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Project Highlights

Compañía Minera Coronado S. A. de C. V. (“CMC”), a wholly-owned subsidiary of Santa Fe Metals Corp., is focused on the development of its high grade copper oxide deposit, Cuatro Cienegas, in the State of Coahuila, Mexico.

CMC has acquired a 100% interest in the concessions comprising the Cuatro Ciénegas property, which total 3,408 ha, subject to fulfillment of certain obligations including royalty payment.

Cuatro Ciénegas is a high-grade copper project (with silver, lead & zinc) slated for production within the next year. The Company intends to develop underground exploration drifts as part of its exploration program of this flat lying sedimentary copper system. Material gathered will be processed on site in a conventional acid heap leach operation to produce cement copper which can be shipped directly to a smelter for refining. This process has existed for centuries and is a reliable, cost-effective way of producing copper. Recovery of copper from copper oxides using this process is typically in the range of 85%. Other metals, however, are not usually recovered in the process. Any revenues generated from the operation will be used to fund exploration activities on this and other Company properties. Information gathered from the process can be used to establish resource estimates at Cuatro Ciénegas. The Company cautions that no Feasibility Study has been completed at this time and there are no resource estimates because of insufficient drilling data. The process is primarily for exploration and there is no certainty that its planned operation will be cash flow positive.

In a recently completed Technical Report, the author, Dr. Bersch, P. Geo., concluded that the mineralization found in the Cuatro Ciénegas project area is sediment-hosted, stratiform copper-silver-lead-zinc mineralization of the Kuperschiefer-type (commonly referred to as “red-bed”). Deposit comparisons include Spar Lake (Troy), White Pine (Michigan, USA), Kupferschiefer district (Germany and Poland), and Zambia-Congo copper belts. Tabular deposits of this type have been known to extend laterally for tens of kilometers and vary in thickness from tens of centimeters to several meters. Such lateral potential is indicated on the Don Indio concession by mines and prospects along a strike length of at least five kilometers and in El Granizo for approximately two kilometers on the opposite side of the valley. Previous exploration has identified copper-silver mineralization in the Don Indio concession at true thicknesses up to 23 meters. At El Granizo, the author estimated copper mineralization over a thickness of ten meters. Results of previous exploration conducted by others in historical workings at Don Indio have been reported and include a weighted average of 95 samples at 3.3% copper, and 117 g/t silver (from level 4 in the Pilar Grande mine); and a weighted average of 20 samples from level 1 in the San Marcos West mine at 3.0% lead, 5.0% zinc, and 53 g/t silver.