Mr. Michael McPhie reports

ARIZONA ENGINEERING FIRM - M3 ENGINEERING - AWARDED FLORENCE COPPER PROJECT FEASIBILITY STUDY CONTRACT

Curis Resources Ltd. has awarded M3 Engineering of Tucson, Ariz., a contract to conduct a feasibility-level study on final design, engineering, capital and operating costs for the Florence copper project.

As a world-class copper process design engineering company, M3 Engineering is well positioned to lead the Florence copper project's feasibility study. Its over 25 years of experience and expertise in architecture, engineering and construction management are in line with other consultants and experts retained by Curis Resources. M3 won the prestigious 2005 AISC Engineering Award for Excellence in the $10-million to $25-million category.

"We are very pleased to have M3 join the Florence copper project. Their extensive knowledge and experience in the industry combined with their background in copper recovery projects will be of great benefit," said Michael McPhie, president and chief executive officer of Curis Resources. "All companies in competition for this contract were from Arizona and retaining M3 supports the company's local procurement policy, as well as continuing to build our world-class engineering team responsible for the near-term development of the Florence copper project."

As an integral part of the Florence copper project's feasibility study, M3 Engineering will be working with other contractors to complete trade-off studies, complete engineering designs and establish detailed capital and operating costs required to develop and operate the project over the anticipated 19-year operating life.

Curis completed a preliminary economic assessment (PEA) on the Florence copper project in September, 2010. A copy of that report is available on the company's website. "The PEA clearly indicated that the Florence project is an extremely attractive copper project with robust economics and a sound development plan," commented Mr. McPhie. "It is our objective to continue to derisk the project by taking the engineering to the next level. Moving ahead immediately to a feasibility level assessment such as this with the M3 team is an important step in maintaining the overall schedule for project development."

Specifically, the work of M3 will look at completing engineering documents, undertaking feasibility-level estimates for both capital and operating costs to a plus/minus-15-per-cent threshold. In addition to the work of M3, the company has also retained the office of Brown and Caldwell in Phoenix, Ariz., to undertake a review of the overall copper extraction plan and Knight Piesold Consulting Engineers of Tucson, Ariz., and Vancouver, B.C., to complete project geotechnical, water treatment and water impoundment designs.

Project status

Project permitting

As reported in Stockwatch on Jan. 31, 2011, Curis submitted a comprehensive application to the Arizona Department of Environmental Quality (ADEQ) to amend the company's existing aquifer protection permit (APP) for the Florence copper project. The submission of this application formally began the ADEQ amendment review process. The submitted application cleared the first stage of consideration in mid-March by satisfying an "administrative completeness review." The application is now proceeding through a detailed technical review. Once completed, ADEQ will issue draft permit conditions and solicit public input on these.

The other major operating permit required for the Florence copper project is an underground injection control (UIC) permit that is issued by the Environmental Protection Agency (EPA). As with the APP, the UIC permit for the full commercial operation of the Florence copper project was granted to former owner BHP Copper Inc. in 1998 after its successful completion of an in-situ recovery production test at the site. Curis has now applied for the amendment and reissuance of the UIC for the Florence project. All required documentation for a review of the UIC permit for the project was submitted to the EPA on March 25, 2011, and is now under review.

Curis is also working with the Town of Florence on a revision to the town's general plan and the rezoning of a portion of the company's 1,342-acre property to support the in-situ recovery and processing of copper. Discussions with the Town of Florence planning staff and management have been continuing in this regard for the past several months and are proceeding well. The company will submit an application to amend the general plan in mid-May and approval, following consideration by the planning and zoning commission, and Florence town council, is anticipated in November of this year.

"The process for amending and reissuing of existing operating permits for the Florence copper project is advancing as originally anticipated," said Curis president and chief executive officer Mr. McPhie. "Our goal now is to continue to work with ADEQ, EPA, the Town of Florence and the other relevant government agencies to advance a timely review of the Florence copper project's proposed development plans."

Preparing for phase 1 production test

Following the successful completion of project permitting and approvals that is anticipated in the fourth quarter of this year, it is the company's intention to immediately begin development of a 12-to-14-month production test at the project site. Work has already begun on sourcing a suitable pilot-scale solvent extraction/electrowinning (SX/EW) plant and preparing detailed engineering plans and cost estimates for this phase of the project.

"Plans are on track to begin the development of the first phase of the Florence copper project by the end of this year," Mr. McPhie commented. "The intent is to begin producing pure copper cathode at Florence in mid-2012 and to use the production test to optimize and refine project engineering to support the development of the full commercial-scale facility."

Community outreach

Coincident with work to advance permitting for the Florence copper project, the company continues to implement a comprehensive community engagement and stakeholder outreach program in central Arizona. Curis acknowledges the importance of building and maintaining strong relationships with the town of Florence, local landowners and other project stakeholders.

On April 4, 2011, the company held a project open house in the Anthem neighbourhood of Florence. Approximately 230 people attended the open house which included presentations by company staff and consultants as well as the presentation of poster boards and information material that described the project, in-situ recovery technology, environmental protection measures being employed by the company and the economic opportunities associated with the development of the Florence copper project.

In addition to these open houses, the company has a community office in downtown Florence, hosts regular site tours of the Florence copper project facilities, operates a visitors centre on site that allows interested citizens of Florence and surrounding communities to learn more about the project, and maintains an up-to-date website for project news, information and events. Curis also has a strong community affairs presence, and participates in and supports a number of community-oriented organizations.

"The Florence copper project is a multigenerational development, and we want to be seen by the local community as being a positive contributor to the quality of life of the residents who live here," Mr. McPhie said. "We take our responsibility for stewardship of the environment seriously and believe the significant economic opportunities associated with the development of this project have the potential to provide meaningful benefits to the town of Florence and the state of Arizona for generations."

For more information about the Florence copper project, and its projected economic impacts and benefits to the local community, please go to the company website.

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