• Treating 4,802,000 tonnes of ore grading 1.34 g/t gold and 5.65 g/t silver with heap leach recoveries of 73% gold and 40% silver with projected production of 151,000 oz gold and 349,000 oz silver at a cash cost of US$ 257/eq oz gold over a five year mine life.
• Initial annual production of 41,000 oz gold and 95,000 oz silver with averages of 30,000 oz gold/year and 70,000 oz silver/year over the mine life.
• Capital expenditures (including working capital) estimated to be US$35.5 million.
• At US$1,025/oz gold and $16.50/oz silver, the IRR is 50%, the NPV at a 5% discount is US$40.5 million and the payback is 1.47 years from the start of operations.
• The PEA was based on a 5 year 1:1 stripping ratio open pit mine, a 3,000t/d heap leach operation and a US$6.5 million reclamation and closure cost.

1. delivering to Coronet that quantity of common shares in the capital of Argus (the "Shares") as is equal to 40% of the issued and outstanding common shares of Argus as of the closing date. As at today's date, Argus has 7.9 million shares issued and outstanding so this would amount to Argus issuing 5.3 million Shares to Coronet; and
2. assuming Coronet's obligations under the original agreement whereby Coronet acquired Coronet Peru, being an agreement dated December 9, 2010, as amended, with Latin Gold Limited, pursuant to which, Coronet has remaining obligations provided certain milestones are reached by Coronet Peru toward putting the project into production.

• participate up to 40% in all financing undertaken by Argus for five years or until the Yanamina project has been brought into production;
• nominate two board members to the Argus board of directors until the project has been brought into production.

• US$1.5 million payable upon commencement of construction or a mine, and a bonus of US$1.0 million payable at the time the inferred resource exceeds 275,000 ounces gold;
• US$2.0 million payable upon the 12 month anniversary of the initial gold pour;
• US$2.0 million payable upon the 24 month anniversary of the initial gold pour; and
• common shares valued at US$2.5 million upon confirmation of an inferred resource equal to or greater than 250,000 ounces of gold within the Yanamina Deeps Exploration Target. The Yanamina Deeps Exploration Target is an undrilled potential footwall extension to the existing Yanamina resource. Latin Gold will also hold an overriding 1.0% gross royalty on all production in excess of 200,000 ounces Au.

1. one-third of the Shares will be released on the earlier of one year following the closing, or upon the Company signing a production agreement with the local communities;
2. an additional one-third of the Argus Shares will be released on the earlier of commencement of construction of a mine and mill (if required), or three years following the closing; and
3. the remaining one-third of the Argus Shares will be released on the earlier of commencement of production, or five years of closing.

1. if an agreement with the local communities is not reached within 12 months following the closing, Argus may return the shares of Coronet Peru to Coronet in consideration of terminating 85% of the Shares of Argus issued to Coronet;
2. if Argus is unable to commence commercial production within five years from the closing, or if Argus reasonably determines within such five year period that it will be unable to commence commercial production from the project by the end of such five year period, Argus may transfer and return the shares of Coronet Peru to Coronet in consideration of terminating all of the Shares which have not then been released to Coronet; or
3. if an agreement with the local communities is not reached within 36 months following the closing, Coronet may return all of the Shares to Argus in consideration of receiving from Argus all of the shares of Coronet Peru.

You can also view this News Release on our website at:
http://www.argusmetalscorp.com/s/NewsReleases.asp?ReportID=659174