Morro Bay Announces Release of First Quarter Financial Results

Calgary, Alberta (FSCwire) - Morro Bay Resources Ltd. (“Morro Bay” or the “Company”) (TSX-V: MRB) announces it has filed its Q1, 2015 consolidated condensed interim financial statements (“Financial Statements”) and the related management’s discussion and analysis of those financial statements (“MD&A”). Copies of the Financial Statements and MD&A can be viewed at www.sedar.com or on the Company’s website at www.morrobayresources.com.

During the quarter ended December 31, 2014, the Company completed its $500,000 drilling program at the Peñoles Project located in the state of Durango, Mexico, fulfilling the project spending requirement outlined in the amended option agreement with Riverside Resources Ltd. (“Riverside”).

Subsequent to quarter end, Morro Bay re-negotiated and received an extension on its option agreement with Riverside for the Peñoles Project. The amended agreement removes the former requirement for the Company to make a cash payment of approximately $1.35 million to Riverside and expires on March 31, 2015. In order for the Company to earn a 51% interest in the project Morro Bay is required to make payment of  $750,000 to Riverside by March 31, 2015 (payable in cash or Morro Bay shares at Morro Bay’s election provided that if the value of Morro Bay shares is less than $0.05 such payment must be made in cash).

Upon exercise of the option a joint venture between Morro Bay and Riverside will be formed. That joint venture will see:

• Morro Bay be appointed as operator of the joint venture;
• Morro Bay is required to incur Joint Venture Expenditures of $750,000 for each of the first three years (any amounts expended over $750,000 will be credited toward the following years expenditure requirements);   
• Riverside shall have a credit of $100,000 and US$1,250,000 against the first Joint Venture Expenditures incurred by the Joint Venture; and
• Should the Joint Venture fail to incur Joint Venture Expenditures of at least $750,000 in each of the first three years, Riverside will have to right to acquire 100% of Morro Bay’s Interest by returning to Morro Bay 80% of the common shares issued by Morro Bay to Riverside.

In addition, assuming the exercise of the 51% option, the Company retains the right to earn an additional 14% (65% total interest) in the Peñoles Project without change to the previously agreed upon terms. Refer to the MD&A for detailed disclosure. 

As at December 31, 2014, the Company had cash and cash equivalents of $294,559 ($533,748 as at September 30, 2014).  Current cash and cash equivalents stand at approximately $150,000.

About Morro Bay

Morro Bay is a junior mineral exploration company based in Calgary, Alberta, Canada, focused on the exploration for precious metals in Mexico. Morro Bay's business strategy is to build shareholder value by rapidly advancing the Peñoles Project in Mexico through the resource delineation stage. 

Further Information

For further information please contact:

Morro Bay Resources Ltd.

Denny Chow

Chief Financial Officer

dchow@morrobayresources.com

403 719 8269

Patrick Piette

Investor Relations

ppiette@morrobayresources.com

416 526 9911

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Information in this news release may contain forward looking information.  Statements containing forward looking information express, as at the date of this news release, the Company's plans, estimates, forecasts, projections, expectations, or beliefs as to future events or results and are believed to be reasonable based on information currently available to the company.

There can be no assurance that forward-looking statements will prove to be accurate.  Actual results and future events could differ materially from those anticipated in such statements.  Readers should not place undue reliance on forward-looking information.

The forward-looking information contained in this news release is as of the date hereof and Morro Bay does not undertake any obligation to update publicly or to revise any of the included forward looking statements contained herein, except as required by applicable law. The forward-looking statements contained herein are expressly qualified by this cautionary statement.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any state in the United States in which such offer, solicitation or sale would be unlawful. The securities referred to herein have not been and will not be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.   

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