Mr. Chris Buncic reports

CONDOR RESOURCES SIGNS LETTER OF INTENT TO SELL SOLEDAD PROJECT

Condor Resources Inc.'s Peruvian subsidiary, Condor Exploration Peru SAC, has entered into a non-binding letter of intent with a Peruvian company to sell a 100-per-cent interest in the company's Soledad project, located in Ancash, Peru.

Under the terms of the LOI, Condor Peru will grant the purchaser an exclusive option to acquire the three mineral concessions comprising the Soledad project over a 36-month period. In parallel, a Cesion Minera agreement will allow the purchaser to immediately commence exploration activities on the project.

The total consideration payable by the purchaser for the purchase of the Soledad project is $3-million (U.S.) to be paid in the following instalments:

• $100,000 (U.S.) upon execution of the LOI (the first deposit);
• $500,000 (U.S.) upon execution of the definitive mining assignment and option agreement; and
• $2.4-million (U.S.) in 12 quarterly payments of $200,000 (U.S.) each over three years.

Signing of the definitive agreement is targeted within 75 days. The purchaser may accelerate payments at its discretion, but the purchaser may extract and sell products from the property for the purpose of earning revenues only after the option has been exercised. Upon exercise of the option, Condor Peru will also be granted a 1-per-cent net smelter return royalty. The purchaser will also assume the existing 1-per-cent NSR royalty payable to Chakana Resources SAC.

The first deposit secures a 75-day exclusivity period for the purchaser to complete legal and technical due diligence, during which Condor Peru will provide access to all project data and materials. The first deposit can be applied toward the purchase price, be non-refundable or be refundable in Condor shares, depending on the results of the due diligence and whether a definitive agreement is signed.

Chris Buncic, president and chief executive officer of Condor, commented: "We are very pleased to have reached this agreement with the purchaser. This proposed transaction allows Condor to limit dilution and instead focus on its core opportunities of advancing exploration programs at its highly prospective Pucamayo and Huinac Punta projects."

The transaction is subject to completion of due diligence, final documentation and receipt of all necessary regulatory approvals.

About Condor Resources Inc.

Condor Resources is a precious and base metal exploration company focused on its portfolio of projects in Peru. The company's flagship project, Pucamayo, is an 85-square-kilometre property containing a high-sulphidation epithermal system with disseminated precious metal mineralization with a large lithocap alteration visible at surface. The Huinac Punta project, a 7,200-hectare property in Huanuco, Peru, has the potential to host a large carbonate replacement style silver-dominant polymetallic mineralized body with the potential for discovery of a bulk tonnage silver and base metal deposit. The company has also optioned the Cobreorco project, which targets gold-copper skarn and porphyry-style mineralization to a subsidiary of Teck Resources Ltd. The company's award-winning exploration team in Peru has a long history of success in discovering and advancing high-quality exploration projects and managing the social aspects of its exploration activities.

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