Ann: Rockland's Copper Project Update , page-8

Page 24-25

"Update on Crushing Circuit

Both the primary and tertiary crushers are fully operational.

Experience lead to an early decision to complete the Crushing Circuit long before it would be required by the process plant...it has turned out to be a prophetic decision.

Completion of the Rocklands Crushing Circuit took longer than anticipated, partly due to the need to conduct rectification work during the commissioning process. The contractor for the primary and tertiary crushing circuit did not complete the works under the terms of the contract to the satisfaction of CuDeco.

Additionally the contractor installed sections of the crusher that did not meet Australian Standard or QLD Mines Department Regulatory mechanical, lifting and electrical standards. "

Rectification work was incorporated into the commissioning process and has now been completed.

Final design specification commissioning is now underway and will be followed by planned crushing and scalping of coarse native copper DSO product, expected to commence in the coming days.

The company has instituted litigation against the contractor for the primary and tertiary crushing circuit and is seeking costs, damages and losses for breach of contract in relation to the static crushing circuit and other matters associated with the crusher. The company expects to increase the claim against the contractor once comprehensive analysis of all costs, damages and losses have been completed.

Rectification work to the crushing circuit was completed in-house by CuDeco and by third party consultants and contractors engaged by CuDeco.

Crushing of primary and oxide DSO copper ore types is already underway using the Company’s mobile crushing circuit, which was partially designed for this purpose and can operate at up to 160 tonnes per hour. "