VANCOUVER, May 31, 2012 /PRNewswire/ – Dia Bras Exploration Inc. (TSXV: DIB) (BVL: DIB) (“Dia Bras”) (the “Company”) is pleased to announce the filing of its audited Financial Statements and Management Discussion and Analysis (“MD&A”) for the first quarter of 2012. All amounts are presented in Canadian dollars unless otherwise stated. For the full Financial Statements or MD&A please visit the Company’s website www.diabras.com or SEDAR at www.sedar.com

Financial Highlights

• Net loss attributable to shareholders of $0.8 million or $0.01 per share for the first quarter of 2012 compared to a loss of $1.7 million or $0.02 per share for the same period in 2011.


• A large component of the net loss for the first quarter of 2012 is a non-cash depletion charge in Peru of $18.5 million. This depletion charge has been calculated based on the units of production of the fair valued $363.9 million mineral property asset purchased on the acquisition of Corona on May 26, 2011. Management expects that Yauricocha’s life-of-mine will increase going forward as additional mineral reserves and resources are confirmed. If this occurs, non-cash depletion charges would be reduced in future periods.


• EBITDA of $25.1 million for the first quarter of 2012 compared to ($1.2) million for the same period in 2011.


• Revenues of $46.3 million for the first quarter of 2012 compared to $4.0 million for the same period in 2011.


• Cash and cash equivalents of $58.5 million as at March 31, 2012 compared to $20.2 million at December 31, 2011.


• Silver cash cost of negative US$26.48 per ounce (“oz”) in Yauricocha and copper cash cost of US$1.47 per pound (“lb”) at Bolivar for the first quarter of 2012.

The following table sets out selected quarterly financial results.

Operational Highlights

• Silver production of 587,759 oz in the first quarter of 2012 compared to 58,330 oz for the same period in 2011.


• Copper production of 3.9 million pounds (“lbs”) in the first quarter of 2012 compared to 0.6 million lb in the same period of 2011.


• Lead production of 7.9 million lb in the first quarter of 2012 compared to 0.1 million lb in the same period of 2011.


• Zinc production of 13.6 million lb in the first quarter of 2012 compared to 3.6 million lb in the same period of 2011.


• Gold production of 2,995 oz in the first quarter of 2012 compared to nil in the same period of 2011.

The following table sets out consolidated production results for the quarter ended March 31, 2012.

The single largest driver affecting the Company’s financial and operational changes from the first quarter of 2011 to the first quarter of 2012 was the purchase of Corona on May 26, 2011. This acquisition has transformed Dia Bras into a geographically diversified silver, copper, zinc, lead and gold producer with an attractive growth profile and cash flows available for its exploration potential.

Exploration Highlights

• During the first quarter of 2012 the Company completed a total of 16,804 metres of exploration drilling. Dia Bras completed 5,732 metres at the Yauricocha Mine in Peru, and 6,524 metres and 4,548 metres at the Bolivar and Cusi properties respectively, in Mexico.


• On February 8, 2012 positive exploration results from the Yauricocha Property led to the announcement of a more aggressive exploration programme on the property. Exploration work will include drilling and other geological activities focused on defining and expanding high potential targets in the vicinity of the Yauricocha Mine. The Company will release an updated NI 43-101 compliant resource report on this property in the second quarter of 2012.


• On March 30, 2012 exploration-drilling at the Santa Eduwiges deposit discovered a new disseminated silver-type body of mineralization located some 3 km away from the Promontorio Area, along the Cusi Fault. The Company has approved an aggressive $7.0 million budget to define and explore the geological continuity of these high-grade deposits in greater detail. The focus will be on expanding the Promontorio, Santa Eduwiges and La India silver deposits with the intention of completing an updated NI 43-101 compliant resource report on the Cusi property in the fourth quarter of 2012.

Corporate Highlights

• On January 26, 2012 the Company announced changes to its board of directors with the appointment of Mr. Steven Dean as non-executive Chairman and Mr. Alberto Arias as Vice Chairman of the Board of Directors.


• On March 1, 2012 the Company announced that Corona, its Peruvian subsidiary, completed the sale of its non-core hydroelectric asset to Volcan Compania Minera S.A.A in Peru for US$46.8 million. The Company received a payment of US$24.5 million representing its 81.8% equity stake in Corona net of third party payments.


• On March 1, 2012 the Company announced the approval of its application to list on the Bolsa de Valores de Lima S.A. (“BVL” or “Lima Stock Exchange”). The Company’s shares currently trade on the BVL under the symbol “DIB”.

Recent Developments

• At the Bolivar property, recent exploration drill results released on April 4, 2012 indicate that the known resources at El Gallo continue 100 metres to the northeast of the previously defined boundary. The Company continues to explore the larger regional potential of this property and plans to complete an updated NI 43-101 resource estimate by the end of the second quarter of 2012.


• On April 23, 2012 the Company announced a Letter of Intent to acquire Plexmar Resources Inc. (TSX-V: PLE) (“Plexmar”). Plexmar is a Canadian exploration company focused on acquiring, exploring and developing gold mineral properties. Plexmar’s current focus is on its Peruvian advanced exploration properties, including its Bolsa de Diablo and Hans XX, and the 125 tpd Malin Mill that is currently operating as a custom mill. In addition, Dia Bras will provide Plexmar with a bridging credit facility of up to $1.0 million at a rate of 15% per annum to be repaid in six-months. Subsequently, the Company announced on May 29, 2012 that Plexmar’s option agreement which granted Plexmar rights to the Hans XX concession was cancelled. The Company and Plexmar intend on amending the concession option and the option exercise price to reflect the cancellation of the option agreement.


• On May 3, 2012 the Company announced results from its drill programme to expand resources at the Yauricocha Mine. The results show continued potential for the copper Catas ore body and the newly discovered polymetallic Adriana ore body to depth.


• On May 9, 2012 the Company announced a $45 million private placement of common shares at an offering price of $3.00 per share. Arias Resource Capital Fund II L.P. (“ARCF II”) and Arias Resource Capital Fund II (Mexico) L.P. (“ARCF Mexico”) are anticipated to purchase a minimum of $22.5 million and have committed to purchase any or the entire private placement should the common shares not otherwise be sold to other purchasers. Dia Bras plans to use the proceeds to develop and accelerate its exploration properties, for working capital and general corporate purposes.


• On May 14, 2012 the Company announced results from its surface and underground drilling campaign at its Promontorio mine in Mexico, intercepting evidence of strong silver mineralization.

Liquidity & Capital Resources

• Repaid US$52.8 million ($51.4 million) of the US$150 millionCorona acquisition financing facility. As of March 31, 2012 the Company had a net debt¹ position of $51.3 million.


• Improved liquidity position in Peru as a result of the net proceeds from the hydroelectric asset sale of US$24.5 million on March 2012.


• Enhanced liquidity in Mexico due to the new US$10.0 million revolving credit facility and amendment on Corona’s acquisition financing to allow for cash transfers from Peru to Mexico of up to US$10.0 million. Both were successfully negotiated during the first quarter of 2012.

Daniel Tellechea, President and CEO of Dia Bras, commented: “Dia Bras achieved another record quarter of production in the first quarter of 2012 with substantial increases in total metal production and revenue as a result of the Corona acquisition. The Company remains well positioned to continue its aggressive exploration and development plans in Peru and Mexico that will focus on consolidating mining operations and increasing reserves and resources at the Yauricocha mine in Peru, the Bolivar mine and Cusi property in Mexico. We are confident that 2012 will be another exciting year for the Company and its shareholders as we continue to expand operations in Latin America“.

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¹ Consolidated debt minus total cash and cash equivalents

Quality Assurance

The technical content of this news release has been approved by Thomas L. Robyn, Ph.D., CPG, RPG, a Qualified Person as defined in NI 43-101 and Head of Exploration for Dia Bras Exploration, Inc.

About Dia Bras

Dia Bras Exploration is a Canadian exploration & mining company focused on precious and base metals in Chihuahua State, other areas of northern Mexico, and most recently at its Yauricocha silver-lead-zinc-copper-gold mine in Peru. The Company is accelerating exploration at the Yauricocha property as well as pursuing the development and exploration of its most advanced Mexican assets – the Bolivar Property (copper-zinc-silver) and the Cusi Property (silver-lead) and is exploring in Mexico several precious metal targets such as La Sidra gold project at the Bolivar Property, Las Coloradas silver project at Melchor Ocampo (Zacatecas State), the Bacerac silver project (Sonora State), and the La Verde gold project at the Batopilas Property (Chihuahua State). Dia Bras is also exploring base metal projects in Mexico such as the Corralitos intrusion-hosted molybdenum deposit (Chihuahua State). Dia Bras is also exploring base metal projects in Mexico such as the Corralitos intrusion-hosted molyebdenum deposit.

Neither the 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 news release.

Forward-looking Statements

Except for statements of historical fact, all statements in this news release without limitation regarding new projects, acquisitions, future plans and objectives are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate; actual results and future events could differ materially from those anticipated in such statements.

SOURCE Dia Bras Exploration Inc.