GROUP PRODUCTION REPORT

24 January 2019

KAZ MINERALS GROUP Production Report for twelve months

and THE fourth QUARTER Ended 31 december 2018

l Full year copper production1 increased by 14% to 294.7 kt (FY 2017: 258.5 kt)

§ Copper production1 at upper end of 270-300 kt guidance, mainly due to strong performance from Aktogay

§ Q4 copper production1 of 77.9 kt (Q3 2018: 77.2 kt), driven by Bozshakol and Aktogay

§ Full year gold production2 of 183.4 koz, above guidance range of 160-175 koz (2017: 178.7 koz)

l Bozshakol

§ Copper production2 increased by 6% to 26.6 kt in Q4 (Q3 2018: 25.2 kt) due to higher grades and recoveries

§ Full year copper output of 101.6 kt (2017: 101.3 kt), in upper half of guidance range of 95-105 kt

§ Q4 gold production2 of 34.1 koz, 9% above previous quarter due to improved recoveries and favourable grades

§ Full year gold output of 127.8 koz, ahead of 115-125 koz guidance

l Aktogay

§ Q4 copper production1 increased by 3% to 36.0 kt (Q3 2018: 34.9 kt) supported by strong average sulphide grade of 0.63%

§ Full year copper production1 of 131.4 kt (2017: 90.2 kt), exceeded guidance of 110-130 kt

§ Oxide production of 6.8 kt in Q4 and 25.7 kt for the full year, above 20-25 kt guidance

l East Region and Bozymchak

§ Q4 copper production2 11% lower at 15.3 kt (Q3 2018: 17.1 kt) after stockpiled ore was processed in Q3

§ Full year copper production2 of 61.7 kt (2017: 67.0 kt) against full year guidance of approximately 65 kt

§ Strong full year gold (55.0 koz) and silver (2,356 koz) production2, 10% and 18% ahead of guidance, respectively

§ Low grades continue to impact zinc production as indicated in Q3 production report, with full year output of 49.7 kt, below original guidance of c.60 kt

1 Payable metal in concentrate and copper cathode from Aktogay oxide ore.

2 Payable metal in concentrate.

3 See appendix for metal production by asset.

Andrew Southam, Chief Executive Officer, said: "KAZ Minerals' operating assets have delivered another strong year in 2018, with a 14% increase in copper production to 295 kt. Approximately 45% of the Group's copper production came from the Aktogay mine, commissioned in 2017, which ramped up to produce 131.4 kt of copper, an increase of 46% compared to the prior year. I am particularly proud that 2018 marks the tenth consecutive year in which the Group has achieved its annual copper production guidance, a period which includes the successful ramp up of our two major growth projects in Kazakhstan, Bozshakol and Aktogay."

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KAZ Minerals PLC is a high growth copper company focused on large scale, low cost, open pit mining in Kazakhstan, Kyrgyzstan and Russia. It operates the Bozshakol and Aktogay open pit copper mines in the Pavlodar and East Region of Kazakhstan, three underground mines and associated concentrators in the East Region of Kazakhstan and the Bozymchak copper-gold mine in Kyrgyzstan. In 2018, total copper production was 295 kt with by-products of 50 kt of zinc in concentrate, 183 koz of gold and 3,511 koz of silver.

The Group's new operations at Bozshakol and Aktogay have delivered one of the highest growth rates in the industry and transformed KAZ Minerals into a company dominated by world class, open pit copper mines.

Bozshakol is a first quartile asset on the global cost curve with an annual ore processing capacity of 30 million tonnes and a remaining mine life of 38 years at an average copper grade of 0.35%. The mine and processing facilities commenced output in 2016 and will produce an average of 100 kt of copper cathode equivalent and 120 koz of gold in concentrate per year over the first 10 years of operations.

Aktogay is a large scale, open pit mine similar to Bozshakol, with a remaining mine life of 27 years (including the expansion project) at an average copper grade of 0.36% (oxide) and 0.33% (sulphide). Aktogay commenced production of copper cathode from oxide ore in December 2015 and copper in concentrate from sulphide ore in February 2017. The operating sulphide concentrator has an annual ore processing capacity of 25 million tonnes and the sulphide processing capacity will be doubled to 50 million tonnes with the addition of a second concentrator by the end of 2021. Aktogay is competitively positioned on the global cost curve and will produce an average of 90 kt of copper per year from sulphide ore until 2021, increasing to 170 kt per year from 2022 to 2027, after the second concentrator commences operations. Copper production from oxide ore will be in the region of 20 kt per annum until 2025.

In January 2019, the Group acquired the Baimskaya copper project in the Chukotka region of Russia. Baimskaya is one of the world's most significant undeveloped copper assets with the potential to become a large scale, low cost, open pit copper mine. The Peschanka deposit within the Baimskaya licence area has JORC resources of 9.5 Mt of copper at an average grade of 0.43% and 16.5 Moz of gold at an average grade of 0.23 g/t. Average annual production over the first ten years of operations is expected to be 250 kt copper and 400 koz gold, or 330 kt Copper Equivalent Production, with a mine life of approximately 25 years and first quartile operating costs. The project is located in a region identified by the Russian Government as strategically important for economic development and will benefit from the construction of state-funded power and transport infrastructure and the provision of tax incentives. The estimated capital budget for the construction of the project is $5.5 billion. The Group expects the project to generate a significant NPV uplift and an attractive IRR at analyst consensus copper prices. The development of Baimskaya will enable the Group to continue its high growth trajectory, adding a large-scale, long-life asset to the Group's portfolio.

KAZ Minerals is listed on the London Stock Exchange and the Kazakhstan Stock Exchange and employs around 13,000 people, principally in Kazakhstan.

BOZSHAKOL

1 Payable metal in concentrate.

Ore extraction in Q4 of 7,484 kt was 3% below the previous quarter (Q3 2018: 7,732 kt) but remains in line with the rate required to supply the concentrators when operating at 100% of design throughput capacity (30 Mtpa).

Total ore processing volumes of 7,471 kt in Q4 were in line with the previous quarter (Q3 2018: 7,553 kt), with ore throughput at design capacity over the second half of 2018. The average grade of copper in ore processed in Q4 increased to 0.47% (Q3 2018: 0.46%), supported by copper grades in clay ore of 0.53% and an average grade in the main sulphide concentrator of 0.45%. Copper recovery rates in both the main plant and the clay plant increased during the quarter to an average of 79.9% (Q3 2017: 75.9%). Copper production increased by 6% to 26.6 kt in Q4 (Q3 2018: 25.2 kt) due to the higher grades and recovery rates.

Gold production also increased to 34.1 koz, 9% higher than the previous quarter as the average grade of gold in ore processed was maintained at 0.25 g/t and recovery rates improved.

In the 12 months to 31 December 2018, ore extraction at Bozshakol was 11% lower than in 2017 due to the planned reduction in the volume of clay ore extracted, which reduced by 55% to 6,742 kt (2017: 15,072 kt). Clay ore processing volumes of 4,750 kt were closer to the quantity of clay ore extracted in 2018 compared to 2017, as the volume of pre-stripping and stockpiling reduced.

Processing volumes of 28,454 kt were 16% higher (2017: 24,558 kt) reflecting the ramp up of both concentrators during the year. As guided, the average copper grade in sulphide ore processed reduced in 2018, to 0.47% from 0.52% in 2017. The average copper grade in sulphide ore in 2019 is expected to be similar to 2018.

Full year copper production at Bozshakol of 101.6 kt (2017: 101.3 kt) was in the upper half of the guidance range of 95-105 kt. Gold production of 127.8 koz (2017: 119.0 koz) was ahead of guidance of 115-125 koz, supported by continued high grades. Silver production of 666 koz (2017: 687 koz) was 33% ahead of guidance of c. 500 koz.

AKTOGAY

1 Payable metal in concentrate.

2 Minimal volume recovered from Aktogay material.

Ore extraction at Aktogay of 11,195 kt in Q4 (Q3 2018:11,591 kt) exceeded the requirements of the sulphide concentrator and oxide heap leaching operations, as preparatory stripping works were undertaken to enable the expansion of mining volumes to feed the second concentrator from 2021. A total of 5.2 Mt of lower grade sulphide ore was extracted and stockpiled during 2018.

Ore processing throughput during Q4 in the sulphide plant was maintained at 5,512 kt (Q3 2018: 5,669 kt) despite a scheduled shut-down for mill relining during the period. An increase in the average grade of ore processed to 0.63% (Q3 2018: 0.58%) was the main driver of a 6% increase in sulphide copper production in the quarter, to 29.2 kt (Q3 2018: 27.5 kt).

Copper cathode production from oxide ore reduced, as expected, during the seasonally colder fourth quarter to 6.8 kt (Q3 2018: 7.4 kt) and was in line with the prior year comparative period (Q4 2017: 6.7 kt).

Full year ore extraction and processing volumes were significantly higher than 2017 due to the ramp up of operations at the sulphide plant during the year, with total ore extraction increasing by 60% to 41,911 kt (2017: 26,248 kt) and sulphide ore throughput increasing by 60% to 20,766 kt (2017: 12,941 kt).

The average copper grade in sulphide ore processed in 2018 reduced by 8% to 0.61% (2017: 0.66%), although it remains at elevated levels compared to the life of mine grade, due to the persistence of supergene enriched ore. Average copper grades are expected to continue to reduce towards the sulphide resource grade of 0.33% over the first ten years of operations. The copper recovery rate from sulphide ore in 2018 improved to 86.8%, compared to 79.6% in 2017 when the plant was in the early stages of ramp up.

Copper production from sulphide ore of 105.7 kt and copper cathode output from the heap leaching operations of 25.7 kt resulted in total copper production of 131.4 kt, slightly above the 2018 guidance range of 110-130 kt.

EAST REGION & BOZYMCHAK

1 Payable metal in concentrate.

Ore extraction in Q4 was broadly in line with the previous quarter at 963 kt (Q3 2018: 975 kt). Ore processing volumes of 982 kt in Q4 reduced by 15% compared to Q3 2018, due to the processing in Q3 of stockpiled ore mined in the first half of 2018 at Artemyevsky.

The average copper grade of ore processed in Q4 increased to 1.83% as a result of higher grades at Orlovsky. Recovery rates in the East Region concentrators remained at 90.6%, in line with prior periods. The increase in average grade partially offset the 15% reduction in processing volumes, resulting in an 11% reduction in copper production to 15.3 kt (Q3 2018: 17.1 kt).

Gold and silver output in Q4 was broadly in line with the previous quarter, but zinc in concentrate production reduced by 15% to 11.4 kt (Q3 2018: 13.4 kt), mainly resulting from lower zinc grades processed at Orlovsky of 2.94% (Q3 2018: 3.26%) and a lower processing volume at the Nikolayevsky concentrator.

In the 12 months to 31 December 2018 ore extraction volumes were in line with 2017, whilst the volume of ore processed reduced by 3% from 4,172 kt to 4,030 kt due to the processing of stockpiled ore from the closed Yubileyno-Snegirikhinsky mine in 2017. The average grade of copper in ore processed decreased to 1.81% (2017: 1.89%), mainly due to lower grades at Orlovsky in 2018. The reduced processing volumes and lower average copper grade resulted in full year copper production of 61.7 kt (2017: 67.0 kt), 5% below full year guidance of approximately 65 kt.

Full year zinc in concentrate output of 49.7 kt was 17% below full year guidance of approximately 60 kt, as indicated in the Group's third quarter production report. Zinc production in 2018 has been impacted by lower than expected zinc grades at the Artemyevsky mine, where extraction is focused on accessing a second ore body as part of the Artemyevsky mine extension project and the prioritisation of the production of copper.

Full year gold and silver production both exceeded guidance, with gold output of 55.0 koz, 10% above the top end of the guidance range of 45-50 koz and silver production of 2,356 koz, 18% ahead of guidance of around 2,000 koz. The majority of outperformance in gold production was driven by the Bozymchak mine in Kyrgyzstan, where the average gold grade was 1.55 g/t (2017: 1.64 g/t), average recovery rates improved to 84.6% (2017: 82.4%) and ore processing was maintained at 1,002 kt (2017: 1,009 kt), delivering full year gold output of 39.7 koz (2017: 41.3 koz).

APPENDIX - METAL PRODUCTION

1 Payable metal in concentrate and copper cathode from Aktogay oxide ore.

2 Payable metal in concentrate.

TOLL PROCESSING & FINISHED METALS

APPENDIX - EAST REGION & BOZYMCHAK

1 Payable metal in concentrate.