Santa Fe Metals Corp. (TSX VENTURE:SFM) ("the Company") is pleased to announce
that it has signed a Letter of Intent to option up to 100% of the Preston
Property in British Columbia, Canada. The 8,228 hectare Preston property
encloses several mineralized outcrops and an extremely high-grade copper lens.
This property is favorably located near the port of Campbell River and 100 km
north of the operating Myra Falls mine, Vancouver Island.


In 2011 prospector Bob Lightle sampled a massive chalcopyrite lens reporting
values ranging from 25.0% to 30.3% copper, and 33 g/t to greater than 300 g/t
silver (unpublished Acme labs analytical reports, 2011). These reported results
confirm previous 1973 assessment reports of "massive chalcopyrite" and 1.1
metres of 30.03% copper (Assessment Report # 4102, 1973). The existence of a 2
meter wide, up to almost pure chalcopyrite lens on the property was confirmed
more recently in August 2011 by Finley Bakker (PGeo). A program of surface
mapping and sampling will be initiated to determine the width and length of the
sulphide lens.


Ian Smith, CEO and President, commented, "The Preston property provides the
company with a significant opportunity to explore the potential of high grade
copper mineralization favorably located to both a current producing mine and a
major port. Any future development will benefit from its location and ease of
access."


The Preston Property

The Preston Property is located near the historic Myra Falls
zinc-copper-lead-silver-gold mine (Nyrstar NV), the largest producing
volcanogenic massive sulphide ("VMS") deposit in Western Canada which began
operation in 1966. It is located on the west side of Vancouver Island,
approximately 40 km northwest of the town of Gold River. The property can be
accessed by numerous logging roads. Active logging continues to develop access
and improve exposures at higher elevations.


Further high grade mineralization was discovered following landslides in late
2011, including 2m intersections of up to near pure chalcopyrite that were found
associated with skarn style mineralization. The outcropping section of the high
grade lens measures at least 10 metres long with mineralization open downwards
beneath loose gravel and upwards along strike. In addition, metasomatised rocks
with up to 20% sulphides were discovered in several locations on the property.
The sulphide mineralization is enriched but not confined to limestone host rock
in proximity to granodioritic intrusive rocks. The geology of the property is
dominated by 1,800 hectares of limestone within the Mesozoic, granodioritic
Island plutonic suite (Geological Survey of Canada) although little detailed
mapping has been completed to date.


The Preston property is bordered to the south by the Tower Resources Ltd.'s
Dragon property which comprises 17 mineral tenures (approximately 7,220
hectares) and known VMS style mineralization.


Acquisition Terms

Upon satisfactory completion of its due diligence process, the Company will
enter into a Definitive Option Agreement whereby the Company will earn interests
in the Preston Mine property by making property expenditures, issuing units from
treasury and arranging feasibility study financing as follows:




---------------------------------------------------------------------------
                    Expenditure     Cumulative      Units (1) to  Interest  
Deadline            Commitment      Expenditures    be Issued     Earned    
---------------------------------------------------------------------------
December 31, 2012   $300,000        $300,000        750,000       25%       
---------------------------------------------------------------------------
December 31, 2013   $300,000        600,000         750,000       25%       
---------------------------------------------------------------------------
December 31, 2015   $1,200,000      1,800,000       600,000       20%       
---------------------------------------------------------------------------
December 31, 2017   $2,000,000      3,800,000       600,000       20%       
---------------------------------------------------------------------------
December 31, 2018   Arranging       Unknown         -             10%       
                    feasibility                                            
                    study financing                                        
---------------------------------------------------------------------------
                                                    2,700,000     100%      
---------------------------------------------------------------------------



(1) Each unit will consist of one SFM common share and one-half of a one-year
non-transferrable share purchase warrant. Each whole warrant will entitle the
holder to purchase one additional SFM common share for a period of one year from
the date of issuance. Warrant exercise prices will be $0.10 for each of the
first two tranches, $0.15 for the third and $0.20 for the fourth. 


A NSR of 3% can be reduced to 2% in consideration for a payment of $1million for
a period of one year upon the commencement of commercial production.


The agreement is subject to regulatory approval. 

The analytical data presented in this document has not been verified by a
qualified person under the rules of the NI-43101. All samples were analyzed by
Acme labs, 1020 Cordova St East, Vancouver, BC. The accuracy of these data will
be further verified during due diligence planned to start in early 2012.


Cuatro Cienegas

El Granizo

Compania Minera Coronado S.A. de C.V. ("Coronado"), SFM's wholly-owned Mexican
subsidiary, has been advised by Mexico's Secretariat of Economy that an
inspection visit to El Granizo is scheduled for March 21. This visit is thought
to be the final step in obtaining a Temporary Occupation Permit ("TOP") for the
high-grade copper oxide heap leach operation planned for Coronado's 100% owned
El Granizo project at Cuatro Cienegas, Coahuila. After receiving the TOP and
before it can commence construction, Coronado must apply for a change of land
use permit from the Federal Prosecutor for the Protection of the Environment,
("PROFEPA"). PROFEPA then has 60 working days from receipt of the application to
issue the permit. The change of land use application has been prepared and will
be submitted as soon as Coronado receives notice that the TOP has been approved.
Coronado's Environmental Impact Study was previously approved by the Secretariat
of the Environment and Natural Resources, which found that the project is
"environmentally feasible" and issued its approval for the project as designed.
The approval is valid for an initial period of 15 years.


Don Indio

In February Coronado completed a sampling program on the eastern side of Don
Indio project at Cuatro Cienegas, Coahuila, to test the continuity of
mineralization over 7.7 additional km of historic workings. Highlights from this
sampling program include assays of 1.1m of 1.12% copper and 19.6 g/t silver as
well as 1.30m of 1.13% copper and 6.46 g/t silver from locations approximately 8
km along strike from the main high grade zone. Lead mineralization of up to 0.5m
of 1.04% lead and 5.63 g/t silver was found at 3 km along strike from the main
zone. To date, a total of 317 channel samples and 70 chip samples have been
collected from the Don Indio property. Highlights of previous channel sampling
programs include a wide zone of very high grade silver-copper mineralization and
results of up to 5.86% copper and 901 g/t silver at "Pilar Grande", and up to
3.55% copper, 344 g/t silver, 14.83% lead and 3.71% zinc at "La Cuchilla",
approximately 1.4 km south. A document showing the relative locations of the
various historical mine workings within the Don Indio project can be found at
www.santafemetals.com/docs/Don_Indio_Layout.pdf.


The technical information on the Preston property in this news release has been
prepared in accordance with the Canadian regulatory requirements set out in
National Instrument 43-101 and reviewed by Finley Bakker (PGeo) and Ian Smith
(FAusIMM-CP), qualified persons under National Instrument 43-101.


SANTA FE METALS CORP.

IAN SMITH, President & CEO

This release contains forward-looking statements, including statements relating
to Santa Fe Metals' future plans and objectives with respect to the exploration
and development of its properties. Forward-looking statements are based on
numerous assumptions and are subject to all of the risks and uncertainties
inherent in Santa Fe Metals' business, including risks inherent in resource
exploration and development. There can be no assurance that economic resources
will be developed at any of its properties. Actual results may vary materially
from those described in forward-looking statements.
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