Cerro de Pasco Resources Secures Funds for Easement to Start Drilling Program on its “El Metalurgista” Mining Concession in Peru - Seite 2

The most recent Historical Mineral Resource Estimate for the Quiulacocha tailings, prepared by JA Brophy in 2012, contained 7.4 million tonnes at 1.35% to 1.55% Zn, 0.55% to 1.00% Pb and 1.20 to 1.35 oz/t Ag. This estimate was based on a shallow surface auger sampling program which is estimated to represent only 10% of the expected tonnes of the tailings. Historical Mineral Estimates are historical in nature and cannot be relied upon for economic evaluations.

First Tranche Funding

Funding for the Easement has been secured through the sale of 15,450,000 subscription receipts of the Corporation (the “Subscription Receipts”) at a price of $0.10 per Subscription Receipt for aggregate gross proceeds of $1,545,000 (the “Offering”). The funds are held in escrow until the Release Conditions have been satisfied, namely: (i) the Corporation has received subscriptions under the Offering for a minimum amount of US$1,000,000; (ii) issuance of the Supreme Resolution, whereby the Peruvian Ministry of Energy and Mines grants and/or acknowledges the Corporation’s legal easement over certain surface areas owned by Activos Mineros SAC, allowing the Corporation to conduct mining activities in the “El Metalurgista” mining concession; and (iii) notification to the Corporation of the issuance of the Supreme Resolution.

Upon the satisfaction of the Release Conditions, 1) each Subscription Receipt will automatically be converted into a unit of the Corporation (“Unit”). Each Unit will consist of (i) one common share in the capital of the Corporation (a “Share”) and (ii) one half of one unit purchase warrant (each whole unit purchase warrant, a “Warrant”). Each Warrant shall entitle the holder thereof to acquire one additional unit (a “Warrant Unit”) at a price of $0.15 per Warrant Unit until the earlier of the date which is 24 months after the issue date of the Warrants and, if applicable, the Accelerated Expiry Date (as defined hereinafter) (the “Expiry Date”). Each Warrant Unit shall consist of (i) one additional Share (a “Warrant Share”) and (ii) one additional Share purchase warrant (an “Underlying Warrant”). Each Underlying Warrant shall entitle the holder thereof to acquire one additional Share (an “Underlying Warrant Share”) at a price of $0.25 per Underlying Warrant Share until the Expiry Date.