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VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 2, 2010) - Santa Fe Metals Corp. (TSX VENTURE:SFM) has entered into a binding Memorandum of Understanding ("MOU") with Tahoe Resources Group LLC ("TRG") of Reno, Nevada, USA whereby the Company has agreed to sell and TRG has agreed to buy 40% of the Cuatro Ciénegas Project (the "Project") for US$5.0 million. The sale is conditional on TRG paying the funds to SFM on or before July 15, 2010. Finder's fees of up to US$500,000 are payable in connection with the sale.

After completion of the sale, the Company will form a joint venture ("4CJV") with TRG. SFM will contribute its remaining 60% interest in the Project in return for a 60% interest in 4CJV and TRG will contribute its 40% interest in the Project in return for a 40% interest in 4CJV. SFM will be the operator of 4CJV and as such will be entitled to fees for services provided. The Company will loan 4CJV US$2.0 million, minus the amount of any finder's fee payable, for a period of up to 12 months. The loan will have preferential repayment terms. The funds will be used for 4CJV working capital purposes and to commence construction of a US$3 million production facility on the Cuatro Ciénegas property.

With timely receipt of the operating permit, construction could commence in the 4th Quarter of 2010, generally a period of dry cool weather favourable for construction activities.

In recognition of current market conditions, the Company has stopped exploration activities at the Lobos Project and returned the property to the Optionor. Expenditures in Mexico have been drastically cut except for funding for the advancement of the Cuatro Ciénegas project. The Company continues to look in mining friendly jurisdictions for opportunities to acquire producing or advanced stage projects in the gold and copper sectors.

About Santa Fe Metals Corp.

Santa Fe Metals Corp. is a diversified base and precious metals explorer with near-term copper production plans on its Cuatro Ciénegas property. The Company is focusing its exploration efforts on the prolific Mexican gold, silver and CRD belts (silver, lead, zinc, copper). The Company's management team and board of directors have over 200 years of combined industry experience, with numerous well-known success stories to their credit. Further information is available on the Company's website [ www.santafemetals.com ].

SANTA FE METALS CORP.

Ian Smith, President & CEO

This release contains forward-looking statements, including statements relating to Santa Fe Metals' future plans and objectives with respect to the exploration and development of its properties. Forward-looking statements are based on numerous assumptions and are subject to all of the risks and uncertainties inherent in Santa Fe Metals' business, including risks inherent in resource exploration and development. There can be no assurance that economic resources will be developed at any of its properties. Actual results may vary materially from those described in forward-looking statements.

The TSX Venture Exchange Inc. does not accept responsibility for the adequacy or accuracy of this news release.