Centenario Copper Announces China Measured and Indicated Mineral Resource Category More Than Doubles to 29 Million Tonnes at 0.55% CuT

Initial metallurgical tests demonstrate excellent recoveries and significantly lower acid consumption than nearby Franke deposit

TORONTO, ONTARIO–(EMWNews – Aug. 20, 2008) – Centenario Copper Corporation (“Centenario” or the “Company”) (TSX:CCT) is pleased to announce the results of an updated mineral resource estimate and the results of metallurgical programs on its China copper deposit on the Pelusa property, located 6 km west of the Company’s Franke property in Region II, Chile. The mineral resource estimate incorporates the results of the 2007 infill drilling campaign which was undertaken to confirm previously inferred resources contained in the initial resource calculation (May 2007). It also incorporates the results of extensive sequential copper assaying and bottle tests, which forms the basis for a quantitative estimation of the total leachability of the mixed and secondary sulphide portions of the mineral resource. Two column programs have also been undertaken to date on the oxide zone. The geological modeling and mineral resources have been completed by Geovectra S.A. in Santiago, Chile. The metallurgical testing was undertaken at the SGS Lakefield metallurgical lab in Santiago. The resources and metallurgical testing programs have been reviewed by Tom Henricksen, Qualified Person who has also reviewed previous resource estimates for Centenario in this project.

The new mineral resource estimation has confirmed most of the previously inferred resources, which have been upgraded to the measured and indicated categories. Total Measured and Indicated Leachable Mineral Resources are now estimated at 29.0 million tonnes at 0.55% CuT, at a cut-off grade of 0.3% CuT. A further 0.8 million tonnes at 0.48% CuT is included in the Inferred category. This compares with the May 2007 Indicated Leachable Mineral Resource of 9.7 million tonnes at 0.58% CuT and a further 11.6 million tonnes at 0.55% CuT in the Inferred category. The earlier mineral resource also included a classification of primary sulphides, which consisted of an Indicated Mineral Resource of 2.3 million tonnes at 0.51% CuT and an Inferred Mineral Resource of 7.7 million tonnes at 0.45% CuT. Most of this material has now been reclassified as secondary sulphides and is included in the updated leachable Mineral Resource estimate.

Preliminary metallurgical test work has demonstrated that China material is amenable to treatment by a typical leaching, solvent extraction and electrowinning process. Preliminary test work has indicated an average overall recovery estimate for the China Leachable Mineral Resource of approximately 80%, with the oxide zone showing the highest recovery (85%) and the secondary sulphide zone the lowest (73%). The infill drilling has also confirmed the overall carbonate (CO3) profile of the China resources, a key determinant in projecting acid consumption in the copper extraction process. The average carbonate level in the updated Measured and Indicated Leachable Mineral Resource is 2.0% CO3, as compared to the 4.1% average CO3 level of the nearby Franke deposit. Metallurgical test work has resulted in a preliminary average acid consumption estimate for the China Leachable Mineral Resources of around 47 kg/t (compared to an average of 83 kg/t for Franke reserves), with oxides generally exhibiting the lowest acid consumption level (37 kg/t average) and the secondary sulphides the highest (57 kg/t average).

Richard Colterjohn, President and CEO of Centenario commented: “We believe that our recent work at China has added significantly to the potential value on this deposit. The infill drilling has been very successful in confirming the overall grade and carbonate levels while also converting previously defined inferred resources into the measured and indicated categories. The extensive metallurgical test work on the sulphides has allowed us to reclassify previously interpreted primary sulphide material into leachable material. Together, these activities have resulted in a significant increase in China’s overall measured and indicated mineral resource. Our metallurgical test work has also demonstrated outstanding recoveries and a much lower acid consumption profile than that of the nearby Franke deposit.”

“We are currently evaluating various alternatives for bringing the China deposit into production. Given the current high price for sulphuric acid, we are rapidly advancing an assessment of a potential scenario whereby an early China oxide starter pit is combined into the existing Franke mine plan, in order to significantly reduce our near term acid requirements. Our ability to do so will depend on a number of factors, including the definition of a satisfactory China oxide starter pit, ongoing metallurgical studies and an acceptable permitting timeline. We will give further guidance as these activities progress. Resource evaluations continue in parallel on other areas of mineralization on the Pelusa property (China Sur, India and Japan) and we expect to be able to report on this activity during the fourth quarter.”

2008 Mineral Resource Estimate

Following the development of a preliminary mineral resource calculation in May 2007, the Company undertook a further drilling campaign during the latter part of 2007 (12,134 metres in 66 holes of which 734 metres in 7 holes were diamond holes and the balance were RC holes), which was designed to better delineate the deposit boundaries and convert inferred mineralized resources into the measured and indicated categories. These results were then combined with the results from previous 2006-07 drill campaigns (19,216 metres in 118 holes of which 2,379 metres in 14 holes were diamond holes and the balance were RC holes) and used to develop an updated geological model, block model and mineral resource estimate. The table below sets out the updated tonnage/grade curve for mineralized material including oxides, mixed, secondary sulphides and primary sulphides materials:

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       2008 China Global Tonnage Grade Curve of Mineralized Material
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Cut-off                                                           Contained
Grade   Tonnage                             Leachability             Copper
(CuT %)     (Mt)  CuT (%)  CuS (%)  Cu L(%)     (CuL/CuT)  CO3(%)     (k lb)
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2.00        0.1     2.34     1.45     2.21          0.94     2.4      7,015
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1.00        2.0     1.37     0.76     1.22          0.89     2.0     60,194
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0.60        8.4     0.89     0.47     0.72          0.80     2.1    165,345
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0.50       13.2     0.76     0.40     0.60          0.78     2.1    221,567
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0.30       35.8     0.52     0.25     0.38          0.72     2.1    410,179
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0.20       58.7     0.42     0.19     0.28          0.66     2.2    543,346
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0.10      129.9     0.26     0.11     0.15          0.57     2.4    744,685
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0.001     313.2     0.13     0.05     0.07          0.54     2.5    897,585
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Notes: CuT equals Total Copper grade; CuS equals soluble copper grade;
CuL equals leachable copper grade (CuS+Cu CN)

In developing the Mineral Resource estimate, a 0.3% CuT grade cut-off has been used for estimating that portion of the total mineralized material that has a reasonable prospect of economic extractability. This was derived from previous economic evaluations on the nearby Franke deposit, which is a typical SX-EW leach project, with 3 stage crushing of ore to minus 1/2″ size. However, a considerable portion of China mineralized material lies between the 0.3% CuT and 0.2% CuT cut-off (13 million tonnes), which might be economically extractable through ROM dump leaching, which was not studied in the Franke economic assessment. The Company intends to assess this potential in a subsequent work program, which if successful, would lead to a reduction in the cut-off grade and increase in mineral resource tonnage. In addition, only the mineralization that might be processed in a traditional SX-EW process was included in the Mineral Resource estimate, which resulted in the exclusion of the primary sulphide zone (4.2 million tonnes at 0.41% CuT Measured and Indicated and 1.8 million tonnes at 0.46% CuT Inferred). Based on the foregoing 0.3% CuT cut-off grade, the following Leachable Mineral Resource estimate was derived:

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     China - Leachable Mineral Resource Estimate (0.3% CuT Cut-off grade)
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                                                 Acid Leach-    Leach-
                                   Contained  Soluble   able      able
Category             Tonnage   CuT        Cu       Cu     Cu        Cu  CO3
----------------------------------------------------------------------------
                         (Mt)   (%)     (klb)    (CuS) (CuL%)     (klb)  (%)
----------------------------------------------------------------------------
Oxides
Measured                 8.3  0.58   107,336     0.50   0.50    91,562  1.6
Indicated                3.6  0.52    41,008     0.43   0.43    33,735  2.1
                       -----------------------------------------------------
Measured + Indicated    11.9  0.57   148,344     0.48   0.48   125,297  1.7
Inferred                 0.2  0.40     1,667     0.34   0.34     1,298  3.2
----------------------------------------------------------------------------
Mixed
Measured                 7.0  0.54    84,027     0.31   0.46    70,283  2.1
Indicated                0.9  0.56    10,990     0.21   0.43     8,508  3.1
                       -----------------------------------------------------
Measured + Indicated     7.9  0.55    95,017     0.30   0.45    78,790  2.2
Inferred                 0.1  0.45     1,291     0.13   0.32       902  3.2
----------------------------------------------------------------------------
Secondary Sulphides
Measured                 7.4  0.53    87,589     0.07   0.42    68,631  2.2
Indicated                1.8  0.44    17,284     0.07   0.33    12,912  2.8
                       -----------------------------------------------------
Measured + Indicated     9.2  0.52   104,873     0.07   0.40    81,543  2.3
Inferred                 0.5  0.50     5,904     0.07   0.39     4,553  3.2
----------------------------------------------------------------------------
Total Mineral Resource
Measured                22.8  0.56   278,952     0.30   0.46   230,476  1.9
Indicated                6.2  0.51    69,282     0.30   0.40    55,155  2.4
                       -----------------------------------------------------
Measured + Indicated    29.0  0.55   348,234     0.30   0.45   285,630  2.0
Inferred                 0.8  0.48     8,862     0.13   0.37     6,753  3.2
----------------------------------------------------------------------------

The infill drill program was highly successful in converting previously inferred mineral resources into the measured and indicated categories, with 77% of the total now in the measured category, 21% in indicated and 3% in inferred.

A discussion of the key technical parameters on which the mineral resource estimate is based is set out in Appendix A to this release.

Metallurgical Test work Results

To date, the Company has performed various bottle roll tests on oxide, mixed and secondary sulphide material using RC holes sample rejects from the China deposit. In addition, a first column test campaign has been completed and a second column test campaign is in the final stages. Both column campaigns focused on oxide material. The samples were obtained from underground workings. Bottle and column tests campaigns were conducted at the SGS Lakefield lab, in Santiago.

Bottle test campaign

The purpose of this campaign was to study the effect of the geological variables on the metallurgical behavior of the China material when treated under acid–ferric leaching conditions. The acid-ferric condition is automatically produced from the Franke and China materials and previous tests have indicated that this type of solution facilitates a faster kinetic in the copper recovery. A total of 202 bottle tests were run, using samples from 76 RC holes, testing different ore types, copper grades, copper solubility and carbonate content. The spatial variable was also considered.

A summary of the bottle roll test results is shown in the table below. The table includes results from 183 of the 202 bottle rolls, as 19 tests (9%) were excluded (14 due to CuT less than 0.2%; 5 due to location outside of the preliminary pit design). The table present average values for each ore type.

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Ore   Bottle  CuT   CuS  CuCN Solub- Leacha-       Recovery       CO3    Net
       Tests                   ility  bility                            Acid
                                CuS/   (CuS+                            Con-
                                 CuT  CuCN)/                           sump-
                                         CuT   ----------------         tion
Type       #    %     %     %      %       %   %CuT  %CuS  %CuL     % kg/ton
----------------------------------------------------------------------------
Oxide     78 0.67  0.55  0.03   82.9    87.4   91.2  97.0  96.6  2.19   57.0
----------------------------------------------------------------------------
Mixed     32 0.73  0.36  0.25   49.5    83.7   84.9  92.2  90.9  3.54   81.7
----------------------------------------------------------------------------
Secon-
 dary
Sulp-
 hide     73 0.64  0.10  0.42   16.0   80.8   82.1  90.8 89.5 2.17     65.4
----------------------------------------------------------------------------

CuS is the soluble copper in sulphuric acid and Cu CN is the soluble copper
in cyanide (it is comparable with leachable copper under acidic-iron ferric
conditions). CuS + CuCN equals the leachability ratio. CuR is non soluble
copper and it is mainly associated with primary sulphides.

Test results were highly encouraging. High copper recoveries were obtained in all the materials and they are very consistent with, and slightly above, the leachability ratio. For oxide material, the total copper recovery averaged 91.2%, compared with 87.4% average leachability ratio. For the mixed and secondary sulphide material, the average total copper recoveries of 84.9% and 82.1% compared to average leachability ratios of 83.7% and 80.8% respectively. For the oxide material, the residual copper is 10% of total copper, which is consistent with the 91.2% total copper recovery. For mixed material, the residual copper is 14% of total copper, which is consistent with 84.9% total copper recovery. For secondary sulphide ore, type the residual copper is 19% of total copper, which is consistent with 82.1% total copper recovery. The net acid consumption (57.0 kg/ton in oxides, 81.7 kg/ton in mixed and 65.4 kg/ton in secondary sulphides) is due to the higher than average carbonate content in the samples selected for the tests (2.1%, 3.5% and 2.2%, respectively).

First column test campaign

The purpose of the initial column program was to assess projected copper recoveries and acid consumption across a variety of column heights, irrigation rates and leach periods. Six columns were performed on China oxide material, extracted from underground workings. The samples were composited and this material was used in all the columns. The results are presented below.

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                         Leach-                                          Net
                          ibil-                                         Acid
                  Solub-    ity     Flow                                Con-
                   ility  (CuS+     Rate Leach                         sump-
Col-                CuS/ CuCN)/ Hei-  l/   Cy-      Recovery(i)         tion
 umn CuT  CuS CuCN   CuT    CuT  ght hr/   cle                     CO3   kg/
#      %    %    %     %      %    m  m2  days  %CuT  %CuS  %CuL     %   ton
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1   0.49 0.42 0.02  85.7   90.2    4  10    35  86.2  91.6  90.9  1.41  36.9
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2   0.49 0.42 0.02  85.7   90.2    4  10    35  85.1  91.5  90.4  1.41  35.5
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3   0.49 0.42 0.02  85.7   90.2    4  15    38  82.0  86.3  86.1  1.41  34.1
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4   0.49 0.42 0.02  85.7   90.2    6  10    49  86.4  91.3  91.0  1.41  39.9
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5   0.49 0.42 0.02  85.7   90.2    6  10    49  88.1  93.4  93.1  1.41  39.4
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6   0.49 0.42 0.02  85.7   90.2    6  15    45  86.1  91.5  91.5  1.41  38.5
----------------------------------------------------------------------------

For all columns: P80 equals 1/2" (following the optimal size defined for
the Franke project), agglomerate acid dosage  equals  24 kg/ton based on
agglomerate tests. Columns 1 and 4 were irrigated with water adjusted only
in acid and Columns 2, 3, 5 and 6 were irrigated with water adjusted in acid
and ferric iron. These different conditions are not showing significant
variations in the recovery and/or acid consumption.

High copper recoveries were consistently shown in these columns. The total copper recoveries obtained averaged about 86% of total copper and are consistent with, but slightly below, the leachability ratio of 90% of total copper. The residual copper is around 10% total copper, which is broadly consistent with the 86% copper recovery. The acid consumption was around 35-40 kg/tonne.

Second column test campaign

The purpose of the second column program was to gain an initial assessment of the optimal crush size for leaching. Seven columns were performed with oxide material extracted from underground works. The samples were composited and this material was used in all the columns. The preliminary results are presented below.

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                             Leach-                                      Net
                              ibil-                                     Acid
                      Solub-    ity                                     Con-
                       ility  (CuS+     Leach                          sump-
Col-                    CuS/ CuCN)/       Cy-     Recovery(i)           tion
 umn  CuT   CuS  CuCN    CuT    CuT  P80  cle                     CO3    kg/
#       %     %     %      %      %    " days  %CuT  %CuS  %CuL     %    ton
----------------------------------------------------------------------------
1    0.70  0.57  0.03   81.8   86.6    2   87  45.3  55.5  52.4  0.74   20.3
----------------------------------------------------------------------------
2    0.70  0.57  0.03   80.8   84.5    2   86  45.1  55.8  53.3  0.74   16.7
----------------------------------------------------------------------------
3    0.71  0.58  0.03   81.5   86.0    1   84  55.7  68.4  64.8  0.92   23.1
----------------------------------------------------------------------------
4    0.71  0.58  0.03   81.5   86.0    1   84  56.4  69.2  65.6  0.92   20.7
----------------------------------------------------------------------------
5    0.68  0.54  0.04   79.4   85.1  3/4   54  68.4  86.1  80.4  0.87   23.8
----------------------------------------------------------------------------
6    0.68  0.54  0.04   79.4   85.1  3/4   84  72.3  91.1  85.0  0.87   23.2
----------------------------------------------------------------------------
7    0.68  0.53  0.04   76.9   82.1  1/2   84  75.7  98.4  92.1  0.86   25.5
----------------------------------------------------------------------------

All columns were agglomerated with 17 kg/ton acid dosage (based on
agglomerate tests), irrigated with water adjusted in acid and ferric iron
and charged at 6 meters height.

Only column # 7 used the same 1/2″ crush size as that used in first column program. While the column # 7 copper recovery (76%) was lower than the average recovery in the first column program (86% average), this is explained by the lower leachability ratio (82%) compared to the material used in the first column program (90%), as well as by the lower solubility ratio (77% compared to 86% in the first column program), which is caused by the much higher residual copper in the material (16% compared to 8%). Hence, the correlation between the leachability ratio and recovery evidenced by the first column program were broadly supported by the results from column # 7.

For larger crush sizes (columns #1-6), the recoveries progressively reduced with the increase in crush size, due to an incomplete leaching in the coarser fragments. Further testing is required in order to test the amenability of lower grade material (particularly less than 0.3% CuT), to ROM leaching, with a focus on selection of material that is more representative of the average solubility (84%) and leachability of the deposit.

Preliminary Conclusions and future metallurgical work:

Based on bottle and column test results, the initial conclusions are as follows:

– Bottle roll tests have demonstrated that the China material is amenable to be treated by a typical leaching, solvent extraction and electrowinning process.

– Column tests on oxide material have demonstrated good recoveries and a high level of confidence on the oxide portion of the mineral resource and has already defined optimum key leach parameters (crush size of p80 equals 1/2″ and heap height of 6 meters).

– For mixed and secondary sulphide material, bottle roll results have evidenced good recoveries (around 80% of CuT) which are driven by a strong correlation with the leachability ratio, rather than the more traditional solubility ratio. Subsequent column testing will be undertaken to increase the level of confidence in these relationships for these categories.

– For all categories, there is a positive correlation between acid consumption and carbonate level, as well as an inverse correlation with the solubility ratio (i.e. oxides will consume lower acid than mixed or secondary sulphides with the same CO3 level).

– Further test work is required to assess the potential for leaching lower grade (below 0.3% CuT) material in a ROM leach scenario, which if successful, could lead to an important increase in the overall mineral resource and recoverable copper.

The table below sets out the preliminary projections of average recovery and acid consumption values for each zone of the Leachable Mineral Resource, using average solubility ratios and carbonate levels. These projections are based on formulas developed from the metallurgical test work and extrapolated for industrial scale and which are set out in Appendix B to this release. The confidence in the formulas for the oxide zone is reasonably strong, since metallurgical work this portion of the mineral resource has already advanced to the column stage. The confidence in the mixed and secondary sulphide portions is lower since the metallurgical work has yet to progress beyond the bottle stage to columns.

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China - Preliminary metallurgical parameters
----------------------------------------------------------------------
                      M&I                                         Acid
Zone             Resource     CuT     CuS     Recovery    CO3    Cons.
----------------------------------------------------------------------
                    mm mt       %       %        % CuT      %    kg/mt

Oxide                11.9   0.57%   0.48%          85%   1.7%       37
Mixed                 7.9   0.55%   0.30%          78%   2.2%       52
Sec. Sulphide         9.2   0.52%   0.07%          73%   2.3%       57
                 -----------------------------------------------------
Average              29.0   0.55%   0.30%          80%   2.0%       47
----------------------------------------------------------------------

Quality Control and Quality Assurance:

All RC holes were sampled on a 2 meters continuous basis, with samples riffle split on site and one quarter sent to the ALS Chemex laboratory in La Serena. A half sample was stored at a Company facility for reference. Samples were regularly collected by a truck belonging to ALS Chemex and transported to the laboratory. Samples were prepared using the following standard protocol: drying, crushing to better than 95% passing 2 mm, splitting and pulverizing a 200 g subsample to 95% passing 0.106 mm. All samples were analyzed for CuT, CuS and CO3. A full QA/QC program, involving insertion of appropriate fine and coarse blanks, standards and field and lab duplicates was employed with acceptable results.

The QA/QC process for the head and residue (tails) material from both bottle and column tests have been supported by doing duplicate samples in an external lab.

Roman Flores, Exploration Manager of Centenarios Chilean subsidiaries, a geologist with more than 33 years experience, was responsible for the design and execution of the drilling programs and related exploration activities. Geologic Model and Mineral Resource estimation was conducted by Geovectras senior geologist staff, including Jozsef Ambrus, principal of Gevectra and Ramon Aguirre. Metallurgical test work was undertaken at the SGS Lakefield lab in Santiago and was conducted by Rodrigo Glasner, Centenarios Chief of Metallurgy, a metallurgist with 8 years of experience and Hans Hein, a senior metallurgist with more than 35 years of experience, and a metallurgical consultant to Centenario.

Tom Henricksen, a consultant with more than 36 years of experience, is the Qualified Person for the purposes of NI 43-101 and takes responsibility for the technical information contained herein. Mr. Henricksen has visited the property and has reviewed and approved the information contained herein in this press release.

Other Information

Additional information related to the Company is available for viewing on SEDAR at www.sedar.com and at the Company’s website at www.centenariocopper.com.

CENTENARIO COPPER CORPORATION

Richard Colterjohn, President and CEO

About Centenario Copper Corporation:

The Company was founded in 2004 with the goal of becoming a mid-tier copper producer and consolidator, active in regions of low sovereign risk. Centenario currently operates exclusively in Regions II and III of Chile. The Company intends to achieve its goal through the acquisition and development of advanced, mid-sized copper projects. It then plans to enhance the scale and value of its principal projects through the roll-up of smaller satellite copper resources which exist regionally around the principal projects.

The Franke Property, located in Region II, is currently in construction and is projected to produce 30,000 tonnes of cathode copper per year, starting in December 2008. On the nearby Pelusa Property, a fast track evaluation of various copper targets is underway. The Company believes that the Pelusa Property is highly prospective for developing additional leachable copper resources and is evaluating possible production scenarios, including processing at the Franke plant. The Pan de Azucar Property, located 45 km. from the Franke Property, is currently being evaluated as a possible nucleus for a second property cluster. The Company continues to evaluate other “in region” clustering opportunities which could reinforce its existing property portfolio.

Copies of NI 43-101 Technical Reports are posted on SEDAR and on the Company’s web site. For more information, please visit the Company’s website at www.centenariocopper.com.

CAUTIONARY STATEMENT: No stock exchange, securities commission or other regulatory authority has approved of disapproved the information contained herein. This News Release includes certain “forward-looking statements”. All statements other than statements of historical fact, included in this release, including, without limitation, statements regarding future plans and objectives of Centenario Copper Corporation, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Centenario’s expectations are the risks detailed herein and from time to time in the filings made by Centenario Copper Corporation with securities regulators.

Appendix A: Technical parameters for the 2008 Leachable Mineral Resource estimate

– Geovectra geologists defined a general envelope for the deposit, within which the high-grade mineralization solids were interpreted. Sample populations inside and outside of these high grade areas of mineralization were separated for geostatistical purposes. Both populations were further divided by mineral zone into Oxides, Mixed, Secondary Sulphides and Primary Sulphides. As discussed in the release, the primary sulphides were subsequently excluded from the calculation of mineral resources.

– Covariance variograms were used for each population, and ordinary kriging of total copper (CuT) was performed. No capping for CuT was necessary.

– Measured mineral resources were defined for those blocks with at least two CuT samples, in different octants, within the range corresponding to 50% of the variogram range. Indicated mineral resources were defined in a similar fashion, using 100% of the variogram range instead.

– All samples with CuT greater than 0.1 % were also assayed for acid soluble copper (CuS). CuS values for samples below this grade for which acid soluble copper was not assayed were assigned a generic solubility of 0.5. Ordinary kriging was then performed, using the same samples to estimate CuT and CuS for every block.

– Approximately 10% of the samples, particularly those in the mixed and secondary and primary sulphide zones, were selected for sequential copper analysis, which measures the amount of acid insoluble copper that can be digested by a cyanide solution (Cu CN). Sequential copper assays allowed the average CuCN/ (CuT – CuS) ratios to be calculated by grade range and mineral zone. After classifying the blocks in the same way and assigning the corresponding ratios, Cu CN was estimated from the kriged CuT and CuS values.

– Metallurgical testing showed that Cu CN values properly modeled the leachability of secondary sulphide minerals in the China deposit (mainly chalcocite and bornite). Thus, in addition to the acid soluble copper resource, the leachable copper (CuL) resource was estimated, defined for each block as CuL equals CuS + Cu CN. It should be noted that secondary sulfide minerals are only present in the mixed and secondary sulphides zone, therefore Cu CN equals 0 for both oxides and primary sulphide zones.

– A covariance variogram was made for carbonate values and ordinary kriging was performed. Since the highest carbonate grades were confined to calcite veins not related to the mineralization, overestimation was avoided by (capping values over 25% CaCO)3 (and restricting the search radius for values above 15% CaCO)3(.)

– A section-based lithological model was created and extruded to generate the three-dimensional solids used to assign rock type and density to the block model. Average densities by rock type defined using the results of over 1,600 specific gravity measurements on core samples.

– The results were validated using trend analysis, and graphical and statistical validation.

Appendix B: Preliminary recovery and acid consumption formulas for China oxide, mixed and secondary sulphide zones

Set out below are the preliminary recovery and acid consumption formulas for each zone of the mineral resource (oxides, mixed and secondary sulphides) which will be used for purposes of developing preliminary mine plans. They are based on results to date and extrapolated for industrial scale. As discussed above, the confidence in the formulas for the oxide portion are reasonably strong, since this portion of the mineral resource has already advanced to the column stage. The confidence in the mixed and secondary sulphide portions is lower since the metallurgical work has yet to progress beyond the bottle stage to columns.

- Oxide Zone:
-- Recovery (%) equals 100 x 0.97 x (0.95 x CuS/CuT + 0.50 x (1 - CuS/CuT))
-- Net Acid Consumption (kg/t) equals 0.75 x (16.09 xCO3 + 21.73)

- Mixed Zone:
-- Recovery (%) equals 100 x 0.97 x (0.90 x CuS/CuT + 0.70 x (1 - CuS/CuT))
-- Net Acid Consumption (kg/t) equals 0.85 x (15.30 x CO3 + 27.55)

- Secondary Sulphide Zone:
-- Recovery (%) equals 100 x 0.97 x (0.80 x CuS/CuT + 0.75 x (1 - CuS/CuT))
-- Net Acid Consumption (kg/t) equals 0.85 x (15.99 x CO3 + 30.70)

(CuS, CuT and CO3 are expressed in %).