TECK RESOURCES LTD

Performance

Gross profit from our zinc segment was $329 million in the second quarter, an increase of $186 million compared to the same period last year. The increase was primarily due to higher zinc prices and higher by-product revenues at both Red Dog and Trail, partially offset by higher cost of sales attributable to increased concentrate purchases and royalty costs compared to the same period last year. Gross profit before depreciation and amortization 2 at Trail Operations improved significantly in the second quarter to $203 million from $42 million in the same period last yeardue to our continued focus on improving Trail's profitability and cash generation through value driven optimization of feed sources and production, including prioritizing processing of residues in the near term based on suitable market conditions. The benefit of these initiatives, combined with improved pricing for by-products such as silver and germanium, contributed to an increase in gross profit before depreciation and amortization 2 in the second quarter compared to the same period last year.

Zinc production at Red Dog in the second quarter decreased by 24,600 tonnes from the same period last year to 112,000 tonnes, primarily due to lower grades, as expected in the mine plan. Red Dog's lead production of 21,900 tonnes decreased by 5,600 tonnes compared to the same period last year due to lower grades. Zinc sales volumes from Red Dog of 36,500 tonnes in the second quarter were 1,400 tonnes higher than the same period last year, and are within our previously disclosed guidance range of 30,000 to 40,000 tonnes.

Refined zinc production at Trail Operations in the second quarter was 49,800 tonnes, a decrease of 1,100 tonnes compared to the same period last year as a result of planned maintenance activities during the quarter.

Notes:

The table below summarizes the change in gross profit in our zinc segment for the quarter.

Property, plant and equipment expenditures in the second quarter totalled $85 million, including $48 million for sustaining capital, of which $25 million relates to our Trail Operations and $23 million relates to our Red Dog Operations. The remainder of expenditures relate to our Red Dog mine life extension project.