Location

LONGUEUIL, QUEBEC, Jul 03, 2012 (MARKETWIRE via COMTEX) — Cerro Resources NL (asx:CJO) /quotes/zigman/3087302 CA:CJO +5.88% is pleased to advise of encouraging progress in generating high potential initial drill targets at its Espiritu Santo Gold/Silver exploration project, in Jalisco State, Mexico.


Highlights

— 17 major quartz breccia veins identified to date (strike lengths up to
1km+ and typical widths of 3-8+ meters) within the 5,800 ha project
area;
— Initial drill targets identified via mapping, rock chip sampling and
soil geochemistry programs;
— 7.92g/t Au rock chip sample highlight, with multiple +1g/t Au samples;
— 372g/t Ag rock chip sample highlight with multiple +50g/t Ag samples;
— Environmental baseline data completed.


Mr Tony McDonald (Managing Director): “Initial surface mapping and sampling has provided a high quality array of drill targets, with some early encouragement in the sample chip assays seen to date. We are now prioritizing our drilling sequence to commence in the September quarter, subject to conclusion of the wet season.”


Espiritu Santo is located 130 km west of Guadalajara and 50 km east of Puerto Vallarta. The project lies within a north-west corridor defined by numerous, predominantly gold/silver, mineralized occurrences (Figure 1: Espiritu Santo Project Location – http://media3.marketwire.com/docs/Figure1_Espiritu_Santo_Project_Location.pdf .)


Several drill projects within this prolific zone are currently being actively explored, including Endeavour Silver Corporation’s San Sebastian development project to the north west and Soltoro Ltd’s El Rayo Project to the south east (Figure 2: Location of Espiritu Santo within Major NW Gold Trend – http://media3.marketwire.com/docs/Figure2-Location_of_Espiritu_Santo_within_Major_NW_Gold_Trend.pdf .) (i)Note: not all Espiritu Santo Project veins, presented in this schematic.


Cerro Resources’ concessions cover an area of 5,800 hectares, within the Mascota-Navidad Mining District, and are surrounded by two old mining sub-districts of San Sebastian del Oeste (20km north west) and Navidad. Espiritu Santo is positioned in the northern part of the Navidad section.


Veins within the project have strike lengths up to +1km with trends varying from N-S, E-W, NE and lesser NW. Widths of these multiple pulse, brecciated veins are 3 to +8 meters with wider zones of intense quartz stockwork veining near the intersections with other major veins. Current focus is on dilation zones along nearly E-W to NE trending structures that appear to have formed as flexure structures extending from the prominent N-S veins (Arrizon and Gringo structures).


Table 1 contains highlights from the recent rock chip sample program. Gold values range from less than detection to a high of 7.92 g/t Au, silver values range from less than detection to a high of 372 g/t Ag. Other anomalous elements include copper (high of 8,970 ppm Cu), lead (high of 20,700 ppm Pb) and zinc (high of 5660 ppm Zn).


As indicated in Table 1 silver is clearly associated with the known mineralized systems. In addition, copper, lead and zinc also define these zones in both the rock chip samples and in the soil geochemistry program currently in progress. Results from these surveys are also highlighting undocumented zones to be drill tested.


Table 1 Highlights of Espiritu Santo Surface Sampling – http://media3.marketwire.com/docs/Table1-Highlights_of_Espiritu_Santo_Surface_Sampling.pdf .


Exploration and drill target definition is focusing on El Gringo, Lourdes veins and the Greater Carmela area, the later which includes the Carmela, Creston, Nunez and El Tigre veins. (Figure 3: Central Espiritu Santo Principle Quartz Vein Targets – http://media3.marketwire.com/docs/Figure3-Central_Espiritu_Santo_Principle_Quartz_Vein_Targets.pdf .)


The Greater Carmella area is an apparent dilation zone currently defined by an area measuring approximately 1.5km by 1.5km consisting of multiple mineralized veins. Additional exploration surface work is continuing in San Pascual and Patas veins. In addition, an active program is currently underway to locate new veins and extend the known veins.


Unless otherwise stated rock chip samples are collected at 1m sample lengths. Samples are transported to ALS Chemex in Guadalajara, Mexico for sample preparation. Following sample preparation samples are shipped to ALS Laboratory in Vancouver, Canada and analyzed for 34 elements including a 30g fire assay with AA finish for gold. Silver is analyzed using a four acid “near total” digestion method. Bill Fleshman (FAusIMMCP GEOL), Mexico Exploration Manager, and a qualified person as defined by NI 43-101 has reviewed and approved the contents of this press release. Field supervision of the Espiritu Santo project is provided by Senior Geologist Rafael Puente (Msc Geol.).


Competent Person/Qualified Person


The technical information in this news release is based on information compiled Mr Bill Fleshman, who is a Chartered Professional and Fellow of the Australasian Institute of Mining and Metallurgy. Mr Fleshman is a consultant to Cerro Resources NL and has sufficient experience, which is relevant to the style of mineralization and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 edition of the “Australasian Code for Reporting of Exploration Results and “qualified person” as this term is defined in Canadian National Instrument 43-101 (“NI 43-101”). Mr Fleshman consents to the inclusion in this news release of the information in the form and context in which it appears.


About Cerro Resources


Cerro Resources is a precious and base metals exploration and development company. The Company is currently focused on Mexico where it is developing the Cerro del Gallo gold/silver project in the central state of Guanajuato, Mexico, actively exploring the Namiquipa silver project in northern Mexico, and commencing exploration on the Espiritu Santo gold/silver project in Jalisco. It also maintains an active working focus on the Mt Isa, Queensland, region where it is exploring the Mt Philp haematite project and it holds an interest in the Kalman molybdenum, rhenium, and copper project.


Additional information about the Company and its projects is available on the Company’s website at www.cerroresources.com and on SEDAR.


Forward-Looking Information


This news release contains certain “forward-looking information” under Canadian securities laws. All statements that address future plans, activities, events or developments that the Company believes, expects or anticipates will or may occur are forward-looking information. Forward looking information in this news release includes statements regarding the structure of the mineralization of the project, the results of the exploration program, the interpretation of such results, and the potential of the Espiritu Santo project. Forward looking information is based upon assumptions by management that are subject to known and unknown risks and uncertainties beyond the Company’s control, including risks related to mining exploration and the availability of financing for companies such as the Company. There can be no assurance that outcomes anticipated in the forward looking information will occur, and actual results may differ materially for a variety of reasons. Accordingly, readers should not place undue reliance on forward-looking information. The Company undertakes no obligation to update publicly or otherwise revise any forward-looking information, except as may be required by law.


ABN: 72 006 381 684


Neither 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.

Contacts:
Cerro Resources NL
Tony McDonald
Managing Director
+61 7 3221 7501
[email protected]

Cerro Resources NL
Greg Germon
General Manager Investor Relations – Australia
+61 2 9300 3341
[email protected]

Cerro Resources NL
Ms. Gerri Paxton
Manager Investor Relations – North America
+1-514-544-2696
[email protected]

www.cerroresources.com

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