Marifil Mines Ltd.
TSX VENTURE : MFM

Marifil Mines Ltd.

January 23, 2012 09:00 ET

Marifil Acquiring High Grade Potash Deposit

Five Drill Holes Contain 42% to 45% KCl

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 23, 2012) - MARIFIL MINES LTD. (TSX VENTURE:MFM) ("Marifil" or "the Company") announces that it has signed a Letter of Intent ("LOI") to acquire the Filo Morado potash property in Neuquen Province, Argentina.

Filo Morado (now re-named K-5 by Marifil) comprises 14 claims totalling 30,100 hectares. Marifil has been granted a 60 day period to carry out due diligence; a title report is in progress. The terms of the LOI call for a $25,000 payment on signing (which has been paid); a $125,000 payment at the end of the due diligence period; a $150,000 payment in six months; $175,000 in 24 months; $200,000 in 30 months; and $2,400,000 in 48 months. The owner retains a 2% Net Smelter Royalty but Marifil has the right to purchase 1.5% for $1,500,000.

The K-5 claims are bordered on the east by Vale's claims which host the +2 billion tonne Potasio Rio Colorado potash deposit and bordered on the north by claims owned by K+S Group (a giant German fertilizer corporation) and which host the large El Porton potash deposit. The K-5 prospect is possibly an extension of the El Porton deposit.

Marifil geologists have identified significant sylvite (KCl) intervals in drill logs from 27 holes drilled for oil. Eight additional drill logs are still being analyzed. Potash mineralization has been identified in up to 7 separate horizons. Most of these horizons range in depth from about 1000 to 1100 meters but significant potash has been identified as deep as 1500 meters.

Table 1 below summarizes some of the more significant intervals:

Drill Hole Thickness (meters) Grade (%KCl)
FM a17 2.5 45%
and 4.0 27%
FM 23 4.0 45%
FM 27 3.5 42%
and 2.5 43%
and 4.4 29%
FM 29 3.5 45%
RuC x-1 5.2 40%

All of the holes analyzed to date are shown in Table 2 and at the end of this report.

The potash horizons occur in a large north-striking anticlinal or monoclinal fold. Mineralization occurs over a width of 5 kilometers and a strike length of about 20 kilometers.

Mr. John Hite reports, "This acquisition may be a real game changer for Marifil and is one we worked for nearly one year to acquire. We have identified multiple high grade sylvite (KCl) horizons with mineable thicknesses over an area of 80 to 100 square kilometers. These horizons should be extremely amenable to solution mining. By adding the K-5 we have become the second largest potash claim owner in the Neuquen Basin."

"Marifil is actively seeking a partner to develop our K-2, K-3, and K-4 properties. K-5 is a stellar addition to this portfolio."

TABLE 2

SILVITE HORIZON H1 SILVITE HORIZON H2 SILVITE HORIZON H3 SILVITE HORIZON H4
WELL ID top Base thickness % K Cl top Base thickness % K Cl top base thickness % K Cl top base thickness % K Cl
FM X-1 1215.7 1217.5 1.8 21 1214 1215.3 1.3 23 1212 1213.6 1.6 22 1196 1200 4 19
FM X-3 1214.2 1216 1.8 18 1212 1213.6 1.6 22 1208.6 1210 1.4 14 1204 1205.3 1.3 8
FM X-4 1196 1197 1 14 1192 1193.5 1.5 26 1189.5 1191 1.5 25 1178.8 1180.6 1.8 15
FM X-5 1385.3 1386.8 1.5 25 1384 1385 1 24 1377.3 1370.3 2 17
FM 12 1528.7 1531.5 2.8 22 1524.2 1528.4 4.2 33 1517.3 1522.8 5.5 25 1507 1510 3 44
FM a-17 1160.8 1163.3 2.5 45 1158.4 1159.8 1.4 12 1104 1108 4 27 1101.1 1102.3 1.2 17
FM 19 1078.2 1080 1.8 21 1075.6 1078.2 2.6 19 1068.5 1070.5 2 14 1054.2 1055.8 1.6 11
FM 21 1083.8 1085.8 2 23 1080.5 1082.7 2.2 24
FM 23 1015.8 1019.8 4 45 1005.8 1008.3 2.5 17 996 997.8 1.8 7
FM a-26 1222.3 1223.8 1.5 26 1220.2 1222 1.8 25 1207.8 1209.8 2 29
FM 27 1021.3 1024.9 3.5 42 1017.8 1020.3 2.5 43 1006.2 1010.6 4.4 29
FM 29 1518.2 1521.7 3.5 45 1511.8 1513.8 2 37 1509.8 1511 1.2 20 1501.5 1504 2.5 29
FM 30 1534.8 1538 3.2 36 1515.2 1520.2 5 29
FM 31 1403.2 1406.5 3.3 37 1400.3 1402 1.7 13 1398.8 1402.5 3.7 14
FM 34 1391.5 1393.2 1.7 20 1388.7 1390.7 2 33 1369.2 1371.5 2.3 45 1367 1368.7 1.7 38
FM 35 1477 1478.2 1-1 22 1474.5 1476.6 2.1 33
FM 36 1376.5 1379.2 2.3 21 1370.4 1372 1.6 40 1360.8 1362.8 2 21
FM 36 1425.5 1427.2 1.7 22 1423.5 1424.8 1.3 20 1422 1423 1 30
FM 37 1058.2 1059.5 1.3 40 1055 1056.8 1.8 40
FM 38 1121.5 1123 1.5 25 1105.2 1107.4 2.2 22 1096.4 1098.2 1.8 30 1090.7 1092.3 1.6 17
RuC x-1 2437.5 2439 1.5 26 2436.2 2436.8 0.6 32 2430 2435.2 5.2 40 2426 2429.3 3.3 7
RuC x-2 2385.5 2388.3 2.8 27 2374.2 2376.3 2.1 29 2372 2373.6 1.6 27 2353 2354 1 19
FDT X-2 713.4 715 1.6 22 707.5 709.7 2.2 21 704.8 706.2 1.4 24
LBl X-1 1380.5 1382.4 1.9 17 1374.5 1379.5 5 19 1367.8 1370 2.2 26

This press release has been reviewed and approved by John Hite, President of Marifil Mines Ltd. and by Richard Walters, Vice President under whose directions the exploration program is being carried out. Mr. Hite and Mr. Walters are Qualified Persons as defined by National Instrument 43-101.

WE SEEK SAFE HARBOR.

General Disclaimer

Marifil Mines Ltd. "Marifil" has taken all reasonable care in producing and publishing information contained in this news release, and will endeavor to do so on a periodic basis. Material in this news release may still contain technical or other inaccuracies, omissions, or typographical errors, for which Marifil assumes no responsibility. Marifil does not warrant or make any representations regarding the use, validity, accuracy, completeness or reliability of any claims, statements or information on this site. Under no circumstances, including, but not limited to, negligence, shall Marifil be liable for any direct, indirect, special, incidental, consequential, or other damages, including but not limited to, loss of programs, loss of data, loss of use of computer of other systems, or loss of profits, whether or not advised of the possibility of damage, arising from your use, or inability to use, the material from this news release. The information is not a substitute for independent professional advice before making any investment decisions. Furthermore, you may not modify or reproduce in any form, electronic or otherwise, any information on this site, except for personal use unless you have obtained our express written permission.

Forward-Looking Statements

This news release may contain forward-looking statements, including but not limited to comments regarding predictions and projections. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.

For further information regarding Marifil Mines Ltd., please refer to the Company's filings available on SEDAR (Http://www.sedar.com) or at Marifil's Website (Http://www.marifilmines.com.)

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information