Philippine Metals Inc. Signs Letters of Intent to Acquire Copper Projects Located in Mexico

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Nov. 27, 2014) - Philippine Metals Inc. ("PMI" or the "Company") (TSX VENTURE:PHI)(FRANKFURT:PM7) is pleased to announce the execution of two separate letters of intent (the "Letters of Intent") establishing the terms and conditions upon which PMI will acquire certain highly prospective copper projects located in the state of Coahuila, Mexico (the "Transactions"). In completing the Transactions, PMI will consolidate two adjacent and contiguous groups of mining concessions covering an aggregate 17,267 hectares. These Transactions will significantly expand the Company's geographic focus on copper while reducing its current reliance on the challenging Philippine mining sector. The Transactions, if completed, will result in a Reverse Takeover ("RTO") of PMI as defined by the TSX Venture Exchange (the "Exchange"), and as such the shares of PMI will be halted pending receipt of all requisite approvals.

The letter of intent dated November 25, 2014 between the Company and Molycomex S.A. de C.V. (together with its subsidiaries, "Molycomex") sets out the proposed terms of the acquisition by PMI of 100% of the shares of Molycomex in exchange for the issuance of 29.0 million PMI treasury shares (the "Molycomex Acquisition"), representing approximately 81.6% of the pro forma enlarged share capital upon completion of the Transactions before taking account any shares to be issued in connection with the financing as detailed below. The PMI shares issued will be subject to escrow restrictions to be established by the Exchange.

Molycomex is a private Mexican company that controls five contiguous concessions totaling 14,859 hectares that lie along the foot of the Sierra San Marcos y Pinos range in the state of Coahuila, Mexico, approximately 50 kilometers to the southeast of the town of Cuatro Cienegas. Molycomex holds a 100% interest in the Apache 4 concession, and a 70% interest in each of the Apache 14, San Antonio, Jabali and Jabali 2 concessions. Collectively, these concessions are known as the Madero Project.

Since 2010, Molycomex has incurred over $1.8 million of exploration expenditures on the Madero Project, including geochemical, geophysics and drilling activities. Molycomex has no material assets other than the Madero Project and no material liabilities other than approximately $2.5 million in loans accumulated to June 30, 2014 (the "Loans"). In connection with the Molycomex Acquisition, the holders of these Loans, who are related parties to the shareholders of Molycomex, have agreed to forgive the Loans at closing of the Transactions.