Affinity Gold Corp. announced that under its strategic joint venture relationship with Corizona Mining Partners, LLC to develop of a portfolio of near-term production and producing precious mineral assets in Peru it has entered into a Letter of Intent on a producing silver (Ag) and lead (Pb) mine located in District of Lircay, Province of Angaraes, Department of Huancavelica to the southeast of Lima, Peru. The project is a silver (Ag) and lead (Pb) producing, low sulphidation polymetalic lode deposit, located in District of Lircay, Province of Angaraes, Department of Huancavelica to the southeast of Lima, Peru.

The project is located at an elevation of 3,466 - 4,790 m.a.s.l. approximately 519 Km from Lima, capital of Peru, via the South-PanAmerican Highway. The Concessions are contractually held and controlled through an agreement between Corizona and the current project owner. Through the underlying agreement with the project owner, Corizona has the right to acquire 50% of the Cambalache Project for one-million one-hundred thousand dollars ($1,100,000.00) invested directly into the ground and used to improve and expand production operations.

As part of the underlying agreement, Corizona has an option to purchase another 25% of the Cambalache Project for three million dollars ($3,000,000) with an expiration of five years. According to the terms of the Letter of Intent between Affinity and Corizona, the partners will hold the option agreement with the project owners in a new legal entity being established. Affinity will earn an undivided (49.9%) interest in the entity controlling the underlying agreement upon the execution of the Formal Agreement and the following obligations being met: a total capital investment of $25,000 upon the execution of the Formal Agreement which will be 30 days from the signing of the Letter of Intent; $75,000 over the course of 3 months from the execution of the Formal Agreement; $670,000 over the course of 12 months following the execution of the Formal Agreement.

Under the Joint Venture agreement with Corizona, Affinity will be responsible for a total capital investment of $770,000 while Corizona subsequently responsible for $330,000, in order for the Joint Venture partners to earn an undivided 50% equity interest in the Cambalache project. Additional terms and conditions will be included in the definitive agreement which is expected to be signed by December 16th, 2013.