Operational Review-Quarter Ended 30 September 2013

BHP BILLITON OPERATIONAL REVIEW FOR THE QUARTER ENDED 30 SEPTEMBER 2013

§ BHP Billiton maintained strong momentum in the September 2013 quarter as production increased by 11% (i) from the prior corresponding period. Optimisation of the Western Australia Iron Ore (WAIO) supply chain continues to unlock substantial value with 2014 financial year production guidance raised to 212 million tonnes (100% basis). Full year production guidance is maintained for Petroleum, Copper and Coal.

§ Total petroleum production for the September 2013 quarter was a record 62.7 million barrels of oil equivalent. A 16% increase in liquids production was underpinned by significant growth in Onshore US volumes, primarily in the Black Hawk, and the start-up of a new production well at Atlantis. An additional Atlantis production well is scheduled for completion in the second half of the 2014 financial year.

§ Queensland Coal continued to benefit from its focus on productivity as it sustained an annualised production rate of 61 million tonnes (100% basis) in the September 2013 quarter.

§ Four major projects delivered first production, including the WAIO Jimblebar Mine Expansion where first production was achieved approximately six months ahead of the original schedule. All other projects are tracking to plan.

§ Our ability to simplify our portfolio and focus on our diversified pillars of Petroleum, Copper, Iron Ore and Coal remains an important point of differentiation. Since the beginning of the 2013 financial year the Group has completed major transactions totalling US$6.5 billion, which includes US$2.2 billion received in the financial year to date.

BHP Billiton Chief Executive Officer, Andrew Mackenzie, said: "Our pursuit of productivity gains and operating excellence is already yielding strong results. There is no better example than in our Iron Ore business, where the deployment of mobile crushing units and the continued debottlenecking of the supply chain has underpinned a five million tonne increase in Western Australia Iron Ore's production guidance for the 2014 financial year.

"We continue to build on the substantial US$2.7 billion reduction in controllable cash costs delivered in the 2013 financial year with strong momentum maintained in the first quarter. In addition, a 25 per cent reduction in capital and exploration expenditure to US$16 billion (ii) in the 2014 financial year has significantly increased internal competition for capital. Our rate of expenditure will decline again next year and our investment criteria cannot be met in any one project, product or geography, we will redirect our capital elsewhere or we will not invest.

"Active management of our portfolio has also delivered significant value for our shareholders. In this financial year completed transactions have already delivered proceeds of US$2.2 billion, further strengthening our solid A balance sheet. With strong production growth and our overriding commitment to substantially increase free cash flow, we are well positioned to grow returns to our shareholders."

(i) Refers to copper equivalent production based on average realised product prices for the 2013 financial year.

(ii) Capital and exploration expenditure guidance excludes deferred stripping and refers to BHP Billiton's equity interest.

Note: Unless specified otherwise: variance analysis relates to the relative performance of BHP Billiton and/or its operations during the September 2013 quarter compared with the September 2012 quarter; all references to production and capital expenditure are BHP Billiton share and reflect the adoption of the new accounting standard (IFRS 10); and all references to project capacity are 100 per cent.

Summary

BHP Billiton maintained strong momentum in the September 2013 quarter as production increased by 11 per cent from the prior corresponding period. Optimisation of the WAIO supply chain continues to unlock substantial value with 2014 financial year production guidance raised to 212 million tonnes (100 per cent basis). Full year production guidance is maintained for Petroleum, Copper and Coal.

Our WAIO business achieved another major milestone during the quarter with first production delivered from the Jimblebar Mine Expansion, six months ahead of its original schedule. The ramp up of phase one capacity to 35 million tonnes per annum (mtpa) is expected to be completed by the end of the 2015 financial year. Together with the recent installation of four mobile crushers, this will increase total WAIO supply chain capacity to in excess of 220 mtpa (100 per cent basis). Longer term, a low cost option to expand Jimblebar to 55 mtpa and the broader debottlenecking of the supply chain is expected to underpin capital efficient growth in capacity to approximately 260 mtpa to 270 mtpa (100 per cent basis).

First production was also achieved at Macedon, Bass Strait Turrum and North West Shelf North Rankin B Gas Compression (all Australia). In addition, the Newcastle Third Port Stage 3 project (Australia) achieved mechanical completion. These projects will not be reported in future quarterly reports. The remaining 12 major projects are tracking to plan.

During the September 2013 quarter, BHP Billiton announced an investment of US$3.4 billion (100 per cent basis) to construct a desalination facility which will deliver sustainable water supply to Escondida (Chile) over the long term. In addition, BHP Billiton announced it is investing US$2.6 billion to finish the excavation and lining of the Jansen Potash project (Canada) production and service shafts, and to continue the installation of essential surface infrastructure and utilities. Completion of both shafts is expected during the 2016 calendar year, while the associated works program will extend into the 2017 calendar year.

BHP Billiton's active program of portfolio simplification has delivered proceeds of US$2.2 billion since the commencement of the 2014 financial year with the completion of the Jimblebar (Australia) and Pinto Valley (US) transactions. In addition, the Group priced a four tranche, US$5.0 billion Global Bond during the September 2013 quarter. The proceeds will be used for general corporate purposes.

The new International Financial Reporting Standard (IFRS) 10 came into effect from 1 July 2013. The application of this accounting standard requires the full consolidation of Escondida, as compared to the proportional consolidation of our 57.5 per cent equity interest which has been applied historically. This report has been prepared on the basis of this new accounting standard and references to BHP Billiton share now include 100 per cent of Escondida. As a consequence, BHP Billiton's copper production guidance for the 2014 financial year now refers to 1.7 million tonnes, although the Group's equity interest remains unchanged at 1.2 million tonnes.

Petroleum and Potash

Production

Total petroleum production - Total petroleum production for the September 2013 quarter was a record 62.7 million barrels of oil equivalent (BHP Billiton share). Guidance for the 2014 financial year remains unchanged at 250 million barrels of oil equivalent (BHP Billiton share).

Crude oil, condensate and natural gas liquids - A 16 per cent increase in liquids production in the September 2013 quarter was underpinned by significant growth in Onshore US volumes, primarily in the Black Hawk, and the start-up of a new production well at Atlantis (US). An additional Atlantis production well is scheduled for completion in the second half of the 2014 financial year. A significant increase in the number of producing wells in the liquids rich Eagle Ford contributed to a 29 per cent increase in Onshore US liquids production from the June 2013 quarter.

Planned maintenance and new well tie-ins at Pyrenees (Australia) are expected to impact conventional liquids production during the December 2013 quarter with the floating production storage and off-take (FPSO) facility offline for approximately one month. These additional production wells will mitigate natural field decline in the second half of the 2014 financial year.

Natural gas - Natural gas production declined by six per cent in the September 2013 quarter. The successful delivery of first gas from the Macedon project in August 2013 only partially offset softer seasonal demand at Bass Strait and lower production at Haynesville (US), following our deliberate decision to prioritise Onshore US development drilling in the liquids rich Black Hawk region of the Eagle Ford.

Projects

(iii) Initial production through the Turrum facilities is low CO2 gas. Additional high CO2 gas production from the Turrum reservoir will come online with completion of the Longford Gas Conditioning Plant in the 2016 calendar year.

Onshore US drilling and development expenditure totalled US$1.3 billion in the September 2013 quarter. The Company's rig count declined from 40 to 27 during the period which will result in lower expenditure in subsequent quarters. Approximately 75 per cent of drilling activity occurred in the Eagle Ford, with the majority focused on our liquids rich Black Hawk acreage. The optimisation of our dry gas program and the associated termination of rig contracts is expected to result in a charge of approximately US$100 million in the 2014 financial year, with the large majority to be booked in the first half. Guidance for Onshore US drilling and development expenditure remains unchanged at US$3.9 billion for the 2014 financial year.

Exploration and appraisal wells drilled during the quarter or in the process of drilling as at 30 September 2013.

Petroleum exploration expenditure for the September 2013 quarter was US$205 million, of which US$64 million was expensed. A US$600 million exploration program, largely focused on the Gulf of Mexico (US) and Western Australia, is planned for the 2014 financial year.

Potash

Copper

Production

Copper - Copper production increased by six per cent in the September 2013 quarter to 403 thousand tonnes (BHP Billiton share). The application of IFRS 10 requires the full consolidation of Escondida, as compared to the proportional consolidation of our 57.5 per cent equity interest which has been applied historically. This report has been prepared on the basis of this new accounting standard and references to BHP Billiton share now include 100 per cent of Escondida. As a consequence, BHP Billiton's copper production guidance for the 2014 financial year now refers to 1.7 million tonnes, although the Group's equity interest remains unchanged at 1.2 million tonnes.

Escondida copper production increased by 12 per cent in the September 2013 quarter to 278 thousand tonnes (100 per cent basis) as milling rates improved. An eight per cent reduction from the June 2013 quarter, however, reflected planned maintenance, industrial action and lower copper ore grades, consistent with the mine plan. Escondida remains on track to produce approximately 1.1 million tonnes (100 per cent basis) of copper in the 2014 financial year before increasing to approximately 1.3 million tonnes (100 per cent basis) in the 2015 financial year.

As anticipated, Pampa Norte (Chile) copper production declined by 33 per cent from the June 2013 quarter primarily as a result of lower ore grades and recoveries at Spence. Production at Spence is expected to recover strongly in the second half of the 2014 financial year.

Antamina (Peru) achieved record copper production in the September 2013 quarter which reflected continued strong mill throughput and higher ore grades as mining progressed through a copper rich ore zone. Copper production at Antamina will be affected by lower ore grades in the second half of the 2014 financial year, consistent with the mine plan.

Olympic Dam (Australia) copper production was affected by smelter reliability issues during the September 2013 quarter. A maintenance outage scheduled for the March 2014 quarter will address smelter performance. Copper production at Olympic Dam for the 2014 financial year is expected to be in line with the prior year.

On 11 October 2013, BHP Billiton completed the sale of its Pinto Valley (US) mining operation and the associated San Manuel Arizona Railroad Company to Capstone Mining Corp. for US$650 million, subject to customary working capital adjustments.

Lead/silver - Lead and silver production decreased by 31 per cent and 25 per cent, respectively, from the June 2013 quarter as lower average ore grades affected performance at Cannington (Australia).

Zinc - Zinc production decreased by 38 per cent from the June 2013 quarter, driven by lower average zinc ore grades at Cannington and Antamina.

Uranium - Uranium production decreased by 12 per cent from the June 2013 quarter as a result of lower average uranium ore grades and planned maintenance at Olympic Dam.

Projects

(iv) Following the application of IFRS 10 from 1 July 2013, references to BHP Billiton share include 100 per cent of Escondida.

Iron Ore

Production

Iron ore- Iron ore production increased by 23 per cent in the September 2013 quarter to 49 million tonnes (BHP Billiton share).

WAIO achieved record production of 54 million tonnes (100 per cent basis) for the September 2013 quarter. Continued strong operating performance across the supply chain and the successful delivery of first production from the Jimblebar mine, ahead of schedule, contributed to the record result. The ramp up of phase one capacity at Jimblebar to 35 mtpa is expected to be completed by the end of the 2015 financial year.

The optimisation of the supply chain in the Pilbara continues to unlock substantial value and WAIO is now expected to produce 212 million tonnes (100 per cent basis) in the 2014 financial year, a five million tonne increase on prior guidance. Longer term, a low cost option to expand Jimblebar to 55 mtpa and the broader debottlenecking of the supply chain is expected to underpin further capital efficient growth in capacity to approximately 260 mtpa to 270 mtpa (100 per cent basis).

Samarco's (Brazil) three pellet plants continued to operate at capacity during the period.

Total iron ore production for the 2014 financial year, which includes Samarco, is now expected to increase to 192 million tonnes (BHP Billiton share).

Projects

(v) Excludes announced pre-commitment funding.

Coal

Production

Metallurgical coal - Metallurgical coal production increased by 14 per cent in the September 2013 quarter to 10 million tonnes (BHP Billiton share).

Queensland Coal (Australia) continued to run at full supply chain capacity during the period with annualised production of 61 million tonnes (100 per cent basis). This strong result was underpinned by the continued ramp up of Daunia, record quarterly production at South Walker Creek and improved Coal Preparation Plant performance at Blackwater and Saraji. This was partially offset by a planned longwall move at Crinum and scheduled Coal Preparation Plant maintenance at Goonyella Riverside and Peak Downs.

Illawarra Coal (Australia) production decreased by 39 per cent from the June 2013 quarter and reflected an extended outage at Dendrobium and a scheduled longwall move at West Cliff. Despite a roof fall at Dendrobium in October 2013, production is expected to improve in the December 2013 quarter, with total Illawarra Coal production weighted towards the second half of the 2014 financial year.

Total metallurgical coal production guidance for the 2014 financial year remains unchanged at 41 million tonnes (BHP Billiton share).

Energy coal - Energy coal production increased by three per cent in the September 2013 quarter to 20 million tonnes (BHP Billiton share). Record quarterly production at both New South Wales Energy Coal (Australia) and Cerrejon Coal (Colombia) contributed to the strong result.

Total energy coal production guidance for the 2014 financial year remains unchanged at 73 million tonnes (BHP Billiton share).

Projects

(vi) Excludes announced pre-commitment funding.

Aluminium, Manganese and Nickel

Production

Alumina - Alumina production increased by seven per cent in the September 2013 quarter to 1.3 million tonnes (BHP Billiton share) as the Efficiency and Growth project at Worsley (Australia) approached nameplate capacity.

Aluminium - Aluminium production increased by 15 per cent in the September 2013 quarter to 310 thousand tonnes (BHP Billiton share). Production benefited from strong operating performance at our Southern African smelters which included a second consecutive quarterly production record at Hillside (South Africa).

Manganese ore - Manganese ore production decreased during the September 2013 quarter due to a planned shutdown at Hotazel (South Africa) and lower recoveries at GEMCO (Australia).

Manganese alloy - Manganese alloy volumes increased by five per cent from the September 2012 quarter which was affected by the temporary suspension of operations at TEMCO (Australia). Planned maintenance at Metalloys (South Africa) and TEMCO contributed to the 25 per cent decline in manganese alloy volumes from the June 2013 quarter.

Nickel - Nickel production increased by nine per cent in the September 2013 quarter to 40 thousand tonnes (BHP Billiton share) and reflected strong operating performance at Nickel West (Australia).

Minerals exploration

Greenfield minerals exploration is focused on advancing copper targets within Chile and Peru. Minerals exploration expenditure in the September 2013 quarter was US$115 million, of which US$105 million was expensed (vii).

(vii) Reported on the basis of IFRS 10 which requires the full consolidation of Escondida, as compared to the proportional consolidation of our 57.5 per cent equity interest which has been applied historically.

This report represents the Interim Management Statement for the purposes of the UK Listing Authority's Disclosure and Transparency Rules. There have been no significant changes in the financial position of the Group in the quarter ended 30 September 2013.

Further information on BHP Billiton can be found at: www.bhpbilliton.com

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

Refer footnotes on page 15

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

(c) Shown on 100% basis following the application of the new IFRS 10 which came into effect from 1 July 2013. BHP Billiton interest in saleable production is 57.5%.

(d) Includes Cerro Colorado and Spence.

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

(f) Newman includes Mt Newman Joint Venture and Wheelarra.

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

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

(i) Shown on 100% basis. BHP Billiton interest in saleable production is 90%.

(j) Shown on 100% basis. BHP Billiton interest in saleable production is 60%, except Hotazel Manganese Mines which is 44.4%.

(k) Production includes Medium Carbon Ferro Manganese.

(a) Other Australia includes Minerva and Macedon. Macedon achieved first production in August 2013.

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

(c) Onshore US volumes are net of mineral holder royalties.

(d) Other Americas includes Neptune, Genesis and Overriding Royalty Interest.

(e) An agreement to sell Liverpool Bay was reached in October 2013 and the transaction is expected to close before the end of the 2014 financial year.

(f) Total barrels of oil equivalent (boe) conversions are based on 6,000 scf of natural gas equals 1 boe.