ACN. 000 317 251

DEVELOPMENT UPDATE

PICTORIAL UPDATE 10

Development of the Rocklands Group Copper Project, located just outside the major regional township of

Cloncurry in Queensland Australia, gains momentum as construction activities continue at the Process Plant area, including assembly of the Primary and Secondary Crushing Circuit.

Unit 34, Brickworks Annex,19 Brolga Avenue, SOUTHPORT 4215

Phone: +617 5503 1955 Facsimile: +617 5503 0288

MARKET RELEASE 4th March 2013

ROCKLANDS COPPER PROJECT (CDU 100%)

Figure 1: Process Plant being erected - Jaw Crusher being installed

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01 - Water Storage Facility (WSF)

02 - Maintenance Workshop & Office

03 - Infrastructure Corridor (Haul Road and Pipelines)

04 - Tailings Storage Facility (TSF)

05 - Morris Creek Diversion Channel

06 - Morris Creek Diversion Dam

07 - Topsoil Stockpiles

08 - West Waste Dump (and PAF cell)

09 - Rocklands South Extension pit (PAF pond)

10a - Las Minerale Pit

10b - Rocklands South Pit

11 - North Waste Dump

12 - Mine Access Road

13 - Primary Ore Stockpile

14 - South Waste Dump

15 - Run of Mill (ROM) Pad

16 - Native Copper and Chalcocite Stockpile

17 - Process Plant

18 - Haul Road

19 - East Waste Dump

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Figure 2: General Arrangement plans and location references.

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Figure 3: China to Rocklands (Ball Mill shell pieces); loading in China (top), unloading in Townsville (middle) and arriving at Rocklands

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Figure 4: China to Rocklands (Ball Mill components); loading in China (top), unloading in Townsville (middle) and arriving at Rocklands (bottom)

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Figure 6: Various components being unloaded at Townsville.

Figure 7: Crusher Circuit components at Rocklands awaiting assembly.

Figure 5: China to Rocklands (Ball Mill shell ends); loading in China (top left and middle), unloading at Townsville (top right), and arriving at Rocklands (below)

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Areas currently under development at Rocklands include;

Process Plant - Delivery of Components, Final Design, Site Preparation and Construction

Las Minerale, Rocklands South and Rocklands South Extension starter-pits

Morris Creek Diversion Channel and Dam Walls

Infrastructure Corridor haul roads and Tailings Storage Facility (TSF)

Water Storage Facility (WSF)

Major Access Road

Process Plant - Delivery of Components, Final Design, Site Preparation and Construction...see Figure 2 for location Stringent Quality Assurance and Quality Control (QAQC) measures have been employed by the Company, which has included numerous visits and inspections of various manufacturing plants. The QAQC process includes monitoring of critical component during transport from the various international ports to Australia via the Port of Townsville, then through to the Rocklands Project site. Concrete works for the Process Plant primary Crusher were completed well in advance of construction activities commencing, to allow sufficient curing time. Additional concrete work is ongoing, timed to be available for construction as each area is required for erection of various components of the plant. The ROM pad area has been stripped of organic material and top soil which has been stockpiled on one of the designated storage areas for later use in rehabilitation, and is gradually being built up to the required

level at the rate of 6000 bcm per day from clean waste in the Las Minerale pit area.

Status of Major Components;

Ball-mill (5800 diameter x 8300mm long) - ahead of schedule, currently arriving at Rocklands

alljig® - on schedule

High Pressure Grinding Rolls (HPGR) - on schedule

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Figure 8: Ball Mill components arriving at Rocklands.

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Basic Engineering for the processing plant - completed

Crusher circuit (3mtpa) scheduled for commissioning by mid March 2012 - 12 weeks behind original schedule due to modifications and upgrades by CuDeco (this does not impact overall timelines).

Structural steel requirements ordered for the mineral processing plant. The supply agreement requires all steel to be prefabricated prior to export to Rocklands, which will reduce the expensive costs associated with the onsite fabrication, cutting and handling. To be delivered in four shipments embarking China from February 2013, to May 2013 - on schedule, but amended delivery timelines to coincide with timing of crusher circuit).

Thickeners have been ordered - on schedule

Scrubber has been ordered - on schedule

Flotation cells have been ordered - on schedule

Tower mills have been ordered - on schedule

Tenders have been called for the Process Control System - on schedule

Detailed design engineering - on schedule

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Figure 9: Starting to take shape - overview of Process Plant site, Las Minerale Pit and Water Storage Facility

Figure 10: Ball Mill shell ends being unloaded at the Rocklands Process Plant site

Continued page 12...

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Figure 11: Process Plant ROM Bin and Feeder - Jaw Crusher frame being installed

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Figure 12: Jaw Crusher swing arm being eased into place

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Figure 13: Grizzly Screen undersize chute being installed.

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Figure 17: Secondary Crusher foundation under construction (ROM Bin and Jaw Crusher under construction in background)

Figure 14: Taking shape - ROM Bin and Jaw Crusher under construction (right) and activity commences on the Secondary Crusher (left).

Figure 16: Primary Crushing Rolls (with replaceable face plates) await assembly (ROM Bin and Jaw Crusher under construction in background)

Figure 15: Taking shape - ROM Bin and Jaw Crusher under construction.

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Figure 18: The above images show the Scrubber (part of the native copper circuit and possibly largest in the southern hemisphere) being assembled for “factory commissioning” in China, prior to being disassembled for transport to Rocklands and re-assembly for final commissioning. The Scrubber, similar in size to many Ball Mills, is designed to separate native copper metal from the crushed “flake” product that is fed from the High Pressure Grinding Rolls (HPGR). The scrubber produces a product resembling washed gravel that progresses to the gravity (alljig®) circuit, where fine (<8mm) medium (<40mm) and coarse (+40mm) almost pure native copper concentrates (~95 - 98% Cu) will be produced. Once native copper has been removed through the gravity circuit, the remaining product will progress to the Ball Mill, after which a more traditional recovery process path follows, producing concentrates for; copper (copper and gold); pyrite (cobalt and sulphur) and; magnetite. The Company has spent over $7m on metallurgy and test-work (including pilot plant) to ensure the Rocklands Process Plant will perform to expectations, and includes a unique native copper recovery circuit that is possibly the most advanced in the world.

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Las Minerale and Rocklands South Pits...see Figure 2 for location Waste removal for us in infrastructure and developments works continues at Las Minerale Pit, where topographical variations across the pit area are being removed to create a single working platform (RL215 - just above the high-grade zone at Las Minerale), in preparation for mining. Waste is being removed at a rate of approximately 6000 BCM per day. Approximately 800,000 BCM has been blasted in the Las Minerale pit to date. Ore encountered during this process is stockpiled for later processing. Several blasts have taken place and material is still being removed to be used for completing the Water Storage Facility dam walls and Morris Creek Diversion Channel embankments. Large scale de-watering and pumping is underway to reduce ground water levels in the pit and is being diverted to the WSF. Rock suitable for crushing to be used for road-base and various earthworks is sent to the Company’s mobile crushing circuit. 120,000 BCM blasted and suitable for use in construction cement (resulting in considerable cost savings) Explosives magazines have been completed and approved (fully owned by Cudeco) Emulsion explosives facility near completion (fully owned by Cudeco)

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Figure 20: The morning rush...trucks leave the “go line” and head towards their daily work areas.

Figure 19: Final sections of Morris Creek Diversion Channel being drilled for blasting.

Continued page 15...

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Figure 21: Las Minerale Pit starting to take shape - current activity is designed to create a single working platform (RL215) over the pit outline.

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Morris Creek Diversion Channel and Dam Walls...see Figure 2 for location Construction of the Morris Creek Diversion Channel and associated infrastructure is nearing its final stages. The Diversion Channel is required to divert water flowing though Morris Creek during the wet season away from the pit and development areas. The diversion channel is now capable of diverting water if and when required, however finishing touches will be ongoing. Infrastructure Corridor, Haul Road and Tailings Storage Facility (TSF)...see Figure 2 for location Subsequent to the Queensland Government granting of Mining Lease (ML90219) for the corridor between the two main mining leases that make up the Rocklands Group Copper Project (ML90177 & ML90188), development clearing and excavation activities have been completed and haul-roads are currently being completed. This important access corridor enables delivery of power required for tailings dewatering and return water systems, and facilitates the construction of pipelines and haul road access between the process plant and TSF. The Rocklands Project TSF is designed for a minimum storage capacity of 30 million tonnes of tailings

waste, and is designed to facilitate the 30mt of ore scheduled to be processed through the Rocklands

Process Plant during the current 10 year mine plan. The TSF is located on ML90188 (see Figure 3), where

clearing and initial cut-back earthworks have been completed.

Water Storage Facility (WSF)...see Figure 2 for location Topsoil removal and stockpiling for future use in rehabilitation works has been completed, and earthmoving

surface scrapers have completed stripping and redistribution of clay zones identified for use in constructing

water impervious layers where required for dam wall construction. Some clay was retained and compacted

to create an impervious base for the floor of the WSF to minimise water seepage.

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Figure 22: Edge of the Las Minerale pit - first flitch being removed.

Continued page 18...

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Figure 23: Ongoing water monitoring at one of numerous monitoring bore locations throughout Rocklands.

Figure 24: One of several temporary water storage facilities (above and left). A network of pipes traverses Rocklands, transferring water as and when required from the many de-watering bores to the various temporary and permanent water storage facilities.

Figure 25: One of the many water transfer pumping stations across Rocklands.

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Figure 28: Loaded dump truck - the fairer sex are known for being kinder to equipment on most mine sites.

Figure 26: Blast hole drilling at the north-west of Las Minerale Figure 27: Thumbs up - all on track

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Construction of the WSF has been completed to a stage suitable to withstand the on-set of heavy rains

should they eventuate, which will help ensure water inventory is maximised prior to commissioning of the

mineral process plant...finishing touches will be ongoing,

Dewatering bores have been diverted to the WSF, also adding to water inventory to help ensure continuity

of water supply for the project. The WSF is capable of storing 980 Mega litres.

Major Access Roads...see Figure 2 for location Construction of major access and heavy haulage roads continue, with supply of road-base being met by

the Company’s Mobile Crushing Circuit. Rock types perfect for use in road-base, such as dolerite, are

prolific at Rocklands, and has resulted in significant cost savings over material that may otherwise have

been sourced off-site.

Load and haul road sheeting material was also moved from the east dump area for construction of road

train access roads, which were upgraded in preparation of the heavy Process Plant component deliveries.

Yours faithfully

Wayne McCrae Chairman

Figure 29: WSF during construction - now complete and recently commissioned

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