Lumina Royalty Corp.

Lumina Royalty Corp.

August 29, 2011 18:41 ET

Lumina Royalty Advised by Coro Mining Corp. of Denial of Ratification of its Environmental Impact Declaration for the San Jorge Project by Mendoza Legislature

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 29, 2011) - Lumina Royalty Corp. (the "Company") announces that the Company has been notified by Coro Mining Corp. ("Coro") that the Provincial Legislature of Mendoza, Argentina, has voted against the ratification of Coro's approved Environmental Impact Declaration for the San Jorge copper/gold/molybdenum project located in the province.

Coro has not yet provided the Company with any indication as to what impact the decision by the Provincial Legislature will have on Coro's ability to make advanced royalty payments or net smelter royalty payments to the Company on the San Jorge Project.

A copy of Coro's news release of August 25, 2011 announcing the denial of the ratification of the Environmental Impact Declaration can be found on Coro's website at and at

Coro acquired the San Jorge Project from a corporate predecessor of the Company for consideration of (i) $1.0 million in cash payable over a two year period ending May 10, 2008 (received), (ii) the issuance of 1,000,000 common shares of Coro (the "Coro Shares") over a two year period ending May 10, 2008 (received), (iii) $500,000 in cash payable on or before May 10, 2009 (received), (iv) $2,000,000 in cash payable on or before June 11, 2010 (received), (v) $4,000,000 in cash payable on or before May 10, 2011 (received), (vi) $5,000,000 in cash payable on or before May 10, 2012, (vii) $5,000,000 in cash payable less the deemed value of the Coro Shares on or before May 10, 2013; and (viii) if Coro completes a bankable feasibility study after May 10, 2011, any amounts owing under (v) to (vii) inclusive must be paid within six months from the date of completion of the bankable feasibility study. These payments will be treated as an advance royalty payment to be credited against one of the Sulphide Payment, the Leach Payment or the Annual Royalty (all as defined below).

If Coro commences commercial production from the proven and probable sulphide copper reserves, Coro will pay the Company $0.02/lb of contained sulphide copper in the proven and probable reserve category defined by the feasibility study (the "Sulphide Payment"). If Coro commences commercial production from the proven and probably leachable copper reserves, Coro will pay the Company US$0.025 per pound of proven and probable copper reserves contained within the heap leachable copper resources as defined by a feasibility study (the "Leach Payment"). Coro also agreed to pay to the Company an annual royalty (the "Annual Royalty") of $0.02/lb of contained leachable copper not defined in the leachable copper feasibility study and $0.015/lb of contained sulphide copper for any additional material not defined in the sulphide copper feasibility study.

In addition, Coro must pay the Company a 1.5% net smelter royalty payment from the sale of all other mined minerals.


David Strang, President & CEO

Cautionary Note Regarding Forward-Looking Information

This news release contains certain "forward-looking information" within the meaning of Canadian securities laws, which includes, but is not limited to, statements with respect to the payment of certain royalties by Coro to the Company in the future.

These statements reflect the current views of the Company with respect to future events and are necessarily based upon a number of assumptions that, while considered reasonable by the Company, are inherently subject to significant business, economic, political and social uncertainties and contingencies. Many factors, both known and unknown, could cause the Company not to receive full payment of the royalties. Such factors include, without limitation: ratification of Coro's Environmental Impact Declaration by the Provincial Legislature of Mendoza, Argentina; changes in national and provincial governments in Argentina; permitting, legislation, taxation, controls, regulations and political or economic developments in Argentina; fluctuations in markets for base metals, gold and certain other commodities (such as natural gas, fuel oil and electricity); fluctuations in currency markets; risks and hazards associated with the business of mineral exploration, development and mining; challenges to Coro's title to the San Jorge property; competition in the mining industry for equipment, qualified personnel and their costs; litigation; and those factors identified under the heading "Lumina Royalty Corp. - Risk Factors" in the Notice of Meeting and Management Information Circular of Lumina Copper Corp. dated as of May 9, 2011. Although the Company has attempted to identify important factors that could cause results to differ materially, there may be other factors that cause results not to be as anticipated, estimated, described 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, prospective investors should not place undue reliance on forward-looking information. The Company does not intend, and does not assume any obligation, to update this forward-looking information to reflect changes in assumptions or changes in circumstances or any other events affecting such information, other than as required by applicable law.

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