Herencia Resources Plc (HER) – Paguanta Project

Paguanta Project – Scoping Study Completed

Herencia Resources Plc (HER), the development and exploration company with a primary focus on identifying and developing mineral resource opportunities in South America, is pleased to announce the completion of a Scoping Study for the Company’s 70% owned Paguanta Project in northern Chile.

Highlights:
• Paguanta Scoping Study completed by Golder Associates
• Initial mine life of approximately 5½ years at 500,000tpa
• Opportunity to increase mine life with further drilling
• Capital Cost of US$55.6 million (inclusive of all underground mine development and new processing plant equipment costs)
• Site Operating Costs of US$55.32/t
• Zinc price of >US$1.00/lb required to produce positive project NPV
• Substantial positive sensitivity to any potential increase in tonnage processed

Golder Associates, the global resources and engineering consulting group, has completed a Scoping Study in relation to the Paguanta Project in Chile.   The Paguanta Project has a total Mineral Resource (Indicated and Inferred) of 3.15Mt at 3.9% Zn, 1.3% Pb and 74ppm Ag (at a 2% Zn cut-off) as announced to the market in October 2008.

Executive Director, Michael Bohm commented:
“We are pleased to announce the results of the Scoping Study for the Paguanta Project. Assuming higher commodity prices which some forecasters are predicting to occur strongly for Zinc from 2010 onwards the Project appears robust and economically viable.
“We are also pleased that significant upside could be achieved from only a modest increase in tonnage mined and processed.  This will certainly be factored into our project planning going forward, as the mineralisation remains open at depth and some of our best drill intersections, both in terms of grade and width, occur at the depth extents of our current resource envelope.
“The Board, management and JV partners will review the Study over the next few weeks to identify potential cost saving opportunities and will look to make a decision on a 2009 work program (project studies and/or additional drilling) during the first quarter of next year.
 “At this time I would like to thank all those involved for their work to date on the Paguanta Project and wish our shareholders and all other stakeholders an enjoyable holiday period.”