Emerita Enters Into Letter of Intent to Acquire A Zinc Project in Spain

TORONTO, ONTARIO--(Marketwired - March 20, 2017) - Emerita Resources Corp. (or "Emerita") (TSX VENTURE:EMO) is pleased to announce that it has entered into a letter of intent (the "LOI") with a large mining company (the "Vendor") pursuant to which Emerita can acquire from the Vendor all of the rights to the Masa Valverde Zinc project (the "Project") located in the highly prolific Iberian Pyrite Belt, Spain (the "Transaction"). The Project covers an area of 14 square kilometres and is located in the Andalusia region of southern Spain. The LOI is non-binding, except for certain sections including a right of exclusivity which expires on May 18, 2017.

Summary:

• Emerita and the Vendor have signed the LOI which outlines the material terms and conditions pursuant to which Emerita can acquire a 100% interest in the Project.
  
  
• Pursuant to the LOI:
  
  
  • Emerita has 60 days to conduct due diligence investigations on the Project.
    
    
  • If Emerita is satisfied with the results of its due diligence, Emerita and the Vendor will negotiate and enter into the definitive agreements for the Transaction.
    
    
  • In order to complete the Transaction, following execution of definitive agreements, Emerita shall pay to the Vendor EUR4.5 million in cash in instalments over a two (2) year period (see below for more details). The Vendor will retain a 2.5% net smelter return royalty on production from the Project and will, at its option, provide offtake for the products.
    
    
• The Project hosts a classic, polymetallic, volcanogenic massive sulphide ("VMS") deposit that is locally enriched in gold and contains zinc rich massive sulphide zones and a copper rich zone as is characteristic for VMS deposits. Drilling to date has outlined a sulphide body that is greater than 1,200 meters long and greater than 200 meters wide.
  
  
• The mineralization remains open for expansion by further drilling.
  
  
• The Project is located in the Andalusia region of southern Spain. This is an area well serviced with infrastructure including paved roads, cellular coverage, rail, water and power and ports as well as a number of producing base metal mines.
  
  

Key Terms of the LOI:

Pursuant to the LOI, Emerita can acquire from the Vendor a 100% interest in the rights to the Project. The LOI is non-binding, except for certain sections including confidentiality provisions and a right of exclusivity which expires on May 18, 2017.