Following the Agreement, Minera IRL has no interest in or has any outstanding obligations or liabilities relating to Minera IRL Patagonia. Minera IRL Patagonia is the joint venture company that owns the Don Nicolás Project in Santa Cruz Province, Argentina.

Mr. Courtney Chamberlain, Executive Chairman of Minera IRL, commented, "We enjoyed working in Argentina over the past four-and-half years and had considerable success defining reserves and resources at the Don Nicolás Project. We were delighted to have attracted CIMINAS as a joint venture last year, who is funding the construction of the Don Nicolás Mine. However, having recently received the Construction Permit to build the Ollachea Gold Mine in Peru, the Company believes that, with great regret, that divesting our interest in Don Nicolás and reallocating the proceeds towards our flagship project is in the best interest of Minera IRL."

Dr. Diego Benavides, President of Minera IRL Patagonia, added, "We thank CIMINAS, our joint venture partner, for their contribution and support since the Agreement was signed in August 2013 and wish them well with the ongoing development of Don Nicolás. We also thank the Argentina and Santa Cruz Provincial authorities for their outstanding support and assistance since 2010. Finally, we wish to pay special tribute to our team in Argentina for their professional discipline, loyalty, support and dedication in making Minera IRL Patagonia a success."

For the year ended 31 December 2013, the assets subject to the transaction incurred a loss before tax of US$15.7 million (US$3.2 million adjusting for loss on deconsolidation of subsidiary). As at 31 December 2013 the carrying value of the assets subject to the transaction was US$43.7 million.

Terms of the Agreement

Under the Agreement, CIMINAS paid US$9.8 million (85%) upon closing of the transaction and will pay US$0.85 million (7.5%) after 90 days and the remaining US$0.85 million (7.5%) after 12 months. The payment of the second and third tranches is conditional upon the satisfaction of certain customary representation and warranties pertaining to the Don Nicolás Project.

Buenos Aires Advisors acted as the Company’s financial advisor in connection with the Agreement.