Santa Fe Metals Corp.

Santa Fe Metals Corp.

May 27, 2009 19:04 ET

Santa Fe Metals Commences Action RE Goldfields Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 27, 2009) - Santa Fe Metals Corporation (TSX VENTURE:SFM) ("Santa Fe" or the "Corporation") announces that it has commenced an action against GLR Resources Inc. ("GLR") and Linear Gold Corp. ("Linear") seeking, amongst other things, specific performance and damages related to Santa Fe's right to acquire the Goldfields Project from GLR.

In early May, 2009, Santa Fe was advised by GLR that Santa Fe submitted the winning bid in the auction process recently conducted by GLR for the sale of GLR's 100% owned Goldfields project (the "Goldfields Project") located near Uranium City in Northern Saskatchewan. Santa Fe has agreed to purchase the assets related to the Goldfields Project, including certain relevant material agreements and all related plant, equipment, information and data related to the development of the Goldfields Project, from GLR. The purchase price payable by Santa Fe for the Goldfields Project includes cash, common shares of Santa Fe and the assumption of certain liabilities under specified material contracts related to the Goldfields Project.

Santa Fe also has a right to match any superior unsolicited offer received by GLR for the purchase of the Goldfields Project.

Santa Fe has been constructively working with GLR to execute a definitive agreement with the intention of closing the transaction in June, 2009. On May 26th, 2009, each of GLR and Linear announced that they had entered into a definitive agreement for the purchase by Linear of the Goldfields Project.

Santa Fe's legal proceeding, commenced today by filing an endorsed writ of summons in the Vancouver registry of the Supreme Court of British Columbia, is against GLR for breach of contract and against Linear for inducing breach of contract and unlawful interference with economic interests.

About Santa Fe Metals Corp.

The Corporation's mission is to utilize the broad experience and expertise of its management team and board to aggressively identify and develop precious and base metal properties. The Corporation's management and board together have more than 200 years of industry experience in senior corporate positions encompassing exploration, mining and metallurgical engineering, operations, project management, finance and accounting and mining, corporate and securities law. Further information is available on the Corporation's website


IAN SMITH, President & CEO

Information in news release contains certain forward-looking statements which may include but are not limited to the use of words such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or a variation of such words and phrases or may state that certain actions, events or results "may", "could", "should", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Santa Fe Metals to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. These forward-looking statements include estimates, forecasts, and statements as to management's expectations with respect to, among other things, the acquisition by Santa Fe of the Goldfields Project. These forward-looking statements involve numerous assumptions, risks and uncertainties and actual results may vary materially.

The TSX Venture Exchange Inc. has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this press release.

Contact Information