Mr. Michael McPhie reports

CURIS ACKNOWLEDGES DECISION BY TOWN OF FLORENCE COUNCIL TO RESCIND ORDINANCE

Curis Resources Ltd. acknowledged today a vote by the Florence Town Council at a regularly scheduled council meeting on April 1, 2013, to rescind town ordinance No. 583-12 concerning the use and storage of sulphuric acid within town limits.

"We would like to acknowledge the decision by the Mayor and council of the town of Florence to rescind this ordinance," commented Rita Maguire, senior legal and government affairs adviser to the chief executive officer and board of directors of Curis. "We appreciate the willingness of town staff and the council to work with the company management and representatives to achieve this outcome and look forward to building on this action in the future around areas of mutual interest."

"The removal of this ordinance allows the company to continue preparations for the start of construction and operations of the phase 1 production test facility, allowing the company to demonstrate the safe operation of in situ techniques and water safeguards," stated Dan Johnson, vice-president, environment and technical services, and general manager with Curis in Arizona. Mr. Johnson added: "Curis is awaiting approval from the Environmental Protection Agency for an underground injection control permit for the Florence copper project PTF. We anticipate the EPA will issue the final operating permit for the PTF in the near future."

"We look to this decision as a positive first step towards building a more constructive relationship between Curis and the town of Florence," commented Michael McPhie, president and chief executive officer of Curis. "We remain committed to an open and transparent dialogue with the residents and the town and look forward to the opportunity to continue to invest in the community, provide meaningful employment opportunities for locals and contribute to the quality of life of Florence, Pinal county and the state of Arizona."

Background

On Aug. 6, 2012, the Florence Town Council enacted ordinance 583-12 declaring "in situ mining and other businesses which utilize large quantities of sulphuric acid" to be a nuisance and a "nauseous, offensive and unwholesome business." Under the ordinance, any person conducting a business, except agriculture, utilizing 50 gallons or more of sulphuric acid within any 30-day period is guilty of a Class 1 misdemeanour with each day such business operates chargeable as a separate offense. The ordinance included an emergency clause making it immediately effective.

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