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RIVERSIDE RESOURCES TO ACQUIRE MAJOR CONTROL BLOCK IN GUERRERO EXPLORATION INC.
June 19, 2012 � Vancouver, BC: Guerrero Exploration Inc. ("Guerrero" or the "Company") (TSX-V: GEX) and its partner, Riverside Resources Inc. (�Riverside�), have agreed to terms on a transaction (the �Transaction�) that will result in Guerrero owning 100% interests in the Cerro Azul and Chapalota projects (the �Projects�) with Riverside receiving $2,000,000 in Guerrero shares. After the Transaction is complete, Riverside will become the largest single shareholder of Guerrero.
The Transaction will strengthen the partnership between the two companies, with Riverside having an opportunity to increase its management presence and support through representation on the Board of Directors and Advisory Board. This agreement will facilitate exploration progress and allow Riverside and Guerrero to take strides towards an initial drill program at the Cerro Azul copper-gold project and follow-up on remaining drill targets at Chapalota. Further, Riverside�s on-the-ground team in Mexico will assess and advance other properties for Guerrero�s portfolio. Both companies already enjoy a strong working relationship and believe that this Transaction will leverage the knowledge and resources required to identify valuable opportunities moving forward.
John-Mark Staude, President and CEO of Riverside Resources Inc., commented: �This agreement will provide Riverside shareholders with strong upside given that Riverside will now hold such a substantial share position in Guerrero.� Staude added, �We look forward to working towards drill testing and advancing high quality prospects that will generate value for both Guerrero and Riverside shareholders at a time when it is vital for companies to consolidate ownership and focus on the best chances for discovery.�
David Stadnyk, President and CEO of Guerrero Exploration Inc., commented: �Having Riverside acquire a major control block and adding three of their key executives to Guerrero's Board of Directors and Advisory Board is a major step forward for the company. Given our successful past working relationship and Riverside�s ability to acquire properties and partnerships, this new development will propel Guerrero to the next level. We will leverage off Riverside�s past, present, and future success to better solidify Guerrero�s ultimate goal in finding a resource.�
Property Details:
Cerro Azul is located near the highly productive southwestern Mexico, Guerrero Gold Belt. The 2011 work program on the 261 km� property consisted primarily of rock chip and soil samples.
Chapalota is located along the western side of the Sierra Madre Occidental Region of Mexico. The 91 km� property is 50 km to the south of Silvermex�s Rosario deposit and 70 km to the north of Oro Mining�s La Trinidad deposit. Riverside and Guerrero completed IP and soil surveys defining six target areas on the Project.
Further Transaction Details:
Riverside has agreed to transfer its 40% interest in the Cerro Azul Project and its 100% interest in the Chapalota Project in exchange for $2,000,000, payable in shares of Guerrero. The $2,000,000 in shares will be issued at the issue price of a strategic financing of at least $700,000 that Guerrero will conduct at or around time of closing. David Stadnyk will continue to serve as President and CEO and, in addition to having two members of Riverside�s Senior Management (Robert Scott and Howard Davies) appointed to Guerrero�s Board of Directors, John-Mark Staude will be appointed to Guerrero�s Advisory Board. The Transaction will qualify as a change of control, as defined under the rules of the TSX Venture Exchange, and as such will require Guerrero shareholder approval, as well as Exchange approval.
�David Stadnyk�
President and CEO
Guerrero Exploration Inc.
Direct: (604) 685-0088 Ext. 229
Corporate Communications: (604) 685-0088 Ext. 226
Email inquiries: info@grxpl.com
For more information on Guerrero Exploration Inc., please visit our website at www.grxpl.com
Advisory
Certain statements and information contained in this press release, including but not limited to management�s assessment of Guerrero�s future plans and operations, geological results and proposed exploration plans contain forward-looking statements. In particular, this press release contains statements concerning the anticipated receipt of government claims approval. All statements other than statements of historical fact may be forward looking statements. These statements, by their nature, are subject to numerous risks and uncertainties, some of which are beyond Guerrero�s control including the effect of general economic conditions, industry conditions, changes in regulatory and taxation regimes, government approvals, volatility of commodity prices, escalation of operating and capital costs, currency fluctuations, the availability of services, imprecision of reserve estimates, geological, technical, drilling and processing risks, environmental risks, weather, the lack of availability of qualified personnel or management, stock market volatility, the ability to access sufficient capital from internal and external sources and competition from other industry participants for, among other things, capital, services, acquisitions of reserves, undeveloped lands and skilled personnel that may cause actual results or events to differ materially from those anticipated in the forward looking statements. Such forward-looking statements, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated in the statements made and should not unduly be relied on. These statements speak only as of the date of this press release. Guerrero does not intend and does not assume any obligation to update these forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law. Guerrero�s business is subject to various risks that are discussed in its filings on the System for Electronic Document Analysis and Retrieval (SEDAR).
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
