China Yunnan Copper Australia (ASX:CYU) Commence Drilling On Cloncurry Copper-Gold Prospects

Brisbane, Mar 10, 2008 (ABN Newswire) - China Yunnan Copper Australia Limited, (ASX: CYU) has commenced a Reverse Circulation (RC) drilling program over 12 kilometres of untested geochemical and geophysical copper anomalies within the Cloncurry Project, with a total of 12 holes for approximately 2000 metres of drilling planned.

The Cloncurry exploration program commenced on two high priority targets, the One Tree and Capsize prospects respectively. Field operations commenced 7 days after the ASX listing date of 29 October 2007, 30 kilometres north-west of Quamby on EPM12205 starting with a Ground Magnetics survey.

Contractor Terrasearch completed approximately 292 line kilometres of Ground Magnetics covering the margin of Naraku Granite, which is believed to be responsible for iron oxide-copper-gold (IOCG) mineralisation in the district. In addition to this, approximately 20 line kilometres of Induced Polarisation (IP) was completed by contractor Search in order to detect sub-surface sulphide bodies associated with the magnetic and soil copper anomalies.

The area targeted by the geophysical program on EPM 12205 was the north western and southern margins of the Naraku Granite in contact with the prospective Corella and Soldiers Cap metasediments. There is no evidence of previous drilling of these zones in spite of strong copper anomalism from a previous soil sampling program on the north western margin of the granite and significant magnetic anomalism on the southern margin of the granite, named Capsize Creek. Both copper anomalous zones have associated geophysical IP chargeability anomalies.

CYU seeks to discover and develop Ernest Henry style copper-gold and shear hosted copper oxide deposits in the Cloncurry and Mt Isa districts with drilling, geochemical and geophysical programs currently underway.

Currently, CYU is also commencing sampling and geophysical programs at the Pentland and Clermont projects, targeting Mt Leyshon style porphyry gold deposits. Drilling of CYU's FC4 Prospect 6 kilometres north of the copper-gold producing Ernest Henry Mine was completed in January, 2008 and the Company is awaiting assay results.

About CYU

CYU listed on the ASX on 29 October 2007 by issuing 16,000,000 25c shares to raise $4 million. CYU is an Australian company formed to explore for and develop minerals in Australia and overseas. Cornerstone investor, Yunnan Copper Industry (Group) Co Ltd, is one of China's largest copper producers. CYU is targeting high quality copper, gold and uranium projects with eleven wholly owned Exploration Permit for Minerals (EPM's) in the Mt Isa Inlier, Ravenswood-Pentland Province and the Clermont Inlier in Queensland.

About China Yunnan Copper Australia Limited

China Yunnan Copper Australia Limited (CYCAL) in engaged in exploring and developing minerals in Australia and overseas. CYCAL focuses on high quality copper, gold and uranium projects and has eleven 100% owned exploration permit for minerals (EPM's) tenements located in the Mount Isa Inlier, Ravenswood-Pentland Province and the Clermont Inlier in Queensland, Australia. The Cloncurry project in the Mount Isa Inlier contains wide intercepts of low grade copper associated with feldspar- magnetite alteration similar to the nearby Xstrata’s Ernest Henry Cu-Au deposit. The Mount Isa, Cloncurry and Pentland project areas are also prospective for uranium with the Malakoff uranium prospect located in the Cloncurry project area. CYCAL holds five project areas prospective for copper and gold. Four of the project areas are located in north Queensland and one, Clermont, in central Queensland.

About Yunnan Copper Co., Ltd

Yunnan Copper Co., Ltd. is principally engaged in the production and sale of non-ferrous metals and related products, as well as chemical products. The Company's main products include: electrolytic copper, copper rod, sulfuric acid, gold and silver. During the year ended December 31, 2006, the Company obtained approximately 72% and 17% of its total revenue from electrolytic copper and copper rod, respectively. The Company operates its businesses mainly in the domestic market. As of December 31, 2006, the Company had six major subsidiaries and five major associates. The Company is headquartered in Kunming, Yunnan province, China.