ACN. 000 317 251

MARKET RELEASE 30 June 2016

Rocklands ore feeding ramps up ahead of 1st concentrate production

Emerging copper producer CuDeco Limited's (ASX:CDU) flagship Rocklands Operations continues to advance towards first concentrate production, with the Company announcing today the commencement of ore feeding into the ball mill with a 60% load.

This follows the successful full commissioning of the crushing circuit, with all other circuits operating satisfactorily. The load on the ball mill is the most important step in allowing primary ore to the flotation circuit to achieve production of the first sulphide concentrates in July, with the first shipment of sulphide concentrate still scheduled for late September or the first half of October. The ball mill production will be gradually ramped up to 100% load over the coming weeks.

The production milestones have been supported by the recent signing of a term sheet for the offtake of all native copper from Rocklands to major shareholder, China Oceanwide International Investment Co. (refer ASX announcement 21 June 2016), providing added financial security for this important new project in north-west Queensland.

CuDeco recently announced the first native copper produced from the Jig circuit (refer ASX announcement dated 21 June 2016) was expected to occur in June. This shipment has now been deferred to the second half of July while the formal agreement with Oceanwide is finalised.

"Today's milestone is another important step in the completion of this valuable new project for North Queensland, which is now operating around the clock in two 12 hour shifts per day. It is an exciting time for all involved to expect the first concentrate produced from Rocklands," said CuDeco's Managing Director, Dr Dianmin Chen.

"The recent visit to Rocklands by the Hon. Dr Anthony Lynham, Queensland Minister for State Development and Minister for Natural Resources and Mines, highlights the important government support for this project. We are determined to complete the plant commissioning and to ramp up production at Rocklands as safely and as quickly as possible, to ensure rapid delivery of its economic benefits to all stakeholders."

On behalf of the Board.

-ends

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

Phone: +617 5503 1955 Facsimile: +617 5503 0288 Email: [email protected]

Coarse Native Copper from the Gravity Circuit

Fine Native Copper Concentrate from the Gravity Circuit

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