TORONTO--(BUSINESS WIRE)--

Karmin Peru S.A.C. (“KarPeru”), a wholly owned subsidiary of Karmin Exploration Inc. (“Karmin”) (TSXV and the Lima Stock Exchange: KAR) is pleased to report that KarPeru has engaged Kallpa Securities (“Kallpa”) to conduct a strategic review of KarPeru and its 100% owned Cushuro Gold Project (“Cushuro”) located in the Alto Chicama gold district of northern Peru. The objective of this review is to transform KarPeru and its Cushuro Gold Project into a stand alone public entity focused on the exploration and development of Cushuro and other projects in Peru.

KarPeru’s Cushuro Gold Project covers a 25 square kilometre area on the eastern border of Rio Alto’s La Arena mine which is forecast to produce 200,000 to 220,000 ounces of gold in 2014 according to Rio Alto’s public filings. The Summary Report on the Cushuro Gold-Silver Project prepared in accordance with National Instrument 43-101 (see Karmin press release dated November 22, 2011) notes that the Cushuro mineralization is similar to other operating mines in the district inasmuch as the low-grade (typically < 1 gram gold per tonne) gold mineralization is hosted in quartzites of the Chimu Formation. Since 2012, Cushuro has been explored on surface by Karmin and small scale gold mining by informal miners is commonplace.

Recently, the owners of a small fraction of surface rights in the northern portion of the Cushuro Gold Project have conducted larger scale mining activities without the permission of KarPeru or government authorities. Negotiating mutually beneficial agreements with the local small miners and the surface land owners is a high priority for KarPeru.

The Alto Chicama gold district is home to a number of world class and medium size gold mines and projects including Barrick Gold's Lagunas Norte Mine, 25 km west of Cushuro (2013 production: 606,000 ounces of gold ), Rio Alto's Shahuindo Project, 30 km to the north of Cushuro (measured and indicated resources of 2.4 million ounces of gold plus inferred resources of 1.6 million ounces of gold), and the privately owned La Virgen Mine (2013 production: approximately 60,000 ounces of gold) situated 5 km south of Cushuro.

David Brace, Karmin’s CEO stated, “as a separate public entity KarPeru will be able to focus on the advancement of the Cushuro Gold Project and Kallpa’s expertise is ideal to help finance Cushuro or find strategic associations for what we consider a very prospective property in one of the world’s most prolific gold mining districts. Additionally, Karmin continues to concentrate on the continuing development of the world class Aripuanã Zinc Project in Brazil.”

Qualified Person

A.E. Olson, FAusIMM, a Qualified Person as defined under Canadian National Instrument 43-101 Standards of Disclosure for Mineral Projects, and a consultant to Karmin, has reviewed and approved the technical content of this news release in the form and context in which it appears.

About Karmin

The common shares of Karmin are listed on the TSX Venture Exchange and the Lima Stock Exchange and trade in both markets under the symbol “KAR”. The principal business of Karmin is to acquire, explore and develop resource properties.

Karmin owns 30% of the Aripuanã Zinc Project, one of the ten largest undeveloped zinc projects in the world. The Aripuanã Zinc Project covers an 820 square kilometre mineralized massive-sulphide district that includes five areas of mineralization (Ambrex, Arex, Babacu, Massaranduba and Mocoto) over a 25-kilometre strike length. Votorantim owns 70% of the Aripuanã zinc project, but is responsible for 100% of the project costs until the completion of a bankable feasibility study. On October 30, 2014 it was reported that the Milpo approved the purchase of a participation in the Aripuanã Zinc Project from Votorantim (See Karmin press release dated November 4, 2014).

The Summary of Mineral resources at the Aripuanã Zinc Project is outlined in Table 1 (for more information see Karmin press release dated February 21, 2013).

_Notes:

_{1. CIM definitions were followed for Mineral Resources.}

_{2. Mineral Resources are reported as within mineralized wireframes modelled at 3% Zn in the stratabound zone and 0.5% Cu in the stringer zone and include internal dilution.}

_{3. The Ambrex resource database does not include results of drilling in 2012.}

_{4. Numbers may not add due to rounding.}

Karmin owns 100% of the Aripuanã Gold Project, which encompasses the gold and silver mineralization associated with near-surface oxidized portions of numerous massive-sulphide deposits in the 820-square-kilometre Aripuanã Zinc Project in north western Brazil.

Karmin owns 100% of the 25-square-kilometre Cushuro Gold Project located in the world-class Alto Chicama gold-mining district of northern Peru.

Disclaimer Relating to Forward-Looking Information

This news release contains forward-looking statements that are based on the belief of management and reflect Karmin’s current expectations. Forward-looking statements include, but are not limited to, possible events and statements. The words “potential,” “possible,” “expects,” “plans,” “scheduled,” “estimates,” “anticipates” or “believes,” or variations of such words and phrases or statements that certain actions, events or results “may,” “could,” “would,” “might,” or “will” be taken or occur, and similar expressions identify forward-looking statements. The forward-looking statements and information in this press release include, but are not limited to the mineral resource estimates and the business plans of Karmin. Such statements and information reflect the current view of Karmin with respect to risks and uncertainties that may cause actual results to differ materially from those contemplated in those forward-looking statements and information.

Such statements are not historical facts. Readers are cautioned not to place undue reliance on forward-looking statements, as there can be no assurance that the plans, intentions or expectations upon which they are based will occur. By their nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, forecasts, projections in the forward-looking statements will not occur, and that actual performance and results in future periods may differ materially from any estimates or projections of future performance or results expressed or implied by such forward-looking statements.

The Aripuanã Zinc Project and the land it relates to is an exploration property only. Accordingly, there are a number of important factors that could cause Karmin’s actual results to differ materially from those indicated or implied by forward-looking statements and information. Such factors relating to the Aripuanã Zinc Project include, among others, the timing and content of work programs, results of the development of mineral properties, the interpretation of drilling results and other geological data, the uncertainties of resource and reserve estimates, receipt and security of mineral property titles, receipt of licenses to conduct mining activities, project cost overruns or unanticipated costs and expenses, fluctuations in metal prices and general market and industry conditions, changes in national and local government legislation, taxation, controls, policies and regulations, the security of personnel and assets, and political or economic developments in Canada and Brazil, operating or technical difficulties in connection with mining or development activities, employee relations, the speculative nature of mineral exploration and development and the risks and hazards associated with the business of mineral exploration, development and mining, including environmental hazards, industrial accidents, unusual or unexpected formations, pressures, cave-ins and flooding.

The forward-looking statements contained in this news release are made as of the date of this news release. Readers should not place undue importance on forward-looking information and should not rely upon this information as of any other date. Except as required by law, Karmin disclaims any intention and assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Additionally, Karmin undertakes no obligation to comment on the expectations of, or statements made by, third parties in respect of the matters discussed above.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.