Cerro Grande Mining Corp. (CSE: CEG)

Cerro Grande Mining Corp. (the "Company"CCM") (TSX-V: CCM) (OTCQB: CCMEF) (CSE” CEG) (PRx: XPMFF) is a mining exploration and development corporation engaged in exploration activities for iron ore, lead, silver, tin, gold, chromium, tungsten, coal, gas, petroleum, limestone, gold, copper, tungsten, molybdenum, and water. Cerro Grande is one of the largest mining companies in Chile. It has an exploration program in the northern part of the country with operations in the areas of Cerro Grande, La Pampa, and Puerto Limon. The Company also has projects underway in other parts of Chile and the United States.

Cerro Grande Mining Corp., (also known as Cerro Grande de España) and its wholly-owned subsidiary, CEG, announced a business combination transaction, known as the "Business Combination Agreement". Under the terms of the agreement, CEG shareholders will receive a cash payment of $2.25 billion, and CEG will acquire a majority share of CEG's common stock for approximately 8.5% of CEG's outstanding equity value. CEG is also expected to assume the debts of CGRT, and to pay out its obligations to its existing CGRT shareholders in its CGRT and CEG common stock and preferred stock. CEG and CGRT shareholders will each obtain one vote per share in the transaction. The Business Combination Agreement does not include any debt provisions, so it provides a more orderly transition for CEG and its CGRT shareholders.

CGRT is currently conducting exploration activities for the exploration and mineralization of the northern Andes Mountains. The venture is expected to bring thousands of jobs and billions of dollars to CGRT's economy. CGRT is an important partner for CEG and other Spanish companies interested in accessing the huge untapped reserves of copper, gold, silver and zinc in Chile's northern Andes Mountains. The agreement also allows CEG to retain its majority ownership in the company and maintain its strong financial performance. This transaction completes a year-long process of acquisitions by CEG that have added to the Company's strong financial position.