browns oxide commissioning update

BROWNS OXIDE COMMISSIONING UPDATE

Compass Resources is pleased to announce the commencement of copper electro-winning at the Browns Oxide plant. The first expected production of copper cathode in coming days will be followed by nickel and cobalt production.

A further significant milestone has been achieved with the signing of a major sales contract for the copper cathode product. The agreement is with Sempra Metals and concentrates LLC for 100% of Compass’s share in the off-take for an initial period of 3 years with an option to extend.

The contract pricing will be linked to the LME copper price with the first sale of copper cathode expected in
October 2008.

Completion of the nickel/cobalt circuit has taken longer than expected due to the diversion of labour
and effort to satisfy additional compliance requirements, necessary to meet new fire and safety
standards. These issues have now been addressed and construction activities are well advanced
with production of precipitate expected in early October.
Overall the commissioning has progressed very well with the following milestones being achieved:
The crushing and grinding circuit has been commissioned with no major issues
encountered. The continuous running periods have been progressively extended until
the circuit ran continuously for 5 days without incident before a scheduled shutdown for
checking. It is now running on a continuous basis with ore feed.
The boiler has been commissioned and steam has been successfully introduced to the
circuit for process heating without incident.
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Acid has been introduced to the acid leach circuit without incident.
The solvent extraction circuit has been charged with organic extractant and
commissioned.
Power has been connected to the electrowinning circuit and copper is being plated on to
the stainless steel cathodes.
A sales contract has been signed for the copper cathode product for an initial period of 3
years with an option to extend.
First sale of copper cathode expected in October.
Additional fire and safety requirements have been addressed and the nickel/cobalt circuit
is well advanced with production of precipitate expected in early October.
The sales contract for the nickel / cobalt precipitate product has an agreed term sheet
with final contract documentation being prepared.
The ore stockpile has been built up to a total of 5 months of process plant supply.