COPPERMOLY LIMITED — Interim / Quarterly Report 2011

Jul 27, 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

ASX Announcement

28[th] July 2011

ASX Code: COY

TECHNICAL REPORT – QUARTER ENDED 30 JUNE 2011

HIGHLIGHTS

• Drilling currently underway at Simuku to over 900m depth in order to test for tonnage potential beneath the Inferred Resource.

• Mapping and rock sampling programme confirms copper mineralisation at the Kulu and Rapilli prospects.

• Two diamond drillholes have been completed at the Nakru-1 prospect with preparations underway for further drilling to test the eastern extents of copper mineralisation.

• Nakru-4 Wacker soil sampling confirms historical anomalous copper results.

• Coppermoly currently reviewing additional copper and gold projects for possible acquisition.

1.0 PROJECTS AND AGREEMENT WITH BARRICK

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 to earn 72% of the tenements EL 1043 (Nakru), EL1077 (Simuku) and EL1445 (Talelumas) over eight years. Coppermoly Ltd retains 100% ownership until earn-in is complete. Diamond drilling has recommenced at both the Nakru and Simuku copper projects.

Coppermoly has additional tenements under application on New Britain Island which are not part of the agreement with Barrick. These application areas are prospective for copper and gold and cover an area ten times larger than those currently subject to the Barrick agreement.

Coppermoly is currently undertaking a technical review of other copper and gold projects to determine if the Company can quickly add value with additional exploration and drilling.

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FIGURE 1: New Britain Island Showing Coppermoly Tenements

2.0 NAKRU PROJECT

The Mt.Nakru tenement (EL 1043) is host to number of discrete massive sulphide and breccia related copper-gold-zinc systems associated with anomalous copper and gold surface geochemistry (refer to Figure 2). Surface geochemical and geophysical surveys led to the discovery of the Nakru-1 and Nakru-2 copper-gold-zinc systems.

Induced Polarisation (I.P.) geophysical surveys over several historical geochemical and airborne geophysical targets defined a number of anomalies suitable for drill testing including the strong I.P. anomalies at the Nakru-1 and Nakru-2 prospects (refer to Figure 3 and 4).

At the Nakru-1 copper-gold prospect, the first diamond drill hole into the centre of the I.P. anomaly intersected 213.75 metres grading 0.92% copper and 0.33 g/t gold from 74.5 metres depth. A total of 25 diamond drill holes have been completed at Nakru-1 for over 5,000 metres (refer to Figure 5). Within the bounds of existing mineralised drillholes, there is an Exploration target (see notes) of 50 to 60 million tonnes of 0.7 to 0.9% copper. An upper layer of secondary copper enrichment was intersected in drillhole BWNBDD0001 with 13.6 metres grading 2.8% copper and 0.23 g/t gold from 74.5 metres depth and 22.3 metres grading 1.47% copper from 98.8 metres depth. Barrick are currently drilling to test the Nakru-1 mineralisation for overall tonnage potential.

Two diamond drillholes (refer to Table 1) have been completed by Barrick at Nakru-1 so far this year. BWNBDD0011 stepped out 200m to the west of Barrick’s last hole in 2010 and closed off the mineralisation envelope at depth. BWNBDD0012 stepped out 200m to the east of the eastern-most drillhole, but drilled over the top of the geophysical I.P. chargeability anomaly and failed to adequately test the eastern strike and depth extension of the system. Assay results are pending. A third hole is planned to test for mineralisation associated with the eastern extent of the I.P. chargeability anomaly (refer to Figure 6).

Table 1: Nakru-1 2011 Diamond Drill Hole Locations

Hole	Easting	Northing	Azimuth (deg)	Dip (deg)	Depth
BWNBDD0011	221835	9338768	0	-60	433.2
BWNBDD0012	222458	9339225	0	-63	258.1

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FIGURE 2: Topographic Image with Surface Geochemical Targets

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FIGURE 3: Merged 2008 and 2010 Geophysical Image of Conductivity at 50m Depth with Surface Geochemical Targets

At the Nakru-4 prospect, Wacker drill soil samples confirmed a 380 metre by 200 metre wide zone of anomalous copper (refer to Figure 7).

The Nakru-3 prospect was visited by Barrick who sourced copper bearing float of ferruginous breccia with quartz+pyrite+sericite infill. Bedrock is weakly sericite altered rhyolite with up to 2% disseminated pyrite. Additional float rock samples with minor quartz+pyrite+(haematite) was observed in a subtle I.P. anomaly immediately south-west of Nakru-3.

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FIGURE 4: Merged 2008 and 2010 Induced Polarisation Geophysical Image at 50m Depth with Surface Geochemical Targets

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FIGURE 5: Nakru-1 Geophysical I.P. Chargeability Image at 100m Depth showing Drilling Results and Location of Drillholes BWNBDD0011 and BWNBDD0012

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FIGURE 6: Three Dimensional Model of Nakru-1 Copper Mineralisation

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FIGURE 7: Nakru-4 Wacker Drill Holes Soil Sample Results on Topography

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3.0 SIMUKU PROJECT

The Simuku project is located on New Britain Island in Papua New Guinea and within a one hour drive by 4WD vehicle from existing infrastructure at the provincial capital of Kimbe, which includes a deep water port which will be essential for future development (refer to Figure 1).

Drilling is currently underway to test for additional tonnage potential beneath the Inferred Resource of 200 million tonnes grading 0.36% copper, 61 ppm molybdenum, 2g/t silver and 0.06 g/t gold (refer to Figures 8 to 10). At the Tobarum prospect, historical drilling intercepts include 27 metres grading 0.74% copper from 23 metres depth.

The current drillhole BWNBDD0014, at the Tobarum Prospect, is testing for copper mineralisation beneath historical holes SMD03 which included 107.7 metres grading 0.43% copper from 42.6 metres depth, and SMD31 which included 101.2 metres grading 0.41% copper from 124 metres depth (refer to Figure 9).

The current drillhole (refer to Table 2) has intersected primary copper sulphide mineralisation with more sulphide noted within structures. Chalcopyrite content in quite erratic with the best mineralised zone noted from 380 to 450 metres depth. Drilling intersected phyllic altered intrusive consisting of hornblende rich porphyry and quartz feldspar porphyry. An additional drill pad has been constructed 255 metres further south in readiness for further drill testing.

Table 2: Simuku 2011 Diamond Drill Hole Location

Hole	Easting	Northing	Azimuth (deg)	Dip (deg)	Depth
BWNBDD0014	169940	9367670	310	-60	In Progress at 595.3m

At the Kulu prospect (refer to Figure 11), 27 rock samples confirmed anomalous copper with abundant quartz-magnetite and pyrite veining with feldspar porphyry. The Kulu prospect has anomalous copper over an area of 800 metres by 600 metres with geochemistry indicating a larger porphyry copper system at depth.

Geological mapping is currently underway at the Miwayuen Prospect (refer to Figure 11) to identify the geological history and structures which may be associated with the mineralisation detected from surface samples.

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FIGURE 8: Simuku Copper System with Current Drill Hole BWNBDD0014

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FIGURE 9: Simuku Inferred Resources Area on Topographic Lidar Results

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FIGURE 10: Simuku Inferred Resource Model Topographic Lidar Surface

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FIGURE 11: Simuku Tenement and Prospects on Topographic Lidar Image

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,

The information in this report that relates to Exploration Results and 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 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.

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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 are then freighted to either Intertek in Lae (PNG) for sample preparation. Samples are dried to 106 degrees C and crushed to < 2 mm. Samples greater than 2kg are rifle split down to 1.5kg and pulverised to 75 microns. The final 300g sized pulp samples are then sent to Intertek laboratories in Jakarta for geochemical analysis. Intertek analyse for gold using a 50g Fire Assay with Atomic Absorption Spectroscopy finish. Other elements are assayed with ICPAES Finish. Copper values greater than 0.5% are 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 are 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.

• 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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