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USD Energy Corp. Closes Acquisition of Santa Teresa Minerals, a Chilean Gold and Copper Mining Company, and Expands Management

^{Published on 2011-01-26 10:45:41 - Market Wire}
 

SAN DIEGO--([ BUSINESS WIRE ])--USD Energy Corp. (OTCBB:[ UEGY ]) announced today that on December 31, 2010, the company completed its acquisition of 100% of the outstanding shares of Santa Teresa Minerals S.A. of Chile in an all stock transaction and as of January 20, 2011, has expanded its management team.

"2011 will be an exciting year for us as we expect to monetize the years of work we have put in to acquire substantial mining properties in some of the most lucrative mining regions of Chile"

Santa Teresa Minerals engages in the acquisition, exploration, development, and operation of precious metal properties in South America. Its gold and copper mining operations are based near Santiago, Chile. Santa Teresa Minerals, directly and indirectly through various equity interests, currently has mining rights in a producing gold mine, aFree Gold,aand in an exploration project, the aCasuto Project,a consisting of Los Azules 1-3, Tauro 1-6, and Los Chipi 1-16. These projects include 30 different mining and mineral exploration properties including gold, copper and copper sulfate.

In connection with this transaction, Juan Carlos Camus has been named Chief Executive Officer and Zirk Engelbrecht has been named President of USD Energy Corp. Trisha Malone will remain the Chief Financial Officer.

a2011 will be an exciting year for us as we expect to monetize the years of work we have put in to acquire substantial mining properties in some of the most lucrative mining regions of Chile,a said Juan Carlos Camus, Chief Executive Officer of USD Energy. aWe are pleased to have successfully closed the acquisition of Santa Teresa Minerals. Our mining operations in Chile are nearing production, and we are executing our plan to evaluate and pursue bringing additional mines online,a said Trisha Malone, Chief Financial Officer of USD Energy.

Free Gold operates a producing alluvial gold mine and is preparing for expansion with a plant planned to scale its operations. The Casuto Project area has been subject to numerous historical studies over the past two centuries, indicating that the site may have significant resources of alluvial material. Santa Teresa Minerals commissioned a geological study by Consultores Geologicos Asociados on the property in February 2010, which concluded that a further geological assessment study was warranted. Los Azules, Tauro Cinco/Seis and Los Chipi will be discussed when survey results are available.

USD Energy, through its Santa Teresa Minerals subsidiary, owns 60% of Sociedad Sulfatos Chile S.A., a copper sulfate production project. Sociedad Sulfatos owns the Anico Copper Mines, which have been exploited since 2008, extracting approximately 400 tons of raw material per month with an average copper grade of approximately 3% per cubic ton. Last week, USD Energy sold 800,000 shares of its common stock to begin funding the construction of an estimated $6.2 million copper sulfate production facility that extracts both copper and copper sulfate from raw material either purchased in bulk or extracted from the mines.

Additionally, USD Energya™s Santa Teresa Minerals subsidiary owns a 60% equity position in a company with the rights to a revolutionary mining technology that extracts gold, silver and copper from raw mining materials using a proprietary and patented electrolysis method of electromining. Patents have been filed in the following countries: Chile, USA, China, South Africa, Canada, Australia, Brazil, Peru. This electromining technology is capable of extracting copper from raw mining material faster than current mining technology with substantial cost savings.

FORWARD-LOOKING STATEMENT: This press release contains forward-looking statements, including expected industry patterns and other financial and business results and estimates that involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to differ materially from results or estimates expressed or implied by this press release. Such risk factors include, among others: whether USD Energy Corp. can successfully execute its operating plan, including mining and exploration projects; results of exploration, project development and capital costs of mineral properties; volatility of market prices for gold, copper and copper sulfate; USD Energy Corp.a™s ability to integrate acquired companies and technology; USD Energy Corp.a™s ability to retain key employees; general market conditions; and other factors discussed under aRisk Factorsa in our current report on Form 8-K filed with the Securities and Exchange Commission on January 7, 2011. Furthermore, estimates of mineralized material are based upon estimates made by us and our consultants. Until mineralized material is actually mined and processed, it must be considered an estimate only. Actual results may differ materially from those contained in the forward-looking statements in this press release. USD Energy Corp. does not undertake any obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results.