Curis Finalizes $40 Million Loan Facility and Copper Off-take Agreement with Red Kite

VANCOUVER, May 9, 2012 /CNW/ - Curis Resources Ltd. (TSX: CUV) ("Curis" or the "Company") is pleased to announce that it 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 US$40million loan with interest payable at LIBOR plus 8% 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 (the "Extension Option"). 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%, or if the Extension Option is exercised, 30% 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 CEO 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 US$40million 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."

About Curis

Curis Resources Ltd. is a mineral development company associated with Hunter Dickinson Inc., a diversified global mining company with a 25-year history of mineral development success.  Curis is focused on the acquisition, development and operation of high-quality next-generation copper properties in progressive jurisdictions around the world.  It is currently focused on advancing its 100% owned Florence Copper project in Arizona, USA to near-term production.

Feasibility level optimization and design studies for Florence Copper are progressing.  Phase 1 development is scheduled to be constructed beginning in Q3 of 2012, following the receipt of amended operating permits currently under review by State and Federal agencies.  This project "start-up" phase will consist of an initial 24-well copper extraction field constructed to simulate full scale operations and a state-of-the-art Solvent Extraction/Electrowinning (SX/EW) facility that will produce LME grade pure copper cathode.

For more project-level information, sign up to receive News and Updates from the Florence Copper website.

For further details on the Company, please visit www.curisresources.com or contact Susie Bell, Manager of Investor Relations, at (604) 684-6365 or within North America at 1-800-667-2114.

About RK Mine Finance

RK Mine Finance provides mining companies with project financing and metal off-take agreements for initiation or expansion of mine production and is part of the Red Kite group.  Red Kite operates across the global metals industry from offices in Bermuda, Denver, Hong Kong, London, New York, Shanghai and Sydney.  Investors in Red Kite funds include college endowments, foundations, family offices, pensions and other institutional investors. Contact Oskar Lewnowski at +1 212-596-3481.

Michael McPhie
President & CEO

No regulatory authority has approved or disapproved of the information contained in this news release.

This release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, that address exploration drilling, exploitation activities and events or developments that the Company expects are forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include inability of the Company and Red Kite to achieve fulfillment of all conditions under the definitive agreements, fluctuations in market prices, exploitation and exploration successes, continuity of mineralization, uncertainties related to the ability to obtain necessary environmental, land use and other permits, approvals, licenses and title on a timely basis and delays due to third party opposition, changes in government policies regarding mining and natural resource exploration and exploitation, continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements.   For more information on the Company, a more detailed description of the assumptions used to develop the forward-looking statements and the risk factors that may cause actual results to differ materially from forward-looking statements, investors should review the Company's continuous disclosure filings that are available at www.sedar.com.