Mr. Vince Sorace reports

KUTCHO COPPER CLOSES OVERSUBSCRIBED FINANCING FOR $1.44 MILLION

Kutcho Copper Corp. has closed the previously announced non-brokered private placement for total gross proceeds of $1.44-million. The company has issued 14.4 million units at a price of 10 cents per unit.

Each unit will consist of one common share in the capital of the company and one transferable common share purchase warrant, exercisable at a price of 20 cents per common share for a period of 24 months from the closing date, subject to accelerated expiry as described herein.

If the closing price of the company's common shares on the TSX Venture Exchange (or such other principal exchange on which the common shares may be traded at such time) is equal to or greater than 35 cents for a period of 10 consecutive trading days, the company may (but is not required to), at its sole discretion, accelerate the expiry date of warrants to the date that is 15 days following the date upon which notice of the accelerated expiry date is provided by the company to the holders of the warrants (given by way of news release).

All securities issued under the private placement are subject to a hold period of four months and one day from closing. In addition to the statutory hold period, 7.2 million common shares forming part of the units were applied contractual restrictions on transfer of six months and the remaining 7.2 million common shares were applied contractual restrictions on transfer of 12 months. The warrants issued under the private placement were applied a contractual restriction of six months and any warrants exercised into warrant shares during this six-month period will also bear a restriction until six months from the private placement closing. The private placement is subject to final TSX Venture Exchange approval.

In connection with the closing, the company agreed to pay cash finders' fees of $57,260 and issue 572,600 finders' warrants, with each finder's warrant being exercisable to purchase one common share for 12 months at a price of 20 cents per common share. The finders' warrants are subject to same resale provisions noted above.

The company intends to use the net proceeds raised from the sale of units to advance the Kutcho project and for general administrative and working capital expenses.

Certain directors and officers of the company have participated in private placement, which participation constitutes a related party transaction, as defined under Multilateral Instrument 61-101, Protection of Minority Security Holders in Special Transactions. The issuance of the units is exempt from the formal valuation requirements of Section 5.4 of MI 61-101, pursuant to Subsection 5.5(a) of MI 61-101, and exempt from the minority shareholder approval requirements of Section 5.6 of MI 61-101, pursuant to Subsection 5.7(1)(a) of MI 61-101.

We seek Safe Harbor.