BHP Billiton Production Report Y/E 30 June 2010

BHP BILLITON PRODUCTION REPORT FOR THE YEAR ENDED 30 JUNE 2010

§ Petroleum delivered its third consecutive annual production record following the successful delivery of a series of growth projects in the Gulf of Mexico (USA) and Australia. These contributed to continued growth in the high margin crude operations.

§ BHP Billiton operated Shenzi (USA) and Pyrenees (Australia) performed at or above design capacity during the year.

§ Western Australia Iron Ore achieved its tenth consecutive annual production record. Samarco (Brazil) also achieved quarterly and annual production records.

§ Annual production records were also achieved at North West Shelf, Hunter Valley Energy Coal, Worsley, Nickel West and Poitrel (all Australia), Alumar refinery (Brazil) and Zamzama (Pakistan).

§ Quarterly production records were achieved for manganese alloy, Cerrejon Coal (Colombia) and Samancor Metalloys (South Africa).

§ During the second half of the financial year, the old benchmark pricing system for iron ore and metallurgical coal was substantially replaced by shorter term market based pricing. The transformation ensures the majority of BHP Billiton's bulk commodities (iron ore, manganese, metallurgical coal and energy coal) are now linked to market based prices.

BHP Billiton continues to be cautious on the short term outlook for the global economy. Uncertainty surrounds the near term prospects for growth in the developed world as governments adjust fiscal policies following a period of significant stimulus and subsequent increase in sovereign debt levels. Within China, measures introduced to reduce growth to more sustainable levels means volatility in commodity end-demand is likely to persist. BHP Billiton sees these measures as a normal continuation of China's economic management policies.

Petroleum

Total Petroleum Production - Petroleum delivered its third consecutive annual production record following the successful delivery of a series of growth projects in the Gulf of Mexico and Australia. BHP Billiton operated Shenzi and Pyrenees performed at or above design capacity during the year. This strong performance was partially offset by natural field decline and the suspension of drilling activities in the Gulf of Mexico.

Drilling activities at Atlantis (USA) and Shenzi ceased during the June 2010 quarter. BHP Billiton continues to monitor and assess the impact of the six month suspension of certain permitting and drilling activities in the Gulf of Mexico.

Crude Oil, Condensate, and Natural Gas Liquids - High margin crude oil and condensate production was 27 per cent higher than the year ended June 2009 and significantly higher than all comparative periods following the successful start-up of Pyrenees and consistently strong performance at Shenzi. Strong reservoir performance from Atlantis North (USA) and a lack of weather related impacts also contributed to the annual increase in production.

Natural Gas - Production was in line with the year ended June 2009. Production at the North West Shelf benefited from a full year contribution from LNG Train 5. This was offset by planned maintenance at both the North West Shelf and UK assets.

Aluminium

Alumina - Production was nine per cent higher than the year and quarter ended June 2009 due to record annual performance at Worsley and the ongoing ramp up of the recently expanded Alumar refinery. An unplanned interruption of the ship unloading capabilities at Alumar impacted current quarter performance. In addition, Worsley benefited from the processing of stockpiled hydrate in the March 2010 quarter.

Aluminium - Production across all operations was in line with comparative periods.

Base Metals

Copper - Production was higher than the March 2010 quarter due to strong performance at Escondida (Chile), a return to full capacity at Spence (Chile) and improved plant utilisation at Cerro Colorado (Chile). Olympic Dam (Australia) recommenced hoisting from the Clark Shaft during the quarter and has returned to full production.

Production for the year ended June 2010 decreased due to the Olympic Dam Clark Shaft outage, industrial action at Spence, lower grades at Cerro Colorado and Antamina (Peru), and the cessation of sulphide mining at Pinto Valley (USA). This was partly offset by higher grade and recovery at Escondida.

Escondida production is expected to decline by five to 10 per cent in the 2011 financial year, mainly due to lower grade.

At 30 June 2010 the Group had 236,584 tonnes of outstanding copper sales that were revalued at a weighted average price of US$2.96 per pound. The final price of these sales will be determined in the 2011 financial year. In addition, 234,871 tonnes of copper sales from the 2009 financial year were subject to a finalisation adjustment in 2010. The finalisation adjustment and provisional pricing impact as at 30 June 2010 will increase earnings(b) by US$303 million for the year (year ended June 2009 US$936 million loss).

Lead - Cannington (Australia) production increased over the previous year and quarter ended June 2009 due to higher grades and plant throughput.

Zinc - Production was higher than the year and quarter ended June 2009 due to higher plant throughput and utilisation, and higher grades at Antamina and Cannington.

Silver - Production was higher than the year and quarter ended June 2009 due to higher throughput and increased grade at Cannington.

Uranium - Production was lower than the year and quarter ended June 2009 due to the Clark Shaft outage at Olympic Dam. The Clark Shaft returned to full capacity during the June 2010 quarter.

Diamonds & Specialty Products

Diamonds - Production was lower than all comparative periods primarily due to lower average grade. During the year a higher proportion of ore was sourced from the Fox pit at Ekati (Canada) as mining of the higher grade Panda underground was completed.

Stainless Steel Materials

Nickel - Nickel West achieved record production for the year ended June 2010 following the major furnace rebuild at the Nickel West Kalgoorlie (Australia) smelter in the prior year. The subsequent drawdown of accumulated concentrate stocks is largely complete.

Production in the June 2010 quarter was impacted by disruptions to hydrogen supply at the Nickel West Kwinana (Australia) refinery and an unplanned outage at Nickel West Kalgoorlie.

During the second half of the 2011 financial year, Cerro Matoso (Colombia) production will be impacted for nine months due to the planned replacement of one of its two furnaces.

Iron Ore

Iron Ore - Record production was achieved for the year ended June 2010. Current quarter production was impacted by tie-in activities at Western Australia Iron Ore as Rapid Growth Project 4 continues to ramp up.

Following demand related production adjustments, Samarco returned to full production during the year ended June 2010, delivering a record result for the operation.

For the 2010 financial year, 39 per cent of Western Australia Iron Ore shipments on a wet metric tonne basis were priced on annually agreed terms, with the remainder sold on a shorter term basis. During the second half of the financial year, the old benchmark pricing system was substantially replaced by shorter term market based, landed pricing. Our expectation is that future Western Australia Iron Ore shipments will be priced on this basis.

Manganese

Manganese Ore - Production was higher than all corresponding periods despite weather related impacts in Australia and South Africa during the June 2010 quarter. Mamatwan mine (South Africa) achieved record production during the quarter. For the year, production was significantly higher and reflected improved market demand.

Samancor Manganese ore continues to be priced on a monthly basis.

Manganese Alloy - Following the recovery in market conditions, production was at record levels for the quarter and higher for the year ended June 2010. Samancor Metalloys achieved record production during the June 2010 quarter.

Samancor Manganese alloy continues to be priced on a shorter term basis.

Metallurgical Coal

Metallurgical Coal - Production was higher due to improved operational and supply chain performance, supported by strong demand. The March 2010 quarter was impacted by wet weather disruptions at Queensland Coal and planned longwall moves at Illawarra (both Australia). Despite this, Queensland Coal achieved record annual and quarterly shipments. Hay Point Coal Terminal (Australia) is currently undergoing planned maintenance on Berth 2, which is scheduled for completion in August 2010.

As with iron ore, the old benchmark system was substantially replaced by shorter term market based pricing. For the year ended June 2010, 34 per cent of metallurgical coal shipments were priced on a shorter term basis. The majority of product sold in the June 2010 quarter was priced in this manner.

Energy Coal

Energy Coal - Production was in line with the previous year with the continued ramp up of the Klipspruit (South Africa) expansion and record production at Hunter Valley Energy Coal offsetting lower customer demand at New Mexico Coal (USA). Cerrejon Coal achieved a production record during the June 2010 quarter however this was offset by weather related disruptions and a strike by the rail services provider in South Africa, and plant upgrade activities related to the MAC20 project at Hunter Valley Energy Coal.

(a) Excluding Suriname which was sold effective 31 July 2009.

(b) Earnings before interest and tax.

(c) Excluding Yabulu which was sold effective 31 July 2009.

Throughout this report, unless otherwise stated, production volumes refer to BHP Billiton share and exclude suspended and sold operations.

Further information on BHP Billiton can be found on our Internet site: www.bhpbilliton.com.

(a) Excluding Suriname which was sold effective 31 July 2009.

(b) Excluding Yabulu which was sold effective 31 July 2009.

Throughout this report figures in italics indicate that this figure has been adjusted since it was previously reported.

(a) LPG and Ethane are reported as Natural Gas Liquid (NGL). Product-specific conversions are made and NGL is reported in barrels of oil equivalent (boe).

(b) Suriname was sold effective 31 July 2009

(c) Metal production is reported on the basis of payable metal.

(d) The Pinto Valley operations were placed on care and maintenance in February 2009.

(e) Yabulu was sold effective 31 July 2009.

(f) Iron ore production is reported on a wet tonnes basis.

(g) Newman includes Mt Newman Joint Venture and Jimblebar.

(h) Shown on 100% basis. BHP Billiton interest in saleable production is 60%.

(i) Production includes Medium Carbon Ferro Manganese.

(j) Metallurgical coal production is reported on the basis of saleable product. Production figures include some thermal coal.

(k) Shown on 100% basis. BHP Billiton interest in saleable production is 80%.

(a) North West Shelf LNG Train 5 was commissioned during the September 2008 quarter. North West Shelf Angel was commissioned during the December 2008 quarter.

(b) Pyrenees achieved first production on 1 March 2010.

(c) Other Australia includes Griffin and Minerva. Griffin ceased production on 23 October 2009.

(d) Gulf of Mexico volumes are net of royalties.

(e) The Genghis Khan operation is reported in Shenzi. The Shenzi operation was commissioned during the March 2009 quarter.

(f) Other Americas includes Neptune, West Cameron 76, Mustang, Genesis and Starlifter. The Neptune operation was commissioned during the September 2008 quarter.

(g) Gulf of Mexico natural gas production has been restated to a dry gas number. NGL production is now shown separately.

(h) Total barrels of oil equivalent (boe) conversions are based on 6000scf of natural gas equals 1 boe.

(a) Suriname was sold effective 31 July 2009.

(b) Equity Alumina from Suriname was converted into Aluminium under a third party tolling agreement. These tonnages were allocated to equity sales. This Aluminium is now treated as third party product following the sale of Suriname.