Mr. Michael McPhie reports

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

Curis Resources Ltd. has executed definitive legal agreements with RK Mine Finance Trust I (Red Kite) for a senior secured bridge loan facility and copper cathode sale and off-take agreement.

Under the terms of the bridge loan agreement, 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 the date of closing. The loan is repayable without penalty or premium 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. Interest on the loan is payable at maturity and certain fees will be payable from the net proceeds of the loan.

The parties had previously contemplated that Red Kite would have the right to convert the outstanding amount of the loan into common shares of Curis at the time prior to maturity under specified terms, but that conversion right has been removed from the final definitive terms agreed between the parties.

Under the terms of the signed off-take agreement, Curis will sell to Red Kite, on a take-or-pay basis, 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. The off-take agreement has been structured such that copper cathode produced at Florence is to be purchased by Red Kite at a price consistent with London Metal Exchange (LME) market price quotations, subject to certain discounts.

"The finalization of this agreement with Red Kite is a key milestone toward delivering on the development of this world-class next-generation copper project with no dilution to shareholders," commented Curis president and chief executive officer Michael McPhie. "The agreement allows us to focus on the company's key near-term objectives of completing project permitting, engineering and the start of construction of the phase 1 production test facility.

"A significant percentage of the $40-million (U.S.) will be invested locally in Arizona and will provide the opportunity for new jobs and further reinforces Florence copper's positive impact on the local economy."

We seek Safe Harbor.