Mr. Michael McPhie reports

CURIS AWARDS FLORENCE COPPER EPCM CONTRACT TO M3 ENGINEERING

Curis Resources Ltd. has awarded the engineering procurement and construction management (EPCM) contract for engineering and construction of the primary operational components of the $25-million (U.S.) phase 1 production test facility (PTF) at its flagship Florence copper project to M3 Engineering of Tucson, Ariz.

M3 Engineering is an international, full-service engineering design firm providing architecture, engineering and construction management services to the global metals industry. Based in Arizona since its inception in 1986, M3's recent copper project experience includes the Carlota SX/EW (solvent extraction/electro-winning) project in Miami, Arizona and the Piedras Verdes SX/EW project in Mexico.

"The awarded contract for the production test facility at Florence copper will include a pilot-scale solvent extraction/electro-winning (SX/EW) facility, integrated with state-of-the-art well field technologies in order to simulate production-scale in situ copper recovery (ISCR) and extraction plans," said Glenn Hoffmeyer, metallurgy and mineral processing manager at the Florence copper project. "M3 will work alongside Curis's award-winning landscape and urban design firm, Grey Pickett of Scottsdale, Ariz., to ensure that Florence copper presents an unobtrusive and complementary land use in Florence."

M3 is currently scheduled to complete its EPCM contact for the phase 1 PTF during the third quarter (Q3) of 2012, at which point Florence copper will begin production of copper cathode sheets on a pilot-scale basis.

"We are extremely pleased to have engaged a local firm with the operational experience and international reputation of M3 Engineering," said Michael McPhie, Curis president and chief executive officer. "The professional team at M3 are experienced and highly qualified. We have every confidence that they will complete this project in a timely and professional manner, and help Curis further demonstrate the operational and environmental merits of Florence copper."

Mr. McPhie noted that about one-half of the recoverable copper contained in the 429-million-ton measured and indicated copper oxide resource hosted on Florence copper lands lies beneath a 160-acre block of state land. Curis holds the rights to recover and process minerals on this land under a mineral lease from the state. The company intends to complete a feasibility study for Florence copper and initiate operations utilizing in situ copper recovery (ISCR) technologies within this state land parcel next year, beginning with a phase 1 production test. With feasibility studies and federal and state permitting currently under way, commercial production at Florence copper is expected to occur by 2014.

Update on applications before town of Florence

At a regularly scheduled council meeting on Nov. 7, 2011, the mayor and council of the town of Florence voted by a margin of 6-1 to support Curis's withdrawal of a general plan amendment application related to private lands owned by the company within the town of Florence. Council also rejected Curis's application for a technical amendment to the general plan to create a new natural resource development and alternative energy overlay.

More than 150 local supporters of Florence copper attended the town council hearing, with more than 30 speaking in support of Curis's proposals.

"We're pleased that mayor and council supported our withdrawal of the proposed general plan amendment, and have provided Curis with the time and opportunity to finalize amended federal and state permits for the Florence copper project over the next few months," Mr. McPhie said. "Our focus in the immediate term will be to demonstrate to town council and the people of this community that the Florence copper project is environmentally sound and will fully protect local water sources."

Mr. McPhie said the process of confirming major environmental and operating permits will involve seven federal and state agencies, including the Environmental Protection Agency (EPA) and Arizona Department of Water Quality (ADEQ), as well as robust opportunities for public participation. He said Curis will further demonstrate how Florence copper will protect local water resources by conducting a pilot-scale production test on state lands in 2012.

"Only after achieving independent, expert verification from regulatory agencies, and demonstrating in real life how our operations will protect the integrity of Florence's groundwater resources, will we return to council with an application to operate our project within town boundaries," he said. "We believe this to be a responsible approach to addressing a key local concern."

As discussed in Curis's news release of Oct. 21, 2011, the company believes that completion of state and federal permit amendments required to advance Florence copper to full commercial production will give town officials and all project stakeholders greater certainty about environmental and technical matters. The decision to withdraw its general plan amendment application was taken by Curis management to allow the company sufficient time to confirm major environmental and operating permits prior to requesting that council consider its land use applications. The Town of Florence considers applications to amend its general plan once each year.

"We know that Florence copper enjoys the support of a strong majority of local residents," Mr. McPhie said. "This support has been confirmed both by an independent survey conducted by the Town of Florence and scientific public opinion research commissioned by Curis, as well as by the hundreds of letters of support we have received from residents, elected officials and business owners.

"Florence copper represents a significant economic development opportunity for Florence, Pinal county and the state of Arizona. Curis is committed to working with all residents and elected officials, and looks forward to re-engaging in this discussion in the normal planning cycle of the town once our state and federal permits are in place and all environmental and related issues can be addressed."

The technical information in this release has been reviewed by David Copeland, PEng, who is a qualified person and not independent of the company.

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