Laredo Negotiating to Acquire

Pony Mountain Gold Property in Montana

Vancouver, B.C. - November 5, 2012: Laredo Resources Corp. (OTCQB: LRDR) announces that on

November 2, 2012, we entered into a letter agreement with Magna Management Ltd. ("Magna") of

Vancouver, BC under which we have been granted the exclusive right, for a period of sixty (60) days, to

negotiate for the purchase of all rights held by Magna in the mineral property known as Pony Mountain

Gold, located in the Mineral Hills District (commonly called the Pony District) in southwestern Montana.

During the exclusive negotiation period, we will have access to all documentation and information

regarding the title and geology of the property and any other information necessary for the completion of

our due diligence. We anticipate that our purchase of Magna's rights to the property, if consummated,

would be made through a combination of cash payment and issuance of common stock, with the rights

being assigned to a wholly-owned subsidiary to be formed. Pricing and other details of the potential

acquisition of Magna's rights have not yet been determined.

The Pony Mountain Gold property is comprised of an approximately 4,000-acre package of properties,

assembled over the years by a local family and local geologist. The property contains several historical

mines, namely the Mountain Cliff, Strawberry-Keystone, Amy, and Atlantic-Pacific (A-P) mines.

If we acquire Magna's rights to the Pony Mountain Gold property, we will assume Magna's rights and

duties under a Memorandum of Understanding between Magna and the various owners of the property

(the "MOU"). As the assignee of Magna's rights under the MOU, we would be entitled to exclusive

proprietary marketing rights for the property in exchange for total payments of US$ 3,000,000 to be made

in quarterly installments of US$ 250,000 each. The deadline for the first installment payment to the

owners, as currently extended, is December 5, 2012. All net revenues received from third-party

processors of material mined from the property will be paid the owners of the property and applied to the

total purchase price until paid in full. The owners will retain a perpetual 2% net smelter returns royalty.

Closing of the transaction contemplated by the MOU will be documented under a definitive Mining Lease

and Option Agreement.

Magna has engaged Moen Excavating, LLC to take and prepare samples from dumps located on the

Pony Mountain Gold property, to coordinate laboratory testing of samples taken from the property, and to

conduct negotiations with the Golden Sunlight-Barrick mill for the processing of material from the

property. Magna has also agreed to engage Moen Excavating for all surface work on the property and for

the future hauling of dump material from the property to the mill. If we are assigned Magna's rights to the

property, we plan to continue the engagement with Moen Excavating as Magna's assignee.

 

Robert C. Gardner

Phone: 604-669-9000

E-mail: robertgardner@telus.net

No stock exchange or regulatory organization in Canada accepts responsibility for the adequacy or accuracy of this release.



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