COPPERMOLY LIMITED — Regulatory Filings 2011

Jan 16, 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

17[TH] January 2011

ASX Code: COY

DRILLING RESULTS EXTEND THE NAKRU-1 COPPER MINERALISED SYSTEM SIGNIFICANTLY TO THE EAST AND SOUTH

Assay results have been received from two additional drillholes at the Nakru-1 copper system, extending the known copper and gold mineralisation approximately 100 metres to the east and 100m to the south (refer to Figure 1).

Drillhole BWNBDD0008 intersected copper and gold mineralisation to 303.7 metres downhole depth. Intercepts included 23.5 metres grading 1.30% copper and 2.38 g/t gold from 87.3 metres depth plus 20.6 metres grading 0.94% copper and 0.21 g/t gold from 128.4 metres depth (refer to Table 1).

Hole BWNBDD0007 also encountered significant copper and gold mineralisation to a similar depth (295 metres) (refer to Table 2).

Managing Director, Peter Swiridiuk commented: “Very good continuity of copper and gold mineralisation has been demonstrated in the assay results from the two drill holes reported today. Hole eight is 100m east of Barrick's first hole which intersected 213.75 metres grading 0.92% copper.

The holes were drilled through the mineralised core of a major copper-gold system which is partly related to a 3D-IP chargeability geophysical anomaly. The size of this anomaly and its association with significant copper and gold credits show that further drill testing is strongly warranted. An intercept of 1 metre grading 42 g/t gold and 4.6% copper in hole eight provides impetus for the evaluation of separate higher grade zones.”

Drillhole BWNBDD0007 was drilled 100 metres south and beneath the first Barrick hole (BWNBDD0001). Mineralised intercepts included 11.5 metres grading 0.99% copper and 0.35 g/t gold (from 192 metres). Primary veinlet controlled chalcopyrite mineralisation finished at 349 metres depth (refer to Photo 1). Mineralisation is disrupted by post mineral dykes ranging in thickness from 0.7 to 25 metres, complicating interpretation (refer to Figure 2).

A more detailed interpretation of the geological controls on the copper and gold mineralisation can be presented once the results from the remaining two holes from last year’s drilling programme, that tested for western extensions to the mineralisation, have been received (refer to Figure 1).

Seven holes have been drilled by Barrick into the Nakru-1 system for 2,646.5 metres. To date a total of 23 drill holes have been completed at Nakru-1 for a total of 4,614.1 metres. Drilling rigs and all personnel have been demobilised from the field for the wet season, which is expected to continue until March 2011.

A Three Dimensional Induced Polarisation (3D-IP) survey was recently completed over several of the historical geochemical and airborne geophysical conductivity anomalies in order to define additional targets for follow-up (refer to Figure 3). This is the exploration method that led to the discovery of significant mineralisation at Mt Nakru. Results from the survey are pending.

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Exploration is being carried out by Barrick (PNG Exploration) Ltd (a wholly owned subsidiary of Barrick Gold Corporation) under an agreement with Coppermoly Ltd. The agreement allows Barrick to spend A$20 million to earn 72% of the tenements EL 1043 (Nakru), EL1077 (Simuku) and EL1445 (Talelumas). Coppermoly Ltd retains 100% ownership until earn-in is complete. These projects are within a four hour drive from existing infrastructure including a deep water port which will be essential for future development.

Table 1: Mineralised Intercepts in diamond core hole BWNBDD0008

Depth From (metres)	Depth To (metres)	Intercept Width (metres)	Copper (%)	Gold (g/t)	Cut-off
67.8*	259	191.2	0.56	0.46	Nil
30.0	38.4	8.4	0.07	0.75	0.1g/t Au
67.8	76.7	8.9	1.02	0.10	0.2% Cu
80.0	82.0	2.0	0.29	-	0.2% Cu
87.3	110.8	23.5	1.30	2.38	0.2% Cu
Including
99.0	100.0	1.0	4.60	42.00	0.5% Cu
118.0	123.0	5.0	1.03	0.22	0.2% Cu
128.4	149.0	20.6	0.94	0.21	0.2% Cu
151.0	154.0	3.0	0.28	0.12	0.2% Cu
162.0	222.0	60.0	0.52	0.26	0.1% Cu
Including
190.0	193.5	3.5	0.94	0.08	0.2% Cu
195.3	206.0	10.7	0.60	0.38	0.2% Cu
208.0	222.0	14.0	0.61	0.25	0.2% Cu
233.0	245.0	12.0	0.33	0.33	0.1 g/t Au
252.0	259.0	7.0	0.56	0.57	0.2% Cu
273.0	275.5	2.5	0.34	1.17	0.2% Cu
300.0	303.7	3.7	0.03	0.57	0.1 g/t Au
End of Hole	461.9

* Weighted Average of Copper Zone and Barren Dykes

Table 2: Mineralised Intercepts in diamond core hole BWNBDD0007

Depth From (metres)	Depth To (metres)	Intercept Width (metres)	Copper (%)	Gold (g/t)	Cut-off
112.9	114.6	1.7	0.58	0.11	0.2% Cu
118.0	122.0	4.0	0.83	0.26	0.2% Cu
138.0	148.0	10.0	0.44	0.19	0.2% Cu
165.0	173.0	8.0	0.53	0.11	0.2% Cu
177.0	183.3	6.3	0.56	0.13	0.2% Cu
196.0	207.5	11.5	0.99	0.35	0.2% Cu
214.5	219.0	4.5	0.62	0.17	0.2% Cu
223.0	225.0	2.0	0.56	0.69	0.2% Cu
253.4	260.5	7.1	0.82	0.05	0.2% Cu
262.4	269.0	6.6	0.97	0.17	0.2% Cu
277.2	280.9	3.7	1.60	0.23	0.2% Cu
284.3	289.4	5.1	0.90	0.19	0.2% Cu
293.0	295.0	2.0	0.33	0.08	0.2% Cu
End of Hole	441.1

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FIGURE 1: Nakru-1 3D-IP Chargeability Geophysical Anomaly Showing Current and Historic Drillholes and Tracks

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PHOTO 1: BWNBDD0007 Drillcore - Strong veinlet and disseminated chalcopyrite mineralisation assaying 0.97% Copper + 0.17 g/t gold at 265m depth downhole.

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FIGURE 2: Nakru-1 Geological Model

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FIGURE 3: Historical Airborne Dighem Geophysical Image with Geochemical Targets

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On behalf of the board,

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Peter Swiridiuk MANAGING DIRECTOR

For further information please contact Peter Swiridiuk 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.

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 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%.

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

• Mineralised intersections are quoted as down hole widths.

Kc.ps002.11

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