ACN. 000 317 251

Quarterly Report ending 30th September 2015 2nd November 2015

ROCKLANDS COPPER PROJECT (CDU 100%)

HIGHLIGHTS POST-QUARTER END

$30 MILLION UK INVESTMENT SECURED

• Term Sheet signed for $30 million share placement with UK-based institutional investor

• Revised Rights Issue to be undertaken at higher share price, seeking $63 million

• Funds raised to be used towards completing the construction and commissioning of the 100% owned Rocklands Group Copper Project

  
  

  QUARTER HIGHLIGHTS

  
  

  CHANGES TO BOARD AND NEW MANAGEMENT TEAM APPOINTED

  
  

• Appointment of Peter Hutchison as Managing Director;

• Appointment of David Taylor as Interim Chairman;

• Resignation of Wayne McCrae from the position of Chairman and CEO;

• Resignation of W McCrae as a Director and employee of the Company;

• Election of Jiang Yongmin as a Non Executive Director;

• Resignation of Gerald Lambert from the position of Non Executive Director; and

• Appointment of Zhu Mu Po as alternate director to Zhijun Ma.

  
  

  ROCKLANDS FEASIBILITY STUDY

  
  

• To increase the Company's detailed disclosure and investor confidence, a Feasibility Study for the Rocklands Project is underway. The Company aims to complete and release the study in December 2015 and undertake an investor roadshow in the first quarter of 2016.

  
  

  PROCESS PLANT CONSTRUCTION

• Electrical and instrumentation cabling is ~80% complete, and represents the final major undertaking for completion of the process plant.

  
  

  MINING

• Mining temporarily suspended to conserve funds and align mining rates with process feed scheduling, which has experienced delays. Minor activities continue.

  
  

  PRODUCTION

• Commissioning of copper metal casting plant and trial pour of copper ingots from native copper produced at Rocklands copper mine.

  
  

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

  
  

  Phone: +617 5503 1955 Facsimile: +617 5503 0288 Email: a dm i n@cudeco .co m. au

  
  

  
  

  
  

  EXPLORATION

• Bedrock drilling programme underway at EPM18054, samples awaiting dispatch.

  
  

  HEALTH AND SAFETY

• There were no Lost Time Injuries (LTI's) recorded in the quarter, which consequently lowered the Rocklands Project LTI Frequency Rate (LTIFR) from to 7.5 to 3.5 (LTIs per million man hours worked).

  
  

  HUMAN RESOURCES

• At the end of September the Rocklands workforce stood at ~377, consisting of 111 CuDeco employees and ~266 contractors.

  
  

  ENVIRONMENT

• Site pre wet season checks of sediment control structures

• Annual Department for Environment and Heritage Protection Pre wet season site inspection

• Topsoil and vegetation stockpile audit

• Relocate Marathon Creek stream flow gauge

  CORPORATE

• Significant changes to Board and executive management team

Figure 1: Electrical and instrumentation cabling is ~80% complete, and represents the final major undertaking for completion of the process plant.

SUBSEQUENT EVENTS

$30 million UK investment secured

Highlights post-quarter end

CuDeco secured a new $30 million investment with a United Kingdom-based institutional investor.

Final agreements for the placement are expected to be signed by 2 November 2015, following which specific terms and conditions will be announced to the market. Upon receival of the funds, CuDeco will seek to remove the current trading halt and recommence ASX trading of its ordinary shares.

Following the placement, the Company will withdraw the previously announced renounceable rights issue (refer ASX announcement dated 17 September 2015) and undertake a new non-renounceable Revised Rights Issue to all eligible shareholders. This will be conducted on the basis of one new fully paid ordinary share for every four shares held, at an issue price of $0.80 per share (New Shares), seeking to raise approximately $63 million before costs (Revised Issue).

The Company has engaged Australia-based Paradigm Securities as lead manager to the Revised Issue. CuDeco and its lead manager are seeking an independent underwriter for the Revised Issue and will provide a further update to the market in due course.

To increase the Company's detailed disclosure and investor confidence, a Feasibility Study for the Rocklands Project is also advancing towards completion with the Company aiming to complete and release the study by early December and undertake an investor roadshow in the first quarter of 2016.

Quarter Highlights

CHANGES TO BOARD AND NEW MANAGEMENT TEAM APPOINTED

At the close of business Friday 24th July, the following changes had been made to the board of directors;

• Appointment of David Taylor as Interim Chairman;

• Appointment of Peter Hutchison as Managing Director;

• Resignation of Wayne McCrae from the position of Chairman and CEO;

• Resignation of W McCrae as a Director and employee of the Company; and

• Election of Mr Jiang Yongmin as a Non Executive Director. Appointment of David Taylor as Interim Chairman

Mr Taylor has served CuDeco as a non-executive director of CuDeco since 2009, and more recently as Deputy Chairman. An experienced solicitor and mediator, he has broad experience across a range of legal and corporate governance issues and is committed to ensuring productive collaboration between all directors and shareholders.

Appointment of Mr Peter Hutchison as Managing Director

A 40-year-plus industry veteran, Mr Hutchison said he has always been excited by the potential of Rocklands, with the project recently achieving the milestone of the installation of a new copper metal casting plant and electrical works nearing completion for the 3 million tonnes per annum (Mtpa) processing plant.

Resignation of Mr Wayne McCrae

The Company wishes to acknowledge the efforts of former Executive Chairman Wayne McCrae, who, along with former Director Tim Koitka (deceased), discovered the Rocklands deposit, and whose efforts have been instrumental to CuDeco's development from exploration into a leading copper miner, soon to be producer.

Appointment of Mr Jiang Yongmin as a Non Executive Director

The Board welcome Mr Jiang Yongmin, a representative of major shareholder Sinosteel Equipment and Engineering Co Ltd, where he presently serves as Vice General Manger and Chief Engineer. His appointment brings deep construction experience to the Board and will be invaluable in the development of Rocklands towards full-scale operations.

Appointment of Zhu Mu Po as alternate director to Zhijun Ma

On 8th September the Company appointed Mr Zhu Mu Po as an Alternate Director for Mr Zhijun Ma. Mr Zhu Mu Po was educated in Accounting and Finance Department of Macquarie University. He specialized in professional management and investment. During his career, he has been involved in a number of major investment projects within the finance sectors.

Resignation of Gerald Lambert from the position of Non Executive Director; and

On 18th September Mr Gerald A Lambert resigned from the position of Non Executive Director. The Company would like to thank Gerry for five years of dedicated service. Mr Lambert played an invaluable contribution in the transition of the Company, with his passion for corporate governance making CuDeco stronger as a result.