COPPER STRIKE LIMITED

Copper Strike reports that the current phase of the feasibility study at the Einasleigh Project in North Queensland, Australia, has been completed with positive results. Cash margin over the 9 year life of the operation is Aus$289 million after capital expenditure using a copper price of US$2.50/lb (price in June US$2.20 to $2.40/lb) and a $0.75 exchange rate. The initial phase of the operation will see total production of 100,000 tonnes of copper, 25,000 ounces of gold and 3.5 million ounces of silver over a seven year period, followed by production of 42,000 tonnes of zinc, 25,000 tonnes of lead and 2.2 million ounces of silver over two years. The current feasibility study examines economic returns from a 1.8 million tonne per year production facility at Kaiser Bill that focuses initially on copper-gold-silver production from Kaiser Bill and Einasleigh, followed by zinc-lead-silver opencut production when the copper ore is exhausted. The IRR is 26% after tax and the NPR is A$81 million after tax at a 10% discount rate. The project is sensitive to the price of copper and to the Aus$ / US$ exchange rate.