Antofagasta Gold Signs MOU to Acquire 3,150 Square Kilometre (320,000 Hectares) Atacama Copper Property, Antofagasta Copper D...

Antofagasta Gold Inc. ("Antofagasta" or the "Company") (TSX VENTURE:AN) has
entered into an exclusive Memorandum of Understanding (the "MOU") for a four
year option agreement (the "Option Agreement") to earn an 80% interest in the
Atacama Copper Property ("Property"). The Property consists of approximately
3,200 contiguous square kilometres (320,000 hectares) in Chile's Antofagasta
Region II, home to some of the world's largest mining operations, and covering a
large undrilled portion of the highly prospective Jurassic and Paleocene-Early
Miocene copper porphyry belt.


The Property commences approximately 40 km NE from the city of Antofagasta, and
is traversed by major highways, railways, and high-tension power lines, most of
which service existing operating copper mines in the region. The claim block,
roughly 120 km by 40 km running almost north south, covers most of the land
between several major producing mines in the area. A map showing the outline of
the claim blocks and the location of the larger mines in the immediate area can
be found here.


William Randall (M.Sc., P.Geo), President & CEO of Antofagasta Gold, commented:
"signing this landmark MOU marks the beginning of an exciting new era for
Anofagasta Gold. The opportunity to be the first to prospect within the heart of
Chile's world class copper district is extraordinary, given the dominant control
over mineral title by the country's largest mining companies. This ground,
underexplored and covering large tracts of two productive copper porphyry belts,
provides our shareholders with unparalleled exposure to potential world class
discoveries."


Most of the copper porphyry deposits of the region belong to the Paleocene-Early
Eocene world class Copper - Molybdenum porphyry belt which extends from southern
Peru to northern Chile for a distance of over 1300 km. One of the more recent
major discoveries in the immediate region is the Spence enriched Cu-Mo deposit.
Spence, located 4 kilometres west of the Atacama Copper property boundary was
discovered under 60 metres of gravel cover by Rio Algom in 1996 and is related
to three Paleocene dacite porphyry intrusive and tourmaline breccias aligned
NE-SW. The deposit has a 20m thick oxide zone followed by a well developed
enrichment blanket averaging approximately 60m in thickness. The deposit lies on
the intersection of prominent NE and NW trending structural lineaments. 


Vernon Arseneau (P.Geo), VP Exploration of Antofagasta Gold, commented: "the
area negotiated covers a variety of ground that has had little to no exploration
to date, despite being centrally located in one of the world's largest copper
mining districts. The Spence discovery serves as a good reminder that there is
great potential under the gravel cover. Antofagasta's exploration program will
take advantage of the tremendous advances in mineral exploration techniques
since 1996 to locate deposits under variable cover. In addition, having this
land package contiguous to the Company's Capricornio project, allows for us to
start work without significantly changing the team or construction of additional
camps. We can start work immediately after signing the definitive agreement."


Terms of the Deal 

Antofagasta has signed a binding MOU with an arm's length public mining company
to enter into a four year option agreement to earn an 80% interest in the
Atacama Copper project. Under the Option Agreement, Antofagasta Gold will be
required to pay the Vendor option fees, and commit to a work program, over the
four year period which will be based on the size of all land held under the
Option Agreement at the time of each relevant payment milestone. 


Antofagasta Gold will have to reduce the total area and will be able to exercise
the option on a maximum of 50,000 ha. The terms of the deal consist of total
obligations that are approximately US$10 million over 48 months. Antofagasta
Gold is not restricted in the selection of the area that it chooses to retain
allowing the Company to retain only the high priority targets identified in the
early stage exploration program. Antofagasta Gold will have, at all times during
the Option Agreement, the right to relinquish any parts of the Atacama Copper
Property back to the Vendor with no further liability. The Vendor will retain a
Net Smelter Royalty on all metallic minerals. Further details of the terms will
be disclosed upon signing the definitive agreements.


About Antofagasta Gold 

Upon entering into a definitive option agreement regarding the Atacama Copper
Property, Antofagasta Gold will have three properties under option covering
approximately 346,000 hectares. All the properties are within the Antofagasta
region of Chile, at low altitudes and within producing mining camps.
Approximately 6350 metres of diamond drilling have been completed on the
Capricornio Property. The first set of drill results were released on February
14th, 2013 (refer to news release for details) and the Company anticipates
releasing the remaining holes in June, 2013. 


The Company currently has approximately $4,700,000 cash (as of March 31st,
2013). The remaining property payments for all properties held by Antofagasta
Gold total $550,000 for the remainder of 2013. Total payments currently
committed to for 2014 are expected to be $1,330,000 and remaining work
commitments for 2013 & 2014 combined are expected to be approximately
$1,545,000. The Pampas El Penon and Atacama Copper option agreements allow for
further reduction in land size, therefore reducing property payments and
exploration commitments further.


The technical and scientific aspects of this news release have been reviewed and
approved by Mr. Vernon Arseneau, P.Geo, who has been designated as a qualified
person pursuant to under NI 43-101. As the Vice President of Exploration of the
Company, Mr. Arseneau is not considered independent. 


On behalf of the Board of Directors of 

Antofagasta Gold Inc 

William Randall, President, and CEO

Cautionary Note Regarding Forward-Looking Information and Mineral Resources: 

This press release contains "forward-looking information" within the meaning of
applicable Canadian securities legislation. Forward-looking information
includes, but is not limited to, statements (express or implied) relating to
production results and/or the impact of such production results with respect to
the timing, cost and/or amount of future exploration and development of any
property, the timing, cost and/or amount of future production, the future price
of gold or other minerals, the successful implementation of development plans at
any of the Company's properties and/or the future financial or operating
performance of Antofagasta, its properties and/or its projects. Generally,
forward-looking information can be identified by the use of forward-looking
terminology such as "plans", "expects" or "does not expect", "is expected",
"budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or
"does not anticipate", or "believes", or variations of such words and phrases or
state that certain actions, events or results "may", "could", "would", "might"
or "will be taken", "occur" or "be achieved". Forward looking information is
subject to known and unknown risks, uncertainties and other factors that may
cause the actual results, level of activity, performance or achievements of the
Company, its properties and/or its projects to be materially different from
those expressed or implied by such forward-looking information, including but
not limited to those risks described in the annual information form of the
Company, which is available under the profile of the Company on SEDAR. Although
the Company has attempted to identify important factors that could cause actual
results to differ materially from those contained in forward-looking
information, there may be other factors that cause results not to be as
anticipated, estimated or intended. There can be no assurance that such
information will prove to be accurate, as actual results and future events could
differ materially from those anticipated in such statements. Accordingly,
readers should not place undue reliance on forward-looking information. The
Company does not undertake to update any forward-looking information, except in
accordance with applicable securities laws. It should also be noted that mineral
resources that are not mineral reserves do not have demonstrated economic
viability. 


FOR FURTHER INFORMATION PLEASE CONTACT: 
Antofagasta Gold Inc
William Randall
President and CEO
(416) 309-2697
wrandall@antofagastagold.com
Arena Minerals (TSXV:AN)
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