ACN. 000 317 251

MARKET RELEASE 11th December 2015

ROCKLANDS GROUP COPPER PROJECT (CDU 100%)

ROCKLANDS MAIDEN ORE RESERVE ESTIMATE

Cloncurry mining company CuDeco Limited (ASX:CDU) (CuDeco) is pleased to announce a maiden Ore Reserve Estimate for its 100% owned Rocklands Group Copper Project which underpins the project's planned, Stage-1, 10-year operation.

Total Ore Reserve: 28Mt @ 0.9% Spec_CuEq

(0.71% Cu, 0.14g/t Au, 357ppm Co, 6.7% Mag)

comprising

Proved Ore Reserve: 23Mt @ 1.0% Spec_CuEq

(0.77% Cu, 0.15g/t Au, 382ppm Co, 7.1% Mag)

and

Probable Ore Reserve: 5Mt @ 0.6% Spec_CuEq

(0.45% Cu, 0.11g/t Au, 232ppm Co, 5.0% Mag)

Within the Ore Reserve

High-grade Ore Reserve: 10Mt @ 1.61% Spec_CuEq

(1.39% Cu, 0.24g/t Au, 504ppm Co, 6.6% Mag)

Low-grade Ore Reserve: 17Mt @ 0.48% Spec_CuEq

(0.31% Cu, 0.08g/t Au, 269ppm Co, 6.8% Mag)

The Maiden Ore Reserve Estimate was prepared by Australian Mine Design and Development (AMDAD), and is based on the November 2013 Mineral Resource Estimate for Rocklands prepared by Mining Associates Pty Ltd. The Ore Reserve is based on the Stage-1, 10-year mine plan also prepared by Australian Mine Design and Development (AMDAD), as part of the 2015 Rocklands Feasibility Study that is set to be released shortly.

The Rocklands Ore Reserve Estimate has been finalised as part of a Feasibility Study of the Rocklands Project currently being by prepared by CuDeco and its consultants. The Feasibility Study covers resource estimation, mining, processing, marketing, environment, community and financial modelling. The Feasibility Study indicates that the project is technically and economically viable for the metal prices assumed.

Mining operations commenced at the Rocklands Project in 2012. The Las Minerale Stage 1 open pit is completed, Las Minerale Stage 2 has been mined down approximately 45m below surface to 180mRL, the Las Mineral Final Stage has been mined down to 215mRL, Rocklands South has been cleared and grubbed to the final pit limit with some surface mining to 5m depth, Southern Rocklands Extended pit has been mined down to 208mRL, approximately 12m below surface. Most of the parameters adopted for the mine plan are based on Rocklands mining operations experience to-date, including projected life of mine mining costs of $3.20 per tonne. Ore mined to-date of 2.2 Mt has been stockpiled ready for process plant commissioning. Construction of the processing plant and general site infrastructure is nearing completion.

Unit 33, Brickworks Annex,19 Brolga Avenue, SOUTHPORT 4215

Phone: +617 5503 1955 Facsimile: +617 5503 0288 Email: admi n@ cudeco. com. au

Commenting on the Reserve Estimate, CuDeco Managing Director Peter Hutchison said: "In the absence of a Reserve Estimate, in-house modelling has been used for mine planning and financial modelling. The Reserve Estimate provides confirmation that not only was this in-house modelling accurate, but remarkably so given it was initially prepared some three years ago in a very different economic environment. We now have increased confidence in the project's economics to support planned mining and processing at Rocklands."

CuDeco's interim Independent Non-Executive Chairman, David Taylor said: "The Reserve Estimate is a significant milestone in the development of Rocklands, providing further evidence of the project's viability despite the challenging economic conditions faced by the mining industry at present. The release of the Reserve Estimate will underpin operations going forward and also reflects on the greater level of transparency being adopted by the new management of CuDeco.

"The recent strengthening of the Rocklands leadership team, the attraction of significant new investment and the upcoming completion of the project's Feasibility Study demonstrate the Board and management's success in progressing our flagship project. Based on the strong interest in the Rights Issue, we are ticking all the boxes for investors as we work towards unlocking significant revenue for the benefit of all shareholders."

Reserve Estimate Highlights

• Ore Reserve includes Proved Stockpiled ore of 2.2Mt @ 1.34% Spec_CuEq

  (1.02% Cu, 670ppm Co, 0.19g/t Au, 6.6% magnetite)

  • 252,000 tonnes of contained copper metal equivalent

    (199,000 tonnes of copper, 126,000 ounces of gold, 10,000 tonnes of cobalt and 1.9Mt tonnes of magnetite)

    • Strip ratio of 4.0:1

      
      

      Comparison of November 2013 Resource Estimate to December 2015 Ore Reserve Estimate

      
      

      
      

      1.9%

      2013 Resource Estimate (30Mt @ 1.9% CuEq)

      
      

      CuEq adjusted to current metals pricing and forex

      
      

      
      

      1.45%

      
      

      1.25%

      
      

      0.98%

      CuEq adjusted to species based recoveries

      
      

      Resource cut to final working pit design (no loss or dilution)

      0.90%

      Reserve Estimate December 2015

      (28Mt @ 0.90% Spec_CuEq)

      
      

      
      

      • CuEq is an equivalent grade estimate using metal prices and metallurgical recoveries from the November 2013 Resource Estimate.

      • Spec_CuEq is a recovered species equivalent grade estimate, using the same metal prices and recoveries used to determine the net metal values used in the Ore Reserve Estimate.

      • See Competent Person Statement at end of this report for details on both the November 2013 Resource Estimate and December 2015 Ore Reserve Estimate.

Feasibility Study

The Rocklands Ore Reserve Estimate has been finalised as part of a Feasibility Study of the Rocklands Project currently being by prepared by CuDeco and its consultants. The Study covers the following topics - Geology, Resource Estimation, Reserves, Geotechnical, Mine Development, Infrastructure, Equipment Selection, Mine Operations, Access and Transport, Power, Water Balance, Site Earth Works, Built Infrastructure, Metallurgy and Testwork, Processing, Tailings Storage, Environmental, Operations Management Plan, Implementation Plan, Capital and Operating Costs, Cost to Completion, Implementation and Operations Management Plan, Owners Matters and Risks.

The Plan of Operations currently in-place by CuDeco for ML permitting and approved by the Queensland Government has been used as the basis for the Feasibility Study. This envisages a smaller, higher grade open pit only mining operation for 8 years with copper production via processing 3Mpta over a 10 year life, the last 2 years being from stockpiles. Magnetite and low-grade copper material would be stockpiled separately for possible future use. Production of additional material from underground at higher grades is possible but is not being considered at present so is not included in the Feasibility Study or current reserves.

The Feasibility Study indicates that the project is technically and economically viable for the metal prices assumed. Mining operations commenced at the Rocklands Project in 2012. The Las Minerale Stage 1 open pit is completed, Las Minerale Stage 2 has been mined down approximately 45m below surface to 180mRL, the Las Mineral Final Stage has been mined down to 215mRL, Rocklands South has been cleared and grubbed to the final pit limit with some surface mining to 5m depth, Southern Rocklands Extended pit has been mined down to 208mRL, approximately 12m below surface. Most of the parameters adopted for the mine plan are based on Rocklands mining operations experience to-date. Ore mined to- date of 2.2 Mt has been stockpiled ready for process plant commissioning. Construction of the processing plant and general site infrastructure is nearing completion.

Details of factors considered in Ore Reserve Estimates section of the Feasibility Study are included in the enclosed report by AMDAD and JORC Table 1 Section 4 (attached) and summarised below.

Ore Reserves Summary

The Ore Reserve Estimate is summarised in Table 1 and broken down by mill feed types. Open pit operations at Rocklands commenced in late 2012 and this Ore Reserve Estimate includes stockpiled ore up to the end of June 2015 and ore remaining in the designed open pits after this date. Proved ore includes stockpiled material. A breakdown of Proved ore by stockpiled ore and ore remaining in the pits is summarised in Table 2. Total waste and ore volume are summarised in Table 3. A further breakdown of ore by high grade and low grade categories is summarised in Table 4.

Table 1 Rocklands Group Copper Project Ore Reserves