Appointment of RMB Resources

19 Jun 2006 10:27

Immediate Release 19 June 2006 COPPER RESOURCES CORPORATION APPOINTMENT OF RMB RESOURCES TO PROVIDE US$32 MILLION LOAN FOR RESTART OF KINSENDA COPPER PROJECT IN MID-2007 LONDON, United Kingdom - 19 June 2006.Copper Resources Corporation (AIM: CRC.L) ("CRC"), is pleased to announce thatit has appointed RMB Resources Limited to arrange a loan facility of US$32million for MiniĬre de Kinsenda et Musoshi sarl ("MMK"), its 75%-ownedCongolese (DRC) subsidiary. Proceeds of the loan will be used to restart theKinsenda copper mine in mid-2007. CRC does not anticipate that any furtherequity financing will be required for the Kinsenda Restart Project.The projected financial return to CRC of the Kinsenda copper project is highlyfavourable with an estimated IRR of 96% and a NPV of US$147 million at adiscount rate of 10%, based on a "base case" using a US$1.25/lb long-termcopper price. The IRR is substantially higher than previous estimates andreflects the beneficial effect of leveraging from the RMB loan. The high rateof return also reflects the extremely high grade of Kinsenda's reserves (5.1%copper) coupled with the project's low capital costs of US$36 million (plusworking capital and financial costs). The current IRR and NPV estimates arebased on the independent feasibility study announced by CRC on 22 February 2006that was prepared by Mineral Engineering Technical Services Pty Ltd ("METS") ofPerth, Australia, and which have been recalculated by CRC to take into accountthe leverage from the loan to be provided by RMB Resources.The mine will treat 1.2 million tonnes of ore annually, yielding, at fullcapacity, 54,000 tonnes per annum of contained copper in the form of a rich,45% concentrate at an average total cash operating cost of US$0.68/lb. Themine's reserve life is 13 years based on the currently defined reserves.However, a new exploration target recently identified by FinOre MiningConsultants ("FinOre") of Perth, Australia as reported in CRC's announcement of4 April 2006, could lead to a substantial increase in the estimated Kinsendaresource and extend the mine life beyond 13 years.Mitchell Alland, CRC Executive Vice Chairman stated: "The Kinsenda RestartProject is proceeding on schedule with mining operations scheduled to commencein mid-2007. Our appointment of RMB Resources will facilitate the timelyclosing of the project financing."Note: FineOre and METS are independent mining consultancy firms that are notshareholders in CRC or any associated party. Copper Resources Nabarro Wells & Co. Westhouse GTH Corporation Securities Communications Mitchell Alland Jonathan Naess Richard Morrison Toby Hall Executive Vice Chairman +44 (0) +44 (0) +44(0) +44 (0) 78 7569 5563 20 7710 7400 20 7601 6100 20 7153 8035 ENDCOPPER RESOURCES CORPORATION