Home » News » Option acquired on Lobos property; Name change and private placement

Tequila Minerals Corp. Acquires Option on Lobos Property, Durango & Zacatecas Mexico; Announces Name Change and Private Placement

January 18, 2008

Vancouver, BC: Tequila Minerals Corp. (the "Company") is pleased to announce that, through its wholly-owned Mexican subsidiary Compañía Minera Coronado S.A. de C.V., it has entered into an arm’s length option agreement with Minera Gama S.A. de C.V. for the acquisition of the Lobos Property located in the states of Durango and Zacatecas, Mexico. The acquisition constitutes the Company's qualifying transaction under TSX Venture Exchange policies. On completion of the qualifying transaction the Company's name will be changed to Santa Fe Metals Corp. The new trading symbol will be SFM.

Under the option agreement, the Company has the right to acquire a 100% interest in the Lobos property for US$2,625,000 payable over four years with US$225,000 of such payments to be made in the first year. The property is subject to a 2% net smelter return royalty of which 1% can be purchased within five years for payment of a further US$1 million. No shares are issuable in connection with the acquisition.

The Lobos property comprises 9,597 hectares and is located on the border of Durango and Zacatecas States, approximately two hours by road north of the town of Zacatecas on Hwy 49 and about 30km NE of the town of Juan Aldama on a good unpaved rural road. The Company has completed a Technical Report on the property under the policies and regulations of National Instrument 43-101 which has been filed with the TSX Venture Exchange and is posted on SEDAR.

The potential of the Lobos property was first identified by Minera Gama from a regional magnetic geophysical program. The magnetic anomaly at Lobos bears striking similarity to that at Goldcorp’s Penasquito property, approximately 150km due east of Lobos. Some of the features similar to Penasquito are a very large structurally controlled hydrothermal breccia field, epithermal veins, manto systems, skarn and carbonate replacement deposit (CRD), and mineralization in selected hosts. Hydrothermal alteration which appears to surround the breccia system is propylitic and may have a weak phyllic alteration overprint. All of the above features are also associated with the Penasquito deposit.

Initial field geological reconnaissance has shown that Lobos property hosts numerous gold (Au), silver (Ag) and base metal showings particularly lead (Pb) and zinc (Zn) as well as antimony (Sb), mercury (Hg), arsenic (As), the latter being indicator minerals for hydrothermal Ag and CRD Pb, Zn, Ag systems. There are several small mine workings for antimony, lead, zinc and silver on the property. Grab and chip sample assays and XRF readings show that in many instances silver and base metals assays are above anomalous levels.

There are no records of drilling, or exploration using modern exploration methods or technology, having ever been carried out on the Lobos property. The Company intends to conduct an exploratory drilling A/007744000/29506.6 NR 08-01 program in the First Quarter 2008 to test the various deposit types with follow up geochemical and geophysical investigations to help identify targets for further diamond drilling interrogation1.

To fund the initial Lobos exploration program, to complete other property acquisitions currently in progress and to provide general working capital, the Company intends to raise $2,040,000 by way of a non-brokered Private Placement, offering 3,400,000 units at $0.60 per unit. Each unit will consist of one share and ½ share purchase warrant. Each whole warrant entitles the holder to purchase a share at $0.80 for one year. This private placement is expected to close on January 25th, 2008.