Near-term Gold & Silver Producer
Geological Trend Hosts World's Gold Giants

Coronet Metals (TSXV CRF) brings together an experienced management team and a well-connected Board with access to high-grade, low-cost gold and silver production at severely discounted valuation. The company's immediate focus is early cash flow generation to drive the company's aggressive acquisition program, leveraging existing relationships and expertise within mining-friendly Latin American jurisdictions.

Coronet's initial acquisition is the Yanamina Project, located in Ancash province, about 175kms northeast of Lima, Peru. The Ancash region is located within one of the world's best mining jurisdictions. Yanamina is on the same rich geological trend hosting Barrick's giant Pierina (7.5M/oz) and Alto Chicama (9.1M/oz) gold mines, and Newmont's massive Yanacocha (19M/oz), said to be the world's most productive gold mine.

Yanamina is development-ready, with an NI 43-101-compliant inferred and indicated resource of approximately 286,000oz of gold grading between 1.6 and 2.0g/t, and 1.4M/oz of silver grading an average 8g/t. The deposit is open at depth, along strike and to both sides. An independent January 2010 pre-feasibility study estimated cash cost of production at $271/oz with a modest capex to production of $23 million, providing rapid payback.

Coronet's fully-funded $3.5 million drill program is expected to significantly expand the current Yanamina resource. Yanamina's independent consulting engineers and geological advisors believe the host Ancash Fault Zone acted as a conduit for hydrothermal gold-bearing solution, and is an integral part of the northerly trending structural deformation zone that hosts the Pierina and Alto Chicama/Lagunas Norte gold mines.

Management's expectation of near-term production is well-supported by extensive operational experience and access to capital. The Coronet Board has collectively raised hundreds of millions for mining projects, and has extensive experience working with government, non-governmental and community groups. Management anticipates attracting a non-dilutive debt facility to fund Yanamina's development.

Additional exploration opportunities with near-production cash flow potential are being pursued. The management team has taken the opportunity during the recent economic and political uncertainty to pursue several additional opportunities for Coronet.

Of note, since announcing the completion of the acquisition of the Yanamina Gold Project, management determined that there were undisclosed issues concerning the level of support from the local community for the project, as well as certain approvals and permits necessary to move the project towards production. Management therefore retained US $3.75 million of the purchase price cash portion to the vendor, which provided significant leverage during subsequent renegotiations of the acquisition agreements. A tentative agreement was recently reached and revised share and asset purchase agreements are expected to be announced in short order.

There are unique social and operational dynamics at work in Peru that the Coronet management team is well positioned to benefit from. As such, it will be useful to outline the country's mining history and context for additional perspective.

Peru has a vibrant mining history that dates back to the 1600's. Peru was of the Incan Empire, famous for its extensive use of gold and silver. These riches ultimately drew the Spanish, and were the source of the legend of Paititi, the Inca's "lost city of gold".

While the legend attracted both opportunists and adventurers over the centuries, the country now hosts several world class mines such as Barrick's Pierina and Alto Chicama/Lagunas Norte Gold Mines and Newmont's Yanacocha Mine. Peru is the world's largest producer of silver and the fifth largest gold producer. Peru also supplies 7% of the world's copper, making it the world's second largest producer after neighboring Chile.

Peru has a modern mining act which recognizes the need for security of title and the guaranteed rights of all stakeholders.

Earlier this year financial markets were unnerved and business plans put on hold during presidential hopeful Ollanta Humala's ascent in the polls. Now Peru's new "leftist" president since narrowly winning the June 5 presidential election, fears that he would follow the model of his one-time mentor, Venezuelan President Hugo Chavez, may finally have been laid to rest.

Humala was elected to a five-year term, and surprised many observers by implementing a more center-left platform aiming to please both the rural poor and businesses alike. By appointing a conservative economic team committed to keeping free-market reforms intact and adopting a moderate discourse, he quickly secured some $15 billion in newly pledged investments for the country's fast-growing economy. These new investments are equal to about 10 percent of current gross domestic product. New projects include many of the world's leading miners and resource companies:

�    Spanish oil firm Repsol-YPF plans to spend between $2.5 billion and $3 billion in the next five years, including $1 billion in its Pampilla refinery; the rest in natural gas exploration and development.

�    Brazil's Votorantim, the world's No. 3 zinc producer, will invest $3.2 billion in Peru in the next five years. Votorantim controls Peruvian miner Milpo and operates the Cajamarquilla refinery in Peru.

�    Barrick Gold , the world's largest gold producer, plans to "bet on Peru" with a $550 million investment by 2013, the head of the company's Peruvian subsidiary, Darrell Wagner, said at the Perumin mining convention on Sept. 13.

�    Canada's HudBay Minerals will spend at least $1 billion to develop its Constancia copper project in Peru, the company's chief executive, David Garofalo, told Reuters on Sept. 12.

�    Peruvian miner Buenaventura and U.S.-based Newmont said on July 27 they would pour up to $4.8 billion into the Conga gold and copper mine, the largest mining investment in Peru's history.

�    Spain's Telefonica approved a plan to invest $1.5 billion in Peru through 2013 as it accelerates investment plans in the country, confident of the incoming government, the company announced on July 20.

�    Claro, a unit of Mexico's America Movil , said on June 9 it would spend $1 billion in Peru over three years -- the first major investment announced by a foreign firm after Humala won the presidency.