FOR IMMEDIATE RELEASE
Cuervo Board Receives and Accepts Financing of $3.5 Million
May 21, 2008 – Toronto, ON
Cuervo Resources Inc. (CNQ-IRON; FWB-CRR; “Cuervo” or the “Company”) wishes to
announce that the Board of Directors has received and accepted an offer to provide the Company
with a $3.5 million equity financing. Net proceeds from the financing and the current $1.9
million cash position will be used to continue to fund the Company’s iron ore exploration
projects in Perú and general working capital purposes. The planned work program related to the
Cerro Ccopane Project will include geophysical surveying, the completion of an initial mineral
resource estimate and NI 43-101-compliant report, conclusion of diamond drilling on the
Orcopura zone and the start of diamond drilling on the Huillque zone, which is to begin this
week. Further metallurgical, marketing and transportation studies will also be commissioned.
The non-brokered private placement will see Cuervo issue 3.5 million Units of the Company, at
a price of $CDN1.00 per Unit, for gross proceeds of $CDN3.5 million (the “Financing”). Each
Unit will consist of one Cuervo common share and one warrant entitling the holder to purchase
one Cuervo common share at a price of $CDN1.50 for a period of 24 months after the closing of
the Financing. If the closing price of the Cuervo common shares is equal to or greater than
$CDN2.25 for a period of 10 consecutive trading days any time after six months after the closing
of the Financing, the Company may accelerate the expiry date of the warrants. The Company
will pay a finder’s fee equal to 6% cash and 6% Unit-purchase options in regard to the
Financing. The Financing will close on or about May 22, 2008.
The securities to be issued in connection with the Financing will be subject to a four month hold
period from the date of issue.
Cuervo common shares are listed on the Canadian Trading and Quotation System Inc. (CNQ),
and also trade on the Frankfurt Stock Exchange (FWB). Currently, there are 26,629,750 shares
outstanding (33,556,000 fully diluted).
For further information, please contact Mr. John Siriunas, a director and President of Cuervo, at
(416) 203-3957 x 701 or Mr. Tom Berner, Investor Relations, at (416) 203-3957 x 202.
Additional information about Cuervo can be found at the Company’s website at
http://www.cuervoresources.com.
The Canadian Trading and Quotation System Inc. has neither approved nor disapproved of the
contents of this press release.