VMS Vortex Metals Inc

Santa Fe Metals Corp. (the "Company") (TSX VENTURE:SFM) is pleased to announce
that it has signed a letter of intent dated October 29, 2012 (the "LOI") with
Gold Plata Mining International Corporation ("Gold Plata"), a company
incorporated under the laws of Panama. The LOI sets forth the terms upon which
the Company proposes to purchase from Gold Plata (the "Proposed Transaction")
100% of the outstanding shares of La Muriel Mining Corporation ("La Muriel"), a
wholly-owned subsidiary of Gold Plata. La Muriel, through its wholly-owned
Colombian subsidiary, La Muriel Mining Corporation succursal Colombia, owns nine
mineral concessions located in northwest Colombia known as the Murindo Project
(the "Murindo Project"). 


The Murindo Project 

The Murindo Project is a porphyry copper-gold-molybdenum system in northwest
Colombia. Also referred to as the Mande Norte mining project, the Murindo
Project is made up of nine separate mining concessions, granted in February,
2005, for the exploration and exploitation of copper, gold, molybdenum and other
exploitable minerals. The concessions cover an area of approximately 160 km2,
between the Murindo Municipality, Department of Antioquia, and the Carmen del
Darien Municipality, Department of Choco. The Murindo Project is subject to an
agreement between La Muriel and Rio Tinto Mining and Exploration Ltd. ("Rio
Tinto") and to a royalty to Phelps Dodge Exploration Corporation, which are
described below. 


The Murindo Project is accessible by helicopter from Mutata, 50 km to the
northeast. There is currently no road access to the Project. The restrictions on
access and the historic political instability in the region have meant that only
minimal exploration has occurred in the past, though recent efforts of the
Colombian government to bring stability to the region are succeeding.


Work by Cyprus Amax in the late nineties suggests that the Murindo Project may
host one or several significant porphyry copper-gold deposits within an area of
some 10km by 4km. Chalcopyrite and molybdenum vein stockwork mineralization is
exposed in fault scarps in argillically (quartz-sericite-pyrite) altered quartz
feldspar porphyry intrusive rocks in the western Andean mineralized belt.
Historical sampling of stream sediments, soils and rocks, along with limited
geological mapping and geophysics resulted in extensive anomalous copper, gold
and molybdenum assay values with some rock samples assaying as high as 2.4%
copper, 2.5 grams/tonne gold and 10 to 700 ppm molybdenum. In the 1,400m by 800m
La Rica region the copper content in soils ranged from 20,000ppm (2% copper) to
700ppm. Overall chip and channel sampling done by Cyprus AMAX returned average
values of 0.94% copper and 0.39 grams/tonne gold. These results were contained
in a report dated April 12, 2001 "Mande Norte (Murindo Prospect, Choco and
Antioquia Departments, Colombia" (the "Historic Report"). The Historic Report
was prepared under National Instrument 43-101 - Standards of Disclosure for
Mineral Properties and may be relevant to investors. The Company has not
undertaken any work to verify the Historic Report, a qualified person has not
done sufficient work to classify the historical estimate as current mineral
resources or mineral reserves, and the Company is not treating the results
disclosed in the Historic report as current mineral resources or mineral
reserves.


Ian Smith, CEO states that "Murindo may be one of the only known porphyry
systems in the world that remains untested. We believe that materially reduced
political tension in the area will enable us to push forward with a full
evaluation of this exciting, as yet undrilled prospect."


The LOI

The LOI contemplates that the Company and Gold Plata will work towards the
completion of a definitive agreement (the "Purchase Agreement") in respect of
the Proposed Transaction by November 30, 2012. Under the proposed terms of the
Purchase Agreement, the Company will: (i) purchase from Gold Plata 100% of the
outstanding shares of La Muriel in exchange for a cash payment by the Company of
US$1.5 million to Gold Plata; and (ii) issue to Gold Plata such number of common
shares of the Company as would constitute 30% of the outstanding common shares
of the Company upon closing of the Proposed Transaction (the "Closing"), after
taking into account the Initial Financing, Major Financing and Share
Consolidation (all as defined below).


In connection with the completion of the Proposed Transaction, the Company and
Gold Plata plan to execute an ancillary rights agreement (the "Ancillary Rights
Agreement"), which is expected to contain provisions regarding pre-emptive
rights, broad distribution obligations, and standstill and voting arrangements.
The Ancillary Rights Agreement is also expected to provide for certain
governance arrangements for so long as Gold Plata holds at least 15% of the
equity capital of the Company, including the right of Gold Plata to nominate two
directors to the Company's board of directors. 


Proposed Financing

In conjunction with the Proposed Transaction, the Company proposes to undertake:
(i) a private placement financing for gross proceeds of at least $400,000 (the
"Initial Financing"); and (ii) a private placement financing for gross proceeds
of $10 million (the "Major Financing"). Both the Initial Financing and the Major
Financing will involve the issuance of common shares of the Company and may also
include the issuance of warrants to acquire common shares of the Company. If the
Company issues warrants as part of the Initial Financing or the Major Financing,
then Gold Plata will receive, for no additional consideration, warrants on the
same terms and conditions as the warrants issued in the Initial Financing or the
Major Financing, as the case may be, so that, after such issuance, Gold Plata
will hold 30% of any such warrants. On Closing, Gold Plata will also receive
such number of warrants as is equal to 30% of the number of warrants currently
outstanding (the "Existing Warrants"), exercisable on the same terms as the
Existing Warrants.


It is expected that the Initial Financing will involve the issuance of
16,000,000 common shares of the Company at a price of $0.025 per share, on a
pre-Share Consolidation (as defined below) basis, which is expected to represent
800,000 common shares of the Company at a price of $0.50 per share, on a
post-Share Consolidation (as defined below) basis, for gross proceeds of
$400,000. The Initial Financing will take the form of an issuance of
subscription receipts, which subscription receipts will be converted into common
shares only after the Share Consolidation is completed. The Company also
anticipates that the conversion subscription receipts issued in the Initial
Financing into common shares will be qualified by a prospectus. The subscription
receipts will have a 4-month hold period under applicable securities laws, but
it is anticipated that the underlying common shares will be free-trading. The
Company intends to use the net proceeds of the Initial Financing to fund
expenses in relation to the Proposed Transaction, and for general corporate
purposes. Details with respect to the Major Financing will be announced by the
Company once the terms have been established.


Conditions required to complete the Proposed Transaction include: (i) approval
by the TSX Venture Exchange (the "Exchange") of the Proposed Transaction, the
Initial Financing and the Major Financing; (ii) approval of the Proposed
Transaction by the requisite majority of the Company's shareholders at a meeting
of the Company's shareholders (the "Meeting"); (iii) completion of the Initial
Financing; (iv) completion of the Major Financing; (v) delivery by Gold Plata to
the Company of a satisfactory title opinion in respect of the Murindo Project,
and satisfactory corporate opinions in respect of La Muriel and La Muriel Mining
Corporation succursal Colombia; and (vi) delivery to the Company of a technical
report in respect of the Murindo Project which complies with National Instrument
43-101 - Standards of Disclosure for Mineral Properties.


The Proposed Transaction does not involve any Non-Arm's Length Parties (as
defined in the policies of the Exchange) to the Company.


Share Consolidation

In connection with the Proposed Transaction, the Company also intends to
complete a share consolidation of its outstanding common shares on a 20:1 basis
(the "Share Consolidation"). The Share Consolidation will require the approval
of at least 66 2/3% of the Company's shareholders at the Meeting. 


Existing Agreements at Murindo

Pursuant to an agreement with La Muriel, Rio Tinto paid US$3.83 million in
respect to the Murindo Project as part of an option to acquire a 70% interest in
the Project. The agreement now requires La Muriel, as soon as practicable, to
complete a pre-feasibility study or undertake exploration and development
programs towards such, at a cost of US$20 million. A maximum of US$3 million
relating to costs associated with local, community, and government relations can
be applied against this US$20 million threshold. For a period commencing on
November 19, 2010 and expiring 60 days following completion of such expenditures
(or completion of pre-feasibility study if earlier), Rio Tinto has the option to
acquire a seventy percent (70%) interest in the Murindo Project on payment to La
Muriel of US$60 million in cash. La Muriel may elect to require Rio Tinto to
increase its interest to eighty percent (80%) by requiring Rio Tinto to fund the
next US$15 million in project costs, and it may further elect to require Rio
Tinto to acquire the remaining 20% interest for US$20 million in cash. If Rio
Tinto does not exercise its option to acquire a 70% interest, it will retain a
1.7% net smelter royalty in the Murindo Project in consideration for the US$3.83
million it has previously paid in respect of the Murindo Project.


If Rio Tinto exercises its option, the parties will enter into a formal joint
venture agreement (the "JVA") on the Murindo Project, on terms which have been
agreed. As part of the JVA, if La Muriel or Rio Tinto fall below a 10%
participating interest in the Project, they will be deemed to have withdrawn
from the JVA. The remaining party to the JVA will acquire the shares of the
withdrawing party in consideration for a 1.7% net smelter return royalty on the
Murindo Project.


The Murindo Project is also subject to a 1% net smelter returns royalty pursuant
to an agreement between La Muriel and Phelps Dodge Exploration Corporation,
which can be purchased for US$1 million.


The Preston Property

Santa Fe holds an option to earn 100% of the Preston property, located near the
historic Myra Falls zinc-copper-lead-silver-gold mine (Nyrstar NV). Myra Falls
is 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.


About Gold Plata 

Gold Plata is part of a consortium which controls a number of significant
mineral projects in Colombia and elsewhere in South America. The principals,
George and Michel Juilland, are both graduates of the Colorado School of Mines. 


Cautionary Statements

The technical information in this news release relating to the Murindo Project
and the Preston Property has been prepared in accordance with the Canadian
regulatory requirements set out in National Instrument 43-101 and reviewed by
Ian Smith (FAusIMM-CP), a qualified person under National Instrument 43-101. The
Historic Report, including a discussion of sample results and a description of
procedures used in the sampling program, is available on SEDAR under the profile
of Sunward Resources Ltd. (filed April 18, 2011).


Completion of the Proposed Transaction is subject to a number of conditions,
including but not limited to, Exchange acceptance and, if applicable pursuant to
Exchange requirements, shareholder approval. Where applicable, the Proposed
Transaction cannot close until the required shareholder approval is obtained.
There can be no assurance that the Proposed Transaction, the Initial Financing,
the Major Financing or the Share Consolidation will be completed as proposed, or
at all. Investors are cautioned that, except as disclosed in the management
information circular or filing statement to be prepared in connection with the
Proposed Transaction, any information released or received with respect to the
Proposed Transaction, the Initial Financing, Major Financing or the Share
Consolidation may not be accurate or complete and should not be relied upon.
Trading in the securities of the Company should be considered highly
speculative.


This news release contains forward-looking statements, including statements
relating to the Company's future plans and objectives with respect to the
Proposed Transaction, the Initial Financing, the Major Financing, the Share
Consolidation and the exploration and development of the Murindo Project.
Forward-looking statements are based on numerous assumptions and are subject to
all of the risks and uncertainties inherent in the Company's business, including
risks inherent in resource exploration and development. There can be no
assurance that the Proposed Transaction, the Initial Financing, the Major
Financing or the Share Consolidation will be completed as proposed or at all, or
that economic resources will be discovered or developed at the Murindo Project.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Santa Fe Metals Corp.
Ian Smith
President & CEO
604.678.8823 ext. 1
778.327.4770 (FAX)
info@santafemetals.com
www.santafemetals.com

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