Condor Blanco Mines Ltd : Marianas Iron Project Update

12 November 2013

Marianas Iron Project Ground Work Completed in Chile ASX Release Stock Code: CDB Highlights

• Groundwork has been completed for initial stages of a 200 tonne bulk sample at the

Marianas Iron Tailing Project in Northern Chile

• The Marianas due diligence period has been extended for 60 days to allow for an increased scope and a more detailed study of the processing agreement with Lacerta Finance Mining and Spa. Further discussions are expected to take place with Lacerta in in Chile to finalize the operating agreement

• Marianas Iron Project Scoping Study due and results to be interpreted

Due Diligence Update Chilean-focused Condor Blanco Mines Limited (ASX: CDB; "Condor", "the Company") is pleased to announce that the groundwork has now been completed for the initial stages of the 200 tonne bulk sample at Condor's 50% owned Marianas Iron Tailings Project in Northern Chile.

As announced on the 3rd of October, 2013, Condor entered into a Heads of Agreement (HOA) with Lacerta Finance Mining and Spa ("Lacerta") for the production and processing of Iron Ore to be produced from Marianas. A detailed assessment of the maximum amount of raw material which can be processed on site per month has now been completed and the capacity is higher than initially estimated. Both Lacerta and Condor initially anticipated that the due diligence period would take 30 days, however after increasing the scope of the due diligence process, this period has now been mutually extended for another 60 days. There is no cost for the extension. The increased scope of the due diligence process will allow both companies to maximize cost savings and efficiencies and also ensure that maximum processing of raw materials can be achieved.
Managing Director Glen Darby commented: "I am very confident that Marianas entails robust project economics and will generate growing cash flows for Condor shareholders."
"To maximize the returns and take in the added scope of the Marianas project, Condor and Lacerta have mutually agreed to extend the due diligence period," Mr. Darby said.
"Although the process will take slightly longer than expected, the scope of the Marianas project is potentially more robust than initially envisaged and we will update the market shortly. With the Marianas project planned to shortly move into production and drilling planned at Charachapampa, this truly is an exciting time for shareholders," Mr. Darby concluded.
Executive Director of Lacerta, Leo Radiotis said: "The due diligence process is progressing well are we are confident regarding the feasibility of the Marianas to deliver strong project returns. Discussions with Condor have continued positively during our meetings in Melbourne and we plan to formalize the agreement after the
200 tonne bulk sample is processed and practicalities of recovery are assessed."

It is envisaged that an operating agreement will be finalized at Marianas in Chile. Lacerta and Condor have built a strong operating partnership in a short time and both parties are committed to moving the Marinas project into production shortly.

Marianas Scoping Study

The results of a Scoping Study for the Marianas are soon to be received. Once collation and interpretation of the results has been completed the Company will report on the significance of the findings.

Marianas Iron Tailings Project

The Marianas Project is a tailings retreatment project, which exploits a combination of positive metallurgical, economic and environmental aspects of an estimated 11 million tonnes of magnetite-bearing historical tailings within the city of Copiapo in northern Chile.
The Marianas project will provide a rapid start up, fast-payback, low-capex, cash-generating project to support Condor's over-riding strategy to develop its larger and highly prospective projects. The tailings are dry and occupy a series of connected impoundments over a contiguous area of 24ha (See Figure 1 below).

Figure 1 - Setting of Marianas Iron Tailings Project, Chile.

For more information, visit www.condormines.com or contact: Mr Glen Darby
Managing Director
Condor Blanco Mines Limited
Office: [phone]
Email: [e-mail]

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