Cerro Resources: Multiple High Grade Gold Samples Up To 27.8 g/t Au – From Surface Assays at Espiritu Santo, Mexico

Exploration and Development

Cerro Resources: Multiple High Grade Gold Samples Up To 27.8 g/t Au – From Surface Assays at Espiritu Santo, Mexico

August 21, 2012

August 22, 2012: Cerro Resources NL (ASX/TSX-V: CJO) is pleased to advise receipt of further highly encouraging surface sampling results, in preparation for a drill program at the Espiritu Santo Gold/Silver exploration project, in Jalisco State, Mexico.

Highlights

 23.3 g/t Au screen fire assay from 4m section of Patas vein;

 27.8 g/t Au rock chip sample from Patas/Pipi vein;

 Multiple +1 g/t Au samples from multiple veins in results to date, and

 18 major quartz breccia veins now identified (strike lengths up to 1km+ and typical widths of 3 – 12 meters) within the 5,800 ha project area.

Tony McDonald, Managing Director: “We are particularly encouraged both by the high grade values in several of the samples and number of gold-bearing veins identified to date at Espiritu Santo.”

“It is increasingly apparent that this is a priority gold/silver exploration project, with the Patas/Pipi vein area likely to lead the target list when the first drilling campaign commences later this year.”

Espiritu Santo is located 130 km west of Guadalajara and 50 km east of Puerto Vallarta. Lying within a northwest corridor defined by numerous, predominantly gold/silver, low sulphidation mineralised occurrences, this prolific zone hosts several active exploration projects, including Endeavour Silver Corporation’s San Sebastian development project to the northwest and Soltoro Ltd’s El Rayo Project to the southeast (Figures 1 and 2).

Gold and silver with associated copper, as well as low levels of lead and zinc mineralisation at Espiritu Santo occurs as low sulphidation quartz-sulphide style Au + Cu epithermal mineralisation. These systems are typically formed within structures overlying a buried intrusion source.

Cerro’s exploration team is currently working on several vein systems within the large concession block, utilising surface sampling and geological mapping for the purpose of defining drill targets to be tested post rain season.

Table 1 lists the significant surface samples (>0.5 g/t Au) not previously reported; 26 of the recent rock samples exceed 1g/t Au.

Table 2 for ease of reference to Figures 3 and 4, lists surface samples previously reported in July.

Table 1: Highlights of Recent Espiritu Santo Surface Sampling

SAMPLE	EAST WGS84	NORTH WGS84	WIDTH (M)	Au g/t	Ag g/t	VEIN	SYSTEM
ES-1075	540700	2290460	0.50	1.66	15.8	Carmela	NE-SW
ES-1088	540943	2290623	Random	0.58	7.8	Carmela	NE-SW
ES-1100	540880	2290537	1.00	1.3	9.1	Creston	NE-SW
ES-1104	540854	2290508	1.00	0.04	6.9	Creston	NE-SW
ES-1105	540854	2290507	1.00	0.03	8	Creston	NE-SW
ES-1186	540789	2290425	0.70	0.01	0.6	Creston	NE-SW
ES-1187	540790	2290426	1.00	0.01	0.5	Creston	NE-SW
ES-1188	540676	2290286	0.40	1.05	5.2	Creston	NE-SW
ES-1189	540676	2290286	0.50	1.13	11.6	Creston	NE-SW
ES-1236	540292	2289284	0.10	1.62	2.5	El Puma	NE-SW
ES-1081	540850	2289915	1.00	0.98	26	El Tigre	E-W
ES-1191	539766	2289729	0.50	1.09	11.6	Jenny	NE-SW
ES-1146	540729	2290136	0.50	0.62	8.9	Nuñez	E-W
ES-1171	539818	2290033	1.00	0.57	1.9	Ordonez	E-W
ES-1159	540003	2290387	1.00	1.98	7.5	Patas	NE-SW
ES-1164	539996	2290373	4.0*	18.9	8.7	Patas	NE-SW
ES-1205	539945	2290262	0.40	1.27	3.3	Patas	NE-SW
ES-1206	539943	2290256	0.60	0.7	4.1	Patas	NE-SW
ES-1207	539944	2290254	0.70	2.22	12.8	Patas	NE-SW
ES-1208	539945	2290252	1.20	1.06	9.7	Patas	NE-SW
ES-1212	539930	2290226	0.50	0.02	1.8	Patas	NE-SW
ES-1213	539929	2290226	0.80	0.01	1.3	Patas	NE-SW
ES-1279	539981	2290337	1.20	0.01	0.7	Patas	NE-SW
ES-1287	539988	2290335	1.00	0.02	0.7	Patas	NE-SW
ES-1297	539977	2290376	0.35	8.46	8.1	Patas	NE-SW
ES-1298	539977	2290375	0.25	1.25	33.5	Patas	NE-SW
ES-1302	539978	2290374	0.40	12.65	15.6	Patas	NE-SW
ES-1308	539975	2290370	0.40	1.08	13.8	Patas	NE-SW
ES-1311	539975	2290368	0.35	0.54	12.5	Patas	NE-SW
ES-1312	539975	2290368	0.30	0.86	9.3	Patas	NE-SW
ES-1313	539978	2290326	1.00	9.04	19.9	Patas	NE-SW
ES-1314*	539978	2290331	0.30	27.8	9.3	Patas	NE-SW
ES-1322	539951	2290269	0.80	18.1	5.5	Patas	NE-SW
ES-1328	539942	2290237	0.10	2.03	38.2	Patas	NE-SW
ES-1198	540001	2290379	4.0	3.8	4.6	Patas	NE-SW
ES-1166	539997	2290338	0.60	1.85	4.4	Pipi	N-S
ES-1167	539996	2290338	0.15	0.59	39.9	Pipi	N-S
ES-1168	539996	2290338	1.00	0.49	5.9	Pipi	N-S
ES-1169	540000	2290334	0.20	2.98	2.9	Pipi	N-S
ES-1197	540001	2290379	0.30	2.84	5.2	Pipi	N-S
ES-1226	540058	2290010	0.40	0.8	10.3	Pipi	N-S

ES-1227	540058	2290010	0.10	9.1	6.3	Pipi	N-S
ES-1228	540058	2290010	0.50	1.75	7.7	Pipi	N-S
ES-1229	540068	2289983	Float	6.57	19	Pipi	N-S
ES-1252	540039	2290360	1.00	0.73	3.5	Pipi	N-S
ES-1273	540048	2290341	0.70	0.84	3.5	Pipi	N-S
ES-1148	541049	2289074	1.00	0.14	52.2	Santa Rita	NE-SW

Table 2: Highlights of Espiritu Santo Surface Sampling Previously Reported

SAMPLE

EAST WGS84

NORTH WGS84

Au g/t

Ag g/t

VEIN

SYSTEM

ES-0071

539577

2291248

0.85

10

Arrizon

N-S

ES-0167

539561

2291205

0.5

20

Arrizon

N-S

ES-1062

539502

2290537

0.02

2

Arrizon

N-S

ES-1064

539520

2290673

2.35

5

Arrizon

N-S

ES-1065

539521

2290894

1.94

11

Arrizon

N-S

ES-1066

539548

2291159

0.17

14

Arrizon

N-S

ES-0179

540596

2290326

1.26

8

Carmela

NE-SW

ES-0183

540902

2290587

2.4

22

Carmela

NE-SW

ES-0184

540902

2290587

1.77

24

Carmela

NE-SW

ES-0187

540934

2290614

1.2

5

Carmela

NE-SW

ES-1052

540220

2290252

0.98

27

Carmela

NE-SW

ES-0001

539570

2289108

0.04

1

El Gringo

N-S

ES-0002

539570

2289108

0.04

13

El Gringo

N-S

ES-0003

539570

2289108

1.53

372

El Gringo

N-S

ES-0004

539570

2289108

0.58

15

El Gringo

N-S

ES-0005

539570

2289108

1.44

14

El Gringo

N-S

ES-0009

539567

2289121

2.13

66

El Gringo

N-S

ES-0017

539564

2289203

0.7

8

El Gringo

N-S

ES-0018

539564

2289203

0.45

5

El Gringo

N-S

ES-0027

539563

2289286

0.29

6

El Gringo

N-S

ES-0028

539563

2289286

0.18

7

El Gringo

N-S

ES-0029

539563

2289286

0.34

13

El Gringo

N-S

ES-0033

539541

2289362

0.15

10

El Gringo

N-S

ES-0034

539543

2289364

0.01

1

El Gringo

N-S

ES-1039

539575

2289097

0.46

10

El Gringo

N-S

SAMPLE

EAST WGS84

NORTH WGS84

Au g/t

Ag g/t

VEIN

SYSTEM

ES-1050

539583

2289057

3.14

88

El Gringo

N-S

ES-1051

539585

2289043

0.7

28

El Gringo

N-S

ES-0093

540259

2289224

0.67

3

El Puma

NE-SW

ES-0094

540267

2289233

0.69

2

El Puma

NE-SW

ES-0171

540594

2289443

0.05

1

El Puma

NE-SW

ES-0188

541947

2288307

0.62

44

El Tajo

E-W

ES-0132

540744

2289877

2.97

124

El Tigre

E-W

ES-0134

540741

2289878

0.09

12

El Tigre

E-W

ES-0138

540693

2289855

4.06

79

El Tigre

E-W

ES-0126

540442

2291138

0.92

35

Lourdes

NE-SW

ES-0129

540453

2291183

0.59

13

Lourdes

NE-SW

ES-0131

540460

2291159

1.02

75

Lourdes

NE-SW

ES-0141

540545

2290102

1.92

46

Nuñez

E-W

ES-0142

540545

2290102

0.05

13

Nuñez

E-W

ES-0144

540555

2290103

1.69

17

Nuñez

E-W

ES-0145

540421

2290080

2.27

7

Nuñez

E-W

ES-1017

540541

2290104

1.71

14

Nuñez

E-W

ES-1034

540360

2290072

0.45

7

Nuñez

E-W

ES-1036

540425

2290081

0.5

13

Nuñez

E-W

ES-0147

539916

2290205

7.92

25

Patas

NE-SW

ES-0148

539916

2290205

0.17

2

Patas

NE-SW

ES-1012

539569

2289596

2.49

23

Patas

NE-SW

ES-0051

539933

2289907

0.49

2

Patas

NE-SW

ES-1003

539411

2293429

0.01

1

Piedra Cargada

E-W

ES-1010

539381

2293430

0.01

1

Piedra Cargada

E-W

ES-1013

539402

2293481

0.48

14

Piedra Cargada

E-W

ES-1014

539402

2293509

0.09

6

Piedra Cargada

E-W

ES-0110

540459

2288584

0.9

47

Plan Verde

N-S

ES-0119

540426

2288646

0.68

13

Plan Verde

N-S

ES-0175

540425

2288653

0.84

38

Plan Verde

N-S

ES-0176

540425

2288653

0.15

6

Plan Verde

N-S

ES-1025

541505

2287668

2.43

68

San Pascual

NE-SW

ES-1027

541505

2287668

6.38

56

San Pascual

NE-SW

ES-1029

541505

2287668

3.92

106

San Pascual

NE-SW

ES-0153

540037

2291229

0.07

92

Santa Cecilia

N-S

ES-0158

540033

2291210

0.61

18

Santa Cecilia

N-S

ES-0162

540024

2291188

0.54

3

Santa Cecilia

N-S

ES-0163

540023

2291187

1.2

9

Santa Cecilia

N-S

ES-0164

540023

2291186

0.6

13

Santa Cecilia

N-S

For further information, please contact:

Tony McDonald, Managing Director

+61 7 3221 7501

[email protected]

Greg Germon Ms. Gerri Paxton

General Manager Investor Relations – Australia Manager Investor Relations North America

+61 2 9300 3341 +1-514-544-2696

[email protected] [email protected]

Competent Person/Qualified Person

The technical information in this news release is based on information compiled by 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 mineralisation 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 focus on the Mt Isa, Queensland, region where it holds 100% of the Mt Philp haematite project as well as a continued interest in the Kalman molybdenum, rhenium, and copper project.

Additional information about the Company and its projects is available on the Companys 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 mineralisation 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 Companys 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.

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.

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