Stingray Copper Inc.

Stingray Copper Inc.

November 26, 2008 11:24 ET

Stingray Corporate Update; Strong Financial Condition Feasibility Study on Track at El Pilar Copper Project

TORONTO, ONTARIO--(Marketwire - Nov. 26, 2008) - Stingray Copper Inc. ("Stingray") (TSX:SRY)(TSX:SRY.WT) CEO, Peter Mordaunt reports that Stingray's corporate objective is on schedule and well funded. "Stingray has maintained an enviable level of financial security underlying the Corporation's mandate to complete the Feasibility Study of the El Pilar Oxide Copper Project located in Sonora Mexico."

Stingray has approximately $18 million of working capital, principally cash held on deposit at a major Canadian Bank, with no debt and all its current financial obligations met. This represents $0.31 of cash per Stingray common share. The El Pilar Feasibility Study is well advanced with both Stingray engineers and third party consultants working towards completion of their contributions to the study. Stingray has already funded the majority of the Feasibility Study work. M3 Engineering & Technology Corp. ("M3") will be overseeing the integration of all components of the Feasibility Study to be completed by April of 2009.

Management is well aware of current commodity price trends. These commodity price swings can also be advantageous for projects like El Pilar. As an example, one of the principal operating costs of an SX-EW (solvent extraction - electrowinning) project is sulfuric acid. The spot price of this commodity as reported by the research firm PentaSul has declined from a high of US$650 per tonne to an October price of US$150 per tonne. Stingray expects that operating cost reductions of this type, including fuel, will have positive effects upon the viability of the El Pilar Project. There are many countervailing factors that may be beneficial at a time when copper prices have declined. Stingray's management team is greatly encouraged by this new operating cost landscape.

Mr. Mordaunt explains, "We expect to be sourcing project financing at a time when commodity prices are stabilizing. With traditional banks hampered by current economic difficulties, there are new lenders entering the commodities arena. We see more financial participation from Sovereign Wealth Funds, Private Equity Firms and Commodity Trading Groups. A viable project with a good return always attracts attention. We expect to have many options available to advance the El Pilar Project and add value for our shareholders, subject to a positive Feasibility Study."

El Pilar Feasibility Study Update

Stingray's technical team and consultants are working with M3 on all aspects of the Feasibility Study:

- Independent Mining Consultants Inc. ("IMC") is finalizing the Geologic/Resource/Reserve Models

- Metcon Research Inc. ("Metcon") has prepared the report on Database Quality Assurance and Quality Control

- IMC continues to develop the Mine Plan and Mine Schedule

- Stingray is preparing a Trade Off Study of Contract Mining vs Company Mining Fleet

- Golder Associates Inc. ("Golder") recently established the "open pit" Slope Design Criteria which allows for the determination of the final mine plan and schedule

- Golder is completing its work to establish the Heap Leach Facility Location and Design. Samples of column leach residue have tested positively for percolation and heap stability under the design criteria of 80 meters on the heap leach pad

- Metcon has completed the preparation of 5 composite samples representative of the mine schedule (Year 1, Year 2, Year 3, Years 4-6, Years 7-9), and performed the following metallurgical testwork:

-- bottle roll tests (See NR 2008 - 13)

-- mini-column leach tests

-- open cycle column leach tests

-- closed cycle column leach tests

These tests are designed to provide Metallurgical Copper Recovery Estimates, Sulfuric Acid and Solvent Extraction Reagent Consumptions

- Stingray has developed the Process Flow Design

- Stingray has developed the SX-EW Plant Design

- Stingray has developed the Material Handling and comparative Trade Off Studies

- Patricia Aguayo Hurtado Environmental Consultants have completed Environmental Baseline Reports, Socioeconomic Studies and are developing the Environmental Impact Statement ("MIA") for submission to the government prior to permitting

- IDEAS has completed its Hydrological Assessment Report of the Santa Cruz Basin and is preparing submissions to government prior to an application for the water permit

- Stingray has determined the Project Power Requirements, Power Availability and Costing for delivery from the Mexican Power Authority ("CFE")

- Stingray has designed the Site Facilities and the General Arrangement Plan

- Stingray is establishing Sources and Costs for Sulfuric Acid and related costs for delivery

- Stingray is preparing a Trade Off Study for the Construction of a Sulfur-Burning Sulfuric Acid Plant with byproduct Power Generation Capability

- Stingray engineers are calculating Capital and Operating Cost Estimations

- Stingray is preparing the Financial Evaluation/Modeling and Sensitivity Analysis

- M3 has recently been engaged (NR 2008 - 14) to review, audit, supplement and finalize the content of the El Pilar Feasibility Study for completion, April, 2009

Stingray is pleased to be working with such an experienced group of consultants and the El Pilar Feasibility Study being prepared by M3 will be a top quality document that will be acceptable to financial institutions, governments and regulatory agencies. Stingray's current objective is to develop the El Pilar project as an open pit, heap leach, SX-EW copper mine that produces cathode copper.

Peter Mordaunt, P.Geo is the Qualified Person responsible for the technical content of this release.

TSX Symbol: Common Shares - "SRY" Issued: 58,725,982 common shares
Warrants - "SRY.WT" 20,850,000 warrants

Certain Statements presented herein may constitute "forward-looking statements". Such forward-looking statements may include potential mineralization, resources and reserves, conclusions of prefeasibility and feasibility studies, estimates of future production, capital and operating costs, prices of metals and other known and unknown risks. These and other factors and uncertainties may cause material differences from future results as expressed or implied by these forward-looking statements. These risks, uncertainties and other factors include but are not limited to the risks involved in the exploration, development and mining business.

Contact Information

  • Stingray Copper Inc.
    Steve Brunelle
    Vice President
    (416) 368-6240
    Stingray Copper Inc.
    Peter Mordaunt
    CEO & Chairman
    (416) 368-6240