Dr. Mark Cruise reports

TREVALI AND GLENCORE FINALIZE LEGAL AGREEMENT FOR DEVELOPMENT OF SANTANDER ZINC-LEAD-SILVER MINE PROJECT

Trevali Resources Corp. has signed the definitive legal agreement with Glencore International AG's Peruvian subsidiary, Empresa Minera Los Quenuales SA, for the development, construction and operation of Trevali's 100-per-cent-owned Santander zinc-lead-silver mine project in Peru.

"We are extremely pleased to finalize the legal agreement with our valued partners, Glencore, which represents another major milestone in the development of our Santander mine," stated Trevali president and chief executive officer, Dr. Mark Cruise. "The dedicated and proven teams of mining professionals from both companies are very anxious to break ground and commence construction of what will be one of the few new supplies of zinc and lead-silver concentrates in South America and globally in the near future."

The comprehensive legal agreement covers all aspects of the future development of the Santander mine project. Key terms of the agreement are as follows:

• Trevali retains 100-per-cent ownership of the Santander project;
• Glencore to provide, construct and operate a modern, efficient, 2,000-tonne-per-day mill and flotation plant to produce saleable zinc and lead-silver concentrates;
• Glencore to provide its world-class project management and operational expertise on a contractor basis to design, develop and operate the future mine using an anticipated combination of open-pit and underground mining techniques, thereby enabling the Santander project to reach and maintain optimum concentrate product levels in an efficient manner;
• Trevali will acquire the plant and associated infrastructure over a four-year period following commercial concentrate production, thereby securing full ownership of the new mill and processing complex;
• Trevali has the right, at any time, to prepay the outstanding cost of the plant subject to payment plus 10 per cent;
• Trevali will provide its proven exploration, permitting and community relations expertise on behalf of the partnership in order to fast-track development of the project and expand the known resources that remain open;
• Trevali has secured a life-of-mine concentrate offtake agreement whereby Glencore will buy 100 per cent of the Santander mine production at Benchmark terms.

Debenture facility

Glencore has also provided a $2-million (U.S.) credit debenture facility to Trevali, of which $500,000 (U.S.) was previously advanced to help finance the recently completed resource-expansion program. Upon closing the definitive legal agreement, Trevali elected to draw down the remaining funds that will be used to advance exploration and development of the Santander project in addition to fulfilling the company's 18-month budgetary requirements for its Toronto Stock Exchange listing application.

The terms of the debenture facility are as follows:

• Interest payable on an annual basis at LIBOR plus 2.5 per cent;
• Following the second anniversary of the fund drawdown, Glencore has the right to convert any outstanding indebtedness into common shares of the company priced using a trailing 30-day-volume-weighted average and with a minimum conversion price of 64 cents per share.

The company recently received the conditional approval of the TSX to list its common shares on the TSX. Listing of its common shares is subject to compliance with all of the TSX requirements, including receipt by the TSX of all required documentation by Oct. 26, 2010. The company will notify its shareholders as soon as the date for trading on the TSX has been confirmed. Once listed, the company's common shares will continue to trade under the symbol, TV, and will be delisted from the Canadian National Stock Exchange. The company's shares will continue to trade on the U.S. OTC Bulletin Board Pink Sheets and Frankfurt stock exchanges.