AN Arena Minerals Inc

Antofagasta Gold Inc. ("Antofagasta" or the "Company") (TSX VENTURE:AN) is
pleased to announce it has entered into an option agreement (the "Option
Agreement") with a Chilean based mining company (the "Vendor") to acquire
between 85% and 100% of various claim blocks collectively called Pampas El Penon
Property (the "Property"). The Property consists of 70 mining claims totaling
19,300 hectares partially surrounding Yamana Gold's El Penon mine and is located
approximately 130 km south-east of Antofagasta, Chile. The Property consists of
seven separate blocks as close as 4 km from El Penon, including the land package
immediately to the west of the Pampa Augusta Victoria discovery veins. Over 20
epithermal veins, with a cumulative strike length in excess of 10 km, have been
identified on surface, some of which have been explored by trenching and/or
reverse circulation drilling by previous owners.


The Property covers land in the same geological environment as the El Penon Mine
(total of 7.5 million gold equivalent ounces in mineral reserves and resources
as of December 31, 2012), hosting several identified north-south trending
epithermal quartz veins with anomalous gold and silver at or near surface. The
veins are typically 1 to over 6 metres wide with individual strike lengths of
over 1.5 kilometres. The most prominent vein identified to date lies
approximately 1000 metres west of Yamana's Pampa Augusta Victoria discovery vein
system. 


Historical results from trenching and drilling on these veins, as provided to
the Company by the Vendor, have demonstrated anomalous values up to 1.2 gpt Au &
16.9 gpt Ag at or very near surface. Mineralized veins in this area, including
those at Yamana's Pampa Augusta Victoria and El Penon deposits, are
predominantly north-south trending and typically host gold & silver resources
starting between 150-300 metres below surface. Anomalous gold and silver in
veins overlying the resource is common and considered a positive indicator of
economic mineralization. Historical work consisted primarily of mapping, surface
sampling, trenching, and reverse circulation drilling. 


William Randall, President & CEO of Antofagasta Gold, commented: "We are
extremely satisfied with what we have achieved to date. Since September of 2012
Antofogasta Gold has signed the Capricornio option agreement, completed a $7.5
million private placement, commenced a diamond drilling program, and has now
closed the Pampas El Penon option agreement. We expect to continue actively
looking for opportunities to grow the company and create shareholder value while
working the existing portfolio.  


William Randall added "The Pampas El Penon Property complements our flagship
Capricornio Property nicely. Both properties host known epithermal gold and
silver bearing quartz veins in a well recognized and developed mining district.
The Pampas El Penon land package increases our exposure to high grade gold
districts increasing our chances of defining quality ounces. Antofagasta Gold
now has two strategic land positions and is in a strong position to continue
advancing its goal to be a leading explorer and developer of mineral properties
in Chile." 


A map of the Pampas El Penon property can be found here.

Antofagasta Gold planned exploration 

The Company intends to initiate an exploration program covering the Property as
soon as possible. In general, exploration will initially focus on the areas with
identified north-south epithermal veins that have only been explored at or near
surface. The program is designed to initially identify the veins by surface
mapping and geophysical surveys (primarily ground magnetic & CSAMT surveys).
Once the veins, or potential veins if not outcropping, have been identified
diamond drilling will commence. Diamond drilling is anticipated to occur in
"fences", where sections are drilled off down to a depth of at least 400 metres
below surface on regular spacing. 


Terms of the Deal 

The Pampas El Penon Property has been divided into two groups of claims, the
Worked Claims and the Greenfield Claims, based on the mineral exploration work
completed by the Vendor. 


The Worked Claims have an aggregate surface area of 4,300 hectares. Within these
claims significant work has been performed, including, but not limited to,
trenching and diamond drilling. 


The Greenfield claims have an aggregate surface area of 14,900 hectares. Within
these claims there has been very little work completed.  


Pursuant to the Option Agreement entered into between the Company and the Vendor
with respect to the 4,300 hectares of Worked Claims, the Company may acquire a
100% interest in the Property by paying to the Vendor, on a per hectare basis,
as follows: (i) USD$10 per hectare on signing; (ii) USD$20 per hectare on or
before February 11, 2014; (iii) USD$50 per hectare on or before February 11,
2015; (iv) USD$130 per hectare on or before February 11, 2016; and (v) USD$240
per hectare on or before February 11, 2017. The initial payment on signing has
been made. 


In addition, the Company has committed to incur exploration and development
expenditures on the Worked Claims over the option term as follows: (i) USD$150
per hectare by February 11, 2014; (ii) an additional USD$250 per hectare by
February 11, 2015; (iii) an additional USD$325 per hectare by February 11, 2016;
and (iv) an additional USD$350 per hectare by February 11, 2017. The Vendor
shall retain a sliding scale royalty with respect to the precious metals
produced from the Pampas El Penon Property.  


The Company may reduce the land position by any number of hectares it chooses at
its sole discretion during the term of the Option Agreement, thus reducing the
size of its Worked Claims property package, future payments and exploration
commitments.  


In addition, pursuant to the Option Agreement entered into between the Company
and the Vendor with respect to the 14,900 hectares of Greenfield Claims, the
Company may acquire an 85% interest in the Property by paying to the Vendor, on
a per hectare basis, as follows: (i) USD$1 per hectare on signing; (ii) USD$3
per hectare on or before February 11, 2014; (iii) USD$6 per hectare on or before
February 11, 2015; (iv) USD$15 per hectare on or before February 11, 2016; and
(v) USD$40 per hectare on or before February 11, 2017. The initial payment on
signing has been made. 


In addition, the Company has committed to incur exploration and development
expenditures on the Greenfield Claims over the option term, as follows: (i)
USD$10 per hectare by February 11, 2014; (ii) an additional USD$20 per hectare
by February 11, 2015; (iii) an additional USD$50 per hectare by February 11,
2016; and (iv) an additional USD$290 per hectare by February 11, 2017. The
Vendor shall retain a sliding scale royalty with respect to the precious metals
produced from the Pampas El Penon Property.  


The Company may reduce the land position by any number of hectares it chooses
during the term of the Option Agreement, thus reducing the size of its
Greenfield Claims property package, future payments and exploration commitments.
The Vendor shall retain a sliding scale royalty with respect to the precious
metals produced from the Pampas El Penon Property. 


The technical and scientific aspects of this news release have been reviewed and
approved by Mr. Vernon Arseneau, P.Geo, who has been designated as a qualified
person pursuant to under NI 43-101. As the Vice President of Exploration of the
Company, Mr. Arseneau is not considered independent.


On behalf of the Board of Directors of Antofagasta Gold Inc. 

William Randall, President and CEO

Cautionary Note Regarding Forward-Looking Information and Mineral Resources: 

This press release contains "forward-looking information" within the meaning of
applicable Canadian securities legislation. Forward-looking information
includes, but is not limited to, statements (express or implied) relating to
production results and/or the impact of such production results with respect to
the timing, cost and/or amount of future exploration and development of any
property, the timing, cost and/or amount of future production, the future price
of gold or other minerals, the successful implementation of development plans at
any of the Company's properties and/or the future financial or operating
performance of Antofagasta, its properties and/or its projects. Generally,
forward-looking information can be identified by the use of forward-looking
terminology such as "plans", "expects" or "does not expect", "is expected",
"budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or
"does not anticipate", or "believes", or variations of such words and phrases or
state that certain actions, events or results "may", "could", "would", "might"
or "will be taken", "occur" or "be achieved". Forward-looking information is
subject to known and unknown risks, uncertainties and other factors that may
cause the actual results, level of activity, performance or achievements of the
Company, its properties and/or its projects to be materially different from
those expressed or implied by such forward-looking information, including but
not limited to those risks described in the annual information form of the
Company, which is available under the profile of the Company on SEDAR. Although
the Company has attempted to identify important factors that could cause actual
results to differ materially from those contained in forward-looking
information, there may be other factors that cause results not to be as
anticipated, estimated or intended. 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 statements. Accordingly,
readers should not place undue reliance on forward-looking information. The
Company does not undertake to update any forward-looking information, except in
accordance with applicable securities laws. It should also be noted that mineral
resources that are not mineral reserves do not have demonstrated economic
viability. 


FOR FURTHER INFORMATION PLEASE CONTACT: 
Antofagasta Gold Inc.
William Randall
(416) 309-2697
wrandall@antofagastagold.com

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