Zaruma Resources Reports on Shareholder Meeting

TORONTO, July 18, 2011 /CNW/ – Zaruma Resources Inc., (TSXV-ZMR.H), (the "Company" or "Zaruma") reported that at today's Annual and Special Meeting of Shareholders Messrs. Daniel Major, Peter Lorange, Michael Power, Thomas Utter and Frank van de Water were elected as directors of the Company. Over 18% of the outstanding shares were represented at the meeting in person or by proxy.

The Shareholders also approved a resolution increasing the number of directors to seven and electing two additional directors to fill the vacancies created by such increase, conditional upon completing a US$25 million equity and US$30 million debt financing. On completion of the financing Zaruma Gold Mining Ltd. will have a controlling interest in the Company and will have a majority of representatives on the Board of Directors.

The equity and debt financing closed in escrow on May 20, 2011 and the escrow agents have been given approval to release the funds and make the agreed payments directly to certain secured creditors. On receipt of confirmation from the escrow agents that all the conditions for release of funds have been satisfied and the payments completed, the subscription receipts issued in escrow to the equity investors and in settlement of certain outstanding agreements will convert to common shares and warrants and will be released for delivery, thereby completing the financing.

The Company's shares are listed on the NEX Board of the TSX Venture Exchange (symbol ZMR.H) but are currently subject to a trading halt. The Company has received conditional approval for a Tier 1 listing on the TSX Venture Exchange. Final Exchange approval is subject to completion of the financing and review of information requested by the Exchange. On receipt of the Final Approval, the Company anticipates that its shares will be listed for trading on the TSX Venture Exchange.

The Company's shares also trade on the Frankfurt Stock Exchange, (symbol: ZMR). Common shares outstanding prior to the current financing is 124,508,747.