Cerro Resources NL
ASX : CJO
TSX VENTURE : CJO

Cerro Resources NL

July 31, 2012 10:28 ET

Cerro Resources NL Reports Quarterly Activities and Files Financial Statements for the Period Ending June 30, 2012

LONGUEUIL, QUEBEC--(Marketwire - July 31, 2012) - Cerro Resources NL (ASX:CJO)(TSX VENTURE:CJO) ("Cerro" or "the Company") is pleased to release a summary of the Company's quarterly activities. The detailed Quarterly Activities Report which also includes the financial statements for the period ending June 30, 2012, is posted on the Company's website www.cerroresources.com and will be filed on www.sedar.com today.

Link to view complete quarterly report: Quarterly June 30, 2012 (http://media3.marketwire.com/docs/CJO_July31-2012_Quarterly_ReportandFS.pdf)

HIGHLIGHTS BELOW

Corporate

  • 2012 Share Purchase Plan offer activated following quarter end;
  • $4.4M cash available as at June 30, 2012

Mexico

Cerro del Gallo Gold/Silver/Copper development project, Guanajuato, Mexico (68% CJO, 32% Goldcorp)

  • Completed Definitive Feasibility Study on 1st stage Heap Leach
  • Published NI 43-101 Technical Report
  • Goldcorp provided with Cerro del Gallo 43-101 FS documentation
  • Advanced discussions on potential avenues to fund construction undertaken
  • Tender documents to invite mining contractors working in Mexico to bid on mining at CDG have been drafted and will be issued in the coming months
  • Financing decision shall be determined once minority (32%) JV partner has determined whether to participate in next phase of development & construction of the CDG mine

Namiquipa Silver/Lead/Zinc project, Chihuahua, Mexico, 100 %

  • Phase 1 drilling, comprising of 86 holes has been completed during the quarter and final assays reported
  • Results will be incorporated into a detailed geological-geophysical-geochemical model
  • Maiden resource estimate expected during 2H 2012
  • Surface exploration continues (geochemical sampling and IP surveying) designed to trace the mineralization to the north. Final results should be available in the 3rd Quarter

Espiritu Santo Gold/Silver

  • Initial surface exploration program identified 17 major quartz breccias veins
  • Typical widths 3 - 8+ meters with strike lengths up to 1 km+
  • Rock Chip sample program returned gold values as high as 7.92 g/t Gold and 372 g/t Silver
  • Exploration and drill target definition is focusing on El Gringo, Lourdes veins and the Greater Carmela area
  • Additional exploration surface work is continuing in San Pascual and Patas veins
  • Furthermore, an active program is currently underway to locate new veins and extend the known veins
  • Following completion and weather permitting, drilling is anticipated 2H2012

Australia

Mt Philp

  • No geological work undertaken during the quarter
  • Application made to convert the holding to a Mineral Development Licence

About Cerro Resources

Cerro Resources is a precious and base metals exploration and development company. The Company is currently focused on Mexico where it is developing the Cerro del Gallo gold/silver project in the central state of Guanajuato, Mexico, actively exploring the Namiquipa silver project in northern Mexico, and commencing exploration on the Espiritu Santo gold/silver project in Jalisco. It also maintains an active focus on the Mt Isa, Queensland, region where it holds 100% of the Mt Philp haematite project as well as a continued interest in the Kalman molybdenum, rhenium, and copper project.

Additional information about the Company is available on the Company's website at www.cerroresources.com and on SEDAR.

Competent Person/Qualified Person

The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr John Skeet (as it relates to process related material), who is a Fellow of the Australasian Institute of Mining and Metallurgy; and Mr Bill Fleshman (as it relates to Cerro del Gallo, Namiquipa, and Espiritu Santo Projects), who is a Fellow of the Australasian Institute of Mining. Mr Skeet is the Chief Operating Officer of Cerro Resources NL and Mr Fleshman is a consultant to Cerro Resources NL. They have sufficient experience, which is relevant to the style of mineralization and type of deposit under consideration and to the activity which they are undertaking to qualify as a Competent Person as defined in the 2004 edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves" and "qualified persons" as this term is defined in Canadian National Instrument 43-101 ("NI 43-101"). Mr Skeet and Mr Fleshman consent to the inclusion in the report of the matters based on their information in the form and context in which it appears.

Forward-Looking Information

This quarterly report contains "forward-looking information" under Canadian securities law. Any statement that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance are not statements of historical fact and may be forward-looking information. Forward-looking information relates to, among other things: the timing and results of exploration programs, the interpretation of such results, the potential of the projects, the planned continuation of a drilling program, the plan to complete additional resource estimate and studies and obtain required permits, the accuracy of mineral resource and mineral reserve estimates, the ability of the Company to finance its operations and capital expenditures, future financial and operating performance including estimates of the Company's revenues and capital expenditures and estimated production.

Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be factors that cause results to be other than as anticipated, estimated or intended. There can be no assurance that the forward looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information contained herein, except in accordance with applicable securities laws.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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