Copper Development Corp : Final Results for the Year ended 31 December 2012

For immediate release: 20 June 2013

Copper Development Corporation("CDC" or "the Company")Final Results for the Year ended 31 December 2012Copper Development Corporation (AIM: CDC), the copper development and exploration company focused on the Philippines, today announces its audited results for the year ended 31 December 2012.Financial and operational highlights· Total costs capitalised in respect of Hinoba-an project increased from US$16.9 million to US$19.6 million.

· Total costs capitalised in respect of Basay project increased from US$7.8 million to US$12.5 million. A full impairment has been recognised against the total carrying value of this asset in light of the uncertainty of the viability of the project and on-going issues with renewal of permit which the Company is currently working to resolve.

· The Company recognised an unrealised loss on investment in Crazy Horse Resources Inc. of US$1.9 million.

· Selenga Mining Corporation (SMC), a 92.5% owned subsidiary, paid US$1.5 million to Colet Mining and Development Corporation (Colet) to extinguish and buy-out 0.5% of the net benefit payment due to Colet. The payment was made in accordance with the Second Amendatory Royalty Agreement entered into by both companies. Colet is entitled to 7.5% interest in the capital of SMC.

· The Company did not raise additional capital during the year other than on account of warrants and options exercise.

· There were no new options or warrants issued during the year.

· Cash reserves decreased due to operational costs and activity in mining operation which took place during the first three quarters of the year.

· Loss per share at 31 December 2012 is 6.79 pence (2011: 4.58 pence).

A copy of the full Report and Accounts is available at wwww.copperdevelopmentcorp.com.

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Contact details Copper Development Corporation	Beaumont Cornish Limited
The Company	Nomad and Broker
Mitch Alland	Roland Cornish
[phone]	[phone]

Chairman's statement

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Dear Shareholders,

In the second half of 2012, quoted junior mining companies hit new lows and this slide has continued unabated. Share prices of the majority of junior to mid-sized mining companies have been decimated, and many now many stand at one-tenth or less of their previous value. Copper Development Corporation has not been spared.

As a consequence, and following a review by the Directors of the carrying value of certain assets and the reclassification of the Deferred mining costs as Assets held for sale, Copper Development Corporation (the Company) reported a Total comprehensive loss for the year ending 31 December 2012 of US$19.0 million (2011: loss of US$10.8 million). In addition, Costs of Operation were reduced to US$4.4 million (2011: US$7.4 million) and further reductions have been implemented from 1 January 2013. As a result, the Directors anticipate that the Operating costs will not exceed US$750,000 for 2013.

Hinoba-an Copper ProjectThe Company's technical consultants, AMEC Minproc Limited, completed a Comprehensive Technical Report (CTR) in April 2012. The CTR detailed the technical information necessary for prospective buyers or joint venture partners to evaluate the Hinoba-an Project, including mining, metallurgical, environmental, social and infrastructure studies, the majority of which have been prepared to a pre- feasibility study level of accuracy. The CTR shows that the Project has a large Australasian Joint Ore Reserves Committee Code (JORC) compliant resource with 1,130,000 tonnes of contained copper, with a planned annual production of 47,665 tonnes of copper for over 15 years in the form of a clean 25% Cu concentrate. The Project is located on Negros Island in the Philippines, in a traditional mining area where there is strong support for mining and a skilled labour force that formerly worked at nearby mines that closed in 2002. The site is 25 km from the coast where there is an excellent natural harbour that can be easily developed for shipping concentrate to nearby Far East markets, including China and South Korea. At a US$3.00 per lb copper price, the project is financially attractive, as shown by the Company's financial analysis, which estimates initial capital at US$480 million and forecasts average operating costs at US$1.57 per lb of payable copper over the life of the mine and to average only US$1.39 per lb during the first five years, and results in a before tax NPV (at 10%) of US$440 million and the IRR on post-tax, post-financing cash flow of 36%.

On the basis of the CTR, the Company embarked on an aggressive marketing campaign for a potential sale or joint venture of the project, contacting several Chinese mining companies and some ninety Canadian and Australian junior and mid-sized mining companies, as well as several Philippine mining companies. Despite the attractiveness of the Hinoba-an Project and the continuing strength of the prospects for long term copper prices, interest of Chinese mining companies in a trade sale or a joint venture has been tempered by the territorial dispute in the South China Sea between China and the Philippines. Other strategic partners or buyers for Hinoba-an are restricted due to limited cash resources and the inability to raise additional funds in current financial markets. The Company continues to actively seek prospective buyers or joint venture partners though the outcome is highly uncertain given the current distressed market conditions.

Basay Copper ProjectAt the Basay Project, also on Negros Island, the Company completed drilling 34,002 metres across 71 holes. An initial resource estimate concluded in October 2012 deemed that the Basay resource tonnage and grade were likely insufficient to support a mining operation. The Company has continued its vigorous defence of its rights to the property at high levels of the Philippine government based on the legal opinions of two leading Philippine law firms, while the Privatization Management Office's (PMO) has maintained what the Company and its legal counsel believe to be a legally unsubstantiated claim to the property. Whilst an application for renewal of the Basay exploration permit has been made, the Company has not received any official statement on the renewal of the permit, which expired on 1

December 2012.

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OutlookGiven the distressed capital markets for mining companies and the consequent difficulty in arranging a sale or joint venture of copper mining projects in the current environment, the Company has reduced expenditures to the minimum by putting both the Hinoba-an and Basay projects on a care-and- maintenance basis. With these measures in place, we are in the best position to preserve our significant cash balance, currently at US$14.4 million, while continuing to review possibilities for a trade sale or joint venture.Mitchell AllandExecutive Chairman - 20 June 2013Directors' reportThe Directors present their annual report and the financial statements for Copper Development

Corporation (the Company) for the year ended 31 December 2012.

Principal activityThe Group was formed primarily to engage in the exploration, development, mining and processing of minerals, petroleum and other mineral oils.

The Group, through its holding company subsidiaries, own 92.5% rights to the Hinoba-an copper mine development project and a 70% interest to the Basay copper mine development project, both within the jurisdiction of the Republic of the Philippines.

Results and transfers to reservesThe results and transfers to reserves for the year are set out on pages 10 to 13 of the financial statements.

The Group made a total comprehensive loss attributable to equity shareholders for the year after taxation of US$15,192,712 (2011: US$10,672,963).

DividendThe Directors do not propose the payment of a dividend for the period (2011: US$nil).