Copper Mountain Mining Corporation T.CUM

2010 focus list

[BenVest99]

Jennings capital has published is 2010 focus and has selected Copper mountain mining as one of their top picks.

The following analyst report states that Mitsubishi will provide $330 million in debt financing as opposed to the $250 million originally planned. Peter Campbell had concerns with the financing in his previous report and he was still expecting more dilution that would have brought the share count to 110 millions. These concerns are now out of the way. The $3.00 target is conservative and the analyst also expects to increase the target as the project progresses.

The outlook looks very good now and, if the price of copper holds, we should see this stock trade above $10 in two years.

GLTA

Sector: METALS AND MINING

Analyst: PETER CAMPBELL, P.ENG.

E-mail: [e-mail]

Tel: [phone]

Copper Mountain Mining Corporation2,3 (TSX-CUM $1.80) Target $3.00 Mkt Cap $139.1 Million

Copper Mountain Mining Corporation’s project is fully financed and fully permitted, with construction

having commenced in September 2009. All mill equipment has been ordered, with delivery of the SAG

mill scheduled for mid-summer 2010. The mine mobile fleet has also been ordered, with an initial delivery

scheduled for early Q2/2010, in order to commence pre-mining stripping next summer. The project

remains on schedule for production start-up in June 2011. The mill has been conservatively designed to

produce 105 million lbs of copper in concentrate per year, at an expected cash cost of US$1.00/lb net of

gold and silver by-product credits.

Copper Mountain’s partner in this project is Mitsubishi Metals Corporation of Japan. Mitsubishi paid

$28.75 million for a 25% equity stake in the project and is arranging for $330 million in project debt with

the Bank for Japanese International Cooperation (JBIC) and a consortium of Japanese commercial

banks. JBIC is similar in function to the Canadian Export Development Bank. Indicative terms for the

debt are $150 million at LIBOR plus 0.80 bps from JBIC and $180 million from the consortium at LIBOR

plus 200 to 300 bps. Under the original deal with Mitsubishi, the debt piece was going to be $250 million,

but was increased to $330 million by the consortium, to assume equipment financing that was originally to

be provided by the equipment manufacturer. The Company expects final terms on the debt by the end of

January 2010. Mitsubishi has an off-take agreement on 100% of the concentrate over the life of the

project at market prices for TC/RCs.

We expect to be able to systematically increase our target price for Copper Mountain as project

milestones are reached. We also expect this story to soon be re-rated by the market as a producer,

instead of a developer. We take this opportunity to remind readers that Copper Mountain was the subject

of a failed takeover attempt by Taseko Mines Limited (TSX-TKO $3.25 Target HOLD Recommendation)

in September 2009. We believe that Taseko, who operates a mine similar to that of Copper Mountain,

recognized that Copper Mountain was being significantly undervalued by the market. We agree.