Earn-in Agreement – Initial Capital Contributions (earn-in period)

The Earn-in Agreement grants to South32 the right to acquire up to a 50.1% direct interest in MSA at the end of the earn-in period.

Under the Earn-in Agreement, South32 will provide up to C$14 million in capital contributions to MSA over a period of 4 years, as follows: (i) not less than C$3.5 million by December 31, 2020; (ii) not less than an aggregate of C$7 million by December 31, 2021; (iii) not less than an aggregate of C$10.5 million by December 31, 2022; and (iv) not less than an aggregate of C$14 million by December 31, 2023. South32 has the right to withdraw at the end of each year. Once South32 has complied with its funding obligations, South32 may exercise its right to acquire a 50.1% direct interest in MSA by electing to subscribe for MSA shares equal to 10% of MSA’s shares, in consideration for its funding, and acquire the remaining 40.1% of MSA’s shares from MAI for a consideration of C$14 million. Alternatively, South32 may undertake to complete a prefeasibility study (“PFS”), in which case it shall be entitled to subscribe for 50.1% of MSA’s shares and shall have the right to acquire an additional 19.9% in MSA (as described below) exercisable on completion of the PFS.

MSA will be the operator and the parties will establish a technical committee made up of two members nominated by each party. The technical committee will approve annual technical programs and budgets.  South32 will have the casting vote on the technical committee.

Shareholders’ Agreement

Upon the exercise of South32’s right to acquire a 50.1% direct interest in MSA, Minsud and South32 will sign a Shareholders’ Agreement to govern the management and operation of MSA and, if warranted, further exploration, development and exploitation of the Project. The Shareholders’ Agreement provides for the following phases.

Prefeasibility Study Election – “PFS funding”

If South32 has elected to fund a PFS at the end of the earn-in period, then, on or before the fifth anniversary of that election, South32 must deliver a PFS that complies with National Instrument 43-101 and CIM Definition Standards on Mineral Resources and Reserves by funding a minimum amount of C$55 million less any amount contributed during the earn-in period. Upon delivering the PFS, South32 may either elect to (i) pay to MAI C$20 million to acquire 19.9% of MSA’s shares or (ii) fund a bankable feasibility study (“BFS”), in which case it shall be entitled to subscribe for 19.9% of MSA’s shares (such that in either case South32 shall, following the relevant election, own 70% of MSA’s shares and Minsud shall own 30% of such shares).

If South32 opts neither to fund the BFS nor to purchase MSA’s shares from MAI, its ownership in MSA will be reduced to 49.0% and MAI’s interest shall be 51%.

This news release includes certain information that may constitute forward-looking information under applicable Canadian securities laws. Forward-looking information includes, but is not limited to, statements about strategic plans, spending commitments, future operations, results of exploration, anticipated financial results, future work programs, capital expenditures and objectives. Forward-looking information is necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking information including, but not limited to: fluctuations in the currency markets (such as the Canadian dollar, Argentina peso, and the U.S.  dollar); changes in national and local government, legislation, taxation, controls, regulations and political or economic developments in Canada and Argentina or other countries in which the Company may carry on business in the future; operating or technical difficulties in connection with exploration and development activities; risks and hazards associated with the business of mineral exploration and development (including environmental hazards or industrial accidents); risks relating to the credit worthiness or financial condition of suppliers and other parties with whom the Company does business; presence of laws and regulations that may impose restrictions on mining, including those currently enacted in Argentina; employee relations; relationships with and claims by local communities; availability and increasing costs associated with operational inputs and labour; the speculative nature of mineral exploration and development, including the risks of obtaining necessary licenses, permits and approvals from government authorities; business opportunities that may be presented to, or pursued by, the Company; challenges to, or difficulty in maintaining, the Company’s title to properties; risks relating to the Company’s ability to raise funds; and the factors identified under “Risk Factors” in the Company’s Filing Statement dated April 27, 2011. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. All forward-looking-information contained in this news release is given as of the date hereof and is based upon the opinions and estimates of management and information available to management as at the date hereof.