Esperanza Resources Corp.
TSX VENTURE : EPZ

Esperanza Resources Corp.

October 21, 2010 18:28 ET

Esperanza Announces Strategic Investment in Global Minerals Ltd.

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 21, 2010) - Esperanza Resources Corp. ("Esperanza" or the "Company") (TSX VENTURE:EPZ) is pleased to announce the strategic investment of $1.45 Million in Global Minerals Ltd. ("Global"). The investment will ultimately yield Esperanza a 36.4% equity interest in Global. Global's primary asset is the Streborna silver-copper deposit in Slovakia. This is an advanced stage exploration project.

Global raised $2,550,000 through the issuance of 23,066,667 common shares at a price of $0.075 per share for gross proceeds of up to $1,730,000 and 10,933,333 special warrants at a price of $0.075 per special warrant for gross proceeds of $820,000. Esperanza subscribed for 8,400,000 common shares resulting in a 19.9% ownership interest in Global. In addition, Esperanza subscribed for all of the Special Warrants, which will convert automatically into 10,933,333 common shares, without payment of additional consideration, upon receipt of approval by Global's shareholders of Esperanza becoming a 'control person' of Global (36.4% ownership interest after giving effect to the conversion of the special warrants into common shares), which approval is to be sought at the Global's Annual and Special Meeting scheduled to be held on Friday, December 3, 2010. If such shareholder approval is not obtained, the special warrants will convert automatically into a non-convertible secured debenture in the principal amount of $820,000 bearing interest at 8% per annum, with a term of 18 months. Global paid a total of $156,380 in finders' fees. All securities issued are subject to a four month hold period expiring February 21, 2011. The proceeds from the private placement will be used for debt retirement and working capital.

Bill Pincus, Esperanza's President, said, "This investments allows us to get a firm position in a developing project that we are confident will yield excellent results." More information on the Streiborna project can be found on Global's website: www.globalminerals.com.

About Esperanza

Esperanza is an emerging producer company focused on advancing the development of its two principal properties: the San Luis gold and silver joint venture in Peru and the 100%-owned Cerro Jumil gold project in Morelos State, Mexico. It is also actively investigating 17 other exploration interests in Peru and Mexico.

SAFE HARBOR: Some statements in this release are forward-looking in nature. The United States Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for certain forward-looking statements. Such statements include statements as to the potential of the Cerro Jumil property, the ability to finance further exploration, permit drilling and other exploration work, and the availability of drill rigs.

The forward-looking statements involve risks and uncertainties and other factors that could cause actual results to differ materially, including those relating to exploration and bringing properties into production. Please refer to a discussion of some of these and other risk factors in Esperanza's Form 20-F filed with the U.S. Securities and Exchange Commission. The forward-looking statements contained in this document constitute managements' current estimates as of the date of this release with respect to the matters covered herein. Esperanza expects that these forward-looking statements will change as new information is received and that actual results will vary, possibly in material ways. Forward-looking statements are based on the beliefs, expectations and opinions of management on the date the statements are made, and the company does not assume any obligation to update forward-looking statements if circumstances or management's beliefs, expectations or opinions should change. For these reasons, investors should not place undue reliance on forward-looking statements.

Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.

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