CERRO RESOURCES – NAMIQUIPA SILVER PROJECT –22.5moz SILVER EQ,...

CERRO RESOURCES – NAMIQUIPA SILVER PROJECT –
22.5moz SILVER EQ, 4.6Mt INITIAL INFERRED RESOURCE

October 24, 2012. Cerro Resources NL (ASX/TSX-V: CJO) is pleased to announce an initial inferred resource for its 100%-owned Namiquipa Silver Project located in Chihuahua,
Mexico.

Highlights

- 4.6Mt @ 154 g/t AgEq initial Inferred resource estimate, containing 22.5moz AgEq (including 15moz Ag; 41,000t Pb; and 76,000t Zn);

- Recently completed IP survey identifies a potentially faulted offset of the Princesa- America mineral system to the north.

(Silver equivalent grades (“AgEq”) have been calculated using the 12 month average metal prices of US$31.50/oz Silver;

US$0.89/lb Zinc; and US$0.92/lb Lead. Metal recoveries are not considered in this calculation.)

Tony McDonald, Managing Director: "This initial resource estimation confirms our belief in this quality project in a region of other significant discoveries and deposits. This and the potential northern extension provides a solid basis for expansion.”

The Namiquipa Deposit is located adjacent to the village of El Terrero in Chihuahua, Mexico,145 km west-northwest of Cuidad Chihuahua.

The deposit occurs as a low-sulphidation epithermal system transecting a suite of shallow dipping breccias and ignimbrites of andesitic and rhyolitic composition.
Extensive silicification has occurred around a major north trending shear zone that is host to the epithermal veins.

Following acquisition of the property in 2010 a concerted exploration effort by Cerro during 2011-12 has enabled this maiden resource estimation.