TECK RESOURCES LTD

ZINC SEGMENT

Performance

Gross profit from our zinc segment was $465 million in the third quarter, an increase of $160 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 purchase costs and royalty costs compared to the same period last year. Gross profit before depreciation and amortization 2 at Trail Operations improved significantly in the third quarter to $169 million from $54 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 the 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 third quarter compared to the same period last year.

Zinc production at Red Dog in the third quarter decreased by 15,500 tonnes from the same period last year to 106,500 tonnes, primarily due to lower grades, as expected in the mine plan. Red Dog's lead production of 20,600 tonnes decreased by 6,800 tonnes compared to the same period last year due to lower grades. Zinc in concentrate sales volumes from Red Dog of 246,700 tonnes in the third quarter were 26,100 tonnes lower than the same period last year, and were within our previously disclosed guidance range of 220,000 to 270,000 tonnes.

Refined zinc production at Trail Operations in the third quarter was 61,900 tonnes, an increase of 9,300 tonnes compared to the same period last year higher as a result of the zinc electrolytic plant running at full capacity through the quarter, compared to the same period last year where we were operating at lower rates. We continued to optimize feed sources, including balancing the processing of stockpiled residues with the processing of residues generated from the zinc circuit, as expected 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 third quarter totalled $117 million, including $42 million for sustaining capital, of which $17 million related to our Trail Operations and $25 million related to our Red Dog Operations. The remainder of the expenditures related to our Red Dog mine life extension project.