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

VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 04/23/13 -- Nevada Copper Corp. (TSX:NCU) ("Nevada Copper" or "Company") is pleased to announce 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 ("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.

The below summary of results for the Underground Operation on the East Deposit were released in a SEDAR filed National Instrument 43-101 Technical Report Feasibility Study filed on December 12, 2012:

--  The Base Case economics reflecting a three year trailing average price
    of $3.59/lb. copper, $1,419/oz. gold and $27.14/oz. silver; 
--  Production commencing in 2015, with and initial mine life of 12 years; 
--  Average Annual copper production in concentrate:

Year 1 to 5: 75 million pounds;

Year 1 to 10: 67 million pounds;

--  Net Present Value at 5% is $419 million, pre-tax; 
--  Net Present Value at 8% is $309 million, pre-tax; 
--  Internal Rate of Return is 28.6% pre-tax and payback of 2.5 years; and, 
--  Annual operating cash flow of US$149 Million.

See News Release of November 19, 2012 for complete details including a summary of project opportunities which are briefly discussed below under "Shaft Construction Update and Underground Project Activities".

In deciding to proceed immediately with the Underground Operation of a two-stage approach, the Company considered the following factors:

1.  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; 
2.  Future cash flows from the Underground Operation in 2015 would support
    and facilitate financing of a larger open pit operation; 
3.  The stand-alone open pit feasibility study would assist potential
    strategic partners in assessing a possible investment; 
4.  Recent expansion of the mineral resource base for the open pit Western
    Deposits (see resource table below); and, 
5.  The Company's expectation that the open pit could be permitted in 2013
    with targeted production to commence in 2016 contingent upon project
    funding (see News Release dated April 17, 2013 for further information).

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, an industry leading international engineering firm, 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.

Mr. Giulio Bonifacio, President and CEO commented: "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."

Shaft Construction Update and Underground Project Activities

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. Shaft progress can be seen on the project website: www.pumpkinhollowcopper.com.

Detailed mine design work is underway for the high-grade East deposit to provide the framework for mine planning. Once the production-sized shaft is completed to a total depth of 2,200 feet, drilling will resume from underground drill stations. This drilling program will target areas of higher grades with an initial objective of allowing for early production from the highest-grade stopes. For example, in the northern pod of the East deposit, drill holes NC 09-05 and NC 08-49 returned intervals grading 114.5 feet of 3.20% copper and 125 feet of 3.24% copper, respectively. In the south pod of the East deposit, adjacent drill holes NC08-14 and KM-21 returned intervals grading 52 feet of 6.79% copper and 84 feet grading 4.93% copper respectively. With mineralization in the East deposit currently open in several directions, management expects that further drilling from underground drill stations will also extend the current mine life of 12 years. Ore from the E2 deposit will be mined after the East deposit which will further add to the current mine life.

In addition, selection of firms to provide detailed engineering, procurement and construction services for the Underground Operation is in progress.

Feasibility Study - Open Pit Operation

On February 7, 2012, the Company SEDAR-filed a NI 43-101 Integrated Feasibility Study for the Pumpkin Hollow project. This Integrated Feasibility Study included ore reserves which were based on drilling results received to October 2010. During 2011 and 2012, the Company drilled 44,000 meters of additional definition drilling on the North and South open pit deposits ("Western Deposits"). This drilling was successful in expanding the measured and indicated mineral resources on the Western Deposits by 1.1 billion pounds to 5.4 billion pounds and a new updated mineral resource was SEDAR filed on October 19, 2012 (See resource table below and News Release dated September 13, 2012 for further information).

The large increase in mineral resources encouraged the Company to update the previous February 2012 Integrated Feasibility Study. This work has progressed into 2013 and, as discussed above, will now be modified to reflect a standalone open pit operation.

The mineral resources in the table below do not include results from drill hole NC 12-34, which encountered 690 feet grading 1.17% copper as previously disclosed in New Release dated September 13, 2012, or any results from the current follow-up drilling program.

    WESTERN DEPOSITS - MEASURED AND INDICATED RESOURCES - AS AT SEPTEMBER   
                                   2012(i)                                  
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         Cutoff                Contained   Gold   Gold Silver Silver     Cu 
           Grade    Tons Grade     Copper Grade    (000 Grade    (000 Equiv.
Category   (%Cu)   (000) (%Cu)  (000 lbs)   opt    ozs)   opt    ozs)      %
----------------------------------------------------------------------------
Measured    0.20 186,037  0.48  1,793,250 0.002     318 0.054  10,124   0.53
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Measured    0.15 237,915  0.41  1,954,874 0.002     368 0.049  11,620   0.46
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Indicated   0.20 348,389  0.43  3,023,109 0.001     478 0.052  18,141   0.46
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Indicated   0.15 494,141  0.35  3,493,351 0.001     613 0.045  22,414   0.38
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M&I Total   0.20 534,426  0.45  4,816,359 0.001     796 0.053  28,265   0.48
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M&I Total   0.15 732,056  0.37  5,448,225 0.001     981 0.046  34,034   0.40
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(i)From NI 43-101 Technical Report filed October 19, 2012                   
                                                                            
       WESTERN DEPOSITS - INFERRED RESOURCES - AS AT SEPTEMBER 2012(i)      
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         Cutoff                Contained   Gold    GoldSilver  Silver     Cu
           Grade    Tons Grade     Copper Grade    (000 Grade    (000 Equiv.
Category   (%Cu)   (000) (%Cu)  (000 lbs)   opt    ozs)   opt     oz)      %
----------------------------------------------------------------------------
Inferred    0.20 138,149  0.40  1,094,775 0.001     150 0.049   6,775   0.43
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Inferred    0.15 225,073  0.31  1,388,107 0.001     219  0.41   9,296   0.42
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(i)From NI 43-101Technical Report filed October 19, 2012                    

Note: Copper equivalency is based on $3.00 per pound for copper, $1400 per ounce gold and $20 per ounce silver and metallurgical recoveries of 92%, 78% and 57.5% for copper, gold and silver respectively.

NEVADA COPPER CORP.

Giulio T. Bonifacio, President & CEO

We seek safe harbour.