COPPERMOLY LIMITED — Capital/Financing Update 2011

Dec 19, 2011

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ADDRESS PHONE PO Box 6965 +61(07) 5592 1001 Gold Coast Mail Centre FAX Qld 9726 Australia +61 (07) 5592 1011 EMAIL ABN 54 126 490 855 info@coppermoly.com.au WEBSITE www.coppermoly.com.au

ASX Announcement

20[th] December 2011

ASX Code: COY

FIRST EVER DRILLHOLE INTO THE NAKRU-4 SYSTEM INTERSECTS COPPER AND GOLD MINERALISATION

HIGHLIGHTS

The first ever diamond drillhole BWNBDD0017 into the Nakru-4 prospect (refer to Figure 2) intersected 22 metres grading 0.21 g/t gold and 0.15% copper from 9 metres depth. This includes a 1 metre interval of 1.54 g/t gold and 1.17% copper in telluride. The hole is 800 metres northwest of the Nakru-1 prospect and was completed to a depth of 271.9 metres.

Results confirm the presence of widespread copper and gold mineralisation at depth which warrants further drilling to test for tonnage potential.

A number of other prospects within the Nakru exploration licence, including other geochemical and geophysical targets, are yet to be drill tested.

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Figure 1: Nakru Prospects on Topographic Image

In accordance with Clause 18 of The JORC Code the reference to ‘Exploration Target’ in terms of target size and type should not be taken as an estimate of Mineral Resources or Ore Reserves. The statement referring to quantity and grade of the exploration target is based upon exploration results to-date including extensive drilling which has intersected the mineralization. The potential quantity and grade is conceptual in nature. There has been insufficient exploration to define a Mineral Resource and it is uncertain if further exploration will result in the definition of a Mineral Resource

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NAKRU-4

The Nakru-4 prospect is within the northern extent of a 600metre x 1400metre historical gold in soil anomaly which extends from the south-western portion of the Nakru-1 coppergold system. Previous drilling (Hole BWNBDD0008) at Nakru-1 reported an interval of 23.5 metres grading 2.38 g/t gold and 1.30% copper from 87.3 metres depth, including 1 metre grading 42 g/t gold and 4.6% copper at 99 metres depth.

Seventeen Wacker drillholes at between 5 and 10 metres depth were completed in April 2011 at Nakru-4 in an attempt to sample bedrock beneath volcanic ash and soil cover (refer to Figure 2). Results indicate anomalous gold and copper associated with altered bedrock and rhyolite breccia in nine of the holes (refer to Table 1).

Drillhole BWNBDD0017 (refer to Table 4) tested anomalous gold and copper mineralisation from the Wacker sampling, gold in surface rock samples (refer to Figure 2) and a slightly anomalous ground geophysical chargeability anomaly.

The Nakru-1, 2, 3 and 4 prospects occur as a cluster of copper-gold-zinc breccia related mineralisation. The Nakru-1 system exhibits an overprinting of epithermal gold, while both the Nakru-1 and Nakru-2 systems show characteristics similar to volcanogenic massive sulphide deposits (refer to Figure 3). Further drilling will be required to define the extent of mineralisation within these four prospect areas as well as test the other geophysical and geochemical targets.

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Figure 2: Nakru-4 Drillholes on Topographic Image

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Table 1: Significant Results from Wacker Samples (cut-off 0.05 g/t Au and 500 ppm Cu)

HOLE_ID	DEPTH FROM	DEPTH TO	Gold (g/t)	Copper (ppm)	Telurium (ppm)	Description
BWNBWK0001	4.6	5.5	0.272	657	8.32	weathered bedrock,reddish brown in colour
BWNBWK0006	4.1	5	0.083	660	11.5	weathered haematite bedrock
BWNBWK0006	5	6	0.025	502	3.4	weathered haematite bedrock
BWNBWK0008	7	8	0.062	371	13.05	sericite and hematite alteration
BWNBWK0008	8	9	0.743	474	42.9	possiblybrecciated rhyolite
BWNBWK0009	2	3	0.055	80.1	2.13	volcanic ash
BWNBWK0009	7	8	0.221	1215	49.1	sericite, quartz and hematite
BWNBWK0012	8	9	0.155	612	24	hematite,sericite altered rhyolite breccia
BWNBWK0012	9	10	0.189	690	21.4	hematite,sericite altered rhyolite breccia
BWNBWK0013	4.4	5	0.166	2050	10.45	pyrite and chalcocite lens,rhyolite breccia
BWNBWK0013	5	6	0.157	754	13.45	clayand sericite altered rhyolite breccia
BWNBWK0013	6	7	0.042	653	9.91	clayand sericite altered rhyolite breccia
BWNBWK0013	7	8	0.019	507	3.71	hematite,highlyweathered rock
BWNBWK0013	8	9	0.166	611	14	rhyolite-breccia, pyrite observed
BWNBWK0014	7	8	0.299	704	24.3	weathered bedrock with hematite staining
BWNBWK0016	5.9	6.1	0.244	1190	34	weathered bedrock,sericite and hematite
BWNBWK0016	6.1	7	0.086	1080	12.4	weathered bedrock,sericite and hematite
BWNBWK0016	7	8	0.241	694	26.7	weathered bedrock,sericite and hematite
BWNBWK0016	8	9	0.198	699	16.1	weathered bedrock,sericite and hematite
BWNBWK0016	9	10	0.204	1150	19	brecciated rhyolite
BWNBWK0017	0	1	0.058	202	7.53	volcanic ash
BWNBWK0017	1	2	0.189	603	23	soil

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NAKRU-1

The most recent hole drilled into the Nakru-1 deposit (BWNBDD0013) (refer to Figure 4) intersected a number of intervals of copper and gold mineralisation (refer to Tables 2 and 3). The hole was drilled into the “outer” and “marginal” zones of the “breccia pipe” model (refer to Figure 3), intersecting chlorite and sericite alteration.

Additional drilling will also be needed to test for additional tonnage potential along the eastern half of the Induced Polarisation geophysical anomaly, which plunges at depth (refer to Figures 4 and 5).

Table 2: Significant Intersections from BWNBDD0013 (cut-off 0.1 g/t Au or 0.2% Cu)

Interval(m)	Gold (g/t)	Copper%	From(m)	To (m)	Description
1	Nil	0.31	108	102	Breccia
2	0.07	0.48	147	149	Breccia
6.1	0.28	0.13	183	189.1	Breccia
1	0.01	0.22	408	409	Breccia,Rhyolite
5	0.01	0.23	433	438	Breccia,Rhyolite

	Table 3: DrillCollar Table (Datum AGD66,Zone 56)	Table 3: DrillCollar Table (Datum AGD66,Zone 56)	Table 3: DrillCollar Table (Datum AGD66,Zone 56)	Table 3: DrillCollar Table (Datum AGD66,Zone 56)
Hole	Prospect	Easting	Northing	Azimuth (deg)	Dip (deg)	Depth
BWNBDD0013	NAKRU-1	222250	9338886	9	-60	623
BWNBDD0017	NAKRU-4	221523	9339718	273.8	-61.6	271.9

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FIGURE 3: Nakru Model of Mineralisation

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FIGURE 4: Nakru-1 Drilling Results

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FIGURE 5: Three Dimensional Image Chargeability/Sulphides Looking Northwest

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About the Nakru Project

The Nakru project is only a four hour drive from existing infrastructure, including a modern deep water container port at the provincial capital of Kimbe (refer to Figure 6). Kimbe is accessible by daily flights from the PNG capital of Port Moresby. Existing infrastructure in Kimbe is ideally suited for future development of the Nakru deposits.

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FIGURE 6: Location of Coppermoly Tenements on the Kulu-Awit Copper Belt

Copper, gold and zinc mineralisation has been intersected by drilling at Nakru-1, 2 and 4 prospects with a total of 31 diamond drillholes for 7,253 metres.

The Nakru-1 copper-gold system is the most advanced prospect within the Nakru tenement with 27 diamond drillholes completed for 5,928.4 metres. Prior to 2010, seventeen diamond drillholes for 1,967.6 metres had targeted gold mineralisation encountered within surface bulldozer trenches. Drilling had intersected gold mineralisation to a maximum depth of 139 metres, predominantly in an upper oxide layer (refer to Table 4).

During 2008, a three dimensional Induced Polarisation geophysical survey detected a significant chargeability anomaly. Historical drillhole NAK003 intersected 86.15 metres grading 0.46% copper and 0.5 g/t gold within the western lobe of the anomaly. Under a subsequent agreement with Barrick (PNG Exploration) Ltd (“Barrick”) (a wholly owned subsidiary of Barrick Gold Corporation), the centre of the anomaly was drill tested, intersecting 213.75 metres grading 0.92% copper and 0.33 g/t gold from 74.45 metres depth.

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Table 4: Nakru-1 Pre 2010 Drillhole Intersections (cut-off 0.1 g/t gold or 0.2% copper)

Mineralisation	Drillhole	From(m)	To(m)	Width(m)	Cu %	Aug/t
Oxide Primary	NAK001 0 5.8 5.8 - 1.9 46 63.1 17.1 0.5 - 73.8 81.4 7.6 1.1 -
Oxide	NAK002 0 21.2 21.2 - 0.59 25.7 38 12.3 - 0.14
Oxide Primary	NAK003 0 43.55 43.55 0.37 85 171.15 86.15 0.46 0.50 including 114.5 128.9 14.4 0.40 2.2
Oxide Primary	NAK006 0 18 18 - 0.18 57 73 16 0.75 0.14 76 88 12 0.27 - 92 116 24 0.82 - 127 167 40 0.95 - 171 197 26 0.28 -
Oxide	NAK013 5 9 5 - 0.11 17 22 5 0.25 -
Oxide	NAK014 0 11 11 - 2.84 20 23 3 - 0.10
Oxide	NAK015 6 25 19 - 0.37
Oxide	NAK016 0 17 17 - 0.58
Oxide Secondary Primary	NAK017 1 8 8 - 0.26 11 23 12 - 0.28 25.7 61.2 35.5 - 0.39 61.2 89.6 28.4 1.10 0.27 96 101 5 2.10 1.12 106 117 11 0.62 0.33 120.7 139 18.3 0.64 0.72 143.4 156 12.6 0.50 - 174.6 190 15.4 0.36 - 232 238.2 6.2 0.65 - 250 257 7 0.58 - 265 281 6.3 0.45 -

With additional diamond drilling during 2010 and 2011, Nakru-1 has an Exploration Target (defined above) of 50 to 60 Mt grading 0.7 to 0.9% copper within the bounds of the existing drillholes . Gold mineralisation within the Nakru-1 system may become a significant credit. Barrick have spent over A$18 million to date and can earn-in 72% of the Nakru, Simuku and Talelumas tenements by spending A$20 million.

On behalf of the board,

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Peter Swiridiuk MANAGING DIRECTOR

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For further information please contact Peter Swiridiuk or Maurice Gannon on (07) 5592 1001 or visit www.coppermoly.com.au,

The information in this report that relates to Exploration Results, Inferred Resources and Exploration Targets is based on information compiled by Peter Swiridiuk, who is a Member of the Australian Institute of Geoscientists. Peter Swiridiuk is a consultant to Coppermoly Ltd and is employed by Aimex Geophysics. Peter Swiridiuk has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Peter Swiridiuk consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

Notes:

• All stated intersections are weighted assay averages ([Sum of each total interval x grade] / Total length of intersection).

• Drillhole samples from drillholes were transported to the camp site then to the town of Kimbe where they were logged, orientated and sampled between 1m and 2m intervals from core split by saw. The split samples were then freighted to either Intertek in Lae (PNG) for sample preparation. Samples were dried to 106 degrees C and crushed to < 2 mm. Samples greater than 2kg were rifle split down to 1.5kg and pulverised to 75 microns. The final 300g sized pulp samples were then sent to Intertek laboratories in Jakarta for geochemical analysis. Intertek analysed for gold using a 50g Fire Assay with Atomic Absorption Spectroscopy finish. Other elements were assayed with ICPAES Finish. Copper values greater than 0.5% were re-assayed. Intertek laboratories have an ISO 17025 accreditation. Unused half core is stored in sheltered premises in the town of Kimbe.

• Quality control and quality assurance checks on sampling and assaying quality were satisfactory.

• BWNBDD (Barrick West New Britain Diamond Drillhole) Series Drill Core is PQ, HQ and NQ in size with core recovery predominantly greater than 90%.

• Co-ordinates are given in UTM Zone 56, AGD66 Datum.

• Mineralised intersections are quoted as down hole widths.

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