MMK acquisition

COPPER RESOURCES CORPORATION                          

                           ("CRC" or "the Company")                            

 

 COPPER RESOURCES ACQUIRES MMK IN KATANGA PROVINCE OF CONGO TO BECOME PRODUCER 
     IN 12-18 MONTHS FROM HIGH-GRADE 5.3% COPPER ORE BODY AT KINSENDA MINE     

Copper Resources Corporation (AIM: "CRC") has concluded on schedule the final
agreement envisaged by an MOU signed in September and acquired 75% of Minière
de Musoshi et Kinsenda ("MMK") which holds three high-grade deposits in the
Demo-cratic Republic of Congo, located in the south of Katanga Province near
the Zambian border, as follows:

 Deposit      Copper Content       Grade      Meters   
                                             Drilled  
            Tonnes        Billion                      
                            lbs.                        
                                                    
Kinsenda     840,000         1.9    5.3%      66,000
                                                    
Musoshi      580,000         1.3    2.4%      30,000
                                                    
Lubembe    1,000,000         2.2    2.2%      12,000
                                                    
Total      2,420,000         5.3                    

With this acquisition CRC has embarked on a US$5 million dewatering program of
the Kinsenda mine where production is expected to commence in 12-18 months.
Kinsenda will produce 40,000 tonnes per annum of copper content in the form of
a rich, 45% concentrate from the high-grade 5.3% ore body. In the interim, CRC
will produce 4,000 tonnes per annum of copper matte (95% copper content) in the
Musoshi arc furnace, which is currently in operation.

The Kinsenda and Musoshi deposits were mined from 1968-1983 by
a Japanese mining consortium, then by Canadian management on behalf of the
Zairian government from 1983-1987, and subsequently by Gecamines, a Congolese
state mining company. Kinsenda and Musoshi are both currently flooded and
require dewatering prior to restarting operations; Lubembe is a green field
exploration property with high potential. All three deposits have been
drilled, Musoshi and Kinsenda extensively, and Lubembe not to the same degree.
The MMK acquisition is attractive as it represents 5.3 billion pounds of
contained copper at a cost 1/5th of a US cent per pound.

The remaining 25% of MMK is held 20% by SODIMICO, a state company, and 5% by
the Forrest Group, the largest private business in Katanga and one of the
largest in Congo with diversified operations including mining, engineering,
construction, and cement. Operating successfully in Congo since 1922, the
Forrest Group has extensive operational and management experience in the
country that will support and facilitate CRC's effort in developing the
properties.

In exchange for the 75% shareholding in MMK, CRC is issuing
18,717,734 new shares and 1,300,000 options at an exercise price of 75p to the
Forrest Group, which becomes its largest shareholder group, with a 40% stake in
CRC. In line with this shareholding, the CRC board has been restructured,
increasing from six to eight directors: three directors re-main (Sir Sam Jonah,
Non-executive Chairman; Mitchell Alland, Executive Vice Chairman; Christopher
Jordinson, Director and CEO) while three have re-signed (James Frank, Elia
Crespo, Rebecca Taylor) to allow representation of the Forrest Group and to
bring in new directors independent of any of the CRC investment groups. The
following new directors have joined the board to represent the Forrest Group,
and each will be issued 125,000 options at an exercise price of 75p:

  * George Arthur Forrest (Non-Executive Vice Chairman) - Mr. Forrest has been
    Chairman of Forrest Group for over fifteen years.
   
  * Michel Anastassiou (Director) - Managing Director of George Forrest
    Internation-al Afrique sprl ("GFIA"). Mr. Anastassiou has been in this
    position for over ten years.
   
  * George Andrew Forrest (Director) - Deputy Secretary-General, GFIA. Mr.
    Forrest has been in this position for three years.
   
In addition, there will be two independent directors who will each be issued
100,000 options at an exercise price of 75p:

  * Roger Marshall, OBE (Director) - Mr. Marshall has been involved in mining
    for over 30 years, and was awarded an OBE for his services to the
    Australian Mining industry.
   
  * Director - To be appointed.
   
Mr. George Forrest, Chairman of the Forrest Group, said: "We are looking
forward to working with CRC and jointly accelerating the start of production
from the MMK deposits. We are also looking forward to working with the CRC
team in the context of a public company that could become the vehicle for other
extensive mining operations in the future."

At Musoshi there is a plant that includes crushers, grinders, floatation tanks
and an ore concentrator with the capacity 2,500 tpd. The equipment will need
to be refurbished prior to commencing operations. The MMK concession area has
extensive infrastructure including roads, water, staff accommodation and power.
The power infrastructure includes 220/110Kva lines to both Kinsenda and
Musoshi, as well as a substation at Musoshi with generators for backup.

The CRC program is designed to start production at Kinsenda in 6-9 months after
the dewatering of the mine which will cost about $5 million to complete;
another US$30 million will be required to refurbish and
regenerate the Kinsenda mine and Musoshi concentrator.

CRC has issued 200,000 shares to Sir Sam Jonah, Non-executive Chairman, as
com-pen-sation for the successful completion of the transaction.

Mitchell Alland, CRC Executive Vice Chairman stated: "The MMK acquisition
offers an exceptional opportunity, placing CRC on a fast track to become a
significant producer with world class deposits in partnership with the Forrest
Group who have been active in the Congo for over eighty years, and are the
premier private group in the country."

For further information please contact:

   Copper Resources     Nabarro Wells &     Westhouse       GTH Communications 
      Corporation             Co.           Securities                         
                                                                               
    Mitchell Alland       Keith Smith    Richard Morrison       Toby Hall      
Executive Vice Chairman                                                        
                                                                               
        +44 (0)             +44 (0)           +44(0)             +44 (0)       
     77 4801 8690        20 7710 7400      20 7601 6100        20 7153 8035