INTERVIEW WITH MICHAEL ANDERSON, MANAGING DIRECTOR OF EXCO RESOURCES LIMITED (EXS)

“Resource Update”

http://www.brr.com.au/event/50887

WEDNESDAY, SEPTEMBER 3, 2008, 2:30 PM.

            BRR    Good afternoon and welcome to Boardroom Radio. Today, we’re speaking with Mr. Michael Anderson, Managing Director of Exco Resources Limited.

10                    Thanks for joining us today, Michael.

            EXS     My pleasure.

            BRR    Michael, we see in today’s announcement a significant milestone for Exco Resources with quite a substantial increase in Indicated resources at the E1

15                    Camp, could you give us some details of this?

            EXS     Yes, look we’ve been drilling at the E1 Camp for quite sometime as I think the most of listeners would know. We had two main objectives there; one to increase the tonnage of overall resources, and we’re certainly doing that, but a very significant objective, as well, is to make this conversion from Inferred

20                    to Indicated as the basis for an ultimate mineable reserve for the Cloncurry Copper Project. This information that we put out today, it’s the first conversion that we’ve made at the E1 site deposit. It is very pleasing to have converted such sizeable tonnage of over 7 million tonnes. As applied in the release, we’re also busy working through the E1 North deposit, but together, you

25                    know, these two deposits will form a solid base for the project and ultimately our goal is to put a 25 million tonnes all up into the reserve and category. So, we’re very pleased with the outcome and well on track to meet the milestones that we’ve set ourselves in terms of the drilling underneath the study.

30        BRR    Mike, you’ve talked obviously with your success of the conversion from Inferred to Indicated with the resource. What is the significance of this for Exco?

            EXS     I think, yes, that conversion comes with an increase in confidence of the resource and in kind with that is an improvement, I believe, in the overall

35                    value proposition for the company on the project. It has implications for the definitive feasibility study as you look to put the details together, and also I think from a lighter context that any third party valuations on this resource bases are improved with that conversion as well. So it is a telling achievement in the context of overall value for the company.

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            BRR    Mike, just lastly, I guess what are the implications going to be that Exco main counter moving forward with this study?

            EXS     Well, part of the conversion is being to give our mining engineers what they need to update our pit optimizations and I may have mentioned of trying to

45                    get 25 million tonnes into Indicated notably reserved. That point, a build-on what we put in place from the pre-feasibility study which was modelled on a 2-million tonne per annum throughput. We’re looking to increase that to 2.5 and possibly even 3 million tonnes per annum. So this conversion is certainly all growing well in the context of that and we remain on track with our objective of completing the feasibility by the first quarter of 2009 and still targeting first production in mid 2010. So that timetable remains intact and you know, we’re ticking boxes as we go along with not only the technical milestones but also from an engineering perspective, the design concepts

5                      that we’re coming up with.  So, we’re very pleased with all our progress and setting our (inaudible) (00:03:21) at the centre to achieve those production objectives and make this conversion from explorer to producer as expeditiously as we can.

10        BRR    Mike, it certainly does sound encouraging. We thank you for your time today and looking forward to speaking to you soon.

            EXS     Okay, thanks very much.

            BRR    That was Mr. Michael Anderson, Managing Director of Exco Resources. If

15                    you have any questions about this broadcast or any other broadcast, please feel free to contact us on brr@brr.com.au. I’m Eddie (Inaudible) (00:03:48) and thank you for listening to Boardroom Radio.

INTERVIEW CONCLUDED

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