Guerrero Announces Closing of Initial Public Offering

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 19, 2011) - Guerrero Exploration Inc. ("Guerrero" or the "Corporation") (TSX VENTURE:GEX) is pleased to announce that it has closed its initial public offering (the "IPO") on the TSX Venture Exchange. Guerrero issued the maximum 6,666,667 units that were qualified for distribution under its final prospectus dated December 6, 2010, at a price of $0.15 per unit for gross proceeds to the Corporation of $1 million. Each unit is comprised of one common share of Guerrero and one-half of one non-transferable common share purchase warrant, with each warrant exercisable for one common share of Guerrero at an exercise price of $0.30 per share until July 19, 2012. Macquarie Private Wealth Inc. was the lead agent for the IPO and received commission of $100,000 cash (being 10% of the gross proceeds of the IPO), a corporate finance fee of $20,000 (plus applicable taxes), reimbursement of its expenses in connection with the IPO and 666,667 agent's options (the "Agent's Options") to purchase the same number of units, on the same terms as the IPO, for acting in such capacity. The Agent's Options expire on July 19, 2012.

Common shares that were issued to principals of Guerrero prior to the closing of the IPO are subject to standard TSXV escrow provisions. Additionally, 2,669,998 common shares of Guerrero issued prior to the closing of the IPO are subject to the TSXV's seed share resale restrictions.

The Corporation also announced that, subject to regulatory approval, it is undertaking a non-brokered private placement of up to $300,000 by the issue of up to 1,500,000 units at $0.20 per unit. Each units consists of one share and one warrant entitling the holder to acquire an additional share for $0.30 for a period of 2 years from closing. Insiders will participate in the private placement up to 25%. Proceeds will be used for general working capital and exploration.

About Guerrero Exploration Inc.

Guerrero Exploration Inc. is committed to a long term business strategy designed to achieve optimal levels of profitability and shareholder value. Guerrero Exploration Inc. is a Canadian based exploration mining company with a focus on the high yielding Mexican copper, gold and silver mining area known as the Guerrero Gold Belt. The Company's common shares trade on the TSX Venture Exchange under the symbol "GEX".

This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities of Guerrero in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities to be offered have not been and will not be registered under the United States Securities Act of 1933, as amended, or any state securities laws and may not be offered or sold within the United States or to or for the account or benefit of a U.S. Person absent registration or an applicable exemption from the registration requirements of such Act or laws.

Advisory

Certain statements and information contained in this press release, including but not limited to management's assessment of Guerrero's future plans and business strategy contain forward-looking statements. In particular, this press release contains statements concerning the potential yields of the Guerrero Gold Belt in Mexico. All statements other than statements of historical fact may be forward looking statements. These statements, by their nature, are subject to numerous risks and uncertainties, some of which are beyond Guerrero's control including the effect of general economic conditions, industry conditions, changes in regulatory and taxation regimes, volatility of commodity prices, escalation of operating and capital costs, currency fluctuations, the availability of services, geological, technical, drilling and processing problems, environmental risks, the lack of availability of qualified personnel or management, stock market volatility, the ability to access sufficient capital from internal and external sources and competition from other industry participants for, among other things, capital, services, undeveloped lands and skilled personnel that may cause actual results or events to differ materially from those anticipated in the forward looking statements. Such forward-looking statements, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated in the statements made and should not unduly be relied on. These statements speak only as of the date of this press release. Guerrero does not intend and does not assume any obligation to update these forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.