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1 ACN MARKET RELEASE 8 th November 2011 ROCKLANDS COPPER PROJECT (CDU 100%) ROCKLANDS GROUP COPPER PROJECT UPDATE MINE PLAN, PIT OPTIMISATION AND MINING SCHEDULE PIT DEWATERING - WATER BORE DRILL LOCATIONS PREPARED APPLICATION FOR NEW EPM TO THE SOUTH-WEST OF ROCKLANDS PROGRESSING - PUBLIC NOTIFICATION UNDERWAY (CUDECO PRIORITY APPLICANT) Figure 1: Preliminary pit designs determined from optimisation study for first 10 years of mining at the Rocklands Group Copper Project. Copper equivalent block model shown with starter pit (blue) and final pit outlines, based on a 10 year mining operation. Unit 34, Brickworks Annex,19 Brolga Avenue, SOUTHPORT 4215 Phone: Facsimile:

2 For personal use only Figure 2: Rocklands Group Copper Project - Site General Arrangement Plan, as detailed in the Company s submissions. Mine Plan, Pit Optimisation and Mining Schedule Mining consultants, Australian Mine Design and Development (AMDAD) and CuDeco s geological team, have been investigation various pit optimisation and life-of-mine scheduling approaches for the Rocklands Group Copper Project, based on the Company s May 2011 Resource Update. The aim has been to source the most appropriate mine plan and mining schedule, particular to the dynamics of the Rocklands resource over a 10 year mine life, with the view to identifying the most cost-effective and profitable outcome. Preliminary final pit designs are nearing completion, subject to minor fine-tuning adjustments. The goal of the optimisation process is to generate an efficient and cost-effective mining schedule that provides essential information required by the engineering design consultants, to fine-tune and if required, make detail adjustments to the final process design. Page 2

3 Pit optimisation is essentially designed to replicate, as much as possible, the actual mining process in a digital environment, taking into account numerous cost and production specifics including, but not limited to; Selling costs (freight, port, rail, shipping, treatment, marketing, insurances, refining, royalties, taxes, etc.) Metal prices and exchange rates Cut-off grades Metal recoveries (based on metallurgical studies) Ore dilution Mining losses Mining fleet (size and configuration) Haulage and mining costs (depreciation and replacement costs, consumables, maintenance, etc.) Processing costs (power, labour, consumables, maintenance, admin, etc.) Pit slopes, panel sizes and access ramps (based on geotechnical studies) Stockpile and head grade management requirements (ore-types, metal species, head grades, etc.) In addition to generating an efficient and cost-effective mining schedule, the optimisation process facilitates preliminary analysis of potential cash-flows, from which both short-term and long-term capital investment and development strategies can be evaluated. Finally, various sensitivities are examined and project economics stress-tested accordingly, which greatly reduces the risk of unexpected outcomes. The Company is extremely pleased with results to date. Pit De-watering - Water Bore Drill Locations Prepared One of the first priorities in the period leading up to the commencement of production at the Rocklands Group Copper Project, is the process of de-watering the pit area. Figure 3: Rocklands Group Copper Project - 3d model of preliminary 10 year pit outline and location of dewatering production and monitoring bores. Page 3

4 CuDeco s geological team, with the cooperation of the Company s site engineering and design consultants Knight Piesold, have designed preliminary locations for production bore and monitoring bore locations for the fist stage of the project. Drill pad locations have been surveyed and pad preparation is ready to commence once approvals have been granted. Production bores are designed to dewater the pit area to enable mining operations to be undertaken in dry in-pit conditions. Monitoring bores are drilled in order to observe changes in the height of the water table at fixed points, both proximal to the pit and distally, as a result of dewatering operations. The production and monitoring bore programme is divided into two stages; the initial stage will involve drilling four production bores and some fifteen monitoring bores, located to test the influence of the production bores on the water table, upon the commencement of pumping. Each of the bores will have drawdown tests performed while pumping from the bottom of the hole. Data captured includes the measured hydraulic head (water table height) in each of the monitoring bores while pumping, and, once pumping ceases, at points in time to determine recovery of the water table. The second stage of the programme is to determine the locations of the remaining production and monitoring bores. Data captured during the initial stage will be used to aid in designing the remaining production bores, required as the pit size and depth increases. Application for New EPM to the South-west of Rocklands Progressing - Public Notification underway (CuDeco Priority Applicant) The Company is pleased to announce, in accordance with the Native Title Act 1993, notice of the proposed grant of Exploration Permit for Minerals No , has been given to the Registered Native Title Claimants, the Representative Aboriginal/Torres Strait Islander Body and the National Native Title Tribunal. The Notice of Proposed Grant of Exploration Permits was advertised in the Koori Mail and Mt Isa North West Star on August 24th, 2011 (see Figure 5). Figure 4: Rocklands Group Copper Project - Existing and new EPM s, and pending ML s Page 4

5 Figure 5: Notice of Proposed Grant of Exploration Permit For Minerals. Located immediately to the south-west of our flagship Rocklands Group Copper Project, the new EPM shares a common boundary point with the Company s existing ground, and will provide both strategic significance and possible exploration attraction in the period ahead. Historic records reveal numerous elevated mineral occurrences, including copper, cobalt, gold and zinc, and several historic Mining Leases (ML s) have been identified within the area of the EPM, including at least one ML where records of the minerals sought have not yet been located. Anecdotal evidence exists of numerous copper shows, according to old-timers known to the Company, who have explored the area over the last 40 years, and these will be investigated in due course. There are no records of previous drilling activity within the new EPM, however historic drilling campaigns have been conducted adjacent to the western boundary, where minor and significant intersections of both copper and gold were encountered. A comprehensive desk-top exploration audit and data-mining programme will be conducted over the coming wet season, and preliminary ground reconnaissance will commence once the permit has been granted. Yours faithfully Wayne McCrae Chairman Page 5

6 Competent Person Statement The information in this report that relates to Exploration Results is based on information compiled by Mr Andrew Day. Mr Day is employed by GeoDay Pty Ltd, an entity engaged, by CuDeco Ltd to provide independent consulting services. Mr Day has a BAppSc (Hons) in geology and he is a Member of the Australasian Institute of Mining and Metallurgy (Member #303598). Mr Day has sufficient experience which is relevant to the style of mineralization and type of deposits under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ores Reserves. Mr Day consent to the inclusion in this report of the information in the form and context in which it appears. 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. Page 6