Financing Update and Notice of Results

5 May, 2015

Further to the announcement made on 30 March 2015, the Company would like to provide an update regarding both the financing for the continued development of its Rio Tinto Copper Project (“Proyecto Riotinto”), its current working capital position and also a notice of its results for the year ended 31 December 2014.

Financing Update

The Company remains in dialogue with its three largest shareholders, being Trafigura Beheer BV ("Trafigura"), Orion Mine Finance (Master) Fund I LP ("Orion") and Hong Kong Xiangguang International Holdings Limited ("Hong Kong Xiangguang"), an affiliate of Yanggu Xiangguang Copper Co. Limited ("XGC") (Trafigura, Orion and Hong Kong Xiangguang being the "Strategic Investors") with regard to a long term financing solution for the continued development of its Rio Tinto Copper Project. The Company has agreed non-binding terms with regards to an equity financing structure with several parties principally including the Strategic Investors (the “Financing”) and intends to enter into binding documentation by mid-May 2015.

Working Capital Update

Further to the working capital update provided on 30 March 2015, the Company continues to monitor expenditures, and expects that its working capital position is sufficient to allow it time to enter into binding definitive documentation for the Financing. The Company has a number of potential sources of short term financing for working capital purposes which the Board continues to evaluate should this be needed.

Results for the year ended 31 December 2014

The Company anticipates publishing its financial statements for the year ended 31 December 2014 on 8 May 2015.

Alberto Lavandeira, CEO of the Company, commented: “We continue to progress our discussions with a view to concluding the financing structure that will enable the Company to complete Phase 1 of our development and production programme, following which the focus will be on expansion plans. We remain on track to commence production as planned and look forward to updating the market as we work towards restarting operations at this historic project.”


EMED                                              Roger Davey/Alberto Lavandeira                        +34 959 59 28 50
Canaccord Genuity Limited        Henry Fitzgerald-O'Connor/Chris Fincken         +44 207 523 8000
Brandon Hill Capital                     Oliver Stansfield                                                     +44 203 463 5061
Walbrook PR                                  Nick Rome                                                               +44 207 933 8783

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