Mr. Jason Birmingham reports

CERRO MINING CORP. SHARE CONSOLIDATION

Cerro Mining Corp. has arranged a 1:2 share consolidation. The board has approved the consolidation of the issued and outstanding common shares of the company on the basis of one postconsolidation common share for each five preconsolidation common shares, subject to the approval from the NEX board of the TSX Venture Exchange. The company intends to effect the consolidation as soon as practicable.

The company currently has 14,487,810 issued and outstanding common shares and the company will have approximately 7,243,905 common shares issued and outstanding postconsolidation. The exact number of postconsolidated common shares will vary depending on the treatment of fractional shares which will occur when each shareholder's holdings in the company are consolidated. Any outstanding options and warrants would similarly be adjusted by the consolidation ratio. The company will not be changing its name and trading symbol in connection with the consolidation. The company will provide further details of the regulatory approval in due course.

Subject to receiving approval from the exchange for the consolidation, registered shareholders will receive a letter of transmittal from the company's transfer agent describing the process by which registered shareholders may obtain new certificates representing their consolidated common shares. Non-registered shareholders should consult their broker for further information.

About Cerro Mining Corp.

Cerro is a publicly traded junior exploration and mineral development company with a precious and base metal project in Chile.