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Atacama Pacific Enters into Agreement to Sell AMX Water Option to Gold Fields


Atacama Pacific Enters into Agreement to Sell AMX Water Option to Gold Fields

TORONTO, ONTARIO -- (Marketwired) -- 11/19/13 -- Atacama Pacific Gold Corporation (TSX VENTURE:ATM) ("Atacama Pacific") is pleased to report that it has entered into an agreement to sell its rights in an option agreement with AMX de Chile S.A. ("AMX") (the "AMX Option") to a Chilean subsidiary of Gold Fields Ltd. ("Gold Fields"). Atacama Pacific has received an initial payment of US$200,000 and may receive total payments of up to US$3,604,000 from the sale of the AMX Option.

As announced on July 10, 2013, Atacama Pacific purchased 80 litres per second ('l/s") of water from Chilean water utility Aguas Chanar S.A.'s facility in Copiapo, for the development of its Cerro Maricunga oxide gold deposit ("Cerro Maricunga") along with the right of first refusal for additional water if and when available. With a secure and sustainable source of water arranged for Cerro Maricunga, Atacama Pacific has taken this opportunity to monetize the AMX Option.

Under the terms of the agreement with Gold Fields, Atacama Pacific may receive cash payments of US$1,000,000, including US$200,000 on signing (which has been paid) and payments of US$300,000 and US$500,000 due on March 31, 2014 and December 31, 2014, respectively. If Gold Fields receives approval from the Chilean water authority, Direccion General de Aguas, for all or a portion of the 42 l/s of water discovered within the concessions to date, Atacama Pacific will receive a payment of US$62,000 per l/s approved. If Gold Fields receives approval for the 42 l/s of water discovered, the final payment to Atacama Pacific would be US$2,604,000.

Atacama Pacific entered into an option agreement with AMX in March 2012 to explore for and acquire water rights on a series of water exploration concessions located 95 kilometers north of Cerro Maricunga. Exploration by AMX during the following summer resulted in the discovery of 42 l/s of aquifer water along with the identification of additional targets.

About Atacama Pacific

Atacama Pacific is a Chilean-focused precious metals development company with a 100% ownership of Cerro Maricunga. The current preliminary economic assessment for Cerro Maricunga, published January 28, 2013 (the "PEA") envisions the development of an open pit mining operation and 80,000 tonne per day heap leaching facility producing 267,000 ounces of gold annually at a cash of cost of US$652 per ounce over a period of 10.1 years.

National Instrument 43-101

Carlos Guzman, a mining engineer, Fellow of the Australasian Institute of Mining and Metallurgy and a registered member of the Chilean Mining Commission, is the independent qualified person as defined by National Instrument 43-101 for the January 28, 2013 Preliminary Economic Assessment for Cerro Maricunga. Mr. Guzman is a Principal and Project Director with NCL Ingeneiria y Construccion Ltda. Santiago, Chile. Mr. Guzman has reviewed and approved the technical project details provided in this press release.

For further information please visit Atacama Pacific's website at www.atacamapacific.com.

FORWARD LOOKING STATEMENTS

This news release contains forward-looking statements, including predictions, projections and forecasts. Forward-looking statements include, but are not limited to, statements with respect to the PEA, including the potential for annual gold production of 267,000 ounces, total gold production of 2.7 million ounces over a 10.1 year mine life, initial life of mine estimated operating cash costs of $652 /oz Au, preliminary initial capital cost estimate of $514.6 million with sustaining capital of $249.0 million, pre-tax pay-back period of 2.5 years at $1,450/oz Au and 1.7 years at $1,700/oz Au, pre-tax NPV of $741 million at $1,450/oz Au and a 5% discount rate After-tax NPV5% of $531 million, pre-tax NPV5% of $1,247 million and an after-tax NPV5% of $923 million at $1,700/oz Au, pre-tax IRR) of 33.9% at $1,450/oz Au (after-tax IRR of 26.6%), statements with respect to pending payments from the sale of its AMX option rights, statements regarding the expectation to increase mineral resources, statements regarding expectations for receipt of permits and environmental approvals, exploration results (including with respect to water resources), statements regarding potential gold recoveries, the success of exploration activities generally, mine development prospects, and potential future gold production. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "planning", "expects" or "does not expect", "continues", "scheduled", "estimates", "forecasts", "intends", "potential", "anticipates", "does not anticipate", or "belief", or describes a "goal", or variation of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. All dollar figures are US$.

Forward-looking statements involve known and unknown risks, future events, conditions, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, prediction, projection, forecast, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, the results of due diligence activities, changes in economic parameters and assumptions, the interpretation and actual results of current exploration activities; changes in project parameters as plans continue to be refined; the results of regulatory and permitting processes; future prices of gold; possible variations in grade or recovery rates; failure of equipment or processes to operate as anticipated; labour disputes and other risks of the mining industry; the results of further economic and technical studies, delays in obtaining governmental approvals or financing or in the completion of exploration, as well as those factors disclosed in Atacama Pacific's publicly filed documents.

Although Atacama Pacific has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. Contacts: Atacama Pacific Gold Corporation Carl B. Hansen President and CEO 416 861 8267 info@atacamapacific.com www.atacamapacific.com

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