update::copper

- Nova Mining’s copper smelter for the June Quarter has been in excess of 900 tonnes.Our target of 1,000 tonnes would have been met but for an industrywide
shortage of metallurgical coke in April which significantly impacted our production
capability.

- The continuing positive trends in the company’s operations and financial status
have established Nova’s position both as the leading independent producer of copper
metal in Congo, as well as a newcomer to the list of junior ASX companies with successive
‘cash-flow positive’ status.

- With the completion and commissioning of furnaces 3 and 4 now scheduled for July (Hopefully),
production capacity at the plant will double.

- doubling our production will have a marked improvement on the margins earned as we move well above the breakeven point of around 240t/m at present.

- The 4 furnaces are scheduled to operate on copper ore feedstock secured from existing
and new supply contracts

- An arc furnace proposal is likely to be instead of constructing the next set of blast furnaces F5 and F6 that were
earlier planned for inclusion in the current expansion plan.

- A primary objective is to secure resources where
the NWA designed mini-concentrators can be installed to provide a reliable grade of
product to Nova’s furnaces. This step in the development of the company will significantly
improve operating margins and certainty of supply.

- Several JV opportunities within 150 km of Nova are nearing completion with reliable companies.
Nova Management’s ability to develop existing copper deposits and operate miniconcentrators
is undergoing due diligence review on the resource projects outlined above.
Once legal and financial review is completed, approved concessions (tenements) will be
concluded into a variety of JV projects. Some of these mining projects could become
operational by the end of our September quarter (Read December), conditionally followed by erection and
operation of our first mini-concentrator before year end.