Joint Venture Agreement

23rd Oct 2007 10:45

Herencia Resources PLC23 October 2007 For immediate release 23 October 2007 Herencia Resources plc ("Herencia" or the "Company") • Paguanta Project - Joint Venture Documentation Signed • 70% ownership confirmed Paguanta Project Herencia is pleased to announce that it has executed a joint venture agreement("JV Agreement") with Compania Minera Costa Rica ("CMCR"), Herencia'sexploration partner, confirming Herencia's 70% ownership of the Paguanta Projectin Chile. As announced on 5 October 2007, the Company has spent US$2 million on thePaguanta Project which satisfied the criteria under the original agreementexecuted between CMCR and Herencia in order for Herencia to be entitled to a 70%stake in the project. Pursuant to the terms of the JV Agreement a new company,Compania Minera Paguanta SA ("CMP"), is now being incorporated which will holdthe Paguanta Project tenements (currently held by CMCR). Herencia will be a70% shareholder of CMP with CMCR holding the remaining 30% of the shares. Goingforward both parties will contribute toward their respective share of futureexpenditure. Commenting on the execution of the JV Agreement, Executive Director Michael Bohmstated "Another significant milestone has been achieved by Herencia. TheCompany has spent US$2 million on Paguanta as required, and the documentation toconfirm our 70% stake in the Joint Venture Company has now been executed." The Company anticipates holding the first meeting of the joint venture partnersduring November 2007 to approve the next phase of the Paguanta Projectdevelopment program. Further background details on the Company and the Paguanta Project can be found at: www.herenciaresources.com Contact: MICHAEL BOHM HERENCIA RESOURCES PLC +61 8 9221 7466 DAVID YOUNGMAN WH IRELAND LIMITED +44 161 832 2174 This information is provided by RNS The company news service from the London Stock Exchange

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