Nevada Copper to Proceed With Two-Stage Approach to Building Pumpkin Hollow

VANCOUVER, BC - Nevada Copper Corp. reported that it will be proceeding with a two-stage approach to developing its 100%-owned Pumpkin Hollow copper project located near Yerington, Nevada.

In late 2012, it became apparent that the Company was capable of financing a 6,500 tons/day Stage 1 Underground Operation without the resulting dilution of bringing in a strategic partner and reducing its current 100%-owned Pumpkin Hollow project. A feasibility study examining this option was published on December 12, 2012 and indicated an initial capital cost of US$329 million. The Underground Operation is considered as Stage 1 of a larger, two-stage Pumpkin Hollow project development plan.

On March 28, 2013 Nevada Copper closed a US$200,000,000 loan facility and copper concentrate off-take agreement with RK Mine Finance ("Red Kite") with proceeds to be allocated to the construction of the standalone Underground Operation. The initial tranche of funding from the loan facility, additional funding on receipt of key State permits allowing for commencement of full construction of an underground mining operation, combined with current treasury, is more than sufficient to support project development work through Q2-2014. This work includes sinking of the 2,200 foot production-sized shaft, construction of the head frame and associated surface works, and commencement of detailed engineering work. The engineering work will allow for placement of key equipment orders by Q3-2013, and first production in 2015. Ore from the Eastern underground deposit will feed a concentrator located in close proximity to this deposit.

In deciding to proceed immediately with the Underground Operation of a two-stage approach, the Company considered the following factors: Stage 1 Underground Operation is largely financed, with State permits expected this quarter and key construction activities that can commence without delay, including the already well-advanced construction of a production-sized shaft; Future cash flows from the Underground Operation in 2015 would support and facilitate financing of a larger open pit operation; The stand-alone open pit feasibility study would assist potential strategic partners in assessing a possible investment; Recent expansion of the mineral resource base for the open pit Western Deposits and, The Company's expectation that the open pit could be permitted in 2013 with targeted production to commence in 2016 contingent upon project funding. As a result, the Company has decided that the current update to the Integrated Feasibility Study will be modified to reflect a standalone open pit mine. In view of the recently increased mineral resources, TetraTech will also evaluate higher throughput production rates in the range of 70,000 to 90,000 tons/day. Completion of the updated feasibility study for the open pit is now targeted on, or before, August 2013.

Giulio Bonifacio, President and CEO said, "As a result of closing the Red Kite Transaction, Nevada Copper will move towards a fully permitted and funded underground operation in the short term while maintaining 100% ownership of the Pumpkin Hollow project. We believe this is a superior strategy that will allow for the commencement of commercial production and cash flow in 2015 while also further facilitating funding of the larger open pit operation. We will also continue to move forward with the Lyon County Land bill and receipt of open pit permits expected in 2013, which will be a significant step in beginning the development of the second stage of Pumpkin Hollow."

Commissioning of the hoist and head frame is underway. Hoist commissioning will allow for resumption of shaft sinking which is expected to continue through 2013 with completion by Q1-2014.