ACN. 000 317 251

ROCKLANDS GROUP COPPER PROJECT - UPDATE

ENVIRONMENTAL AUTHORITY

Application for the Environmental Authority for Rocklands Project Granted by Qld. Government

MINING LEASE

No Objections Received Against Granting of Mining Lease During Period of Public Notification

PLAN OF OPERATIONS

Draft Environmental Management Plan (EMP) Converted to Final EMP, Consistent with Environmental Authority (EA

APPOINTMENT OF KEY STAFF

Rocklands Project Manager and Project Accountant

MINE PLAN AND MINING SCHEDULE

Final Pit Designs and Mine Schedules, Required for Fine-tuning of Final Process Design-Work Nearing Completion

PROCESS DESIGN AND METALLURGY

Final Phase of Process Design Underway

Unit 34, Brickworks Annex,19 Brolga Avenue, SOUTHPORT 4215

Phone: +617 5503 1955 Facsimile: +617 5503 0288

MARKET RELEASE 1st November 2011

ROCKLANDS COPPER PROJECT (CDU 100%)

Figure 1: Dump-truck testing and driver training & certification facility, adjacent to the Rocklands Site Office Complex.

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Environmental Authority CuDeco has received notification that its application for an Environmental Authority (EA) for the Rocklands Project has been granted. This is a major step forward to finalising the grants of the Mining Leases for the Project. Mining Lease (ML) The Certificate of Public Notification (CPN) advertising period for public comment and objections to the

granting of the Rockland‟s ML‟s closed on the 18th October, 2011 and the Company is pleased to

announce that no objections were received. The Department of Employment Economic Development and

Innovation (DEEDI) is now processing the final submission for the granting of the ML‟s for the Minister for

Mines.

Plan of Operations (PoO) During the CPN period the Company and its environmental consultants converted the Draft Environmental Management Plan (EMP) to the final EMP, to be consistent with the Environmental Authority (EA). The environmental group also commenced writing the PoO, which has to be approved by the Department of Environment and Resource Management (DERM), prior to commencing site works. The Plan of Operations incorporates the overall operating strategy, embodying all of the environmental conditions as specified in the EA.

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Figure 2: Rocklands Group Copper Project - Site General Arrangement Plan, as detailed in the Company’s submissions.

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Appointment of Key Staff Rocklands Project Manager - Noel Everon CuDeco is pleased to announce the recent appointment of Mr Noel Everon as Project Manager for the Rocklands Group Copper Project. Noel has a strong background in managing process plant, and in infrastructure and process plant construction and commissioning, both in Australia and overseas. Key projects have been McArthur River Mine, Century Zinc, Crew Gold‟s project in Guinea and Argyle Diamonds. Noel has good experience in contractor management and delivering quality and timely outcomes for his

employers, and his experience extends to the processing of copper, including native copper, other base

metals, gold and iron ore.

Rocklands Project Accountant - Kurt Hultzsch The Company is also pleased to announce the recent appointment of Mt Kurt Hultzsch as Rocklands Project Accountant. Kurt brings to the project international experience as a senior accountant with customs and shipping, mining equipment suppliers and IT, and more recently in Australia as a Senior Accountant with Gold Fields Australia operations at Agnew Gold Mining Company and Saint Ives Gold Mining Company, in Western Australia. Mine Plan and Mining Schedule CuDeco‟s mining consultants, Australian Mine Design and Development (AMDAD) have been working on the final pit optimisation since the finalisation of the last resource update and, based on the results are now well advanced with the mine pit detailed design. Part of this work has required

close consultation with CuDeco‟s

geology team in order to arrive at

the most cost-effective and

profitable mine plan and mining

schedule, which has involved a

considerable effort over the last

10 weeks. The final mining

schedule provides essential

information required by the

engineering design consultants to

be able to fine-tune and finalise

the details of the process design.

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Figure 3: Works on a major seasonal river crossing (Butchers Creek), nearing completion. The new, heavy-duty, sealed road, which incorporates numerous water crossings, including the Butchers Creek crossing (above), connects Rocklands to the National Highway Grid and will provide major benefits to local traffic. Previously, graziers and pastoralists often could not gain access to their properties during the wet season due to flooding. Butchers Creek in particular has been known to remain in flood and unpassable for months on end.

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Process Design & Metallurgy

The Company‟s process design consultants, Lycopodium Minerals Queensland Pty Ltd have been

progressing process design activities, particularly centred around the final crushing circuit, and will

commence the final phase of this design work following receipt of the final mining schedule late October.

The Company has chosen Polysius as its supplier for the High Pressure Grinding Rolls (HPGR) supply for

the tertiary crushing plant.

Studies related to design aspects of the process circuit have been completed:

Modelling of the crushing circuit options by JKTech, Oreway Mineral Consultants, Sandvik Mining

and EMS-Index;

Completion of HPGR sizing tests at Polysius‟ pilot-scale tests facilities at SGS‟s pilot laboratories in

Perth;

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Figure 4: Native copper nugget scalped from oversized screen prior to passing through High Pressure Grinding Rolls (HPGR)

Figure 5: Fine-tuning activities at Polysius...left to right; HPGR pilot test plant, HPGR product splitting, HPGR recycle screening.

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Further investigation of the potential for recovery of fine native copper in the ball mill feed rather than

from the ball mill circulating circuit;

Continuation of ore „ageing‟ tests – a 12+ month programme (testing of the potential for ageing

effects on the flotation properties of Rocklands ore caused by premature oxidation of mineral

surfaces during periods of storing on stockpiles);

Fine tuning of the flotation circuit using differing flotation reagents for different lithology types;

All these activities are “fine tuning” type activities and are not anticipated to have any significant impact on

any final design criteria.

Yours faithfully

Peter Hutchison Executive Director

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Figure 6: Three dimensional block model of 2011 Resource Estimate. Left; CuEq grade distribution. Right; Oretype distribution.

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Competent Person Statement The information in this report insofar as it relates to Metallurgical Test Results and Recoveries, is based on information compiled by Mr Peter Hutchison, MRACI Ch Chem, MAusIMM, a full-time executive director of CuDeco Ltd. Mr Hutchison has sufficient experience in hydrometallurgical and metallurgical techniques which is relevant to the results under consideration and to the activity which he is undertaking to qualify as a competent person for the purposes of this report. Mr Hutchison consents to the inclusion in this report of the information, in the form and context in which it appears. Rocklands style mineralisation Dominated by dilational brecciated shear zones, throughout varying rock types, hosting coarse splashy to massive primary mineralisation with high-grade supergene chalcocite enrichment and bonanza-grade coarse native copper. Structures hosting mineralisation are sub-parallel, east-south-east striking, and dip steeply within metamorphosed volcano-sedimentary rocks of the eastern fold belt of the Mt Isa Inlier. The observed mineralisation, and alteration, exhibit affinities with Iron Oxide-Copper-Gold (IOCG) classification. Polymetallic copper-cobalt-gold mineralisation, and significant magnetite, persists from the surface, through the oxidation profile, and remains open at depth. Solsbury style mineralisation Brecciated and vein hosted, throughout varying rock types, hosting coarse splashy primary mineralization with supergene bornite and native copper. Polymetallic copper-gold mineralization persists throughout the oxidation profile and remains open at depth.

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