Overview

Cuervo Resources Inc. (CNSX:FE,FSE:CRR) is a mineral exploration company focused on identifying and developing iron ore assets in Peru. Cuervo currently holds 100% interest in over 20,000 hectares of mining concessions in iron-rich belts in Peru through its wholly-owned subsidiary, Minera Cuervo S.A.C. Cuervo’s focus is its flagship project, Cerro Ccopane in southern Peru. Peru has a rich mining history, well-established infrastructure, and esteemed legal and banking systems, making it a business and mining friendly country.

In July 2011, Cuervo closed a financing agreement with Strike Resources Limited for up to $15 million CAD; Cuervo has already received the first tranche of $5,250,000 CAD. The company granted options to directors and an officer for 300,000 common shares in August and 100,000 options to a director in September. In October, Cuervo accepted an offer for a non-brokered private placement for proceeds of $CDN 405,000, expected to close on October 17, 2011.

Investment Highlights

•  Fully financed three-year exploration program with $15 million financing place with Strike Resources Limited
•  World-class iron-ore targets with a NI 43-101 compliant estimate of 107 million tons inferred resource
•  Economical and reliable transportation solution identified for Cerro Ccopane Property and well-served by infrastructure with the Matarani Port 320 km to the south

Chief Project

Cerro Ccopane Property – Cuzco Department, Southern Peru

The Cerro Ccopane Property consists of 22 contiguous mining concessions covering 13,600 ha in the Cuzco Department of southern Peru, just 65 km south of Cuzco, the capital city of the region, and 320 km north of the Pacific Matarani Port.

Cerro Ccopane exploration targets are near-surface iron skarns that contain massive magnetite and hematite, whose samples have indicated potentially commercially viable iron grades exist for ore. The property lies where the Tertiary-age Apurimac Pluton and Arcurquina formations meet, making additional iron skarn discoveries in this contact zone likely.

There are six zones of mineralization currently identified at Cerro Ccopane, each of which has the potential to host a minimum of 100 million tons of material grading >45% Fe, 2.50% S and 0.10% Cu. Coincident gravity and magnetic anomalies suggest resources totaling an estimated 2.5 billion tonnes of potential iron ore (@ 4.0 t/m3 density). These targets include: the Bob 1 anomaly with a 1 billion ton potential, the Huillque Norte target with a 1.2 billion ton potential, and the Huillque target with a 126 million ton potential.

Cuervo began a diamond drill program at Cerro Ccopane in 2007 that targeted surface and geophysical anomalies identified by magnetic and gravimetric surveys. This exploration focused on the Orcopura, Aurora, and Huillque showings. A NI 43-101 mineral resource estimate was calculated for the Orcopura zone in 2008, based on results from 21,000 m of drilling over 121 holes, that totaled 56 million tons measured and indicated, grading 46.7% Fe, and 51 million tons inferred, grading 43.7% Fe. These results encourage confidence in geophysical modeling results that predict a 147 million ton resource at Orcopura. At the Huillque showing, drilling included 3,000 m of drilling over 21 holes, and 2,000 m of drilling in 25 holes were completed on Aurora.

In November 2007 Cuervo conducted metallurgical tests on core samples to determine the material’s suitability for magnetic separation of contaminants and by-products and concluded that most contaminants can be removed, yielding an upgraded iron concentrate, grading 66% to 69%.

Transportation studies were carried out in 2008 and 2009 to assess the project’s optimal logistics option, as the company focuses on advancing Cerro Ccopane to production. The second and more comprehensive report was completed in March 2009, which determined that all examined transportation scenarios are feasible, though connecting the property to the Matarani port via a slurry pipeline is considered to be the best option, given it is both economical (estimated to cost between 8 and 10 USD per ton including capital cost recovery), reliable, and environmentally friendly.

Transportation Infrastructure

Management

Gordon D. Watts, P.Eng., B.A.Sc. – Chairman of the Board

Mr. Watts has over 30 years of experience in the mining industry in exploration, development and operations much of that with Watts, Griffis and McOuat, a Canadian-based firm of independent consulting geologists which has been serving the needs of the international mining community since 1962. He has specialized in the economic analysis of mining ventures and the development and application of computer systems to mining-related problems. Mr. Watts’ varied mining background also includes underground operations (cut and fill and sublevel caving), exploration, mine design and feasibility studies.

Mr. Watts was until recently a director of Baffinland Iron Mines Corporation, a TSX listed company. Based on his professional qualifications and experience, Mr. Watts is a “qualified person” as defined in National Instrument 43-101 (Standards of Disclosure for Mineral Projects) of the Canadian Securities Administrators.

Brian Berner, H.B.B.A. – Chief Executive Officer & Director

Mr. Berner has been the owner and President of Berner & Company Inc., a capital markets consulting firm, since 1998. The firm provides advice on raising capital, corporate strategy and investor relations for junior resource companies. Between 1976 and 1998, Mr. Berner held positions in the securities industry specializing in fixed income and bond trading.

John M. Siriunas, P.Eng., B.A.Sc., M.A.Sc. – President, COO, Director & Secretary

Mr. Siriunas is actively involved in all aspects of the business of Cuervo and will continue to devote approximately 90% of his time, on average, to the business of Cuervo as an independent contractor. Mr. Siriunas has carried on business as an independent consultant to the mining industry since 1979. Mr. Siriunas also currently serves as a director of other reporting issuers (Shield Gold Inc., GoldTrain Resources Inc., N.W.T. Copper Mines Ltd.).

Based on his professional qualifications and experience, Mr. Siriunas is a “qualified person” as defined in National Instrument 43-101 (Standards of Disclosure for Mineral Projects) of the Canadian Securities Administrators and is considered by the Corporation to be its primary qualified person. As the designated qualified person for Cuervo under the definition of NI 43-101, content for this website has been prepared under Mr. Siriunas’ supervision.

Brian M. Cloney, CA ACC – Chair of the Audit Committee & Director

Mr. Cloney has over 30 year’s financial and accounting experience including the audit of Noranda Mines. He recently successfully completed the Audit Committee Certified course from the Directors College McMaster University, Conference Board of Canada (Corporate Governance issues). Mr. Cloney has been a Director of HMZ Metals Inc., a TSX listed company.

Kenneth J. Hellten, B.Sc. Honours – Director

Mr. Hellsten is the Managing Director of Strike Resources Limited and has been a non-executive director of Heron Resources Limited since 2006 and Brierty Contracting Limited since 2010. Mr. Hellsten has an extensive managerial and exploration background related to iron ore and nickel projects including many years of service with Billiton Australia and BHP Billiton. He is a Fellow of the Australian Institute of Mining and Metallurgy (AusIMM) and a Member of the Australian Institute of Company Directors (AICD).

Professor Malcolm R. Richmond – Director

Professor Richmond is the Chairman of Strike Resources Limited. Professor Richmond is a Visiting Professor at the University of Western Australia, seconded jointly to the Gradute School of Management and the School of Engineering. Professor Richmond has spent much of his career with the Rio Tinto Group; immediately prior to his retirement he held the position of Managing Director Development of Hamersley Iron Pty Limited, Executive Director of Hamersley Holdings. He has previously served as Deputy Chairman of the Australian Minerals Research Council. Professor Richmond is a Fellow of AusIMM and a Fellow of the Australian Academy of Technology, Science and Engineering.

Erwin T. Speckert, M.B.A., H.B.Sc. – Director

Mr. Speckert has over 25 years of experience in the financial industry, including wealth management for public institutions and private individuals. His career began at the Toronto office of a large Swiss bank, with which he later moved to its Zurich head office. After 5 years there, he was hired to build the equity management capability for a boutique institutional asset management firm. During his 9 years there, assets under management grew from several hundred million to over 3 billion. Since 2004, Erwin has been focused on wealth management for private individuals. As well, Erwin has guided a number of businesses to success through venture capital financing.

Advisory Board

Velasques Spring

Velasquez Spring has 45 years of experience in the mineral industry with a solid background in the planning and managing of exploration programs, due diligence, feasibility studies, and valuations of both large and small deposits, and operating mines. The experience has been worldwide but includes extensive work in South America with Watts, Griffis and McOuat, Noranda Exploration Co. Ltd. and Eluma S.A. Industria e Comércio. Mr. Spring’s experience also includes dealing with governments at all levels, diplomatic offices and institutional organizations and covering deposits of precious and base metals, iron, nickel, uranium, manganese and a suite of industrial minerals.

Based on his professional qualifications and experience, Mr Spring is a “qualified person” as defined in National Instrument 43-101 (Standards of Disclosure for Mineral Projects) of the Canadian Securities Administrators.