Cuervo Resources Inc wishes to announce that the Board of Directors has received and accepted an offer to provide the Company with CAD 405,000 in equity financing. The proceeds from the financing and the Company's current cash position will be used to continue to fund the Company's iron ore exploration projects in Peru and to provide capital for general working purposes.

The non-brokered private placement will see Cuervo issue one million three hundred and fifty thousand Units of the Company at a price of CAD 0.30 per Unit, for gross proceeds of CAD 405,000. Each Unit will consist of one Cuervo common share and one half warrant entitling the holder to purchase one Cuervo common share at a price of CAD 0.45 for a period of 24 months after the closing of the Financing.

If the closing price of the Cuervo common shares is equal to or greater than CAD 0.90 for a period of 10 consecutive trading days any time after six months after the closing of the Financing, the Company may accelerate the expiry date of the warrants. Strike Resources Limited has participated on a pro rata basis and subscribed to 49.2%. The Financing will close on or about October 17 2011.

The securities to be issued in connection with the Financing will be subject to a four-month hold period from the date of issue.