SOURCE: U.S. Precious Metals, Inc.

March 22, 2010 10:06 ET

USPR Announces Signature of Drilling Contract and Results of Interim Financing

LAKE MARY, FL--(Marketwire - March 22, 2010) - U.S. Precious Metals, Inc. (OTCBB: USPR) ("USPR" or the "Company") announced today that it has entered into an agreement with Intercore Perforaciones, S.A. de C.V. to start additional drilling at its La Sabila project in Michoacan, Mexico by the end of March 2010. Jack Kugler, CEO and Chairman of the Company, said, "We have engaged Intercore to conduct additional diamond drilling which is expected to give the Company a better understanding of the resources it has at the La Sabila concession." After performing a preliminary assessment on a five acre area and completing an NI-43-101 report on this section of the property, the board of directors determined there was ample evidence to continue and expand the Company's exploration efforts. Mr. Kugler stated that the second phase of the exploration campaign includes 10,000 additional meters which will be used to complete a feasibility study on the concession. He believes the completion of the additional drilling will be a very important milestone for USPR and will confirm additional value potential of the concession.

As previously announced, the Company continues working with Castlepines Corporation ("Castlepines") as well as Nexam Capital LLC and certain of its affiliates and HFP Capital Markets LLC ("HFP") to further assist the Company in connection with exploring its financial and strategic options relating to the exploration and production of minerals on the La Sabila mining concessions. Through these strategic alliances, the Company has been able to secure interim funding through HFP to assist with the drilling campaign, among other initiatives. The company has raised a substantial amount of money to date in connection with this private placement.

The combination of these relationships and the continuation of the drilling activities in the La Sabila concession are an important part of USPR's overall strategic plan for exploration and mining the concessions it owns in Mexico. Mr. Jack Kugler reaffirmed his belief that these relationships will assist the Company in making significant strides towards its exploration and development goals. 

About U.S. Precious Metals, Inc.:
USPR is a mineral exploration company headquartered in Lake Mary, Florida and operating in Mexico through its Mexican subsidiary, U.S. Precious Metals de Mexico, S.A. de C.V. USPR owns significant exploration and exploitation rights to approximately 37,000 acres of land in Michoacan, Mexico. USPR's common stock is quoted on the OTC Bulletin Board under the symbol "USPR."

About Castlepines Corporation:
Castlepines Corporation is a well-established international investment firm founded in Australia. It includes a consortium of various private companies and trusts that invest in a broad range of infrastructure assets, including renewable energy resources. 

About Nexam Capital LLC:
Nexam Capital LLC is a private holding company based in Greenwich, Connecticut focused on middle market private equity investments with current interest in the energy and mining sectors.

About HFP Capital Markets LLC:
HFP Capital Markets LLC, headquartered in New York City, is a wholly owned subsidiary of Hudson Financial Partners LLC. It is a full service investment bank providing a wide range of investment products and investment banking services to a diversified client base that includes corporations, financial institutions, and high net worth individuals.

Statements contained herein that are not based upon current or historical fact are forward-looking statements. Such forward-looking statements relate to future events and future operating results, performance, prospects and opportunities. The use of terms such as "anticipate," "believe," "estimate," "plan," "intend" and "expect" and similar expressions, as they relate to USPR, or its management, identify forward-looking statements. These forward-looking statements are based on information currently available to USPR and USPR's current plans, intentions and expectations. Forward-looking statements are subject to a number of risks, uncertainties and other factors that could cause USPR's actual results, performance, prospects and opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, such factors, including risk factors, discussed in USPR's Annual Report on Form 10-K for the fiscal year ended May 31, 2009, filed with the U.S. Securities and Exchange Commission on September 16, 2009. Except as required by the Federal securities law, USPR does not undertake any obligation to revise or update any forward-looking statements contained herein after the date hereof.

Contact Information

  • CONTACT:
    U.S. Precious Metals, Inc.
    M. Jack Kugler, Chairman of the Board/CEO
    (407) 566-9310
    http://www.usprgold.com