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Hondo Minerals Corporation Provides Chloride Mine Update

Hondo Minerals Corporation today announced an updated report as it commences commercial scale production at its Old Tennessee Mine in Chloride, Arizona. The Company has completed initial construction of its first commercial scale extraction plant that will be used to process the estimated one million tons of tailings and dumps at the mine site. The Company intends to extract gold, silver, zinc, lead, and other metals that it believes to be present from the pile.

As referenced in the latest Form 10-Q in Quarterly Developments, the Company has experienced substantial delays in the delivery and implementation of the RenoCell system. However, the Company has finally received and installed its 24 Bank RenoCell system and other separation and extraction equipment. Testing has been completed on the entire production circuit for initial operation. During the period of the delay the Company doubled its potential processing capacity with the installation of the additional equipment.

Bill Miertschin, Chairman and CEO of Hondo, said, "We are extremely happy that the long-anticipated day has arrived, and that we have begun commercial processing. Our expectations run high as we continue to initially load the circuit and bring it up into full operation."

About Hondo Minerals

Hondo Minerals Corporation is engaged in the acquisition of mines, mining claims and mining real estate in the United States, Canada and Mexico with mineral reserves of precious metals or non-ferrous metals. Hondo owns the Tennessee and Schuylkill Mines in Chloride, Arizona. The Tennessee Mine was the largest producing silver mine in Arizona history. The Tennessee Mine operated from the late 1800s until 1947 producing lead, zinc, gold and silver. The Company also owns numerous other mining claims in the U.S. Southwest, which are being evaluated for additional reserves.

Cautionary Note Regarding Forward-Looking Statements

This press release contains forward-looking statements that involve risks and uncertainties, including the Company's beliefs about its business prospects and future results of operations. Some factors that could cause actual results to differ materially include economic and operational risks, changes in anticipated earnings, continuation of current contracts, and other factors detailed in the Company's filings with the Securities and Exchange Commission, including its most recent Forms 10-K and 10-Q. The Company forecasts provided above are dynamic and therefore refer only to this release date. The Company does not undertake to update any forecasts that it may make available to the investing public.

Source:

Hondo Minerals Corporation

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