ORICA LIMITED — Capital/Financing Update 2011

Jul 24, 2011

==> picture [477 x 87] intentionally omitted <==

Orica Limited ABN 24 004 145 868

ASX Announcement

MANAGING DIRECTOR AND CEO COMMENTS

The following represents a summary of Company information to be provided by Graeme Liebelt, Managing Director and CEO, to a function at the Four Seasons Hotel in Sydney on Tuesday 26 July.

Earnings Guidance

• Earnings guidance provided to the market at Orica’s half year results on 2 May 2011 is reaffirmed. That is, Orica expects Group net profit after tax (pre individually material items) in 2011 to be higher than that reported in 2010, on a comparable basis, subject to the rate of global economic recovery and extent of further adverse movements in exchange rates.

Business Unit Operating Update

• Orica Mining Services: Volumes in July have been reasonably strong in the Australia/Asia region. A pleasing result following 9 months in which weather has impacted volumes to some extent in this region. Most recently in June, the benefit of improving conditions in the North East of Australia was offset by heavy rain in the Hunter Valley and ongoing rain in Indonesia.

• Minova: The Minova business continues to experience difficult conditions. The market in the United States continues to be very challenging with strong competition and rising input costs. Volumes in China are generally poor adding to general margin pressures.

• Exchange Rates: As forecasted, exchange rates continue to impact earnings although this has been ameliorated to a large extent by the Company’s hedging program.

• Demand conditions: Customer intentions remain strong.

Growth Projects

• Orica’s growth projects remain on track.

• The ammonium nitrate plant in Bontang, Indonesia is progressing well with commissioning expected in H1 2012.

• The ammonium nitrate expansion at Kooragang Island to 750kpta continues with a target commissioning date of 2014.

• The 65ktpa uprate of the ammonia plant at Kooragang Island will be commissioned within the next few weeks.

• Construction of the initiating systems plant in Hunan Province, China is progressing, with commissioning expected in H2 2012. Costs are expected to be below initial estimates.

Carbon Tax

• The pre tax cost of current Scope 1 and Scope 2 emissions is expected to be approximately $8 million.

25 July 2011

• Analysts’ contact:

  • Anita Stevenson, Investor Relations Manager, (03) 9665 7844 Mobile: 0416 211 498

• Media contact:

Nicole Ekert, Group Manager, Communications, (03) 9665 7538 Mobile: 0407 166783

• Web site