Tao Minerals Ltd.

Tao Minerals Ltd.

February 15, 2012 07:30 ET

Tao Minerals Ltd.: Independent Report for the El Colmillo Project Estimates an Inferred Resource of 851,581 Ounces of Gold

MEDELLIN, COLOMBIA--(Marketwire - Feb. 15, 2012) - Tao Minerals Ltd. (TAO) (PINKSHEETS:TAON) reports that it has received a comprehensive independent geologic report on the El Colmillo project. The report was prepared by LatAm Resources (LatAm), an independent mining investment and consulting firm based in Medellin, Colombia.

During preparation of the El Colmillo report, LatAm conducted a thorough analysis and geological review of the property. As part of this geological review, the independent SGS Colombia S.A. firm was hired to take 14 samples at the El Colmillo property. These samples were sent to the main SGS laboratory in Lima, Peru for analysis. Lab results were very positive, with gold being present in all 14 samples, and with several showing significant gold concentrations up to 128.61 grams per metric ton.

Based on the analysis of the seven vein systems at El Colmillo and the sample results, LatAm calculated a total "inferred resources" of 851,581 ounces of gold. At current market prices, this inferred resources estimate indicates a potential gold deposit at the El Colmillo property valued at US $1.4 billion.

The LatAm report clarifies that: "It is very important to note that this calculation is only an approximation to the real potential of these 7 veins, which were inferred assuming horizontal and vertical continuity of 1.500 meters and 500 meters respectively." The LatAm report further states that: "For this calculation we assumed a mine recovery of 75%, 20% dilution and tenor 13.74 gr/ton."

Tao Minerals is very pleased with these results, which correspond with a similar analysis obtained by the company in 2007 which estimated a gold content of 900,000 ounces at the El Colmillo site. Based on the LatAm report and additional analysis, the company sees strong potential at the El Colmillo property which justifies further exploration and geological work.

Tao's El Colmillo Project is located in the North of Antioquia State as part of the Bajo Cauca Mining District (DMBC), covering a total area of 294 hectares in one mining concession (MC) 6927. The municipalities within the DMBC have all been recognized for their long vocation of gold mining, both underground and alluvial. The El Colmillo Project is located approximately 230 kilometers north of the city of Medellin, capital of Antioquia State, and it can be accessed by road or by air. All the equipment and supplies needed for the mining and milling operations at the El Colmillo Project are transported by road which is open all year, except for occasional periods during the rainy season.

The LatAm report was commissioned in order to assess the geological potential for the development of the El Colmillo gold mining project within the Mining Concession (MC) 6927. The region is characterized by two shear zone gold mineralized systems. The fracture model studies of the area show the presence of two sets of secondary fractures associated with the Espiritu Santo fault, giving rise to different types of shear zones that characterize the area. There are two main structural systems in the area, which contain the mineralization of economic interest, one of these has a strike NS and the other has a strike NW; both systems have a dip vertical to sub vertical.

NS System: This system has a direction of NS with vertical to sub vertical dip, which is exploited in The El Colmillo, The Muela, Hoyo Oscuro, Río Negro Mines, among others. The strong shearing suggests an emplacement under ductile fragile conditions. Most of the mines that are actually working in the region are located inside this system.

NW System: The system has a N20-40ºW/75-90E direction and is known in some mines in the study area. As in the NS system the strong shearing suggests an emplacement under ductile fragile conditions. Latam identified seven mineralized structures (shear zones) within the mining concession, with NS and NW direction and a vertical dip with vein thicknesses varying from 0.1 and 0.7 meters.

These veins are related to shear zones developed inside the host rock concordant with the regional main structures. All the artisanal mines in the region have focused on the exploitation of these structures. Rich areas are distributed along the dip of the vein. These areas of high amounts of gold are named ore shoots. The orientation of the wealthy areas generally agrees with the direction of the line intersection between two or more different mineralized shear zones.

Currently, these ore shoots have not been identified inside the MC 6927, but in agreement with the regional geological setting is very possible to find these ore shoots once the exploration program starts. In a same vein could be several parallel ore shoots up to several hundred meters wide. If these structures can be identified, they become an important guide for the exploration of new resources.

In the project area Latam collected (14) fourteen samples inside the different artisanal mining tunnels. Samples collected were sent to the SGS Laboratory in Medellin, which is an internationally certified laboratory ensuring the reliability of the results. The 14 samples were prepared by SGS Laboratory for further shipment by registered mail to the main laboratories in the city of Lima (Peru). This preparation consists of drying, crushing, grinding and milling of the samples, obtaining a fine pulp material which will then be subjected to fire assay and multi-element analysis.

To view, "Figure 1. The El Colmillo Project Location", please visit the following link: http://media3.marketwire.com/docs/tao-0215-fig-1.pdf.

Tao Minerals Ltd. is a mining exploration and development company formed to acquire, develop, and exploit natural resource properties focusing primarily on the rich, yet highly underdeveloped gold deposits of Colombia in a socially and environmentally responsible manner. As a corporation, arriving early to the boom in the expansion of natural resource development in Colombia has enabled Tao to establish itself in Colombia over the past six years, becoming adept at the necessary legal and political processes and hiring highly qualified personnel in the geological, legal and security professions.

Cautionary Note to U.S. Investors

The United States Securities and Exchange Commission limits disclosure for U.S. reporting purposes to mineral deposits that a company can economically and legally extract or produce. We have used certain terms in this public announcement which may not be consistent with the reserve definitions established by the SEC. U.S. investors are urged to consider closely the disclosure in our Form 10-K.

Notice regarding forward-looking statements

This news release contains "forward-looking statements", as that term is defined in Section 27A of the United States Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Statements in this press release which are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future. Such forward-looking statements include, among other things, the expectation of low cost opportunity, the final terms of the acquisition and the gold production of the property to be acquired.Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with mineral exploration. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that the beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that such beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our annual report on Form 10-KSB for the 2010 fiscal year, our quarterly reports on Form 10-QSB and other periodic reports filed from time-to-time with the Securities and Exchange Commission.

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