Bhp Billiton Regulatory News (BLT)

BHP BILLITON EXPLORATION AND DEVELOPMENT REPORT

FOR THE YEAR ENDED 30 JUNE 2012

This report covers the Group's exploration and development activities for the June 2012 quarter. Unless otherwise stated, BHP Billiton's interest in the projects referred to in this report is 100 per cent and references to project schedules are based on calendar years.

Development

BHP Billiton's proven strategy to invest in large, long life, low cost, expandable, upstream assets, diversified by commodity, geography and market ensures we are well positioned to maintain strong momentum and returns in our major businesses, despite significant volatility in the external environment.

In the 2012 financial year, six major projects delivered first production while a total investment commitment of US$7.5 billion (BHP Billiton share) enabled another eight major projects to move into execution. In addition, US$2.7 billion (BHP Billiton share) of pre-commitment funding was approved to further progress a series of development options.

The six projects to deliver first production included: Western Australia Iron Ore (WAIO) Rapid Growth Project 5 (iron ore); Antamina Expansion and Escondida Ore Access (both copper); Worsley Efficiency & Growth (alumina); North West Shelf CWLH Life Extension (oil); and the RX1 Project (energy coal). The Antamina Expansion, Escondida Ore Access and RX1 projects will not be reported in future Exploration and Development Reports.

The eight projects that moved into execution span the ferrous, non-ferrous and energy product groups and included: WAIO Orebody 24 (iron ore); Caval Ridge and Appin Area 9 (both metallurgical coal); Escondida Organic Growth Project 1 and Escondida Oxide Leach Area Project (both copper); North West Shelf Greater Western Flank-A (LNG); Cerrejon P40 Project and the Newcastle Third Port Project Stage 3 (both energy coal).

During the June 2012 quarter, BHP Billiton announced approval of the Illawarra Coal Appin Area 9 project and pre-commitment funding of US$708 million (BHP Billiton share) for the Mad Dog Phase 2 project in the deepwater Gulf of Mexico (oil and gas).

BHP Billiton's Onshore US drilling and development expenditure totalled US$3.3 billion in the 2012 financial year.

Minerals exploration

Greenfield exploration continued on copper targets in South America, nickel and copper targets in Australia, and iron ore and potash in a number of regions globally.

Minerals exploration expenditure for the 2012 financial year was US$1.1 billion, of which US$0.9 billion was expensed.

Petroleum exploration

Exploration and appraisal wells drilled during the quarter or in the process of drilling as at 30 June 2012.

Petroleum exploration expenditure for the 2012 financial year was US$1.4 billion, of which US$0.7 billion was expensed. This included US$0.4 billion of exploration expenditure in our recently acquired Onshore US business. Permian Basin appraisal activities for the June 2012 quarter included the successful completion and testing of seven wells with commercial rates. Further success in the Permian Basin is expected to lead to an increase in development expenditure and an associated reduction in exploration expenditure.

(a) Facilities ready for first production pending resolution of mercury content.

(b) Excludes announced pre-commitment funding.

(c) Approximately 50 per cent of the US$845 million investment will be capitalised.

The 2012 financial year development and exploration expenditures are subject to finalisation.

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