Santa Fe Metals Corp.
TSX VENTURE : SFM

Santa Fe Metals Corp.

March 06, 2008 09:00 ET

Santa Fe Metals Corp. (formerly Tequila Minerals Corp.): Trading Resumes Under New Name & Private Placement Oversubscribed

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 6, 2008) - Santa Fe Metals Corp. (TSX VENTURE:SFM) -

The Company is pleased to announce that the TSX Venture Exchange has approved the acquisition of the Lobos property as the Company's Qualifying Transaction. In addition, the Company implemented its name change to Santa Fe Metals Corp. Accordingly, the Company's shares will resume trading on March 6, 2008 on Tier 2 of the TSX Venture Exchange under the name Santa Fe Metals Corp. and the trading symbol SFM. The Company has issued a Filing Statement dated February 26, 2008 in connection with the Qualifying Transaction that is available at www.sedar.com and will be also available on the Company's website, www.santafemetals.com.

The Company has also completed the non-brokered private placement announced in mid January 2008 of units @ $0.60 per unit, each unit consisting of one common share and one-half of a one year share purchase warrant exercisable at $0.80. The offering was oversubscribed, increasing from the original announced target of 3,400,000 units to 3,956,665 units, yielding gross proceeds of $2,373,999. Finder's fees of $19,050 were paid in connection with the placement of 381,000 units. Insiders of the Company subscribed for 547,000 units, or 13.8% of the offering. All the shares and warrants issued under this private placement are subject to a hold period expiring June 28, 2008.

Proceeds from the offering will be used to fund the Phase I exploration program on the Lobos property, as recommended in the related 43-101 Technical Report(1), and for general working capital purposes.

The Lobos Property

The Lobos property comprises 9,597 hectares and is located on the border of Durango and Zacatecas States, approximately two hours by road north of the town of Zacatecas on Hwy 49 and about 30km NE of the town of Juan Aldama on a good, unpaved rural road. The Company has completed a Technical Report on the property under the policies and regulations of National Instrument 43-101 which has been filed with the TSX Venture Exchange and is posted on SEDAR.

The Lobos property features a very large structurally controlled hydrothermal breccia field, epithermal veins, manto systems, skarn and carbonate replacement deposit ("CRD") mineralization. Hydrothermal alteration which appears to surround the breccia system is propylitic and may have a weak phyllic alteration overprint. All of the above features are also associated with the Penasquito deposit.

Initial field geological reconnaissance has shown that Lobos property hosts numerous gold, silver and base metal showings, particularly lead and zinc, as well as mercury, antimony and arsenic, the latter being indicator minerals for hydrothermal silver and CRD lead, zinc and silver systems. There are several small mine workings on the property for mercury, antimony, lead, zinc and silver. Grab and chip sample assays and x-ray fluorescence ("XRF") readings show that in many instances silver and base metals assays are above anomalous levels.

The Company has identified drill ready targets focusing on the hydrothermal breccia field and vein systems at Espuela and Media Luna respectively. The drilling contractor has visited the property preparatory to commencing the company's initial 1,500 to 2,000 metre diamond drilling program. Clancy Wendt, professional geologist and a director of the Company, is the Qualified Person under National Instrument 43-101 and has reviewed and approved the above technical disclosure on the Lobos property.

(1) Refer to the Technical Report on the Lobos Project, Durango and Zacatecas States, Mexico filed on www.sedar.com.

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.

Our CEO and CFO, Ian Smith and Doug Brett, held those same positions with bcMetals when it was acquired by way of takeover bid by Imperial Metals at a cash price $1.70 per share last year. They have assembled a very experienced management and board with combined +200 years 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 metal and CRD silver, lead, zinc and copper belts 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 website www.santafemetals.com.

SANTA FE METALS CORP. (formerly Tequila Minerals Corp.)

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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