No Option may be granted if to do so would contravene the Constitution of the
Company, the Corporations Act or any other applicable law or the Listing Rules and any
purported grant of an Option under this Plan in breach of this Rule is invalid.

	6	 	LIMITS
	 
	6.1	 	Individual Limits
	 
	 	 	No Qualifying Employee shall be granted an Option to the extent it would, at the proposed
Date of Grant, cause the aggregate amount of his Monthly Contributions (calculated at the
Exchange Rate on the Business Day immediately preceding the relevant Offer Date or such
other date determined by the Directors) under all Savings Contracts to exceed the lesser of:

	 	6.1.1	 	the amount detailed under Rule 3.2; and
	 
	 	6.1.2	 	the maximum Monthly Contribution specified by the Directors.

	 	 	When calculating the limits under this Rule 6.1, the exchange rates (if any) which were used
to calculate the limits for existing Monthly Contributions will continue to be the rates
used to calculate the amount of those existing Monthly Contributions.
	 
	6.2	 	Plan Limits
	 
	 	 	The number of unissued Ordinary Shares which may be allocated under the Plan on any day must
not, when aggregated with the number of Ordinary Shares issued or to be issued pursuant to
each outstanding offer made under the Plan or any other employee share scheme extended only
to employees or directors of the Company and of associated bodies corporate of the Company
in the previous five years (but excluding any offers received by persons outside Australia
or any other offer which was an ‘excluded offer’ (within the meaning of the Corporations
Law as it stood prior to the commencement of Schedule 1 to the Corporate Law Economic Reform
Program Act 1999) or did not require disclosure to investors because of section 708 of the
Corporations Act) exceed 5% of the total number of Ordinary Shares in issue at the time of
the relevant Offer under this Plan.
	 
	 	 	For the purposes of this Rule 6.2, a body corporate is an associated body corporate of the
Company if:

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	 	(a)	 	the body corporate is a related body corporate of the Company; or
	 
	 	(b)	 	the body corporate has Voting Power in the Company of not less than 20%; or
	 
	 	(c)	 	the Company has Voting Power in the body corporate of not less than 20%.

	7	 	EXERCISE
	 
	7.1	 	Save as provided in this Plan, an Option may be exercised only during the period of six
months commencing on the Relevant Anniversary of the Related Savings Contract; and
(notwithstanding any other provision of this Plan):

	 	7.1.1	 	it may only (save as provided in Rule 8 or unless otherwise directed by the
Directors) be exercised by a person who is at that time an Employee;
	 
	 	7.1.2	 	it may only be exercised if to do so would not contravene the Constitution of
the Company, the Corporations Act or any other applicable law; and

	 	 	any purported exercise of an Option under this Plan in breach of the foregoing is invalid.
	 
	 	 	Save as provided in Rule 8, in the event of an Option Holder ceasing to be an Employee all
his Options shall thereupon cease and determine: Provided that, for the purposes of this
Rule and Rules 8.2 and 8.3, no person shall be treated as ceasing to be an Employee until he
ceases to be an employee or director of any of the Company, any member of the Group or Rio
Tinto plc or any of its subsidiaries (and so, for the avoidance of doubt, if a person merely
transfers employment or their position as a director between any of the foregoing, the
person is treated as not ceasing to be an Employee).
	 
	7.2	 	If, before the earliest time when, in accordance with the provisions of this Plan, an Option
Holder may exercise an Option he gives (or is deemed to have given) notice that he intends to
stop paying contributions under a Related Savings Contract, such Option shall thereupon cease
and determine, his Savings Contract will end and the balance in the account, plus accrued
interest, if any, will be refunded to him.
	 
	8	 	EXERCISE OF OPTIONS — SPECIAL CIRCUMSTANCES
	 
	8.1	 	If an Option Holder dies whilst any Option remains in whole or in part available for exercise
by him, such Option may be exercised in whole or in part at any time during the period of 12
months from the earlier of:

	 	8.1.1	 	the date of his death; and
	 
	 	8.1.2	 	the Relevant Anniversary of the Related Savings Contract.

	 	 	To the extent that any Option so exercisable is not exercised within such period, it shall
thereupon cease and determine, unless otherwise determined by the Directors.
	 
	8.2	 	If an Option Holder ceases to be an Employee by reason of injury or disability (evidenced to
the satisfaction of the Directors) or redundancy or retirement or by reason that he is an
Employee of a company which ceases to be a member of the Group or his Employment relates to a
business or part of a business which is transferred to a person who is not a member of the
Group, or he is an Employee of the Group who is transferred to a person who is not a member of
the Group, but is a Subsidiary or a company in which the Company has Voting Powers of not less
than 20%, he may exercise any Option in whole or in part within six months thereafter. To the
extent that any Option so exercisable is not exercised within such period, it shall thereupon
cease and determine, unless otherwise determined by the Directors.

 - 8 - 

 

	8.3	 	If after the third anniversary of the grant of an Option an Option Holder ceases to be an
Employee in circumstances other than those specified in Rule 8.1 or 8.2 of this Rule but not
by reason of dismissal as a result of disciplinary proceedings or misconduct, he may at the
Directors’ discretion exercise any such Option in whole or in part within six months of such
cessation. To the extent that any Option which is exercisable is not exercised within such
period it shall cease and determine unless otherwise determined by the Directors.
	 
	8.4	 	Restrictions on exercise
	 
	 	 	Where an Option is exercisable early under Rules 8 or 9, it may only be exercised in respect
of the number of Ordinary Shares produced by applying the following formula:
	 
	 	 	A x (B/C)
	 
	 	 	Where:
	 
	 	 	A = the number of Ordinary Shares comprised in the Option.
	 
	 	 	B = the number of whole months between the start of the Related Savings Contract and at the
date the Option Holder ceases to be an Employee under the relevant provisions in Rules 8 or
9, subject to the limitation that B cannot exceed C.
	 
	 	 	C = the duration of the Savings Contract (had it been completed) expressed in months.
	 
	 	 	The remainder of the Option which cannot be exercised will lapse. A purported exercise to an
extent greater than that provided above will be deemed to be an exercise only to the extent
permitted.
	 
	9	 	TAKEOVERS AND REORGANISATIONS
	 
	9.1	 	If, (other than in the circumstances referred to in Rule 9.4), any person obtains Control of
the Company as a result of making an offer to acquire shares which is either unconditional or
is made on a condition such that if it is satisfied the person making the offer will have
Control of the Company, an Option may be exercised within six months of the time when the
person making the offer has obtained Control of the Company and any condition subject to which
the offer is made has been satisfied.
	 
	9.2	 	For the purpose of this Rule 9, a person shall be deemed to have obtained Control if he and
others acting in concert with him have together obtained Control of the Company.
	 
	9.3	 	The Options shall not lapse on the expiry of the six month period unless the Directors shall
give notice to the Option Holders before the end of the six month period that the Options
shall lapse. Such notice must be given at least 28 days before the Options lapse.
	 
	9.4	 	If any person becomes bound or entitled to acquire Ordinary Shares under a takeover bid
carried out in accordance with Chapter 6 of the Corporations Act, Options may be exercised at
any time when that person remains so bound or entitled and shall lapse on the expiry of the
period referred to in Rule 10.4.3, unless the Directors shall give notice to the Option
Holders prior to the expiry of the relevant period that the Options shall not lapse.
	 
	9.5	 	If notice is given of a general meeting of the Company at which a resolution will be proposed
for the voluntary winding-up of the Company, each Option Holder shall be entitled at any time
prior to the commencement of such winding-up (within the meaning of section 513B of the
Corporations Act) to exercise his Options in whole or in part as at such commencement and
conditionally upon the commencement of the winding-up. Subject to that, all Options shall
lapse on the commencement of the winding-up.

 - 9 - 

 

	9.6	 	If, under Part 5.1 of the Corporations Act, the court sanctions a compromise or arrangement
proposed for the purposes of or in connection with a scheme for the reconstruction of the
Company or its amalgamation with any other company or companies, an Option may be exercised
within six months of the court sanctioning the compromise or arrangement. To the extent that
any Option so exercisable is not exercised within such period, it shall thereupon cease and
determine.
	 
	10	 	NEW OPTIONS
	 
	10.1	 	This Rule 10 applies where a Company (The “Acquiring Company”):

	 	10.1.1	 	obtains Control of the Company as a result of making a general offer to acquire the
whole of the issued share capital of the Company (other than that which is already
owned by it or its Subsidiary or holding company) made on a condition such that, if
satisfied, the Acquiring Company will have Control of the Company; or
	 
	 	10.1.2	 	obtains Control of the Company as a result of making a general offer to acquire all
the Ordinary Shares (or such Ordinary Share as are not already owned by the Acquiring
Company or its Subsidiary or holding company); or
	 
	 	10.1.3	 	obtains Control of the Company under a compromise or arrangement sanctioned by the
court under Part 5.1 of the Corporations Act; or
	 
	 	10.1.4	 	becomes bound or entitled to acquire Ordinary Shares in the Company under a takeover
bid carried out in accordance with Chapter 6 of the Corporations Act.

	10.2	 	Subject to the conditions referred to in Rule 10.3, where this Rule 10 applies, an Option
Holder may, within the period referred to in Rule 10.4, by agreement with the Acquiring
Company release his Old Option in consideration of the grant to him of a New Option over
shares in the Acquiring Company or some other company as agreed between the Company and the
Acquiring Company.
	 
	10.3	 	The conditions referred to in Rule 10.2 are as follows:

	 	10.3.1	 	The total market value of the Ordinary Shares subject to the Old Option immediately
before the release must be (as nearly as possible without giving rise to fractional
entitlements) equal to the total market value (as so determined) immediately after the
grant of the New Option of the shares in respect of which the New Option is granted.
	 
	 	10.3.2	 	the aggregate exercise price payable by the Option Holder upon the exercise in full
of his New Option must be equal to the aggregate Option Exercise Price which would have
been payable by him had he exercised in full his Old Option in respect of the total
number of Ordinary Shares subject to the Old Option at the time of the release.

	10.4	 	The period referred to in Rule 10.4 is the earliest of:

	 	10.4.1	 	in a case falling within Rule 10.1.1 or 10.1.2, six months beginning with the time
when the Acquiring Company obtains Control of the Company and any condition subject to
which the offer is made is satisfied;
	 
	 	10.4.2	 	in a case falling within Rule 10.1.3, six months beginning with the time when the
court sanctions the compromise or arrangement; and
	 
	 	10.4.3	 	in a case falling within Rule 10.1.4, the period during which the Acquiring Company
remains so bound or entitled,

 - 10 - 

 

	 		 	or such shorter periods as the Acquiring Company may determine.

	10.5	 	Where an Option Holder is granted a New Option for release of his Old Option in accordance
with this Rule 10 then:

	 	10.5.1	 	the New Option shall be exercisable in the same manner and at the same time as the
Old Option;
	 
	 	10.5.2	 	the New Option shall be subject to the provisions of the Plan as it had effect in
relation to the Old Option immediately before the release except Rule 16; and
	 
	 	10.5.3	 	with effect from the release and grant Rules 1 and 7 to 18 (inclusive) shall in
relation to the New Option, be construed as if references to the Company and Ordinary
Shares were references to the Acquiring Company and shares in the Acquiring Company or,
as the case may be, the other company in respect of whose shares the New Option is
granted.

	10.6	 	Where the Option Holder is deprived of the legal or beneficial ownership of the Option by
operation of law, or does anything or omits to do anything which causes him to be so deprived,
or becomes bankrupt all of his Options shall lapse.
	 
	10.7	 	In the event of any conflict between any of the provisions in Rules 7, 8 and 9, the provision
which results in the earliest lapsing of the Option shall prevail.
	 
	11	 	EXERCISE OF OPTIONS
	 
	11.1	 	To exercise an Option in whole or in part, an Option Holder must deliver to the Registrar or
Savings Institution (as specified by the Directors from time to time):

	 	11.1.1	 	a notice in written form acceptable to the body administering the Savings Contract,
specifying such repayment as is due to it under the Relevant Savings Contract and the
integral number of Ordinary Shares over which the Option is exercised;
	 
	 	11.1.2	 	evidence of the termination of the Related Savings Contract;
	 
	 	11.1.3	 	payment in full of the aggregate Option Exercise Price; and
	 
	 	11.1.4	 	the option certificate or statement covering the Ordinary Shares over which the
Option is being exercised.

	11.2	 	No Option shall be capable of exercise to the extent that the aggregate Option Exercise Price
on such exercise exceeds the related Notional Repayment Amount less so much thereof as has
already been taken into account upon the exercise of any Option.
	 
	11.3	 	No Option shall be capable of exercise in part (other than as to the full extent then
exercisable) as to an aggregate number of Ordinary Shares of less than 125.
	 
	11.4	 	All allotments, issues and transfers of Ordinary Shares will be subject to such consents (if
any) of such authorities as may for the time being be necessary in Australia or elsewhere. It
shall be the responsibility of the Option Holder to comply with any requirements to be
fulfilled in order to obtain or obviate the necessity for any such consent.
	 
	11.5	 	Ordinary Shares issued or transferred on exercise of an Option shall rank equally in all
respects with the Ordinary Shares in issue on the Exercise Date. They shall not rank for any
rights attaching to Ordinary Shares by reference to a record date preceding the Exercise Date.
	 
	11.6	 	The Company shall use all reasonable endeavours to procure that as soon as reasonably
practicable following the issue of Ordinary Shares as a result of the exercise of an Option,

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	 	 	an application for those Ordinary Shares to be listed for quotation on the Australian Stock
Exchange shall be made.
	 
	11.7	 	Any Ordinary Shares acquired upon the exercise of Options shall be subject to the
Constitution of the Company from time to time in force.

	 	11.7.1	 	Subject to Rule 11.4, Ordinary Shares to be issued following the exercise of an
Option shall be issued within 30 days of the Exercise Date.
	 
	 	11.7.2	 	Subject to Rule 11.4, the Directors shall use their reasonable endeavours to procure
that Ordinary Shares to be transferred following the exercise of an Option are
transferred within 30 days of the Exercise Date.

	11.8	 	Where there is any local legal restriction on the Option Holder holding Ordinary Shares, the
Ordinary Shares may, at the determination of the Directors, be issued or transferred to a
person determined by the Directors and held on behalf of the Option Holder.
	 
	12	 	ADJUSTMENT OF OPTIONS
	 
	12.1	 	Participation in new issues

	 	12.1.1	 	An Option Holder may only participate in new issues of securities to holders of
Ordinary Shares if :

	 	(i)	 	the Option has been exercised; and
	 
	 	(ii)	 	an Ordinary Share has been issued and allotted in respect of
the Option before the record date for determining entitlements to the new
issue.

	 	12.1.2	 	The Company must give to Option Holders, in accordance with the Listing Rules, notice
of any new issue of securities before the record date for determining entitlements to
the issue.

	12.2	 	Adjustment for bonus issues of Ordinary Shares
	 
	 	 	If the Company makes a bonus issue of Ordinary Shares or other securities to existing
shareholders of the Company (other than an issue in lieu or in satisfaction of dividends or
by way of dividend reinvestment):

	 	12.2.1	 	the number of Ordinary Shares which will be issued on the exercise of the Option
will be increased by the number of Ordinary Shares which the Option Holder (or, if
relevant, such other person as determined by the Directors in accordance with Rule
11.8) would have received if the Option Holder had exercised the Option before the
record date for the bonus issue; and
	 
	 	12.2.2	 	no change will be made to the aggregate Option Exercise Price.

	12.3	 	Adjustment for rights issues 
	 
	 	 	If the Company makes an issue of Ordinary Shares pro rata to existing shareholders of the
Company (other than an issue in lieu or in satisfaction of dividends or by way of dividend
reinvestment) the Option Exercise Price will be reduced in accordance with the Listing
Rules.
	 
	12.4	 	Reconstructions 
	 
	 	 	If there is any reconstruction of the issued share capital of the Company, then the rights
of an Option Holder will be changed to the extent necessary to comply with the Listing Rules
applying to a reconstruction of capital at the time of the reconstruction

 - 12 - 

 

	13	 	ADMINISTRATION.
	 
	13.1	 	All notices under the Plan shall be in writing and, if to the Company, shall be either:

	 	13.1.1	 	delivered in person to the Company Secretary; or
	 
	 	13.1.2	 	sent to the Company’s registered office for the time being (or to such other address
as the Directors may from time to time specify); or
	 
	 	13.1.3	 	if the Directors allow, sent to the email address for the time being of the Company
Secretary (or to such other email address as the Directors may from time to time
specify),

	 
	 	
and, if to an Option Holder, shall be either:
	 
	 	13.1.4	 	delivered personally to him at his place of work;
	 
	 	13.1.5	 	sent by first-class post to the Option Holder at the address which he shall give in
writing to the Company for this purpose, or, failing any such address, his last home
address according to the records of his employing company; or
	 
	 	13.1.6	 	sent to his office email address (or such other email address as he may from time to
time specify).

	13.2	 	All notices to the Company, however sent, shall be deemed to be served only upon actual
receipt thereof by the Company Secretary or (as the case may be) at the appropriate address as
determined above. Notices to the Option Holder shall, if delivered personally to him at his
place of work, be deemed to be served upon such delivery and, if sent by first-class post to
the appropriate address as determined above, shall be deemed to be served 48 hours (or seven
days, if the address is outside Australia) after the posting to such address of a properly
addressed and prepaid envelope containing such notice.
	 
	 	 	Notices sent by email shall be deemed to be served when receipt has been acknowledged.
	 
	 	 	Notices sent to the trustee may be delivered or sent by post to the registered office of the
Company or to such place as the trustee may from time to time determine and notify to the
Option Holders.
	 
	13.3	 	The Company must within a reasonable period give to each Option Holder notice of any change
under Rules 12 or 15 to the Option Exercise Price of any Options held by the Option Holder or
to the number of Ordinary Shares which the Option Holder is entitled to subscribe for or
acquire by way of a transfer on exercise of an Option.
	 
	14	 	GENERAL
	 
	14.1	 	The Company shall procure that sufficient Ordinary Shares are available for transfer to
satisfy all Options under which Ordinary Shares may be acquired.
	 
	14.2	 	The decision of the Directors in any dispute or question relating to any Option or this Plan
shall be final and conclusive subject to the concurrence of the Auditors whenever required
under the provisions of this Plan.
	 
	14.3	 	The Directors may at any time resolve to terminate this Plan, in which event no further
Options shall be granted but the provisions of this Plan shall in relation to Options then
subsisting continue in full force and effect.
	 
	14.4	 	The rights and obligations of an Option Holder under the terms and conditions of his office
or employment shall not be affected by his participation in the Plan or any right he may have
to participate in the Plan. An individual who participates in the Plan waives all and any

 - 13 - 

 

	 	 	
rights to compensation or damages in consequence of the termination (whether in breach of
contract or not) of his office or employment with any company for any reason whatsoever in so
far as those rights arise, or may arise, from his ceasing to have rights under or be entitled
to exercise any Option under the Plan as a result of such termination or from the loss or
diminution in value of such rights or entitlement.
	 
	14.5	 	If any option certificate or statement is worn out, defaced or lost, it may be replaced on
such conditions as the Directors may require.
	 
	14.6	 	In any manner in which they are required to act under this Plan the Auditors shall be deemed
to be acting as experts and not as arbitrators.
	 
	15	 	SHARE APPRECIATION RIGHT ALTERNATIVE
	 
	15.1	 	The Directors may at the Offer Date, in their discretion determine that an Option will not be
satisfied by the acquisition of Ordinary Shares at the Option Exercise Price, but instead that
the Option will be satsified by, subject to Rule 15.2, procuring the transfer to the Option
Holder (or, if relevant, to such other person as determined by the Directors in accordance
with Rule 11.8) of Ordinary Shares with a value equal to the Gain or by applying such value in
the subscription of Ordinary Shares. If the Directors so determine, the Option Exercise Price
shall not be payable, and if already paid, shall be repaid to the Option Holder
	 
	15.2	 	Where the Directors have exercised their discretion under Rule 15.1 in respect of an Option,
the Option Holder may at the Exercise Date elect to receive a cash amount equal to the Gain
instead of receiving Ordinary Shares with a value equal to the Gain or having such value
applied in the subscription of Ordinary Shares, in which case the Company will, where
permitted by law, comply with such a request, except that the Company or any relevant
employing company will be entitled to withhold any amount and make any such arrangements it
considers necessary to meet any liability to taxation or social security contributions in
respect of the Option.
	 
	16	 	ALTERATIONS TO THIS PLAN
	 
	 	 	Subject to the Listing Rules, the Directors may from time to time amend any of these Rules or
waive or modify the application of any of these Rules in relation to any Option Holder.
	 
	17	 	GOVERNING LAW
	 
	 	 	This Plan and all Options shall be governed by and construed in accordance with the laws of
the State of Victoria, Australia.
	 
	18	 	LANGUAGE OF PLAN
	 
	 	 	The language of the Rules is English and in the event of any conflict the English language
version will apply.
	 
	19	 	TERMINATION OR SUSPENSION OF THE PLAN
	 
	 	 	The Directors may terminate or suspend the Plan at any time, provided that termination or
suspension does not affect or prejudice the rights of Option Holders at that time.

 - 14 -

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