Santa Fe Metals Corp.
TSX VENTURE : SFM

Santa Fe Metals Corp.

January 13, 2011 09:15 ET

Santa Fe Metals Corp.: Cuatro Cienegas Environmental Impact Study Approved

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 13, 2011) -  SANTA FE METALS CORP. (TSX VENTURE:SFM) -

NOT FOR DISSEMINATION IN THE UNITED STATES OF AMERICA

Compañía Minera Coronado S.A. de C.V. ("Coronado"), SFM's wholly-owned Mexican subsidiary, has been advised by Mexico's environmental agency, Secretariat of the Environment and Natural Resources, ("SEMARNAT"), that Coronado's Environmental Impact Study ("EIS") for the high grade copper oxide heap leach operation planned for its 100% owned Cuatro Ciénegas property, has been approved. SEMARNAT's finding is that the project is "environmentally feasible" and its approval is valid for 15 years for the project as designed.

Before Coronado can commence construction it must first obtain a Temporary Occupation Permit ("TOP") from the Ministry of Mines and a change of land use permit, i.e. from agricultural to industrial, the latter administered by the Federal Prosecutor for the Protection of the Environment ("PROFEPA").

Coronado has been advised that the Ministry of Mines has notified the land owner that Coronado's application for the TOP meets all legal and technical requirements. The change of land use application has been prepared and will be submitted as soon as Coronado receives notice that the TOP has been approved. PROFEPA then has 60 working days to approve the change of land use.

Coronado plans to mine 1,000 t/d of high grade copper oxide (+/- 2.00% CuOx) via underground exploration drifts. This material will be crushed to approximately -1" and stacked on heap leach pads where it will be irrigated with sulphuric acid. Pregnant solution of primarily copper sulphate will be passed over scrap iron to produce cement copper of purity >85% Cu, a centuries-old, proven process. Laboratory testwork conducted at Inspectorate's metallurgical laboratory in Richmond, BC, has achieved cement copper purities averaging 98% Cu. Total annual amount production is estimated at 10.0 Mlbs of Cu in cement copper(1).

About Santa Fe Metals Corp.

Santa Fe Metals Corp. is a diversified base and precious metals explorer with near-term copper production plans on its Cuatro Ciénegas property. In addition to development of Cuatro Ciénegas, the company is focussed on acquisition of producing or near-term producing gold properties. The Company's management team and board of directors have over 200 years of combined industry experience, with numerous well-known success stories to their credit. Further information is available on the Company's website www.santafemetals.com.

SANTA FE METALS CORP.

Ian Smith, President & CEO

This release contains forward-looking statements, including statements relating to Santa Fe Metals' future plans and objectives with respect to the exploration and development of its properties. 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 economic resources will be developed at any of its properties. Actual results may vary materially from those described in forward-looking statements.

(1) Cuatro Ciénegas has no NI43-101 compliant resources. Refer to www.santafemetals.com for further project information.

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

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