Santa Fe Metals Corp.

Santa Fe Metals Corp.

March 24, 2008 09:00 ET

Santa Fe Metals Corp.: Acquisition of Lorena Property, Chihuahua, Mexico

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 24, 2008) - Santa Fe Metals Corp. (the "Company") (TSX VENTURE:SFM) is pleased to announce that, through its wholly-owned Mexican subsidiary Compania Minera Coronado S.A. de C.V., has entered into an arm's length option agreement with Ing. Enrique Luis Saldana Alba for the acquisition of five mineral concessions totaling 1,100 Hectares, located in the state of Chihuahua, Mexico named the Lorena Property. Under the option agreement, the Company has the right to acquire a 100% interest in the concessions comprising the Lorena Property for US$1,330,000 payable over a six year period with a US$30,000 payment to be made in the first year and a final payment of $1,000,000 in year six to complete the option. The property is subject to payments of US$1,500,000 in each of the first two years of commercial production and a 2% net smelter return royalty commencing in year three of commercial production of which 1% can be purchased within eight years for payment of a further US$1 million. If the project is not in production by the end of year eight, an advance royalty of $100,000 per year is payable. No shares are assumable in connection with the acquisition.

The Lorena Property is located in the municipality of Saucillo, Chihuahua approximately 100 kilometers (km) south of the city of Chihuahua and approximately 10 km east of the main highway on a good paved road. It is located in a mining district that only recently has been known for carbonate replacement type, polymetallic deposits ("CRD") and is 25 km east of the world famous Naica mine operated by Penoles.

The main geological formation consists of limestones of Cretaceous age that have been intruded by felsic intrusives, the perceived source of the silver, lead and zinc mineralization. As with other CRD's, including Naica, there is a strong possibility of encountering gold and copper mineralization. The presence of breccias also suggests a process of remobilization and the formation of karst occurrences usually associated with the formation of polymetallic chimney and manto type orebodies.

It is important to note that there was very little surface expression and no outcrop indications to suggest the rich underlying chimney systems now being exploited at Naica to depths currently exceeding 800m. Typical grades for these types of deposits, of which there are many examples in the Mexican CRD belt (refer to Corporate Presentation), are silver 180 g/t, gold 1.50 g/t, lead plus zinc 8.5% and copper 1.3%.

The Company's initial exploration focus is in the northern area of the claim block where there are several old mine workings for mercury (an indicator mineral for underlying polymetallic mineralization) located in alteration zones where recrystalization and mineralization is evident. To the Company's knowledge, there has been no exploration activity (geochemical, geophysical or drilling) in the area of interest. The Company will initiate exploration with a 15 line-kilometer geophysical program to identify target mineralization for subsequent drilling.

Ian Smith, President & CEO, stated: "This is another important acquisition for the Company and is consistent with our mission of acquiring targets of significant strategic importance within the Mexican precious metal and CRD belts where there is good infrastructure, a long period (+450) of mining history and a population well versed with the mining industry. We are extremely pleased with the way negotiations have proceeded with Ing. Saldana and we look forward to a long, profitable relationship. The Company is actively pursuing other such property acquisitions."

Lobos Update

The Company continues to make excellent progress with its field mapping and sampling program. A second geologist joined the project this month to speed up field work preparatory to commencing drilling, expected to start next month. Since acquiring the project just three months ago, breccia fields in the three main areas of interest have been expanded, namely Espuela, Media Luna and Animas, a newly named zone extending SE from Media Luna for a distance of about 1km. Finalization of specific drill sites and the determination of drill orientation and depth are well advanced. Mr. Smith commented: "Our Mexican geologists have made excellent progress in the three months since we acquired the property. We are very happy with the way the project is developing." The Company has established a project office in the town of Juan Aldama, approximately half way between the cities of Zacatecas and Durango, and less than one hour from the Lobos site.

About Santa Fe Metals Corp.

The Company's mission is to utilize the extensive experience and expertise of its management team and Board to aggressively identify and develop precious and base metal properties in Mexico. The Company has assembled a very experienced management and Board with combined over 200 years of industry experience in senior corporate positions encompassing exploration, mining and metallurgical engineering, operations, project management, finance and accounting and mining, corporate and securities law. The Company's initial area of interest for project acquisitions is the prolific Mexican gold and silver and CRD belts (silver, lead, zinc and copper) of north and central Mexico. Management and Board have extensive Mexican experience, a country that has low political and permitting risk. Further information is available on the Company's temporary website


Tookie Angus, Chairman

This release contains forward-looking statements, including statements relating to Santa Fe Metals' future plans and objectives with respect to the exploration of the Lobos property. Forward-looking statements are based on numerous assumptions and are subject to all of the risks and uncertainties inherent in Santa Fe Metals' business, including risks inherent in resource exploration and development. There can be no assurance that an economic resource will be developed at the Lobos property. Actual results may vary materially from those described in forward-looking statements.

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

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