Santa Fe Metals Corp.

Santa Fe Metals Corp.

October 30, 2012 09:00 ET

Santa Fe Metals Corp.: Shares for Debt Settlement

VANCOUVER, BRITISH COLOMBIA--(Marketwire - Oct. 30, 2012) - Santa Fe Metals Corp. (the "Company") (TSX VENTURE:SFM) announces that, subject to the approval of the TSX Venture Exchange (the "Exchange"), it intends to settle outstanding loans with several individuals totalling approximately $243,859 (the "Loans"). The Loans will be satisfied by the issuance by the Company of common shares at a deemed issue price of $0.025 per share, on a pre-Share Consolidation (as defined below) basis, which is expected to represent a price of $0.50 per share on a post-Share Consolidation basis (the "Shares-for-Debt Settlement"). The Shares-for-Debt Settlement will take the form of an issuance of subscription receipts (the "Subscription Receipts"), which Subscription Receipts will be converted into common shares only after the Share Consolidation is completed. The Company anticipates that the Subscription Receipts issued in connection with the Shares-for-Debt Settlement will be qualified by a prospectus. The Shares-for-Debt Settlement is not expected to result in a new Control Person (as such term is defined in the Policies of the Exchange) of the Company. Of the $243,859 of the Loans, an aggregate of $80,159 is owed to Ian Smith (the CEO and a Director of the Company) and $73,700 is owed to Stuart Angus (the Chairman of the Board of Directors of the Company).

Share Consolidation

As announced by the Company in a news release dated October 29, 2012, the Company intends to complete a share consolidation of its outstanding common shares on a 20:1 basis (the "Share Consolidation"). The Share Consolidation will require the approval of at least 66 2/3% of the Company's shareholders at a meeting of the shareholders.

Cautionary Statements

This news release contains forward-looking statements, including statements relating to the Company's future plans and objectives with respect to the Shares-for-Debt Settlement and the Share Consolidation. Forward-looking statements are based on numerous assumptions and are subject to all of the risks and uncertainties inherent in the Company's business, including risks inherent in resource exploration and development. There can be no assurance that the Shares-for-Debt Settlement or the Share Consolidation will be completed as proposed or at all.

The TSX Venture Exchange has in no way passed upon the merits of the proposed transactions and has neither approved nor disapproved the contents of this news release. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

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