- Positive Feasibility on First Stage - Heap Leach Years 1-8

- Positive Preliminary Assessment on Potential Second Stage - CIL and Heap Leach Years 5-15

Apr. 12, 2011 (Marketwire Canada) --

LONGUEUIL, QUEBEC -- Cerro Resources NL (ASX:CJO)(TSX VENTURE:CJO) has undertaken:

HIGHLIGHTS:

FIRST STAGE FEASIBILITY ON PROVEN AND PROBABLE RESERVES – HEAP LEACH

• Total proven & probable reserves: 32.2Mt*
  
  (initial 8 years of heap leaching producing 0.446 Moz gold and 5.32 Moz silver)
• Operation consisting of 4.5Mtpa heap leach with 3-stage crushing

SECOND STAGE PRELIMINARY ASSESSMENT ON MEASURED AND INDICATED RESOURCES - HEAP LEACH / CIL PROCESSING

• Additional in-pit measured & indicated resources: 45.0Mt+
  
  (inside the optimised pit producing 0.682 Moz gold and 4.73 Moz silver from heap leaching and carbon-in-leach processing - pit optimised using US$1,020/oz gold and US$16.40/oz silver)
• Expanded facilities for additional 3.0 Mtpa CIL processing, increasing annual processing rate to up to 7.5Mtpa

OTHER

• Projected mine life of 14.3 years^ and average annual production over mine life 90,800 AuEq (at Gold price of US$1,157/oz and silver price of US$19.81/oz with gold:silver price ratio of 58.4 and on assumption mineral resources will convert to mineral reserves)
• Project 66% owned by Cerro Resources (Goldcorp 34%)
• Potential cash flow model outputs are shown in the following table:

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