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1 LATIN RESOURCES LIMITED ABN: Suite 2, Level Rokeby Road Subiaco WA 6000 P F E info@latinresources.com.au 18 September 2013 LATIN UNCOVERS TEN NEW TARGET AREAS IN HIGHLY PROSPECTIVE COASTAL IOCG/PORPHYRY COPPER BELT IN SOUTHERN PERU Highlights The western flanks of Southern Peru s Andes Mountains host more than 125 billion pounds of contained copper in published reserves and resources, all within 100 km of Latin s concession areas. Ten new target areas generated in Latin s 110,000 hectares of 100% owned concessions promise IOCG style mineralisation and also good potential for Porphyry Copper deposits like the Tia Maria deposit (640Mt@0.39% Cu, 0.19g/t Au) only 30 km along strike to the NW of the new target areas. One of these targets hosts an ex-rio Tinto project El Yaral drilled in 2000 that shows evidence of a porphyry system with copper oxides at surface. Two prior adjacent targets have already been drilled: Latin s Ilo Norte project hosting IOCG/Skarn replacement style mineralisationis drill ready for second phase holes and 30km from port and the Mariela Fe/Cu project. Extensive cover has hidden much potential from historical explorers. Latin s team in Peru has an exemplary record in social responsibility and highly efficient permitting history promising rapid pathway to trouble free drill testing. Latin discussing Ilo Projects with several potential JV partners. Latin Resources Limited (ASX:LRS) is pleased to announce the generation of ten new IOCG/Porphyry Cu target areas in the Company s more than 110,000 hectares of 100% owned concession holdings in the highly prospective coastal IOCG/Porphyry Cu belt of Southern Peru (Figure 1). Over 125 billion pounds of contained copper in published reserves and resources are found within 100 km of these concessions and are the source of around half of Peru s copper production (the world s third largest copper producing nation). Latin has already been successful in identifying two previous targets within this part of the belt that have been partly drill tested to date: The Mariela Fe/Cu Project and Ilo Norte, where drilling by Latin in 2011 uncovered the edge of an IOCG/Skarn replacement system that was subsequently followed up with additional geochemistry and geophysics identifying a new target which is now fully permitted and ready to drill (see press release 11 April 2013). 1

2 Mariela Ilo Norte Figure 1 - Latin s 100% owned concession holding in Southern Peru host to ten new target areas in addition to the Mariela Project (discovered late 2010)and Ilo Norte (drilled in 2011), a proven IOCG/Skarn replacement mineralised system, ready to drill phase II with the right JV Partner. Ongoing explorationat both Mariela and Ilo Norte has provided Latin s geologists with invaluable knowledge of the mineralization processes that have occurred in the region, which has been applied to identify new exploratory targets. A thorough revision carried out over the last 12 months of the geological, geochemical, geophysical and spectral data available to the Company over its Ilo concessions with the added perspective gained from work on the Mariela and Ilo Norte projects, has allowed the company to identify ten new highly prospective targets for IOCGs and porphyry copper deposits. Latin is in discussions with several potential Joint Venture partners to continue drill testing these targets in the region, a strategy that proved to be very successful for Latin at Mariela. Latin s Managing Director Chris Gale said: The generation of ten new targets is testimony to the prospectivity of this important mineral belt and with discussions underway with potential JV partners over these targets, Latin is well placed to proceed quickly towards drill testing and discovery. The Company is looking to capitalise on our commanding mineral rights position in Southern Peru backed up by our established good relationships with local stakeholders thanks to our successful permitting work on our drill ready Ilo Norte IOCG project. 2

3 Latin is targeting IOCG Deposits because.. IOCG deposits can be tier 1 Cu-Au projects. Several significant IOCG deposits occur along the lower western slopes of the Andes in Peru and Chile in similar geological terrain as that found in Latin s Ilo concessions. Of the Chilean deposits, the Candelaria deposit 0.95% Cu, 0.23 g/t Au), the nearby Punta de Cobre deposit 3.0% Cu, 0.25g/t Au), the Manto Verde deposit 0.54% Cu and 0.26 g/t Au), and the Mantos Blancos deposit 1% Cu) are all fine examples. In Peru, the Mina Justa deposit 0.79% Cu including 8g/t Ag, 0.062g/t Au) is located some 400 km north of Latin s concessions in the same metallogenic belt (Figure 3). IOCG s have relatively high Cu grades in comparison with porphyry deposits Copper grades in IOCG deposits tend to be higher than those found in porphyries, with the potential for significant quantities of ore averaging over 1% Cu compared with porphyries that tend to average closer to 0.5% Cu. The possibility of significant co-incident gold, silver and iron provides additional benefits to deposit s economics. Iron concentrations in IOCG s may be high enough to form iron deposits In some IOCG deposits, the iron oxide concentration is high enough to make iron ore the principle production focus. The Marcona Mine ( % Fe) is the largest iron ore producer in Peru, and the nearby Pampa de Pongo Deposit ( % Fe) is currently undergoing feasibility studies. In Chile, the Dominga deposit 26% Fe, 0.12% Cu, 0.02g/t Au) is close to production. Each of these deposits lies on the same coastal trend where Latin s targets are located. Latin s Ilo concessions are on the hot spot for IOCGs The Peruvian Coastal Cordillera The Chilean and Peruvian Coastal Cordillera host all of the Andean type IOCG deposits (Figure 3). The discovery of the iron and copper mineralization at Ilo Norte and Mariela provides further evidence of the prospectivity of the Ilo belt. IOCG s are detectable by indirect exploration methods The Peruvian Coastal Cordillera is in the most part covered by sands and quaternary deposits (Figure 2), which limit the direct observation of any evidence of mineralization. IOCG deposits generally contain abundant iron oxides (usually magnetite and/or hematite) which are readily detectable by geophysical surveys. Figure 2 Typical view of covered terrain in the Peruvian Coastal Cordillera near Ilo. 3

4 Latin Resources 100% Owned Concessions Figure 3 Major IOCG and Porphyry Copper Deposits that form trends along the Western slopes of the Chilean and Peruvian Andes Mountains. 4

5 Latin is targeting Porphyry Copper deposits because. Porphyry Copper Deposits account for much of the world s Copper production and result in the largest copper mines. Porphyry Copper Deposits are the world s largest source of copper mined today and are generally the lowest unit cost mines due to their size and additional bi-product credits for Mo, Au, Ag and other metals. Peru and Chile together produce around one third of the world s copper and the Western flanks of the Andes Mountains in Southern Peru are host to Peru s largest and most prolific copper producers. Nearly 600,000 tonnes of copper is produced each year within 100 km of Latin s concessions and is set to increase substantially in coming years with expansions and new mines coming on line. Latin s concessions have good potential for Porphyry Copper deposits and such a discovery would be extremely valuable to the Company. Cu-porphyry deposits are being discovered on the Coastal Cordillera In recent years, the discovery of porphyry copper deposits near Inca de Oro (discovered in 2005 under 40m of alluvial cover) and development of Andacollo by Teck Resources Inc in Chile (Figure 3) has gone hand in hand with the recognition of porphyry copper style as well as IOCG alteration signatures throughout the Coastal Cordillera. These developments have thrown open the serious possibility that the latter is far more complex in terms of its metallogeny than hitherto appreciated and, furthermore, that scope for the discovery of many porphyry copper deposits exists in this belt. In Peru, the Tía Maria Cu/Au porphyry 0.39% Cu, 0.19g/t Au) is located only 30 km along strike to the north west of Latin s concessions which are extensively covered, (Figure 3), and relatively under explored in the past a combination of circumstances that increases the probabilities of new discoveries. They form linear belts and do not occur in isolation IOCGs and porphyry deposits typically form within 'provinces' where several deposits of similar style, timing and similar genesis form within similar geologic settings. Porphyry Cu systems show a marked tendency to occur in linear belts, which range from a few tens to hundreds and even thousands of kilometers long (Figure 3). It is this more likely to find another porphyry deposit nearby an existing one. The Tia Maria Cu-Au Deposit, 0.39% Cu, 0.19g/t Au), is located only 30 km WNW of Latin s concessions (Figure 1), but has been known for many decades and its signature alteration outcrops. There is excellent scope for similar such deposits under covered terrain within Latin s target areas. Typical porphyry-style alteration has been identified within Latin s target areas. The alteration and mineralization in porphyry Cu systems are zoned outward from the porphyry intrusions. Porphyry Cu ± Au ± Mo deposits are centered on the intrusions, whereas carbonate wall rocks can host proximal Cu-Au skarns. The porphyry Cu mineralization occurs in a distinctive sequence of quartz-bearing veinlets as well as in disseminated form in the altered rock between them. Typical porphyry-style alteration (Figure 4), identified in some of the Latin s targets, provides further support to the occurrence of porphyry-style mineralization in the area. Figure 4 Examples of typical porphyry-style alteration observed at Latin s Ilo projects (Sil= silica, ser = sericite, py=pyrite, alb=albite, ksp= K feldspar, mag= magnetite). 5

6 Ten New Target Areas A thorough revision of the geological, geochemical, geophysical and spectral data available to the Company over its Ilo concessions during the last years, with the added perspective gained from work on the Mariela and Ilo Norte projects, has allowed the company to identify ten new highly prospective targets for IOCGs and porphyry copper deposits. Figure 5 Ten new target areas identified in Latin s 100% owned concessions in Peru s Southern Cordillera and the Ilo Norte Project. 6

7 Repartición Located in Arequipa Region, the Reparticion target area comprises eleven 100% owned Latin concessions for a total area of 9,200 hectares: The geology of target area is interpreted to be dominated by Cretaceous age granitoids invading Jurassic volcano-sedimentary units along the coastal fringe of the Ilo region, however, greater than 90 per cent of the underlying geology is obscured by Quaternary alluvial cover. The volcanic units are regularly overprinted by late arc-normal faults which appear to have a significant influence on the localisation of potentially ore-forming fluids and intrusives. Petrographic study of rocks from limited outcrop from within the target area include thermally metamorphosed and metasomatised, melanocratic or gabbroic diorite porphyries as well as strongly silicic altered acid igneous lithic eruptive or intrusion breccia - possibly diatreme. Numerous magnetic anomalies in places with coincident radiometric highs and adjacent to significant NE structures and NW trending magnetic lineaments suggest a number of possible intrusive (porphyry) and/or magnetite alteration targets obscured by alluvial cover. Figure 6 Copper oxides in a structure cutting El Alto some of the limited outcrop at Repartición. Located in the Moquegua region, close to the border with the Arequipa region, the El Alto target comprises eight 100% Latin owned concessions for a total area of 7,200 hectares: The geology of target area is interpreted to be dominated by Cretaceous age granitoids invading Jurassic volcano-sedimentary units along the coastal fringe of the Ilo region, however, greater than 90 per cent of the underlying geology is obscured by Quaternary alluvial cover and secondary gypsum deposits. Figure 7 Highly silicified rock with boxwork textures and possible phyllic alteration. Two important regional NNE/NE trending structures cross the property and in places along these outcrops of highly silicified rocks with box-work textures and probable phyllic alteration can be seen protruding through the cover (Figure 7). Coincident magnetic and radiometric anomalies and ring structures associated with interpreted structural intersections suggest possible intrusive/porphyry systems. 7

8 Cerrillos Located in the Moquegua Region to the north of the Ilo Norte Project, the Cerrillos target area comprises three 100% Latin owned concessions for a total area of 2,600 hectares: The geology of target area dominated by Cretaceous age granitoids (diorites and granodiorites) with variable magnetic response and magnetite alteration invading Jurassic volcano-sedimentary units along the coastal fringe of the Ilo region, however, greater than 70 per cent of the underlying geology is obscured by Quaternary alluvial cover. A major NE structure cuts the target area and is accompanies by a series of magnetic anomalies that suggest possible magnetite alteration (reversely magnetised) including the intersection of a number of converging structures. Magnetite alteration in intrusives adjacent to covered volcano-sedimentary sequences in such a complex structural environment may present possibility for Skarn style replacement Cu +/-Au mineralisation. Costeña Located in the Moquegua region, adjacent to NE of the Ilo Norte Project, the Costeña target area comprises nine 100% Latin owned concessions for a total area of 7,600 hectares: The geology of target area dominated by Cretaceous age granitoids invading Jurassic volcano-sedimentary units that dip roughly NE at around 40 degrees, however, greater than 95 per cent of the underlying geology is obscured by Quaternary alluvial cover and surficial secondary Gypsum deposits. Two important regional NE trending structures cross the property and major NE trending structures are dominant features in the magnetic and radiometric data. A number of spot K-radiometric anomalies may suggest alteration signatures detected in possible areas of shallow cover. Limited outcrop of Andesitic Volcanics near one of the structures exhibits copper oxides, propylitic alteration and may be evidence of the stacked continuation of Skarn replacement style mineralisation seen at the Ilo North project (Figure 8). Galle Figure 8 Copper Oxides in andesites with propylitic alteration. Located in the Moquegua region, adjacent to the ESE of the Ilo Norte Project, the Galle target area comprises seven 100% Latin owned concessions for a total area of 7,000 hectares: The great majority of the Galle target area is covered by Quaternary sediments with the exception of the western edge along the scarp and gully incisions to the east of the scarp front. The scarp extends into the Galle target area from the North West where it forms part of the Ilo Norte project area. 8

9 The scarp area displays continuation of Silica-Albite-K- Feldspar alteration characteristic of the Ilo Norte project, including development of gossanous textures resulting from oxidised disseminated sulphides (Pyrite/Chalcopyrite) indicative of Skarn-replacement style mineralisation. In addition, possible silicified volcanic breccias and Porphyry copper style sheeted quartz veining overprinting the massive Silica-Albite-K-Feldspar alteration (Figure 9) have been observed moving east from the scarp in incised drainages. Anomalous copper (300ppm) is reported in Government stream sediment data draining the western part of the Galle target. Significant NE structures cut the scarp and continue under cover to the east as suggested by magnetic data. Magnetic features identified also suggest alteration/intrusive systems that could represent porphyry systems. Ilo Este Located in Moquegua Region 20 km to the NE of the Ilo Port, the Ilo East target area comprises seven 100% Latin owned concessions for a total area of 5,300 hectares Figure 10 Copper Mineralisation from the ex-rio Tinto El Yaral project, part of the Ilo Este target. The geology of the area is dominated in the north by Jurassic volcanics that are intruded to the south by cretaceous granodiorites. The contact of the volcanic and granodiorite intrusive has been mapped as a Devonian sediment. A major regional fault cuts the sequence and various Copper workings are found along both margins of the structure to the south west of the target area at the Valparaiso, Santiago and Sicatilla mines. Early last decade, Rio Tinto drilled the El Yaral Copper prospect located within the target area which is also proximal to the major structure and is reflected by both Argillic and Phyllic alteration signatures identified by Aster image processing. Figure 9 Sheeted quartz viening typical of Cu-Porphyry deposits from the Galle target area. Hydrothermally altered, dioritic to granodioritic porphyritic intrusives outcrop in the area drilled with andesitic volcanics and volcanoclastics nearby. Surface mineralisation is present as copper oxides including atacamite and malachite (Figure 10) and there is evidence of potassic alteration, silicification and stockworking, promising excellent potential for a copper porphyry deposit. 9

10 La Colorada Located in Moquegua Region 30 km E of the Ilo Port and crossed by the Pan-American Highway, La Colorada target area comprises eighteen 100% Latin owned concessions for a total area of 15,600 hectares: The regional geology of the target area is dominated by a large Cretaceous age diorite-granodiorite batholith which occupies the western half of the target and is covered by Quaternary alluvial deposits toward the north and east. Thin wedges or roof pendants of older Jurassic volcanic are mapped on the western fringe of the project area. Quaternary alluvial sediments are interpreted to cover predominately the late intrusive rocks to the east. This geology is prospective for intrusive style ore bodies such as porphyry Cu-Au. Two important regional NE trending structures are mapped across the property and major NE trending structures are dominant features in the magnetic and radiometric data. These are intersected by a number of WNW trending features where magnetic signatures suggest alteration or differentiated intrusive complexes. A number of spot K-radiometric anomalies may suggest alteration signatures detected in possible areas of shallow cover. Chapollita Located in Tacna Region, Figure 11 Major structural intersections accompanied by magnetic 30 km ESE of the Ilo Port, the signatures suggesting alteration or differentiated intrusive Chapollita target area complexes are Figure concealed 12 Reduced by alluvial to Pole cover image as in of the aeromagnetic case of this comprises eighteen 100% shaded data target showing area, complex one of fractionated several in La magnetic Colorada. highs cut Latin owned concessions for a by major NE structures favorable sites for porphyry total area of 14,800 hectares: deposits. The regional geology of the target area is dominated by a large Cretaceous age diorite-granodiorite batholith which occupies the western third of the area. The eastern two thirds is covered by Quaternary alluvial deposits and Neogene volcanic tuffs and sediments. A number of significant NE structures cut through complex magnetic highs co-incident with where the intrusives go under cover, with the anomalies suggesting a well fractionated granitoid system grading to late mafic intrusives a good indication of the potential for porphyry Cu-Au systems (Figure 12). 10

11 Ilo Sur Located in Tacna Region 25 km ESE of the Ilo Port, the Ilo Sur target area comprises thirteen 100% Latin owned concessions for a total area of 11,230 hectares: Figure 13 Major zone of phyllic alteration, downslope to the south (outside) of the Ilo Sur target area which itself could host the concealed potassic core to the copper porphyry system. The Geology of the Ilo Sur target area is dominated by a large Cretaceous age dioritegranodiorite batholith that is found in the west and east of the area, separated by a 3-5 km wide belt of Jurassic andesitic volcanic and volcanoclastic rocks. Quaternary sediments cover significant portions of the area, and in particular contacts between the volcanics and intrusives. A major area of phyllic alteration subject to a number of drilling campaigns just to the south, and downslope of the target area may indicate that the main part of a mineralized porphyry remains concealed and untested to the north, within the Ilo Sur target area. A number of other magnetic and radiometric anomalies within the area also show promise for porphyry style mineralisation, while the concealed contacts with the volcanics could also represent valid sites for replacement/iocg mineralisation. Morrito Norte Located in Tacna Region some 55 km to the SE of the Ilo Port and approximately 10 km north of the Cerro Morrito iron mine, the Morrito Norte target area comprises fifteen 100% Latin owned concessions for a total area of 14,950 hectares: Aside from some outcrop of the regionally present Cretaceous age diorite-granodiorite batholith in the very western part of the Morrito North area, the geology is obscured over more than 90% of the area by Quaternary alluvial sediments and Neogene volcanic tuffs and sediments that in the east of the area are potentially quite thick. Magnetic and radiometric targets that represent the continuation under cover of the well fractionated granitoid system grading to late mafic intrusives continues into Morrito Norte from the Chapollita target to the NW, with good potential for porphyry Cu-Au systems. 11

12 For further information please contact: Australia Chris Gale Managing Director Latin Resources Limited David Tasker PPR About Latin Resources Latin Resources Limited is a mineral exploration company focused on creating shareholder wealth through the identification and definition of mineral resources in Latin America, with a specific focus on Peru. The company has a portfolio of projects in Peru and is actively progressing its two main project areas: Guadalupito (Iron and Heavy Mineral Sands) and Ilo (Iron Oxide, Copper, Gold (IOCG) and Porphyry). Competent person statement The information in this report that relates to Geological and Geochemical Data, Exploration Results, Mineral Resources and any Conceptual Exploration Target is based on information compiled by Mr Andrew Bristow, a full time employee of Latin Resources Limited s Peruvian subsidiary. Mr Bristow is a member of the Australian Institute of Geoscientists and has sufficient experience which is relevant to the style of mineralization and the type of deposit under consideration to qualify as a Competent Person as defined in the December 2004 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code). Mr Bristow consents to the inclusion in this report of the matters based on his information in the form and context in which they appear. info@latinresources.com.au 12