Mr. Michael McPhie reports

CURIS REACHES AGREEMENT ON $40 MILLION LOAN FACILITY AND COPPER OFF-TAKE WITH RED KITE

Curis Resources Ltd. has reached agreement with RK Mine Finance Trust (Red Kite) on the key terms for a senior secured loan facility and copper cathode off-take agreement, which are subject to the execution of definitive agreements.

Under the terms of the loan, Red Kite will provide a $40-million (U.S.) loan with interest payable at London interbank offered rate plus 8 per cent maturing two years from date of closing. The loan will be repayable without penalty at any time prior to maturity, with Curis having a one-time option to extend the maturity date by one year under specified terms and conditions.

The parties also contemplate that, subject to applicable laws, securities commission and stock exchange rules and regulations, Red Kite will have the right to convert the outstanding amount of the loan into shares of Curis at any time prior to maturity.

Proceeds from the loan will be used to advance the development of the phase 1 production test facility and related engineering, infrastructure and permitting-related activities of the Florence copper project located in central Arizona, United States.

Under the terms of the off-take agreement to be signed, Curis will supply Red Kite with 25 per cent, or if the extension option is exercised, 30 per cent of the Florence copper project's copper cathode production for the life of the project, once the project reaches commercial production. The off-take agreement will be structured at market pricing.

Curis president and chief executive officer Michael McPhie said: "This term sheet is a major step forward for Curis and Florence Copper. This strategic investment in the future of Florence Copper with Red Kite represents a key milestone towards delivering on our objective of financing this world-class next-generation copper project with minimal dilution to shareholders.

"A significant percentage of the $40-million (U.S.) investment will be utilized for contractors and vendors in Pinal County and greater Arizona over the next 18 months, providing the opportunity for new jobs and further spurring Florence Copper's impact on the local economy."

We seek Safe Harbor.