ACN. 000 317 251 (ASX:CDU)

MARKET RELEASE 11th May 2016

ROCKLANDS GROUP COPPER PROJECT - 100% OWNED BY CUDECO

RIGHTS ISSUE CLOSES

ROCKLANDS FUNDED TO PRODUCTION

CuDeco Limited (CuDeco) announced today the closing of its $63 million Non-Renounceable Rights Issue, with the funds to be used towards completion of the Company's 100% owned flagship Rocklands Group Copper Project, in Cloncurry, NW Queensland. The funds will facilitate final commissioning and ramp-up, working capital requirements and subsequent first shipment of copper products.

Initial commissioning activity has been focusing on copper production only, including through the gravity (native copper) and flotation (sulphide copper) circuits. When the copper circuits reach steady-state, it is planned that the pyrite/cobalt and DMS magnetite circuits will be commissioned and these streams also bought online.

This staged approach helps simplify the commissioning process, reduces ramp-up times to reach nameplate throughput, and brings-forward much anticipated revenue.

CuDeco Managing Director Peter Hutchison said, "Shareholders' strong support for the rights issue is evidenced by the applications received, totaling approximately 42 million shares from eligible shareholders, with the remainder to be allocated to the sub-underwriters."

"With significant support from our major shareholders and careful management of expenditure, we have been able to steer the Company through a challenging 10 months or so. With funding now available, I see no impediment to completing the final stages of commissioning, through to first product deliveries. It has been a herculean effort from all involved at Rocklands, and I sincerely thank everyone for their contribution to a successful outcome."

ROCKLANDS GROUP COPPER PROJECT OVERVIEW

CuDeco Independent Non-Executive Director and Chairman Dr Noel White added, "With the lifting of the suspension of trading of the Company's shares (ASX:CDU) after some 10 months of being suspended, it is perhaps appropriate to highlight just how far the Company has come, and how close we are to generating significant free cash-flow for the benefit of shareholders."

"Management changes and an improved level of disclosure, as underlined by the recent releases of the Rocklands Maiden Ore Reserve and Feasibility Study, should provide shareholders with a new sense of confidence. In the same light, following this letter is a comprehensive summary presenting key aspects of the Rocklands Group Copper Project that will be referenced during a Roadshow that is planned to lift the investment profile of CuDeco within the wider investment community over coming months."

"Once CuDeco starts generating revenue, we expect there will be a re-rating in the Company's shares." For and on behalf of the board

-ends

Rocklands Group Copper Project - May 2016 Update follows...

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

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

CuDECO LIMITED

Australia's next copper exporter

ROCKLANDS GROUP COPPER PROJECT - May 2016 Update

Disclaimer

The information in this presentation has been prepared by CuDeco Limited (CuDeco) and consists of written materials/slides in relation to the Rocklands Group Copper Project in Cloncurry, NW Queensland, Australia.

By reviewing/attending this presentation, you agree to be bound by the following conditions:

This presentation and the information contained herein is not a recommendation, offer or invitation by any person to sell, buy or apply for securities in CuDeco in any jurisdiction and none of this presentation document or its contents shall form the basis of any contract or commitment.

This presentation is not a disclosure document under Australian law or under any other law. Accordingly, this document neither

purports to be exhaustive nor contain all of the information which any reader or perspective investor may require to make an investment decision and it does not contain all of the information which would otherwise be required by Australian law or any other law to be disclosed in a prospectus.

This presentation has been prepared in good faith, and no representation or warranty, express or implied, is made as to the fairness, accuracy, or completeness of the information, contained in the presentation, or of the views, opinions and conclusions contained in this material.

To the maximum extent permitted by law, CuDeco and its related bodies corporate and affiliates, and their respective directors, officers, employees,

agents and advisers disclaim any liability (including, without limitation any liability arising from fault or negligence) for any loss or damage arising from any use of this material or its contents, including any error or omission therefrom, or otherwise arising in connection with it.

Some statements in this presentation are forward-looking statements. Such statements include, but are not limited to, statements with regard to capacity, future production and

grades, projections for sales growth, estimated revenues and reserves, targets for cost savings, the construction cost of new projects, projected capital expenditures, the timing of new projects, future cash flow and debt levels, the outlook for minerals and metals prices, the outlook for economic recovery and trends in the trading environment and may be (but are not necessarily) identified by the use of phrases such as "will", "expect", "anticipate", "believe" and "envisage".

By their nature, forward looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future and may be outside CuDeco' control. Actual results and developments may differ materially from those expressed or implied in such statements because of a number of factors, including levels of demand and market prices, the ability to produce and transport products profitably, the impact of foreign currency exchange rates on market prices and operating costs, operational problems, political uncertainty and economic conditions in relevant areas of the world, the actions of competitors and activities by governmental authorities, such as changes in taxation or regulation. Given these risks and uncertainties, undue reliance should not be placed on forward-looking statements which speak only as at the date of the presentation.

Subject to any continuing obligations under applicable law or any relevant stock exchange listing rules, CuDeco does not undertake any obligation to publicly release any updates or revisions to any statements contained in this presentation, whether as a result of any change in CuDeco' expectations in relation to them, or any change in events, conditions or circumstances on which any such statement is based, which may arise after the date of this presentation.

Certain statistical and other information included in this presentation is sourced from publicly available third party sources and has not been independently verified. All figures are expressed in Australian dollars unless stated otherwise.

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Overview

Non-renounceable Rights Issue raises a further $63 million

1 for 4 Non-Renounceable Rights Issue at an Issue Price of $0.80 per New Share

The funds will be used to:

• Fund capital expenditure (CAPEX) for completion of construction of Rocklands' 3 million

  tonnes per annum Processing Plant;

  • Provide working capital/operating expenses (OPEX) through commissioning; and

    • Repay existing short-term debt.

Effect on share register:

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