Bacanora Minerals : Ld : Rare Earth Minerals plc - Scoping Study

Bacanora Minerals Ltd.

("Bacanora" or the "Company")

Rare Earth Minerals plc - Scoping Study

Bacanora notes the announcement made today by Rare Earth Minerals plc ("REM") regarding their independently commissioned and funded scoping study (the "REM Scoping Study") on the El Sauz and Fleur concessions which form a part of Bacanora's Sonora lithium project (the "Sonora Lithium Project") in Sonora State in Northern Mexico. A summary of the REM Scoping Study has been provided by REM in their press release today. Bacanora has not received a copy of the REM Scoping Study and is unable to comment on the valuations, assumptions, conclusions or methodology employed in the REM Scoping Study. Bacanora commends REM for its initiative in commissioning its independent study and its efforts in supporting the continued assessment and development of the concessions that are the subject of the study. 

Bacanora remains committed to developing its borate and lithium projects in Mexico in the most efficient and optimal way possible. Once received, Bacanora will consider the REM Scoping Study in conjunction with the ongoing exploration, development and pre-feasibility studies presently budgeted and under way on Bacanora's borate and lithium projects.  The Company's current strategy is to remain focused on bringing the El Cajon (part of the Magdalena borate project) and Ventana (part of the Sonora Lithium Project) concessions into production in the most efficient and economic manner for shareholders, both of which are 100 per cent. owned by Bacanora.

Bacanora owns 70 per cent. of the shares of Mexilit S.A. de C.V. (the company holding the El Sauz, El Sauz 1, El Sauz 2, Fleur and Fleur 1 concessions that form part of the Sonora Lithium Project in Mexico), with REM owning the remaining 30 per cent., and Bacanora acting as the operator.  Bacanora also owns 70 per cent of the shares of Minera Megalit S.A. de C.V. ("Megalit"), with REM owning the remaining 30 per cent., and Bacanora acting as operator. Megalit owns the San Gabriel, Buenavista and Megalit concessions in Sonora State in Northern Mexico.

ABOUT BACANORA :

Bacanora is a Canadian and London listed minerals explorer (TSX-V: BCN and AIM: BCN). The Company explores and develops industrial mineral projects, with a primary focus on lithium and borates. The Company's operations are based in Hermosillo in northern Mexico and it currently has two significant projects under development in the state of Sonora. The two main assets of Bacanora are: 

·     The Sonora Lithium Project which consists of ten mining concession areas covering 104,064 hectares in the north east of Sonora state. The Company, through drilling work to date, has established an NI 43-101 compliant indicated resource of 3.28 million tonnes ("mt") of lithium carbonate equivalent ("LCE") at a 2,000 ppm cut-off grade.  The Company's 100 per cent. owned La Ventana deposit, which lies within the Sonora Lithium Project, hosts an NI 43-101 compliant drill Indicated lithium resource of 1.27 mt of LCE; and 

·     The Magdalena borate project, covering 16,503 hectares in Sonora state, Mexico, where the Company's main borate zone, El Cajon, has an NI 43-101 compliant indicated resource of 1.17 mt of B2O3, at an eight per cent. cut-off grade. The Company has completed a number of measures to determine the geological and commercial potential of the project and is undertaking a pre-feasibility exercise to determine the economic benefit of developing the mine and constructing a processing plant on site in order to become a supplier of boric acid.