TSX-V: MSR

January 11, 2012

MINSUD ACQUIRES 50% OWNERSHIP OF THE BRECHAS VACAS PROPERTY AND ENTERS INTO A NEW OPTION AGREEMENT FOR THE REMAINING 50%

TORONTO, ONTARIO – Minsud Resources Corp. (TSX-V:MSR) (“Minsud” or the “Company”) is pleased to announce that, through a subsidiary, it has acquired a 50% beneficial interest in a trust that owns the Brechas Vacas property (the “Trust“). Minera Sud Argentina S.A. (“MSA”), the Company’s Argentine subsidiary, acquired the interest in the Trust from the beneficial owners of the Brechas Vacas property (the “BV Owners“) in exchange for payment of US$210,000 in accordance with the terms of an option agreement dated September 7, 2007, as amended, between the BV Owners and MSA.

The remaining 50% beneficial interest in the Trust is held by the BV Owners and is subject to a new exclusive and irrevocable purchase option agreement (the “Option”) granted in favour of MSA. The Option provides MSA with an irrevocable and exclusive right to purchase the remaining 50% beneficial interest in the Trust in addition to the exclusive right to evaluate, prospect and explore the Brechas Vacas property.

The Option is subject to semi-annual staggered payments to the BV Owners of US$710,000 in aggregate commencing on July 4, 2012 and ending on December 9, 2016 in addition to an aggregate payment of US$220,000 in Minsud common shares commencing on June 28, 2013 and ending on December 9, 2016. The Option can be fully exercised by MSA at any time but not later than June 7, 2017 (the “Expiration Date”). The Option’s final exercise price is US$1,070,000 payable US$535,000 in cash and US$535,000 in Minsud common shares. If MSA decides to exercise the Option before the Expiration Date, 75% of any outstanding payments, whether accrued or not, will be added to the final exercise price of the Option.

Each payment in common shares to the BV Owners under the terms of the Option will be made at the then market price of Minsud’s common shares.

Once the Option is exercised and the remaining 50% of the beneficial interest in the Trust is transferred to MSA, the BV Owners will retain a 1.5% Net Smelter Return (“NSR”) on the Brechas Vacas property with Minsud having the option to purchase a 0.75% NSR, at any time, for a one-time payment of US$750,000.

The foregoing is subject to the approval of the TSX Venture Exchange.

About the Brechas Vacas property: The Brechas Vacas Property comprises three mining concessions Luis, Luis I and Luis IV totaling 2,580 ha located in the westernmost part of Minsud’s consolidated Chita Valley properties. Contiguous to Brechas Vacas, the Chita Valley properties also include the Chita, Minas de Pinto and Chita II claim, for a cumulative grand total area of 12,800 ha.

Recently MSA drilled the Chinchillones Ag-Au occurrence on the Brechas Vacas property which requires further systematic exploration. See press release dated September 14, 2011 where Minsud stated “ChS1104 intercepted 72.0 g/t silver and 0.23 g/t gold over 13.0 m and 393.0 g/t silver and 0.44 g/t gold over 1 meter”.

Other areas of demonstrated significant exploration potential include the Placetas and Porphyry “A” porphyries and the Brecha Chinchillones, Brechas Ridge and Horse tail prospects which have sound indications of epithermal mineralization types.

Carlos Massa, Minsud’s President and Chief Executive Officer stated “The execution of these agreements represents an important step in consolidating Minsud’s Chita Valley project.”

About Minsud Resources Corp.: Minsud is a mineral exploration company focused on exploring its flagship Chita Valley project, primarily for gold, silver and copper in San Juan Province, Argentina. Additionally, the Company holds a portfolio of approximately 75,000 ha of 100% owned exploration properties in Patagonia. Most of the key properties held by the Company are located in mining friendly provinces like San Juan and Santa Cruz, Argentina.

Additionally, the Company holds a portfolio of approximately 75,000 ha of 100% owned exploration properties in Patagonia. Most of the key properties held by the Company are located in mining friendly provinces like San Juan and Santa Cruz, Argentina.

 

FOR FURTHER INFORMATION PLEASE CONTACT

Carlos A. Massa
President and Chief Executive Officer
(+54) 11-4328-4067
cmassa@minsud.com

Mike Johnston
(+1) 416-479-4466
mike@minsud.com

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION:
This news release includes certain information that may constitute “forward-looking information” under applicable Canadian securities legislation. Forward – looking information includes, but is not limited to, statements about strategic plans, spending commitments, future operations, results of exploration, anticipated financial results, future work programs, capital expenditures and objectives. Forward looking information is necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward looking information, including the risks identified in the Company’s TSXV Filing Statement dated under the heading “Risk Factors”. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward looking information. All forwardlooking information contained in this press release is given as of the date hereof and is based upon the opinions and estimates of management and information available to management as at the date hereof. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.

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.