Carajas Copper : Letter to Shareholders/a> 24/05/2016 |

6588ebe6-4359-4dfc-b3c1-8903804c26cf.pdf

26 May 2016

Dear Shareholder,

PARTICIPATION IN PRO-RATA RENOUNCEABLE ENTITLEMENT ISSUE

As announced to ASX on 24 May 2016, The Carajas Copper Company Limited (CJC) is undertaking a pro-rata renounceable entitlement issue of approximately 204,999,921 fully paid ordinary shares in the capital of the Company (Shares) at an issue price of $0.003 per Share to its shareholders who are registered as shareholders at 4pm (WST) on 30 May 2016 (Record Date) to raise approximately $615,000 (Entitlement Issue).

The Offer is being made on the basis of 1.5 new Shares for every 1 Share held by eligible shareholder's registered at the Record Date. All of the Shares offered under the prospectus will rank equally with the Shares on issue at the date of the prospectus.

The entitlements under the Offer (Entitlements) are renounceable, which means that all or part of an eligible shareholder's rights to subscribe for Shares under the Offer may be traded on ASX.

The Company has lodged a prospectus in relation to the Entitlement Issue (Prospectus) with the Australian Securities & Investments Commission and the ASX and is available on the ASX website at asx.com.au for inspection. This document will be despatched to shareholders of the Company on 2 June 2016 and will outline the Entitlement Issue in detail.

Key Dates

The proposed timetable for the Entitlement Issue is as follows:

Lodgement of Prospectus with the ASIC Tuesday, 24 May 2016

Lodgement of Prospectus & Appendix 3B with ASX Tuesday, 24 May 2016

Notice sent to Shareholders Thursday, 26 May 2016

Ex date Friday, 27 May 2016

Rights start trading Friday, 27 May 2016

Record Date for determining Entitlements Monday, 30 May 2016 Prospectus and Entitlement and Acceptance Form sent out to Eligible Shareholders &

Company announces this has been completed Thursday, 2 June 2016

Rights trading ends Monday, 6 June 2016

Shares quoted on a deferred settlement basis Tuesday, 7 June 2016 Last day to extend the Closing Date Wednesday, 8 June 2016

Closing Date (5:00 pm WST)* Tuesday, 14 June 2016

Notify ASX of under subscriptions Friday, 17 June 2016

Date of issue of Shares to Eligible Shareholders and any Shortfall in accordance with

the Underwriting Agreement / Shares entered into Shareholders' security holdings Tuesday, 21 June 2016 Normal trading of Shares commences* Wednesday, 22 June 2016

These dates are subject to change and are indicative only. Subject to the ASX Listing Rules the Corporations Act 2001(Cth) the Directors reserve the right to vary the dates for the Entitlement Issue at their discretion.

The funds raised from the Offer are planned to be used in accordance with the table set out below:

Item	Proceeds of the Offer	($)	%
1.	Picha Project	110,000	17.89
2.	Salobo South Copper Project and Primavera Project	75,000	12.19
3.	Payments to creditors	199,319	32.41
4.	New project identification costs	50,000	8.13
5.	Working capital	127,615	20.75
6.	Expenses of the Offer	53,066	8.63
Total	615,000	100%

The above table is a statement of current intentions as of the date of this Prospectus. As with any budget, intervening events and new circumstances have the potential to affect the manner in which the funds are ultimately applied. The Board reserves the right to alter the way funds are applied on this basis.

The effect of the Offer on the capital structure of the Company, assuming the Offer is fully subscribed is set out below:

Shares

Number
Shares currently on issue	136,666,614
Shares to be issued pursuant to the Offer	204,999,921
Total Shares on issue after completion of the Offer	341,666,535

Performance Shares

Number
Performance Shares currently on issue	90,000,000
Total Performance Shares on issue after completion of the Offer	90,000,000

Options

Number
Unlisted Options exercisable at $0.02 each on or before 31 December 2018	30,000,000
Total Options on issue after completion of the Offer	30,000,000

In calculating entitlements under the Entitlement Issue, fractions will be rounded up to the nearest whole number.

Applicants

The Entitlement Issue is made to shareholders with registered addresses in Australia and New Zealand only.

Your acceptance of the Offer must be made on the Entitlement and Acceptance Form accompanying the Prospectus. Your acceptance must not exceed your Entitlement as shown on that form. If it does, your acceptance will be deemed to be for the maximum Entitlement.

You may participate in the Offer by:

1. taking up all of your Entitlement;

2. taking up a proportion of your Entitlement and allowing the balance to lapse; or

3. allowing all of your Entitlement to lapse.

If you wish to accept all or part of your Entitlement, you must:

1. complete the Entitlement and Acceptance Form and attach your cheque, drawn on an Australian bank or bank draft made payable in Australian currency, for all or part of the amount indicated on the Entitlement and Acceptance Form; or

2. pay the appropriate application monies for all or part of your Entitlement through the BPay® facility described in the Prospectus and the Entitlement and Acceptance Form. If you make your payment by BPay®, you do not need to return the Entitlement and Acceptance Form.

Ineligible Shareholders

The Offer is being made to all shareholders of the Company (Shareholders) named on its register of members at 4pm (WST) on 30 May 2016, whose registered address is in Australia or New Zealand. Overseas shareholders should contact the Company Secretary with any queries.

Full details of the Entitlement Issue will be contained in the Prospectus that will be mailed to eligible shareholders who are registered on the Record Date. Shareholders eligible to participate should read the Prospectus carefully.

Should you have any queries in relation to this matter, please do not hesitate to contact the Company on (+61 8) 9328 6264. Yours sincerely

Paula Cowan

Company Secretary THE CARAJAS COPPER COMPANY LIMITED