CuDeco Limited‌‌‌‌‌‌‌‌‌‌‌‌‌‌‌‌‌‌‌‌‌‌‌‌‌‌‌‌‌‌‌‌‌‌‌‌‌‌‌‌‌‌‌‌‌

ABN 14 000 317 251

Financial Report 2015‌

DIRECTORS David Taylor

Peter Hutchison Paul Keran Zhijun Ma Hongwei Liu Zhaohui Wu Jiang Yongmin

Zhu Mu Po (Alternate Director to Zhijun Ma)

COMPANY SECRETARY Bruno Bamonte

ADMINISTRATION AND REGISTERED OFFICE

Unit 33, Brickworks Annex 19 Brolga Avenue Southport Queensland 4215

Telephone: (617) 5503 1955

Facsimile: (617) 5503 0288

PRINCIPAL PLACE OF BUSINESS

Rocklands Mine Corella Park Road

Cloncurry Queensland 4824 Telephone: (617) 4742 4800

Facsimile: (617) 4742 4898 Web site: www.cudeco.com.au

AUDITOR KPMG

Level 11, Corporate Centre One, Cnr Bundall Road and Slayter Avenue, Bundall Qld 4217

SHARE REGISTRY Advanced Share Registry Services 110 Stirling Highway

Nedlands Western Australia 6009 Telephone: (618) 9389 8033

Facsimile: (618) 9262 3723

STOCK EXCHANGE LISTING The Company's securities are quoted on the Australian

Securities Exchange.

ASX Codes

CDU ‐ ordinary shares

CDUO - Options exercisable at $2.50 by 31 December 2015

STATE OF INCORPORATION New South Wales

Review of Operations

During the year to 30 June 2015 CuDeco Limited ('Cudeco') continued its mine development activities on its 100% owned Rocklands Group Copper Project based in Cloncurry, Queensland, Australia ('Rocklands Project'). During the year the Company increased its investment in the development of the mine by $38 million and in the plant and equipment associated with the project by $103 million. At 30 June 2015 the Group completed an impairment assessment of the Rocklands project and recorded an impairment loss of $109 million in relation to mine development and property plant and equipment. Furthermore the Group recorded an impairment loss of $2.9 million in December 2014 in relation to its logistical assets.

Within the next year it is anticipated that the construction of the process plant and the required infrastructure will be completed, the plant will be commissioned and it should enter into the production phase. At this time the only major component still to be completed is the electrical cable installation.

The key highlights for the year include: -

1. Mine Development

   
   

   The development of the mine continued throughout the year and during the year the Group removed 4.9 million tonnes of overburden. At the end of the financial year the company had stockpiled 2.2 million tonnes of ore which allows for the optimization of the blending of the ore once production commences.

   
   

   During the financial year: -

   
   

2. Most areas of the process plant have reached the final stage of installation and construction. The installation of 20 E-houses (power switching and process control systems) was completed and the installation of the electrical cabling commenced during the year;

3. The crushing circuit was completed and commissioned; and

4. Most of the required infrastructure assets on the minesite were completed. The tailings storage facility was the most significant item constructed.

   
   

5. Exploration

   
   

   During the period only a limited exploration programme was undertaken as the main focus of CuDeco was on mine development and the plant construction. The work undertaken related to a desk-top analysis of geophysical and geochemical surveys, field sampling and mapping and target generation was ongoing.

   
   

6. Corporate Financing

The Company completed the following equity transactions throughout the year: -




1. To conserve cash the Group, negotiated to pay for certain goods and services through the issue of shares. The following share issues were made during the year

2. For part payment for the transportation of Plant and Equipment from China to the site the company issued 2,739,713 shares for a total consideration of $3,775,745;

3. For part payment for the construction of the Tailings Storage Facility the company issued 294,118 shares for a total consideration of $500,000; and

4. For part payment for the supply of electrical cabling the company issued 5,666,666 shares for a total consideration of $8,500,000.