COPPERMOLY LIMITED — Capital/Financing Update 2011

Sep 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] September 2011

ASX Code: COY

SIMUKU DRILLING TO OVER 1000 METRES DEMONSTRATES SIGNIFICANTLY INCREASED TONNAGE POTENTIAL OF THE INFERRED RESOURCE

“Mineralisation intersected to over 1000m in diamond drilling beneath the existing Simuku resource shows the very large nature of this copper deposit.

The resource is within a one hour drive from existing infrastructure, including a deep water port which will be essential for future development.

The ongoing drilling programme by Barrick continues to improve the value of our mineral assets”, commented Managing Director Peter Swiridiuk.

Barrick’s latest drillhole (BWNBDD0014) drilled to 1004.9 metres beneath the Inferred Resource to test the deeper parts of Simuku porphyry system (refer to Figures 1 and 2). The drillhole intersected copper mineralisation through to the end of the hole, significantly increasing the size potential of the current Inferred Resource of 200 million tonnes grading 0.36% copper, 61 ppm molybdenum, 0.06 g/t gold and 2 g/t silver.

Assay results include (refer to Table 1):

• 16 metres grading 0.54% copper from 202 metres depth

• 43 metres grading 0.54% copper from 224 metres depth

• 70 metres grading 0.42% copper from 359 metres depth

• 44 metres grading 0.39% copper from 659 metres depth

• 4.1 metres grading 0.74% copper from 993.1 metres depth

A second deep drillhole (BWNBDD0015) is currently underway approximately 400 metres further south to test the deeper parts of the Tobarum prospect beneath the Inferred Resource area (refer to Table 2 and Figure 2). Disseminated sulphides have been intersected so far to over 450 metres depth.

An agreement was signed in October 2009 with Barrick (PNG Exploration) Ltd (“Barrick”) (a wholly owned subsidiary of Barrick Gold Corporation), whereby exploration is to be managed and carried out by Barrick. The agreement allows them to spend A$20 million

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to earn 72% of the three tenements EL 1043 (Nakru), EL1077 (Simuku) and EL1445 (Talelumas). Coppermoly Ltd retains 100% ownership until earn-in is complete.

During the Barrick 2010 diamond drilling campaign, broad copper mineralisation was intersected in three drillholes located up to 1.4 kilometres south of the area of the Inferred Resource (refer to Figure 1).

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FIGURE 1: Simuku Inferred Resource Model and Drillholes Looking West

The latest hole by Barrick (BWNBDD0014) intersected primary copper sulphide mineralisation with more sulphide noted within structures and stockwork intensity throughout the entire hole (refer to Photo 1).

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PHOTO 1: High Grade Veining in Drillcore from BWNBDD0014 at 264.2 Metres Depth Assaying 4.2% Copper over one Metre Drilling intersected mineralised skarn (refer to Photo2) and phyllic altered intrusive consisting of hornblende rich porphyry and quartz feldspar porphyry and feldspar porphyry (refer to Photo3).

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• PHOTO 2: Massive Magnetite Skarn with Copper and Iron Sulphides at 755m Metres Depth Assaying 2 Metres Grading 2.1% Copper and 1.36 g/t Gold

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PHOTO 3: Quartz Feldspar Porphyry in Drillcore from BWNBDD0014 with Veins of Chalcopyrite and Molybdenite at 923.8 Metres Depth

Geological Summary of Drillhole BWNBDD0014

Copper mineralisation is limited to chalcopyrite as fine disseminations. In limited narrow segments, chalcopyrite occurs in breccia matrix infill. Generally the hole intersected a phyllic altered zone with a number of breccia. The better mineralised quartz bearing porphyry intrusions display quartz+sericite+albite with a cpy:py ratio > 1.

Molybdenite occurs as minute grains, fracture infill and narrow veinlets. The phyllic zone is coincident with the regional airborne magnetic low zone and airborne radiometric potassium anomaly within the envelope of surface mineralisation.

Variably mineralised skarn bodies between 658-712 metres, 729-732 metres, 756-765 metres and 858-876 metres produce magnetic anomalies detected from airborne magnetic survey data on the western side of the Simuku envelope of mineralisation, where the hole was terminated into andesite wallrocks.

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The hole tested some 300 to 400 metres beneath copper mineralisation in historical drillholes SMD31 (refer to Figure 2) which intersected 101.2 metres grading 0.41% copper from 124 metres depth.

Diamond drilling and drillpad construction is continuing within both the Nakru and Simuku tenements (refer to Photo4). Within the first one and a half years of the agreement, over A$13 million has been spent.

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Photo 4: Drillpad at Proposed Site near Nayam Prospect

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**Table **	1:Significant Drillhole Intercepts (Cut-off0.2% Cu)	1:Significant Drillhole Intercepts (Cut-off0.2% Cu)	1:Significant Drillhole Intercepts (Cut-off0.2% Cu)	1:Significant Drillhole Intercepts (Cut-off0.2% Cu)	1:Significant Drillhole Intercepts (Cut-off0.2% Cu)	1:Significant Drillhole Intercepts (Cut-off0.2% Cu)
Hole Id.	From	To (m)	Width	Cu %	Mo	Au g/t	Ag g/t
	(m)		(m)		**ppm **
BWNBDD0014	51.3	54	2.7	0.29	0	0.06	4.00
(Tobarum)	104	107	3	0.17	0	0.03	1.63
	123	138	15	0.22	4	0.04	1.83
	143	145	2	0.28	9	0.03	2.85
	154	156	2	0.24	7	0.02	1.95
	171	173	2	0.37	10	0.04	3.6
	186	192.2	6.2	0.22	7	0.02	1.38
	202	218	16	0.54	17	0.04	4.37
Including
	215	218	3	1.79	29	0.07	9.63
	224	267	43	0.54	18	0.06	3.63
	278	289	11	0.26	33	0.03	2.47
	294	330.9	36.9	0.36	23	0.07	3.61
	335	348	13	0.36	26	0.02	2.03
	359	429	70	0.42	76	0.03	2.91
	439	451	12	0.21	91	0.04	2.64
	458	482	24	0.31	50	0.05	4.27
	501	512	11	0.26	161	0.03	3.30
	531	534	3	0.21	74	0.03	3.40
	538	543	5	0.21	116	0.02	2.42
	548	551	3	0.27	68	0.04	2.07
	555	565	10	0.29	90	0.04	2.84
	570	589	19	0.25	178	0.04	2.74
	607	610	3	0.21	176	0.03	1.70
	614	619	5	0.23	53	0.03	1.78
	630	637	7	0.20	90	0.03	1.31
	643	648	5	0.21	67	0.01	2.54
	659	703	44	0.39	56	0.05	1.58
Including
	694	696	2	0.90	74	0.09	2.65
	721	724	3	0.22	62	0.02	1.37
	728	731	3	0.20	46	0.03	1.07
	754	756	2	2.08	8	1.36	9.25
	758	760	2	0.27	65	0.11	1.79
	Pending
	804 to
	904
	904	913	9	0.28	75	0.23	9.69
	918	943.8	25.8	0.27	117	0.03	2.33
	971	993.1	22.1	0.32	93	0.05	4.00
including
	989	993.1	4.1	0.74	33	0.17	9.98
	1001.66	1004	2.34	0.29	70	0.08	5.57

NB: Assay results between 804 metres and 904 metres depth are pending

Table 2: Drill Collar Table (Datum AGD66, Zone 56)

Hole	Prospect	Easting	Northing	Azimuth (deg)	Dip (deg)	Depth
BWNBDD0014	Tobarum	169940	9367670	310	-60	1004.9
BWNBDD0015	Tobarum/Misili	169854	9367511	288	-60	Currently >450m

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FIGURE 2: Topography Image Showing the Drilling Within the Area of the Inferred Resource

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FIGURE 3: Location of the Simuku Project

On behalf of the board,

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Peter Swiridiuk MANAGING DIRECTOR

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

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The information in this report that relates to Exploration Results 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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