Chile - Kennecott Copper Corporation Arrangements: Formation of Sociedad Minera El Teniente S.A. and Authorization of Investments

The Braden Copper Company, a foreign Corporation organized under the laws of the State of Maine of the United States, and with an agency authorized to operate in this country, is exempted from all taxes, contributions, duties or charges arising from, caused by, or as a consequence of the transfer of its property, assets and liabilities, rights and obligations, which it may effect upon formation of the Joint Mining Company** to be known as Sociedad Minera El Teniente S.A. This same exemption is granted to legal persons (corporate) who may be stockholders of Braden Copper Company.

THE SEARCH FOR ORE DEPOSITS USING THERMAL RADIATION

Kennecott Copper Corporation has conducted several months of airborne infrared work in an attempt to detect patterns related to geology or the presence of oxidizing sulphides. The results encountered have shown that certain microclimatological effects are very important. Among these are the hill effect shown by small topographic features bathed in warm air under thermal inversion conditions. Major faults are evidently reflected in some cases as are areas of subterranean hot water. These observations have been confirmed by ground temperature measurements in holes two to three ft deep.