Newcrest Mining : December 2020 Quarterly Report

Quarterly Report

For the three months ended 31 December 2020

(figures are unaudited and in US$ except where stated)

Strong quarterly production, safety and unit cost records, progress on growth

• Strong operating performance in the December 2020 quarter(1)o Gold production of 535koz(2) and copper production of 35kt
  o All-In Sustaining Cost (AISC) of $968/oz(2), delivering an AISC margin of 46% or $836/oz(3) o Cadia records lowest ever quarterly AISC at negative $6/oz

• Safety Transformation Plan delivering results

1. Record low TRIFR outcomes for Red Chris and Telfer

• 1. Overall Group TRIFR of 1.6, an equal record low for a quarter
• Growth agenda advanced with significant progress made at the Havieron Project
• 1. Initial Inferred Mineral Resource estimate of 3.4Moz of gold and 160kt of copper(4)
  1. Early works construction underway in relation to the box cut and exploration decline
• Renewable energy transition progressed with Cadia renewable energy Power Purchase Agreement
• 1. Expected to help deliver a ~20% reduction in Newcrest's greenhouse gas emissions from 2024
  1. A significant step towards achieving Newcrest's target of a 30% reduction by 2030(5)
• New compensation, relocation and benefits sharing agreements signed at Lihir
• Environment Permit granted for Wafi-Golpu Project

Newcrest Managing Director and Chief Executive Officer, Sandeep Biswas, said, "Our results for the December quarter were underpinned by a strong operational and safety performance together with significant advancements in our growth agenda and sustainability commitments."

"Newcrest's quarterly gold production was 6% higher than the prior period reflecting a stronger performance from Lihir and Telfer combined with a reduction in scheduled maintenance events in the quarter. Our world-class Cadia asset continues to break records, reporting its lowest ever quarterly All-In Sustaining Cost of negative $6/oz, which equates to an All-In Sustaining Cost margin of $1,821/oz on its almost 200,000 ounces in the quarter."

"At Lihir, we are on track to release the outcomes of the mine optimisation study with our Half Year Results in February. The continued improvement of the handling and processing of the argillic ores has contributed to an increase in throughput and recovery, and culminated in a 13% increase in gold production in the quarter. We recently announced the signing of a new compensation, relocation and benefits sharing agreement with the mining lease area landholders, building on the strong relationships we have developed over recent years."

"Red Chris and Telfer also achieved new safety records in the quarter, reporting their lowest ever injury rates. This fantastic achievement demonstrates the success of Newcrest's Safety Transformation Plan and highlights the commitment and dedication of all our people in embedding the safety culture in our workplace."

1. See information under heading "Non-IFRS Financial Information" on Page 18 of this report for further information.
2. Includes 31koz and an estimated reduction of $11/oz based on Newcrest's 32% attributable share of Fruta del Norte. Refer to the Appendix for calculation and further details.
3. Newcrest's AISC margin has been determined by deducting the All-In Sustaining Cost attributable to Newcrest's operations from Newcrest's realised gold price. Refer to the Appendix for details.
4. The initial Inferred Mineral Resource estimate is presented on a 100% basis. As announced on 30 November 2020, Newcrest has now met the Stage 3 expenditure requirement (US$45 million) and is entitled to earn an additional 20% joint venture interest in addition to its existing 40% interest, resulting in an overall joint venture interest of 60% (Greatland Gold 40%).
5. Per tonne of ore treated and compared to a baseline of FY18 emissions. Subject to market and operating conditions in respect of Cadia and the Rye Park Wind Farm

Newcrest Mining Limited - Level 8, 600 St Kilda Road, Melbourne - Quarterly Report to 31 December 2020

1

"In December 2020, we took a major step towards defining the potential of the Havieron Project with the announcement of an initial Inferred Mineral Resource estimate. In January 2021, the Board approved funding to construct the box cut, exploration decline and associated infrastructure, following receipt of the necessary regulatory approvals to commence these activities. With work now well underway at the Project, we see the potential of achieving commercial production from Havieron within the next three years."

"During the period we also entered into a landmark renewable energy power purchasing agreement to secure a significant part of the future energy requirements at Cadia. This agreement is expected to help deliver a ~20% reduction in Newcrest's greenhouse gas emissions, assist in maintaining competitive energy costs and is a significant step in achieving our target of a 30% reduction in emissions intensity by 2030."

"Progress was also made at the Wafi-Golpu Project with the granting of the Environment Permit in December 2020, which is a prerequisite for the grant of a Special Mining Lease under the Mining Act" said Mr Biswas.

	Highlights		Metric		Dec 2020		Sep 2020		YTD		YTD		FY21 Guidance
			Qtr		Qtr		FY21		FY20
	TRIFR(6)		mhrs	1.6		2.6		2.2		2.3
	Group production(2) - gold			oz			535,477			503,089			1,038,566			1,062,751			1,950-2,150koz
	- copper		t	34,557		34,763		69,320		62,468			135-155kt
	All-In Sustaining Cost(2),(7)			$/oz			968			980			974			877(8)
	Realised gold price(9)		$/oz	1,815		1,837		1,826		1,446
	All-In Sustaining Cost margin(3)			$/oz			836			847			842			569

1. Total Recordable Injury Frequency Rate (injuries per million hours). TRIFR for FY20 includes safety results for Red Chris from acquisition.
2. Due to the negligible impact of Fruta del Norte on Newcrest's Group AISC for FY20 it has been excluded from the FY20 calculation.
3. AISC for the period ending 31 December 2019 has been restated to reflect adjustments applied to Red Chris following the completion of acquisition and year end processes.
4. Realised metal prices are the US$ spot prices at the time of sale per unit of metal sold (net of Telfer gold production hedges), excluding deductions related to treatment and refining charges and the impact of price related finalisations for metals in concentrate. The realised price for the September and December quarters and for FY20 and FY21 has been calculated using sales ounces generated by Newcrest's operations only (i.e. excluding Fruta del Norte).

Newcrest Mining Limited - Level 8, 600 St Kilda Road, Melbourne - Quarterly Report to 31 December 2020

2

Overview

Gold production was 6% higher than the prior period primarily driven by a reduction in scheduled maintenance events in the quarter, combined with a stronger operational performance from Lihir and Telfer. Gold production for the December 2020 quarter includes 31koz relating to Newcrest's 32% equity interest in Lundin Gold Inc which owns the Fruta del Norte mine.

Newcrest's AISC for the December 2020 quarter of $968/oz(2) was $12/oz lower than the prior period. The marginal improvement in Newcrest's AISC/oz was primarily driven by the benefit of a higher realised copper price, higher copper sales volumes at Cadia and a reduction in the amount of production stripping. These benefits were largely offset by timing of gold sales volumes at Lihir, timing of sustaining capital expenditure and the impact of a strengthening Australian and Canadian dollar on operating costs.

					Metric		Dec 2020		Sep 2020		YTD		YTD		FY21
						Qtr		Qtr		FY21		FY20		Guidance(10)
	Group(2)	- gold		oz	535,477		503,089		1,038,566		1,062,751			1,950-2,150koz
		- copper			t			34,557			34,763			69,320			62,468			135-155kt
		- silver		oz	230,769		214,412		445,181		470,567
	Cadia	- gold			oz			194,088			196,504			390,592			411,452			680-760koz
		- copper		t	26,643		25,329		51,972		45,423			95-105kt
	Lihir	- gold			oz			200,173			177,337			377,510			381,500			720-820koz
	Telfer	- gold		oz	98,855		86,452		185,307		182,464			360-420koz
		- copper			t			2,443			2,384			4,826			7,273			10-20kt
	Red Chris(11)- gold		oz	11,375		12,636		24,012		11,294			45-55koz
		- copper			t			5,471			7,050			12,521			9,773			25-30kt
	Gosowong(12) - gold		oz	-		-		-		76,040
	Fruta del Norte(2),(13) - gold			oz			30,986			30,160			61,146			-			95-110koz
	Fatalities				Number			0			0			0			0
	TRIFR(6)				mhrs	1.6		2.6		2.2		2.3
	All-In Sustaining Cost(2),(7)			$/oz			968			980			974			877(8)
	All-In Cost(14)		$/oz	1,349		1,275		1,310		1,029
	All-In Sustaining Cost margin(3)			$/oz			836			847			842			569
	Realised gold price(9)		$/oz	1,815		1,837		1,826		1,446
	Realised copper price(9)			$/lb			3.26			2.97			3.12			2.66
	Realised copper price(9)		$/t	7,187		6,548		6,878		5,864
	Average exchange rate			AUD:USD			0.7303			0.7147			0.7225			0.6846
	Average exchange rate		PGK:USD	0.2853		0.2872		0.2862		0.2940
	Average exchange rate			CAD:USD			0.7667			0.7504			0.7585			0.7575

All figures are shown at 100% unless stated otherwise.

1. The achievement of guidance is subject to market and operating conditions. Newcrest's guidance for Fruta del Norte is an annualised figure based on Lundin Gold Inc's production guidance for 1 July 2020 to 31 December 2020. See Appendix for further details.
2. The figures shown represent Newcrest's 70% share of the unincorporated Red Chris JV. Production outcomes for FY20 are reported from the date of acquisition (15 August 2019).
3. The figures shown represent 100%. Prior to the divestment on 4 March 2020, Newcrest owned 75% of Gosowong through its holding in PT Nusa Halmahera Minerals, an incorporated joint venture. Production and financial outcomes for FY20 represent Newcrest's period of ownership to the divestment date.
4. The figures shown represent Newcrest's 32% attributable share, through its 32% equity interest in Lundin Gold Inc.
5. From Newcrest's operations only and does not include Newcrest's 32% attributable share of Fruta del Norte through its 32% equity interest in Lundin Gold Inc.

Newcrest Mining Limited - Level 8, 600 St Kilda Road, Melbourne - Quarterly Report to 31 December 2020

3

Operations

Cadia, Australia

	Highlights				Metric		Dec 2020		Sep 2020		YTD		YTD		FY21 Guidance
					Qtr		Qtr		FY21		FY20
	TRIFR				mhrs	7.5		3.6		5.5		4.3
	Total production	- gold			oz			194,088			196,504			390,592			411,452			680-760koz
		- copper		t	26,643		25,329		51,972		45,423			95-105kt
	Head Grade	- gold			g/t			0.95			1.02			0.98			1.18
		- copper	%		0.39		0.40		0.39		0.40
	Sales	- gold			oz			194,183			195,146			389,329			398,648
		- copper		t	26,477		24,596		51,073		44,170
	All-In Sustaining Cost			$/oz			(6)			113			54			167(15)
	All-In Sustaining Cost margin		$/oz	1,821		1,724		1,772		1,279

Gold production of 194koz was 1% lower than the prior period due to lower grade and recovery, largely offset by the realisation of a number of debottlenecking initiatives in Concentrator 1 which, together with a reduction in scheduled maintenance events, culminated in a 7% increase in mill throughput.

Gold recovery was 2% lower than the prior period reflecting a reduction in mineral liberation and flotation residence time which was a consequence of the higher throughput rates. The completion of Stages 1 and 2 of the Cadia Expansion Project is expected to deliver increased recoveries at the higher throughput rates, as well as further increasing plant capacity to 35mtpa. The lower gold grade in the period was in line with expectations.

Mill throughput in the March 2021 quarter will be lower than the current period reflecting planned shutdowns for Concentrator 1 and the material handlings system.

Cadia has set a new quarterly record, reporting an AISC for the period of negative $6/oz which reflects a higher realised copper price, higher copper sales volumes and timing of sustaining capital expenditure. These benefits were partially offset by the impact on operating costs from the strengthening of the Australian dollar against the US dollar and higher royalty and concentrate treatment, refining and transporting costs.

Newcrest announced in December 2020 that it had entered into a 15 year renewable Power Purchase Agreement ("PPA") with Tilt Renewables Limited, the owner and developer of the Rye Park Wind Farm, to secure a significant portion of Cadia's future projected energy requirements. The PPA, together with the forecast decarbonisation of electricity generation in New South Wales, is expected to deliver a ~20% reduction in Newcrest's greenhouse gas emissions and is a significant step towards the achievement of Newcrest's targeted 30% reduction by 2030(16). The PPA will act as a partial hedge against future electricity price increases and will provide Newcrest with access to large- scale generation certificates which Newcrest intends to surrender to achieve a reduction in its greenhouse gas emissions.

In December 2020, Newcrest submitted the statement of environmental effects to the Department of Planning, Industry and Environment for Modification 14. The Modification seeks approval from the Department to increase Cadia's current processing capacity from 32mtpa to 35mtpa and includes the proposal for the repair of the slumped section of the Northern Tailings Storage Facility ("NTSF") together with a minor change to the footprint of the NTSF and Southern Tailings Storage Facility to allow for a change from upstream to centreline lift design.

The Molybdenum Plant is on track to be fully commissioned in the fourth quarter of FY21. The Molybdenum Plant is expected to deliver an additional revenue stream for Cadia in the form of a molybdenum concentrate which will be recognised as a by-product credit to AISC.

1. Subsequent to the release of the December 2019 Quarterly Report, an audit adjustment was applied which reduced gold sales by ~6koz, copper sales by ~49kt and AISC by $5/oz respectively.
2. Per tonne of ore treated and compared to a baseline of FY18 emissions. Subject to market and operating conditions in respect of Cadia and the Rye Park Wind Farm.

Newcrest Mining Limited - Level 8, 600 St Kilda Road, Melbourne - Quarterly Report to 31 December 2020

4