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Re: News - Monday, April 02, 2007
Peru Copper Reports 2006 Year End Financial Results
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Vancouver, April 2nd, 2007 - Peru Copper Inc. (TSX:PCR / AMEX:CUP /
BVL:CUP) ("Peru Copper" or the "Company") today filed its financial
results for the year ended December 31, 2006. Complete financial
statements will be included in the Company's 2006 Annual Report to be
mailed to shareholders. All monetary amounts are expressed in United
States dollars unless otherwise stated.

Peru Copper is involved in the acquisition and exploration of
potentially mineable deposits of copper in Peru. On June 11, 2003,
Peru Copper entered into the Toromocho Option Agreement ("Toromocho
Option") with Empresa Minera del Centro del Peru S.A. ("Centromin"), a
Peruvian state-owned mining company, whereby Centromin granted the
Company the option to acquire its interest in the mining concessions
and related assets of the Toromocho Project.

Financial Results

The Company prepares its financial statements in U.S. dollars and in
accordance with accounting policies and practices generally accepted in
Canada ("Canadian GAAP"). In 2006, the Company recorded a loss of $3.3
million as compared to a loss of $3.4 million in 2005.

Contributing to the Company's loss was an increase of $0.8 million in
administrative expenses from $4.3 million in 2005 to $5.1 million in
2006. Peru Copper expenses all costs not directly related to its
exploration and drilling efforts at the Toromocho Project. The
increase in administration expenses was primarily due to increases in
stock-based compensation and professional fees.

Stock based compensation increased by $0.3 million from $1.8 million in
2005 to $2.1 million in 2006. The increase was due to the vesting of
options to directors, officers, employees and consultants. The Company
capitalizes all stock-based compensation of the vesting of options to
employees and consultants that work directly on the Toromocho Project
and expenses all other stock-based compensation.

Professional fees increased by $0.4 million to $1.4 million due to
costs associated with Sarbanes-Oxley certification, an increase in
costs associated with investment banking expenses and other fees
related to the continued development of the Toromocho Project.

Additionally, the Company incurred small increases in management fees
of $0.3 million and travel expenses of $0.1 million between years ended
2005 and 2006 due to new management members joining the Company and
travel related to the Feasibility Study.

Expenses were offset by $1.8 million of interest earned on cash
balances and a $0.2 million foreign exchange gain.

Capitalized Expenses

All of the Company's $33.0 million of exploration expenses during 2006
have been capitalized under Canadian GAAP to exploration properties and
all administration expenses of the Company have been expensed.

The bulk of the capitalized expenses for 2006 were related to $17.9
million in acquisition and lease costs associated with the acquisition
of Minera Centenario S.A.C. ("Centenario"). In accordance with the
share purchase agreement signed with Austria Duvaz, the Company gained
100% control of Centenario and its stake in 30 concessions located in
the Morococha mining district.

Also, contributing to the capitalized expenses were supplies and
general expenses of $5.6 million that were related to costs associated
with the accelerated development of the Toromocho Project. Salaries
and consulting totaled $4.2 million for the year ended December 31,
2006 due to the approximately 55 employees and several consultants
working on the Toromocho Project.

Additional costs included drilling expenses of $1.9 million, value
added taxes of $1.4 million due to the increased purchases of supplies
and there was a $1.0 million in stock-based compensation for workers
and consultants working directly on the project.

The increase in capitalized expenses of $15.8 million from the
year-ended 2005 to the year-ended 2006 was largely related to the
acquisition of Centenario along with increases in stock-based
compensation and general Toromocho Project expenses. These increases
were partially offset by a reduction of $4.3 million in drilling
expenses and a reduction of $0.5 million in assay sampling and testing
from year-end 2005 to year-end 2006.

Analysis of the Fourth Quarter 2006

For the fourth quarter of 2006 the Company recorded a loss of $0.9
million as compared to a loss of $1.1 million in the fourth quarter of
2005. The difference primarily relates to an increase in interest
income of $0.3 million, from $0.2 million in the fourth quarter of 2005
to $0.5 million in the current quarter. This increase in interest
income was off set by increases in expenses between the current quarter
and the fourth quarter of 2005.

In the current quarter, stock-based compensation of $0.6 million was
recorded as compared to $0.5 million in the fourth quarter of 2005.
Management Fees also increased from a recorded $0.2 million in the
fourth quarter of 2005 to $0.3 million in the current quarter. Other
significant increases included travel expenses, which increased from
$0.06 million in the fourth quarter 2005 to $0.09 million in the
present period and professional fees, which increased by $0.02 million
during the same timeframe.

All of the Company's $23.5 million of exploration expenses during the
quarter have been capitalized under Canadian GAAP as exploration
properties. This $23.5 million was comprised of four principal
expenses: acquisition and lease, salaries and consulting and costs
associated with supplies and general expenses. The $17.2 million
acquisition and lease costs were for the acquisition of Minera
Centenario S.A.C. as outlined in the share purchase agreement with
Austria Duvaz, and for the settlement of the land dispute with the
Pucara community. Supplies and general expenses for the period were
$2.6 million, and salaries and consulting expenses totaled $1.9 million
for the current quarter.

Expenses for the fourth quarter of 2006 totaled $1.4 million, up
slightly from the $1.3 million in the same period in 2005. This slight
increase relates to a $0.1 million increase in stock-based compensation
from $0.5 million in the fourth quarter of 2005 to $0.6 million for the
same quarter in 2006. There were also minor increases in professional
fees of $0.02 million and management fees of $0.05 million between the
fourth quarter 2005 and the current quarter. These increases were
partially offset by a reduced foreign exchange loss of $0.07 million,
from a recorded $0.1 million in 2005 to $0.03 million for the same
period in 2006.

For further information please contact Patrick De Witt, Director of
Investor Relations at (604) 689-0234 or patrick@perucopper.com.

Cautionary Note to U.S. Investors---The United States Securities and
Exchange Commission permits U.S. mining companies, in their filings
with the SEC, to disclose only those mineral deposits that a company
can economically and legally extract or produce. We use certain terms
in this press release, such as "mineral deposit", that the SEC
guidelines strictly prohibit U.S. registered companies from including
in their filings with the SEC. U.S. Investors are urged to consider
closely the disclosure in our Form F-3 Registration Statement, File No.
333-121527, which may be secured from us, or from the SEC's website at
http://www.sec.gov/edgar.shtml.

CAUTIONARY NOTE REGARDING FORWARD LOOKING-STATEMENTS

This news release contains "forward-looking statements" within the
meaning of the United States Private Securities Litigation Reform Act
of 1995 and applicable Canadian securities legislation. Forward-looking
statements include, but are not limited to, statements with respect to
the future price of copper and molybdenum, the timing of exploration
activities, the mine life of the Toromocho Project, the economic
viability and estimated internal rate of return of the Toromocho
Project, the estimation of mineral reserves and mineral resources, the
results of drilling, estimated future capital and operating costs,
future stripping ratios, projected mineral recovery rates and Peru
Copper's commitment to, and plans for developing, the Toromocho
Project. Generally, these forward-looking statements can be identified
by the use of forward-looking terminology such as "plans", "expects" or
"does not expect", "is expected", "budget", "scheduled", "estimates",
"forecasts", "intends", "anticipates" or "does not anticipate", or
"believes", or variations of such words and phrases or state that
certain actions, events or results "may", "can", "could", "would",
"might" or "will be taken", "occur" or "be achieved". Forward-looking
statements are subject to known and unknown risks, uncertainties and
other factors that may cause the actual results, level of activity,
performance or achievements of Peru Copper to be materially different
from those expressed or implied by such forward-looking statements,
including but not limited to: risks related to the exploration and
potential development of the Toromocho Project, risks related to
international operations, the actual results of current exploration
activities, conclusions of economic evaluations, changes in project
parameters as plans continue to be refined, future prices of copper,
silver, molybdenum and gold, as well as those factors discussed in the
section entitled "Risk Factors" in the Form F-3 as on file with the
Securities and Exchange Commission in Washington, D.C. and in the
section entitled "Narrative Description of the Business -- Risks of the
Business" in the Annual Information Form of the Company dated March 24,
2005. Although Peru Copper has attempted to identify important factors
that could cause actual results to differ materially from those
contained in forward-looking statements, there may be other factors
that cause results not to be as anticipated, estimated or intended.
There can be no assurance that such statements will prove to be
accurate, as actual results and future events could differ materially
from those anticipated in such statements. Accordingly, readers should
not place undue reliance on forward-looking statements. Peru Copper
does not undertake to update any forward-looking statements that are
incorporated by reference herein, except in accordance with applicable
securities laws.

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Copyright (c) 2007 PERU COPPER INC. (PCR) All rights reserved. For
more information visit our website at http://www.perucopper.com/ or
send mailto:info@perucopper.com
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