Orosur Reports On Major Exploration Projects

SANTIAGO - Orosur Mining Inc. reported on its major exploration projects in Uruguay and Chile.

David Fowler, Chief Executive Officer commented: Good progress has been made on Mahoma and Pantanillo during the quarter. At Mahoma drilling has confirmed the potential to delineate a high grade ore source that could extend the mine life at San Gregorio. A further 4,500 meters of drilling is planned for calendar 2012 to define a NI 43-101 resource. At Pantanillo in Chile drilling confirmed the potential for additional oxide resources and our preliminary economic assessment demonstrated the potential for Pantanillo to develop into a production asset.

A 3,016 meter drill program at Mahoma confirms the potential for high grade narrow vein mineralization. A follow-up drilling program of approximately 4,500 meters is planned to commence in September 2012 to enable a NI 43-101 resource to be defined in calendar 2012 with a goal of providing the basis for a feasibility study during the first half of calendar 2013.

Preliminary Economic Assessment of the Pantanillo project released in May 2012 showed a net present value before income tax of $US 50 million at an 8% discount rate and an IRR of 19 percent at a $US 1,250 gold price.

New mineralized breccia zone drilled at Pantanillo Central approximately 2 km from the existing resource confirms potential to add to oxide resources at Pantanillo. Drill hole PCEN-12-005 returned an encouraging intercept of 19 meters at 0.73 g/t Au.

Follow-up field work on new target at Anillo expected to commence in September 2012.

Talca drilling intercepts high grade mineralization in Sector Sur including 2 meters at 47.2 g/t in drill hole TALCA12-43DDH.

 A drilling program, comprising 4,553 meters of reverse circulation (RC) and diamond drilling, was completed during the 2012 fiscal year at San Gregorio in order to update the geologic model and better define the resource for the San Gregorio deposit.

OMI completed a 1,523 meter resource definition drill program at the Vaca Muerta project located approximately 85km east (by existing roads) of the San Gregorio plant. Surface work in the Isla Cristalina belt near the San Gregorio operation during 2012 has identified targets at Santa Barbara, Santa Ernestina, Peru/ Esperanza and Arenal East.