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Press Release

August 12, 2013

SQM announces that it has entered into a 7.5 year Option Agreement with Capstone Mining Corp.

Santiago, Chile, August 12, 2013.- Sociedad Química y Minera de Chile S.A. (SQM) is pleased to announce that it has entered into a 7.5 year Option Agreement with Capstone Mining Corp. (Capstone). The Option Agreement could offer Capstone an opportunity to obtain a majority stake in the property of all metal discoveries in the Providencia Project (Providencia).

Providencia is located 50 kilometers at the east of Taltal city, it is crossed by the Pan-American Highway and it has a mean altitude of 1,800 meters above sea level. In this location, the expectation is to find Iron-Oxide-Copper-Gold (IOCG) or a copper porphyry deposit.

At the beginning of the Option Agreement, Capstone will have 350,000 hectares to carry out exploration activities. Under the terms of the agreement, it will have to reduce the area to 50,000 hectares in the event that a joint venture is established between the two parties. Each year until the establishment of a potential joint venture, Capstone is required to pay an option fee to SQM and fulfill the agreed exploration investment levels. 

In the event that Capstone and SQM form a joint venture, SQM will have the option of keeping its 30% share in the property or relinquish it for an annual royalty stream indexed to the metal prices in LME.

Capstone Mining Corp. is a Canadian company listed in the Toronto Stock Exchange (TSX:CS). It is focused mainly in copper, with current operations in Mexico and Canada and with two development projects in Chile (Santo Domingo Project) and Canada.

 

SOCIEDAD QUÍMICA Y MINERA DE CHILE S.A.

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