Marifil Mines Ltd.
TSX VENTURE : MFM

Marifil Mines Ltd.

October 20, 2010 13:51 ET

Marifil Successfully Modifies Lithium Properties Sales Agreement

SPOKANE, WASHINGTON--(Marketwire - Oct. 20, 2010) - MARIFIL MINES LTD. (TSX VENTURE:MFM) ("Marifil" or "the Company") announces that it has successfully modified the sales agreement for its lithium properties to Renholn International, a private company ("Renholn") (see News Releases Dated August 12, 2010 and September 14, 2010).

Under the original agreement, Renholn had the right to purchase all of the Company's lithium claims in Salta and Catamarca Provinces, Argentina. The Mines Department in Salta Province notified the Company that two of its claims were invalid owing to an obscure technical problem. Renholn agreed to keep the sale agreement in good standing if Marifil would vend in one or more claims of equal value. Subsequently, the Company offered Renholn its Guayatayoc lithium claim in Jujuy Province. Renholn agreed to accept this claim in lieu of the two lost claims if Marifil would provide a NI 43-101 report on this claim. Marifil agreed to do so and expects to have this report finished by mid-November. All other terms of the original agreement remain in force.

Under the terms of the agreement Renholn agrees to pay Marifil $500,000 in cash at a rate of $125,000 on signing the agreement (which sum has been paid) and $125,000 per year for three years. Renholn further agrees to carry out the $2,250,000 minimum exploration programs recommended in the Company's NI 43-101 reports for these properties at the rate of $500,000 in Year 1; $750,000 in Year 2; and $1,000,000 in Year 3. Marifil shall retain a 3% Net Smelter Royalty.

Renholn shall have three years to obtain a listing on the London AIM market for itself or some other Company ("NEWCO–AIM") that will hold the lithium properties. At the date of the AIM listing, Renholn, or NEWCO-AIM, shall issue $4,500,000 worth of shares in NEWCO-AIM to Marifil at the same price as the initial offering price for such shares.

Mr. John Hite, President of Marifil states, "We are appreciative of Renholn's attitude during this unfortunate episode and pleased that we were able to quickly reach an amicable settlement. Now we expect that Renholn will be moving forward aggressively to develop these important projects."

This press release has been reviewed and approved by John Hite, President of Marifil Mines Ltd. 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.

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.

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