Cerro de Pasco Resources Secures Funds for Easement to Start Drilling Program on its “El Metalurgista” Mining Concession in Peru - Seite 3

In the event that, during the 24-month period following the issue date of the Warrants , the volume-weighted average trading price of the Shares exceeds $0.60 per Share for any period of 20 consecutive trading days, the Corporation may, at its option, following such 20-day period, accelerate the expiry date of the Warrants by delivery of a notice (an “Acceleration Notice”) to the registered holders thereof and issuing a press release (a “Warrant Acceleration Press Release”), and, in such case, the expiry date of the Warrants shall be deemed to be 5:00 p.m. (Montreal time) on the 30th day following the later of (i) the date on which the Acceleration Notice is sent to Warrant holders, and (ii) the date of issuance of the Warrant Acceleration Press Release (the “Accelerated Expiry Date”).

In connection with the completion of the Offering, the Corporation expects to pay finder’s fees in an aggregate amount of $21,000 and issue a total of 210,000 Warrants to arm’s length third parties who assisted the Corporation by introducing subscribers to the Offering.

All securities issued in connection with the Offering are subject to a statutory hold period in accordance with applicable securities laws, expiring four-month-and-one-day from the issue date of the Subscription Receipts.

The Corporation expects to close an additional tranche by the end of the month.

The securities to be issued under the Offering have not been, and will not be, registered under the U.S. Securities Act of 1933 as amended (the “U.S. Securities Act”), or any state securities laws. Accordingly, these securities may not be offered or sold, pledged or otherwise transferred within the United States or to U.S. persons unless registered under the U.S. Securities Act and applicable state securities laws or pursuant to exemptions from the registration requirements of the U.S. Securities Act and applicable state securities laws. This news release does not constitute an offer to sell or the solicitation of an offer to buy securities in the U.S., nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

Technical Information

Mr. Jorge Lozano, MMSAQP and Chief Operating Officer for CDPR, has reviewed and approved the scientific and technical information contained in this news release. Mr. Lozano is a Qualified Person for the purposes of reporting in compliance with National Instrument 43-101 - Standards of Disclosure for Mineral Projects.