Mr. Giulio Bonifacio reports

NEVADA COPPER PROVIDES 2014 UPDATE

Nevada Copper Corp. is providing a project and financing update.

Highlights:

• Shaft sinking has reached mid-shaft pumping level and is at a current depth of 1,000 feet.
• Sinking rates increased and stabilized at a design rate of six to seven feet per day. Access to the main ore haulage level is expected in first-quarter 2015.
• Detailed engineering of the process plant has advanced and is now 40 per cent complete.
• Multiple financing proposals are being evaluated. Completion of project capital financing for stage 1 is targeted for fourth-quarter 2014.
• Steps have been taken to conserve cash. Most non-shaft-sinking expenditures have been temporarily reduced.
• Initial ore production ramp-up is now forecast in second-quarter 2016.
• BMO Capital Markets has been engaged as a strategic and financial adviser.

Giulio Bonifacio, president and chief executive officer, stated: "We have made substantial progress in our key focus areas of shaft sinking and financing in the last quarter. Our decision to temporarily reduce non-shaft-sinking expenditures allows us the time to fully optimize the funding mix for the balance of stage 1 project capex while maximizing value for shareholders both from stage 1 underground mine and the much larger stage 2 open pit mine.

"We continue to progress the permitting of stage 2 and are awaiting the completion of the final procedural steps required for passage of the land bill. We have been advised that this remains one of the top priorities of the Nevada senators and congressmen."

Project update

Project activities continue to be focused on shaft sinking. The shaft has now reached its approximate midpoint, a depth of 1,000 feet. Sinking rates have improved and have stabilized at between six and seven feet per day, in line with the company's projections. A mid-shaft pump station has been successfully excavated and will be equipped with high head positive-displacement pumps and associated electrical and piping infrastructure. Detailed engineering and procurement have advanced in the quarter and are now 40 per cent complete.

Water inflows into the shaft remain limited, and ground conditions are good. Grouting requirements have been minimal. Assuming that no unusual ground conditions or water inflows are encountered, sinking is expected to continue at between six and seven feet per day, reaching the main ore haulage level in first-quarter 2015.

With shaft completion modestly delayed, and while financing discussions are continuing, the level of all non-shaft-related activities, including engineering and construction expenditures, has been being temporarily curtailed. This prudent action allows the company the time to fully evaluate the financing options that will provide the balance of financing for stage 1. Shaft construction and related activities, being critical-path items, will continue at the current rate. The company is now targeting the start of ramp-up to full ore production in second-quarter 2016.

Financing update

Nevada Copper has a current cash balance of $18-million (U.S.) plus marketable securities of $4-million (U.S.). The company also has a further $149-million (U.S.) remaining as the undrawn portion of its Orion/Red Kite secured loan facility (see the company's March 28, 2013, news release for further information). The final draw of the loan facility is subject to certain conditions, including completion of the shaft and arrangement of the balance of financing of stage 1 project capital. Nevada Copper also has an available $24-million (U.S.) Caterpillar Financial equipment lease finance facility.

The company continues to evaluate several financing opportunities, including additional debt, precious metal streams, joint ventures and off-take structures to provide the remaining financing for both stage 1 and stage 2. Numerous proposals have been received for the stage 1 underground financing, and term sheets are currently being reviewed in this capacity. Completion of stage 1 financing is targeted by fourth-quarter 2014.

BMO Capital Markets had previously been engaged by Nevada Copper as adviser to assist the company with the process of identifying and evaluating its strategic alternatives. The objective of this process is to maximize shareholder value, and the engagement remains active.

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