Drill Targets Increased At Espiritu Santo Gold/Silver Project

LONGUEIL, QC - Cerro Resources NL reported further progress in the pre-drilling exploration phase at the Espiritu Santo Gold/Silver project in Jalisco State, Mexico. Highlights: Additional +0.5 g/t Au surface rock chip samples from multiple veins have now been received. Including rock chip samples with gold to 10.75 g/t Au and 8.13 g/t Au from the newly discovered Agua Mala zone; The conventional -80mesh soil programs continue to expand multiple gold and silver targets at Espiritu Santo.

Espiritu Santo is located 130 km west of Guadalajara and 50 km east of Puerto Vallarta and occurs within a northwest corridor defined by numerous, predominantly gold/silver, low sulphidation mineralised occurrences.

Cerro Resource'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 as the permit process is being finalized.

A total of 858 rock chip samples have been collected. Following the last project announcement of August 22, 2012, further anomalous rock chips have been collected, both as extensions of the known veins and there has been success in locating additional zones of mineralisation. Some of these new areas are proving to be encouraging as they contain broad zones on strong alteration with associated anomalous trace elements, that could possibly be interpreted to represent higher stratigraphic levels in a traditional low sulphidation gold-silver system.

One of these new areas; the Agua Mala area was recently discovered as a result of surface geologic mapping and sampling program in an area previously not known and is located NW the Nunez vein and to the SW of the extension of the Carmela area. Although the zone as currently defined is "narrow" the area contains values to 10.75 g/t Au and 24g/t Ag. Additional work is planned for Agua Mala in the near future.