Explorator Resources Inc.
TSX VENTURE : EXO

Explorator Resources Inc.

May 16, 2011 17:00 ET

Sociedad Punta del Cobre and Explorator Resources Inc. Announce Shareholder Approval of Arrangement

TORONTO, ONTARIO and SANTIAGO, CHILE--(Marketwire - May 16, 2011) - Sociedad Punta del Cobre S.A. ("Pucobre") and Explorator Resources Inc. ("Explorator") (TSX VENTURE:EXO) announced today that shareholders of Explorator have approved the previously announced plan of arrangement (the "Arrangement") pursuant to which Pucobre's indirect wholly-owned subsidiary (the "Acquiror") will acquire all of the outstanding common shares of Explorator not already held by Pucobre.

At the special meeting of Explorator shareholders held earlier today, the Arrangement was approved by (i) 99.91% of the votes cast by shareholders present in person or represented by proxy at the special meeting; and (ii) 99.88% of the votes cast by the shareholders present in person or by proxy at the special meeting, excluding votes cast by Pucobre, the Acquiror and their affiliates.

Subject to the satisfaction or waiver of all other conditions to closing, including the approval of the Ontario Superior Court of Justice (Commercial List), Pucobre and Explorator expect the Arrangement to be effective on or about May 17, 2011. The common shares of Explorator are expected to be delisted from the TSX Venture Exchange at the close of trading on or about two business days after the closing of the Arrangement.

ABOUT EXPLORATOR RESOURCES:

Explorator Resources is a Canadian-based mining exploration company with a 49% interest in the El Espino Copper-Gold Project in Chile (the "Project"). Pucobre acquired the remaining 51% of the Project in March 2009 in return for an investment of up to US$18.5 million, with US$7.0 million used to exercise the option to purchase agreement on the Project and the remaining funds directed at the continued exploration and evaluation activities.

The Project lies within the prolific copper-gold mineral area of the Cordillera de la Costa, 240 km north of Santiago. An Updated Preliminary Economic Assessment (see press release dated Jan 24, 2011) defined the potential for an average annual payable production of 120 million pounds of copper and 61,000 ounces of gold over a 13.5 year mine life (life-of-mine payable production of 1.621 billion lbs copper and 828,000 oz. gold) at an average cash cost for the base case of US$1.02/lb, net of gold credits (based on a gold price of US$1,059/oz.).

ABOUT PUCOBRE

Pucobre is a publicly traded Chilean based mining company, listed on the Santiago Stock Exchange, with existing operations in the Atacama region of Northern Chile. During the fiscal year ended December 31, 2010, Pucobre had revenues of US$263 million and a net income of US$90 million. Pucobre operates two underground mines and one open pit mine, processing the ore in its own facilities.

FORWARD-LOOKING STATEMENTS

Certain statements contained in this news release may contain "forward-looking information" within the meaning of Canadian securities laws. Statements containing forward-looking information are identified by words such as "estimates", "intends", "expects", "believes", "may", "will" and include, without limitation, statements regarding Explorator's plan of business operations, production levels and costs, potential contractual arrangements and the delivery of equipment, receipt of working capital, anticipated revenues, mineral reserve and mineral resource estimates, and projected expenditures. There can be no assurance that such statements will prove to be accurate; actual results and future events could differ materially from such statements. Factors that could cause actual results to differ materially include, among others, metal prices, risks inherent in the mining industry, financing risks, labour risks, uncertainty of mineral reserve and resource estimates, equipment and supply risks, regulatory risks and environmental concerns. Most of these factors are outside the control of Explorator. Investors are cautioned not to put undue reliance on statements containing forward-looking information. Except as otherwise required by applicable securities statutes or regulation, Explorator expressly disclaims any intent or obligation to update publicly statements containing forward-looking information, whether as a result of new information, future events or otherwise.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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