Mr. Jeffrey Reeder reports

PERUVIAN METALS ANNOUNCES PRIVATE PLACEMENT

Peruvian Metals Corp. has arranged a non-brokered private placement for gross proceeds of up to $750,000, which will be used to make improvements and additions for expansion to its Aguila Norte processing plant, for potential new acquisitions, and for general working capital. The placement will consist of five million units at a price of 15 cents per unit, each unit comprising one common share and one-half non-transferable share purchase warrant. The common shares, warrants and any shares issued on the exercise of warrants will be subject to a hold period expiring four months and one day following the date of issue.

Each warrant will entitle the holder to acquire one additional common share of the company at a price of 20 cents per common share for a period of two years following the closing date. The warrants will be subject to an acceleration clause; in the case that market price for the company's common shares is equal to or greater than 40 cents per share for a period of five consecutive trading days at any point during the term of the warrants, then the company may deliver a notice that the warrants must be exercised within 30 days from the date of delivery of such notice. Completion of the private placement is subject to final approval of the TSX Venture Exchange.

About Peruvian Metals Corp.

Peruvian Metals is a Canadian exploration and mineral processing company. The company's business model is to produce high-grade concentrates from its 100-per-cent-owned properties. The company continues to acquire and develop precious and base metal properties in Peru.

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