Commencement of exploration drilling

4th August 2005

 

                         COPPER RESOURCES CORPORATION                          

                           ("CRC" or "the Company")                            

 

   COPPER RESOURCES STARTS EXPLORATION DRILLING ON ITS COPPER SPUR CLAIMS IN   
                                COLORADO (USA)                                 

Copper Resources Corporation (AIM: "CRC") has commenced an initial drilling
programme at its Colorado (USA) Copper Spur property, where it owns 23
unpatented lode claims covering approximately 186 hectares. The copper deposit
on the property has historically been mined as an underground operation. The
initial programme comprises 15 shallow exploration holes along strike at 50m
intervals, to a maximum depth of 90m per hole. If the initial drilling program
is successful, the Company will develop a detailed second phase programme.

CRC's principal assets are the Hinoba-an Copper Project in the Philippines and
the Haib Copper Project in Namibia, Funds raised by CRC from its April 2005 IPO
on the London AIM Exchange will be used to complete a detailed Bankable
Feasibility Study on the Hinoba Copper Project (2.0 billion pounds of
recoverable copper) over the next 12-18 months at an expected cost of £3.1
million. In addition, the Company has initiated metallurgical study work on its
large scale Haib copper project in Namibia (1.2 billion pounds of recoverable
copper for CRC's initial 60% interest) to determine the optimal process
recovery route. With its cash position of approximately £9.2 million
(equivalent to £0.33/share), CRC is well-positioned to undertake work on its
current projects and to evaluate other copper acquisition opportunities.

 

For further information please contact:

     Copper Resources         Nabarro Wells & Co.       Westhouse Securities   
                                                                               
     Mitchell Alland              Keith Smith              Cailey Barker       
                                                                               
 Executive Vice Chairman                                                       
                                                                               
   [phone]        [phone]       [phone]    

Additional information is available from the Company's website, 
www.copperresources.com, or from Westhouse Securities Ltd.

 

            Background Information on Copper Resources Corporation             

Hinoba Copper Project (Philippines)

Copper Resources is the ultimate holding company of a group of mineral
exploration, development and operating companies. The Group effectively has a
92.5 per cent economic interest in the Hinoba-an Porphyry Copper Project (the
"Project"), subject to a 3 per cent net benefits royalty payable to the
original claimowner. The Project is located on the island of Negros in the
Republic of the Philippines, approximately 700 km south of Manila.

Over the years, a significant amount of exploration and metallurgical testwork
has been performed on the Hinoba-an property with its previous owners having
spent approximately C$14.7 million. The Hinoba-an property has been subject to
approximately 48,000 metres of diamond drilling and 11,000 metres of reverse
circulation drilling. A scoping study undertaken in 1998 envisioned a 15 year
mine life based on a geological resource of 254 million tonnes at 0.46 per cent
copper at a 0.30 per cent copper cut-off. The study showed that the deposits
could be profitably mined by open pit method with the ore processed in a
conventional flotation milling operation to produce approximately 2 billion
pounds of recoverable copper and other by-products. Annual production was
estimated at 56,000 tonnes of recoverable copper with an average cash cost
(including smelting, refining and by-product credits) of US$0.48/lb of copper.

The Company will complete additional infill core drilling on the property and a
feasibility study within the next 18 months. Upon completion of the feasibility
study, and assuming favourable economics, the Group plans to develop a
potential 15 million tonnes per annum open pit copper mine on the Hinoba-an
property. The development of the Project will be dependent on obtaining future
financing.

Haib Copper Project (Namibia)

Copper Resources has an option to earn up to a 90% interest in the Haib
Project, a substantial low grade sulphide copper porphyry deposit, located in
southern Namibia 8 km from the Orange River and the South African border. With
52,000 meters of drilling, the Haib Project is a well-defined deposit that was
placed on care and maintenance in the late 1990s owing to low copper prices.
The most recent feasibility study work, undertaken in 1995-1997, focused on
producing cathode copper utilizing a roast-leach-electro-winning process plant.
In 1996, Behre Dolbear estimated the Haib Project resource at 244 million
tonnes, grading 0.37% Cu, using a cut-off grade of 0.3% Cu. This equates to 2
billion pounds of contained copper (net 1.2 billion pounds Cu to CRC based on
60% ownership). CRC intends to use the extensive geological and metallurgical
database available on the Haib Project to evaluate the optimal process recovery
method for project development.

Under the terms of the Option Agreement, CRC can earn a 60% interest in the
Haib Project by incurring initial expenditures of US$1.2 million and through
the issuance of 120,000 CRC shares. With further expenditures of US$1.0 million
and the issuance of a further 150,000 CRC shares, CRC can earn up to a 90%
interest in the Haib Project.


                                                                          



ENDS