Mr. Brian Maher reports

PERUVIAN PRECIOUS METALS CORP. ANNOUNCES COMPLETION OF SHARES-FOR-DEBT SETTLEMENT AND REPURCHASE OF NSR

Peruvian Precious Metals Corp. completed today a previously announced debt settlement to a creditor. In consideration for settlement of a total debt of $185,000 owing to the creditor by the company, the company issued to the creditor 2,846,154 common shares of the company at a deemed price of 6.5 cents per share. The shares are subject to a four-month hold period.

The company is also pleased to announce that it has today completed the previously announced repurchase of two net smelter return royalty interests. In consideration for repurchase of the NSRs, the company issued a total of 4,259,200 common shares of the company at a deemed price of 7.5 cents per share to two arm's-length parties. The shares are subject to a four-month hold period.

Kimberly Ann Arntson, Peruvian's chief financial officer and vice-president, corporate development, commented: "Closing our second share-for-debt settlement continues the company's program of cleaning its balance sheet and preparing the company financially to move forward with its Igor project. The company will continue to advance its Igor project in northern Peru and evaluate potential future development and exploration scenarios, including bulk underground sampling. We are currently evaluating and negotiating with potential underground mining contractors for bulk sampling, designing a metallurgical testing program, including milling options for bulk samples, planning for future surface exploration, including drilling, and evaluating potential acquisitions that can grow the company in the future."

Brian J. Maher, president and chief executive officer, further commented: "Although these NSRs were modest, eliminating them now, at modest cost, with no cash outlay, enhances the Igor project. Igor is now completely free of any royalty, and we are evaluating the next steps for advancing the project."