Mr. Scott Broughton reports

SANTA FE EXTENSION OF SULLY PROPERTY AGREEMENTS

Santa Fe Metals Corp. has executed an extension agreement with Gravitas Metals Corp., which holds the option to acquire 80 per cent of the Sully property located 30 kilometres east of the Sullivan mine at Kimberley, B.C.

The company has extended the option to purchase Gravitas until September, 2015. Under the terms of the agreement as revised, SFM must now deliver to Gravitas, on or before Sept. 23, 2015, a written commitment to issue to Gravitas's shareholders an aggregate of 14 million shares (or a minimum 35 per cent of the share capital of SFM) on a pro rata basis. SFM is also required to pay to the holders of the Sully property all cash and other payments required to be made by Gravitas pursuant to the underlying option agreement among Gravitas and the holders of the Sully property.

Gravitas has also extended the term of its option with the vendors of the Sully project. In order for Gravitas to earn its 80-per-cent interest in the Sully property, Gravitas must now incur a total of $3-million in exploration expenditures by Oct. 21, 2016, and issue $1.41-million in cash or shares to the underlying property vendors by Oct. 21, 2017. An 80/20 joint venture will be formed at the time of exercise of the option. A 2-per-cent NSR (net smelter royalty) will be held in favour of the underlying vendors, half of which may be purchased for $5-million.