Engenho

Mundo Minerals Limited provided an update on its gold projects in South America. Engenho Gold Project – Crista Open Pit (Brazil): Infrastructure development to support the Crista development, including the upgrade of the Engenho treatment facility to accommodate Crista ore, is well advanced and, once this final approval is obtained, the Company can immediately commence development of the haulage road and open pit. Torrecillas Gold Project – Peru: In its September Quarterly Report that a new ore shoot had been identified on the 15 level of the main Torrecillas vein and had been developed to 22 metres in strike. This developed has now been extended to over 55 metres with consistent excellent grades.

Mundo Minerals advised that subsequent to the release of the quarterly report on 28 October 2010 additional assay results from auger drilling have been received from the emerging Olhos gold anomaly that is located between the Engenho underground gold deposit and the soon to be developed Crista open pit in Brazil. Best results include hole QOT-10-104 returning 3.60 m of 3.20 g/t Au.

Mundo Minerals reported that it has confirmed the potential for a second significant zone of satellite gold mineralisation at OIhos, approximately 1km north-east of its Engenho gold mine in Brazil, following successful surface sampling and auger drilling. Two distinct zones of mineralisation were identified over 250 m and 170 m strike. Surface sampling returned significant widths of gold mineralisation at Olhos North with best individual samples including 0.95 m at 36.7 g/t Au, 8.0 m at 2.1 g/t, 5.5 m at 11.6 g/t, 9.0 m at 2.8 g/t and 1.5 m at 11.6 g/t. At Olhos South, samples included 3.8 m @ 5.7g/t Au, 2.0 m @ 4.2 g/t, 2.2 m at 3.5 g/t, 1.8 m at 5.2 g/t and 3.7 m at 5.7 g/t.