Decree For 11 Additional Mining Concessions In The Las Lomas Project

TORONTO - Cautivo Mining Inc. reported that its Peruvian subsidiary, Sociedad Minera San Miguelito S.A.C., has received the Supreme Decree by which it is permitted to acquire and develop 11 of the 32 existing or pending mining concessions that were held either directly by Minera Ate S.A.C. or a third party with which Minera Ate holds an outstanding mining option contract. Under Article 71 of the Peruvian Constitution, foreign individuals must obtain permission from the President of the Republic and the Council of Ministers, in the form of a Supreme Decree, to hold any type of concession over property located within 50 kilometers of any of Peru's national borders.

Having received these Supreme Decrees, San Miguelito exercised its right to acquire from Minera Ate 8 of the aforementioned 11 mining concessions, which cover a total area of 5,169.2 hectares, for the aggregate amount of US$342,400. In regards to the 3 remaining concessions, which cover a total area of 2,000 hectares, Minera Ate has transferred to San Miguelito its interest in the outstanding mining option contract with the third party that holds such concessions (the "Contract Transfer" and together with the Acquisition, the "Transactions"). San Miguelito paid Minera Ate the aggregate amount of US$1,146,200 for the Contract Transfer.  Pursuant to an existing option agreement between San Miguelito and Minera Ate, the amount paid in respect of the Transactions was satisfied entirely through a reduction of the advances made by San Miguelito in respect of these concessions. Accordingly, no cash consideration was paid to Minera Ate in connection with the Transactions.

As a result of the Transactions, San Miguelito now has a 100% direct interest in 28 of the 56 existing or pending concessions that comprise the Las Lomas Project and an interest in 7 additional concessions held by third parties with which San Miguelito holds outstanding mining option contracts. Of the remaining 21 existing or pending concessions, 17 are held directly by Minera Ate and an additional 4 existing concessions are currently held by a third party with which Minera Ate has entered into a letter of intent.