Cerro de Pasco Resources Inc. announced that it has signed a Memorandum of Understanding ("MOU") with Volcan Compania Minera S.A.A. ("Volcan"), setting out shared objectives and a framework for collaboration with regards to first phase of development and exploration of CDPR's Quiulacocha Tailings Project ("QT Project"). In addition, the Company announced that Glencore International AG ("Glencore") will provide CDPR a USD 2 Million term loan to cover the costs associated with the first phase of the QT Project. This includes geophysical studies, a 40-hole sonic drilling program, laboratory testing, minerology studies, resource estimation and economic assessment.

Funds will be disbursed in accordance with a schedule of milestones. Repayment will occur within 12 months from the start of commercial production. Joint Objectives.

CDPR is the current titleholder of the concession located in Peru called "El Metalurgista" (" the Concession"), which grants it the right to explore and exploit the Quiulacocha tailings located within its assigned area. The enforceability of these rights has been formally confirmed by the General Mining Bureau of Peruvian Ministry of Energy and Mines. CDPR has obtained most of the certifications and authorizations required to start exploration activities at the Concession, including an environmental certification ("DIA"), and an agreement with the Quiulacoch a Community providing certain surface rights.

Easement rights also required to conduct exploration of the Concession are being finalized and CDPR expects to begin the first phase of the Q TPD in the coming months, coinciding with the Peruvian Andes dry season. Volcan, through its wholly owned subsidiaries are titleholders of beneficiation concessions at Cerro de Pasco with rights to process metallic minerals at a throughput rate of 17,500 tons per day from its Paragsha and San-Expedito processing plants and 2,500 TPD from its Oxides plant.