Alturas Minerals Corp. announced that it has entered into a Letter of Intent with Sociedad Contractual Minera Resguardo, a Chilean mining exploration company, to lease and acquire 100% of its Resguardo Copper-Gold Project, located about 95 km northeast of Copiapo, in Region III of northern Chile, referred to as "Región de Atacama". If, as a result of the mining activities performed by Alturas on the Concessions, a porphyry is confirmed, the purchase price for acquiring title over the Concessions payable by Alturas to the Optionor will be increased by 10% of the selling price obtained by Alturas for the transfer of the Concessions to a third party, or USD 30 Million, whichever is greater.

Once the Company exercises the Option, a 1.5% Net Smelter Return Royalty will be applicable as an additional consideration for the transfer of the Concession to be effective as from commencement of Commercial Production on the Concessions. Until up 2 years after the commencement of Commercial Production, the Company may buy 0.5% of the NSR Royalty at a price between USD 2 Million and USD 6 Million depending on the size, grade, and type of mineralization as determined in accordance with National Instrument 43-101. The Optionor also grants a right of first refusal for the acquisition of the remaining NSR Royalty.

During the term of the Option, the Optionor shall also lease the Concessions to the Company, as result of which Alturas will be conferred all the rights and obligations of the Optionor related to the Concessions, including the right to exploit the Concessions. The Mining Lease shall be for a period of 5 years and begins on the Effective Date or, whichever arrives first, when Alturas notifies the Optionor of its decision to exercise the Option. Once the Mining Lease is in force, Alturas shall have the right to operate the Concessions at its own sole cost and risk, subject to compliance with applicable laws, shall have the right to initiate commercial production of the existing high-grade copper mineralization.

As compensation required for the Mining Lease, Alturas will pay the Optionor a NSR Royalty over all the minerals extracted and marketed from the Concessions. If the mineral extracted has an average ore grade that is lower than 2.5%, the Lease NSR Royalty will be equivalent to 7.0% of the price at which said mineral is marketed; and, if the mineral extracted has an average ore grade that is equal to or higher than 2.5%, the Lease NSR Royalty will be equivalent to 9.0% of such price. The transaction remains subject to regulatory and TSX-V approvals as well as the above-mentioned due diligence.

Copper structures on the Resguardo consist of sub-vertical and tabular stockwork bodies (in parts hydrothermal breccia) that host disseminated and vein copper mineralization exceeding 2.0% Cu, along with sub-parallel copper-gold veins. The main mineralized copper body, which has been historically mined, has an average width of 50 to 100 m and is about 1.5 km in length. Historical open pit and underground mine workings are scattered along the 1.5 km length with areas of mineralization that often exceed 2.0% Cu-equivalent grade.Besides exploring the high-grade copper structures and the potential copper porphyry system, the Company intends to undertake an initial small-scale mining operation of the high-grade material.

The maximum tonnage allowed by Chilean regulations is 5,000 tonnes per month. This activity will be of great help in defining the actual extension and quality of the high-grade copper mineralization with the view of a future mid-size operation and will generate significant cash-flow to the Company to support its activities in the Concessions and future exploration projects in Chile. Given the already known copper mineralization at or near surface and the extensive and intense hydrothermal alteration covering kilometres of area, there is a high probability that known copper oxide and sulphide mineralization is genetically connected to an as yet unconfirmed porphyry system (i.e., Late Eocene-Early Oligocene) located topographically lower and therefore deeper in the mineralized system.

Evidence for the possibility of a porphyry system is supported by recent induced polarization and magnetic geophysical surveys which have delineated a deep-seated chargeability high overlapping the edge of a magnetic low, the latter which was likely produced by magnetite destruction as a result of hydrothermal fluid movement.