Santa Fe Metals Corp.
TSX VENTURE : SFM

Santa Fe Metals Corp.

May 01, 2008 13:32 ET

Santa Fe Metals Corp.: Drilling Commences on Lobos Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 1, 2008) - Santa Fe Metals Corp. (the "Company") (TSX VENTURE:SFM) is pleased to announce that drilling has commenced on its Lobos project in northwest Zacatecas, Mexico. The Company has an option to acquire 100% interest in the project by making staged property payments over four years. A 2% NSR is payable on any future production; 1% can be purchased within five years for US$1 million (refer to Lobos Technical Report on www.santafemetals.com).

Since acquiring the Lobos property in December 2007, the Company has conducted a program of surface geological mapping and sampling to further define the extent of the hydrothermal breccia field and epithermal vein systems that had previously been identified. The property hosts numerous gold, silver and base metal showings particularly lead and zinc as well as antimony, mercury, arsenic, the latter being indicator minerals for hydrothermal silver and silver, lead and zinc carbonate replacement ("CRD") systems. There are several small mine workings for antimony, lead, zinc and silver on the property. Grab and chip sample assays and XRF readings from surface outcrops show that in many instances silver and base metals assays are above anomalous levels.

In the past three months the Espuela breccia field has expanded to cover an area of approximately 1.5km x 1.5km with the identification of additional systems. In addition, the Media Luna and Animas systems have been further defined by field work with each system shown to have a strike length in excess of 1km. (see Lobos Project - Geological Plan of Breccia Field on www.santafemetals.com for the location of these systems).

The Company's initial 2,000 metre diamond drilling program will test these systems at depths of up to 200m. Information from this program will be used to plan a comprehensive Phase II diamond drilling program to define the extent of the precious and base metal mineralization at depth.

Lorena Project

On the Company's Lorena property, located 25km east of Naica in the State of Chihuahua, the Company has started work on a Technical Report on the property to NI 43-101 standards. The report is expected to be completed by mid-June. On March 24, 2008 the Company announced an Option to acquire 100% of this property by making staged payments over six years. 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 (refer to Press Release of March 24 on www.sedar.com or www.santafemetals.com).

The Company is targeting the potential for CRD-type silver, lead and zinc mineralization. Surface mineralization and small scale workings for antimony and mercury, indicate the strong possibility for underlying silver, lead and zinc mineralization.

About Santa Fe Metals Corp.

The Company's mission is to utilize the broad experience and expertise of its management team and board to aggressively identify and develop precious and base metal properties in Mexico. The Company's management and board together have more than 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-central Mexico. Some members of the management and board are very knowledgeable on working conditions in Mexico, having worked there for many years. Mexico is a country that has low political and permitting risk, exceptionally good infrastructure and a very skilled work force. 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 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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