Toledo Mining Corporation announces that it has accepted an offer from Atlas Consolidated Mining and Development Corporation for early settlement of a loan advanced by Toledo to Atlas.

Under the loan agreement dated April 2006, and which is in the nature of a draw down facility, Toledo agreed to make available to Atlas funds up to an amount of USD 5 million to meet its share of development costs at the Berong nickel mine in the Philippines. The loan, which currently stands at USD 4.98 million, is due for repayment at various dates between this month and September 2014, contingent as to when each draw down of the loan originally occurred.

The agreement now concluded recognises the benefit to both parties of early settlement of the loan. The agreement, which also brings to a conclusion a dispute as to the amount of interest which has accrued on the loan, further cements and enhances the relationship between Toledo and Atlas moving forward.

Under the agreement, Atlas will pay Toledo a total of USD4.5 million in three installments in July, August and September 2011.

Toledo remains fully committed to achieving maximum value from its Philippine assets and will continue to work with its partners to determine the optimal route to add value from these substantial resources. It has previously been announced that mining recommenced at the Berong mine in May and that the first shipment of stockpiled ore from Berong was completed last week.

Mr Reg Eccles chairman of Toledo said that "We are delighted to have reached this agreement with Atlas. The proceeds represent a material contribution to Toledo's cash position, with early receipt ensuring the Company can meet budgeted commitments to its joint venture partners in both the Berong and Ipilan projects in the Philippines without recourse to our shareholders. The receipt will put us in a position to move forward with our strategy with confidence and on a more secure financial footing."