ACN. 000 317 251

Unit 34, Brickworks Annex,19 Brolga Avenue, SOUTHPORT 4215 Phone: +617 5503 1955 Facsimile: +617 5503 0288

Email: admin@cudeco.com.au

___________________________________________________________________ MARKET RELEASE 3 September 2009 ___________________________________________________________________

ROCKLANDS COPPER PROJECT (CDU 100%)

DDeeeeppeesstt DDiiaammoonndd CCoorree HHoollee eevveerr DDrriilllleedd aatt RRoocckkllaannddss,, DDOODDHH004422,, CCoonnffiirrmmss SSuullpphhiiddee MMiinneerraalliizzaattiioonn ppeerrssiissttss bbeellooww 660000 MMeettrreess DDeepptthh.. DDrriilllliinngg hhaass eennccoouunntteerreedd aa 220000 mmeettrree wwiiddee aalltteerraattiioonn zzoonnee wwhhiicchh hhaass iinntteerrsseecctteedd aabbuunnddaanntt aanndd mmuullttiippllee,, iinntteerrmmiitttteennttllyy ooccccuurrrriinngg zzoonneess ooff ssuullpphhiiddeess iinn mmaassssiivvee,, sseemmii mmaassssiivvee aanndd ggeenneerraall mmiinneerraalliizzeedd sseeccttiioonnss ooff cchhaallccooppyyrriittee ((ccooppppeerr mmiinneerraall)) aanndd ppyyrriittee ((pprreeddoommiinnaannttllyy hhoossttiinngg ccoobbaalltt aatt RRoocckkllaannddss)),, iinn aa ssttrruuccttuuaallllyy ccoonnttrroolllleedd eennvviirroonnmmeenntt ffrroomm 660000 ttoo 880000 mmeettrreess ddeepptthh.. TThhee hhoollee,, llooccaatteedd aatt eeaasstt//cceennttrraall LLaass MMiinneerraallee iiss ssttiillll pprrooggrreessssiinngg aanndd iiss nnooww bbeellooww 885500 mmeettrreess.. IInn aaddddiittiioonn ttoo tthhiiss ccuurrrreenntt ddeeeepp hhoollee,, iinntteerrpprreettaattiioonn ooff rreecceennttllyy ddrriilllleedd aanndd rreeppoorrtteedd ddiiaammoonndd ccoorree hhoollee DDOODDHH003388,, ddrriilllleedd ttoo ++445500mm aanndd llooccaatteedd aapppprrooxx 660000mm WWeesstt aanndd aalloonngg ssttrriikkee ffrroomm DDOODDHH004422,, iinnddiiccaatteess tthhee ppoossssiibbiilliittyy ooff ssttrraattaabboouunndd--hhoosstteedd ccooppppeerr mmiinneerraalliizzaattiioonn iinn aa ssiillttssttoonnee uunniitt aatt ddeepptthh iinn tthhaatt rreeggiioonn..

Diamond Hole DODH042 – at 611m depth intersected sulphides, including zones of massive chalcopyrite (copper mineral)

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Diamond Hole DODH042 – intersected abundant sulphides, including chalcopyrite (copper mineral) in the alteration zone between 600-800m depth pictured more than 600m depth

The diamond-drill hole was designed to test for a possible “feeder system” at depth or the “potential source” of the mineralisation found at Las Minerale. The style of mineralisation intersected in this hole has not been encountered in any previous drill holes at Rocklands and is considered to hold potential significance. Diamond hole DODH042 was drilled at 70o dip, 030o azimuth targeting the interpreted depth extension of the SW dipping Las Minerale orebody, based on geological modelling from nearby holes, surface geophysics including SAM and on the results of the 3D Induced Polarisation (IP) survey, that detected positive signatures to depths over 600m at Rocklands. At a cost of approx $180,000 for this single hole, its location was carefully deliberated with reference to all available geological data, with the view to possibly unlocking the key to the Las Minerale mineralisation, either in the form of a feeder unit, or indeed the ultimate source of mineralisation. The hole was also positioned below the most highly mineralised and near surface sulphide zone. Diamond drill hole LMDH 037 (drilled in October 2007), intersected 5%Cu in sulphides in the form of chalcopyrite from only 6m depth.

Diamond Hole DODH042 – cut core of massive chalcopyrite. Sulphides intersected intermittently throughout the 200m wide altered zone fm 600-800m

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Diamond Hole DODH042 –intermittent zones of sulphides, including chalcopyrite (copper mineral) at 701.35m pictured, within the 200m width between 600-800m depth.

The first intersection of DODH 037, 6m @ 8.14%Cu from 6m to 12m, then went on to intersect multiple high grade zones of mineralization including 8m @ 23.43% Cu from 52m to 60m depth including 2m @ 40.1% Cu in massive chalcopyrite and chalcocite. The diamond core hole revealed continuous sulphide mineralisation from 4m to 125m at an average grade of 5.67%Cu and 973ppm Co. The shallow sulphides intersected above the current hole, and its location within 100m along strike, east of the high grade native copper/chalcocite supergene zone (which exists above the sulphide mineralization), and the geophysical signatures from the SAM and IP surveys, were the prime reasons for drilling the hole at this location. Unlocking the key to the source of mineralisation at Rocklands remains a challenge, but one the Company’s geological team feels it will eventually discover, and may have moved closer to with the recent deep intersection.

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Diamond Hole DODH042 – intersected zoning of sulphides, including chalcopyrite (copper mineral) from 600-800m pictured chalcopyrite at 650.5m depth

Diamond Hole DODH042 – intersect sulphides, including chalcopyrite (copper mineral) and pyrite in a previously unseen rock type at Las Minerale in zones within the 200m intersection down to 800m

In 1992 whilst being explored by Rio Tinto (formerly CRA), a Mines Dept open file report indicated the possibility of Rocklands copper being hosted by a stratabound style of mineralization. Whilst it is clear the majority of mineralisation discovered to date at eastern/central Las Minerale is in fact structurally controlled, other non-associated siltstone units in other zones, including flat-bedding mineralization along strike to the west in Las Minerale, lend weight to the view at least some areas may in fact be hosted in strata-bound style mineralization. CuDeco is now in the position financially to test some of the numerous theories for

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Diamond Hole DODH042 – intersected sulphides, including chalcopyrite (copper mineral) pictured is abundant chalcopyrite at 611.50 metres depth.

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Rocklands mineralisation via a deep diamond drilling program. DODH042, which is now the deepest hole ever drilled at the Rocklands Project, cross-cuts a variety of rock types, confirming that mineralisation is strongly structurally controlled at this location. The zone of mineralization has continued more than 150m past the interpreted width of mineralization expected under Las Minerale and continues at the current drilling depth of over 800m.

Diamond Hole DODH042 – mineralization in diamond core at 797.5m depth, including chalcopyrite (copper mineral) which has been intersected intermittently over 200m from 600-800 depth. Geology: DODH042 - current deep hole Chalcopyrite (copper mineralisation) occurs over the mineralised zones as grains, wisps, veinlets, and as semi-massive infill, largely in brecciated and fractured silicified sandstone, ± pyrite, ±magnetite, but also as splashes in veined, strongly actinolite-altered dolerite. Dominant alteration within the ore-zone includes:

• Pervasive silicification and “red-rock” hematite-albite alteration, in sheared, low clast-rotation, siltstone/sandstone breccia.

• Quartz + magnetite ± calcite in hydrothermal breccia.

• Biotite + actinolite clast-mantling. Alteration outside of the mineralised structure includes:

• Amphibole alteration of dolerite. • Scapolite hornfels in siltstone.

Diamond Hole DODH042 – sections of core, chalcopyrite (copper mineral) within multiple intermittent zones between 600-800m depth

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Geology: recently reported diamond core hole DODH038 - +450m Although the current deep drill hole DODH042 appears to be structurally controlled, this does not appear the case with a zone of mineralization that intersected abundant sulphide mineralization in a zone parallel to Las Minerale and located to the west, along strike from DODH042. DODH038 intersected a package of steeply dipping banded siltsone, with stratabound pyrite and chalcopyrite in multiple, up to 10cm bands. Structurally it seems to have a different mineralization trend (western limb of anticline).

Diamond Hole DODH038 – intersected sulphides, including massive chalcopyrite (copper mineral) in a siltstone unit This banded siltstone leads into a siltstone that is dominated by vertically dipping stylolites. The stylolites are also locally displaying micro thrust faults (similar to the macro scale seen interpreted on the Rocklands EPM) The mineralization is this section is chalcopyrite (including +5% visual chalcopyrite) and seems to be remobilised up faulted stylolites. The mineralization seemed to have a slight ankerite-siderite footwall halo leading into the pyrite banded host rock and then through the styolite zone with micro thrust faults into a hanging wall alteration of rose coloured calcite and then actinolite-chlorite (+/-Magnetite) hanging wall alteration. Potentially drilling cross strata towards a fault.

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Significance of DODH042 Drill Hole DODH042 is by far the most significant drilled by the Company to date. It will provide significant geological and petrology interpretative information going forward. It is also a testament to the quality and skill of our geological team that they were able to hit this significantly altered zone on their first attempt at an extremely deep exploratory drill hole. Petrology testing and analysis of the core will commence when the drill hole is completed. It is also anticipated that down-hole geophysical surveys will be carried out to complement the significant data set expected to be compiled for the hole Finally, whilst the hole was initially drilled at a 70o dip, it has lifted to approx 60o at the current depth of 806m. Discussions are underway with the drilling contractor to withdraw to 500m and wedge the hole down to continue at depth and test under the hole already drilled, further adding to the geological data in the hope it will ultimately lead the team to ultimate goal of finding the source of Las Minerale mineralisation. Drill hole DODH042 is being drilled across the width of Las Minerale at 030oN, NOT downdip.

Diamond Hole DODH042 – intersected zones massive/semi massive zones sulphides, including chalcopyrite (copper mineral) from 600-800m

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Diamond Hole DODH042 intersections of sulphides, including chalcopyrite (copper mineral) from 800m depth...the hole is continuing.

Yours faithfully,

Wayne McCrae, Chairman. The information in this report that relates to Exploration Drill Results is based on information compiled by Mr. Andrew Day, a consultant employed by CuDeco Limited to carry out this data validation. Mr. Day has a BAppSc (Hons) in geology, he is a Member of the Australasian Institute of Mining and Metallurgy (Member #303598). Mr. Day has sufficient experience which is relevant to the style of mineralisation and type of deposits 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 of Conduct for Reporting of Exploration Results, Mineral Resources and Ores Reserves”.

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