Malaga Inc. announced that it has suspended mining operations at its Pasto Bueno tungsten mine putting the mine on care and maintenance. Malaga had previously announced, on October 22, 2012, that its tungsten process plant had been put in care and maintenance due to the accident which caused the power outage at Pasto Bueno. During this period, adequate security measures of the plant and mine site have been put in place and will continue up to the restart of both the plant and mine.

Suspension of mining operations is one of the measures implemented by Malaga to reduce its costs and preserve cash. The Corporation is still working to secure financing to resume mine and plant operations and pursue its objectives related to mine development and production. In addition, Malaga is currently in negotiations to monetize all the copper by-product by the end of the current year and also intends to monetize other assets.

Malaga announced that repairs to its hydro-electric line are underway; materials have been purchased and transportation of equipment to site is planned. Repair should be completed by the end of November.