Monterrico Metals plc

On 1 November 2009,

"On November 1, 2009, at approximately 3:00 or 4:00a.m., a heavily armed group of 20 persons invaded and set fire to the Rio Blanco mining campsite facilities, located in the Carmen de la Frontera District, Huancabamba Province, Piura Department.

The reports that have been received up to this point indicate that the violent raid has resulted in the deaths of at least two security guards of the company V-Sur who were providing security services at the campsite, and at least four persons are missing, including V-Sur and Rio Blanco Copper S.A.'s employees.

We thank the group of persons in the area near the campsite who, at the risk of their own safety, assisted a group of employees to arrive at the provincial capital in search of refuge.

At this time our subsidiary, Rio Blanco Copper S.A. has filed a complaint with the governmental authorities, who are currently carrying out a search to locate the missing persons.

We would like to express our sincere condolences to the families of the victims of this terrible incident.

We reject such cowardly acts of terror, and we strongly condemn any acts of violence that disturb social peace and put into question Peruvian legal order.

We reiterate our wish and commitment to develop our activities with social peace, harmony and respect that the peasant communities deserve at all times."

On 27 October 2009,

"Monterrico Metals Plc has received a number of enquiries concerning ongoing legal proceedings brought against it in the English High Court. The proceedings are at a very early stage and no findings of fact whatsoever have been made by the Court. The claimants have not yet served particulars of their claim and Monterrico has, accordingly, not had an opportunity to file its defence responding to the allegations made against it.

Monterrico vigorously denies that any of its officers or employees were involved in any alleged abuses at the Rio Blanco exploration project site in 2005. It considers any allegations to the contrary made by the claimants in the proceedings to be wholly without merit. Monterrico has every confidence that the English High Court will reach the same view when the matter comes to trial. "

Monterrico Metals plc (Monterrico) is a resource development company incorporated in the UK. Monterrico's Corporate HQ is in Hong Kong, and its principle operations are in Peru.

The Company's principal asset is the Rio Blanco copper/molybdenum deposit in northern Peru, which is one of the largest undeveloped copper resources in the world. Monterrico plans to develop Rio Blanco as a conventional open pit mine, producing copper and molybdenum concentrates. At planned production rates, Rio Blanco will be amongst the 20 largest copper mines in the world. Rio Blanco is wholly owned by Monterrico. The Company also has several other precious and base metal projects in Peru.

Monterrico is fully committed to sustainable development and to its responsibilities to the local communities and all stake holders.


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