Breaking News

Aguas Tenidas Project Finance Facility Completed

11:50 EDT Monday, June 02, 2008

TORONTO, ONTARIO--(Marketwire - June 2, 2008) - Iberian Minerals Corp. (TSX VENTURE:IZN) ("Iberian") -

Iberian is pleased to announce that the USD$210 million Project Finance Facility (the "Facility") for Iberian's Aguas Tenidas Project provided by Investec Bank (UK) Limited, BNP Paribas and Societe Generale has been entered into.

The Facility is comprised of a USD$170 million long-term loan (the "Long-Term Loan"), a USD$30 million cost overrun facility (the "Over-Run Facility") and a USD$10 million convertible loan (the "Convertible Loan").

Pursuant to the terms of the Facility, Iberian is required to hedge 70% of forecast Copper production and 65% of forecasted Silver production until the Facility matures in June 2013 and 65% of forecast Zinc production until December 2011. It is anticipated that once completed, the hedging contracts will provide Iberian a premium in project economics over the base case commodity prices used in the January 2006 feasibility study which were as follows:

-------------------------------------------------------- Year                 2008      2009      2010      2011+ -------------------------------------------------------- Copper (US$/lb)    $ 1.30    $ 1.20    $ 1.10    $  1.10 -------------------------------------------------------- Zinc (US$/lb)      $ 0.57    $ 0.55    $ 0.55    $  0.55 -------------------------------------------------------- Silver (US$/oz)    $ 6.00    $ 6.00    $ 6.00    $  6.00 -------------------------------------------------------- Source: Aguas Tenidas Feasibility Study Executive Summary, SRK Consulting Cardiff (UK), January 2006  

With the execution of the Facility, and the recently announced USD$70 million pre-export finance facility obtained by Iberian's subsidiary, Compania Minera Condestable, Iberian is pleased to state that the financing required for the completion of construction of the Aguas Tenidas mine is now in place. Development at the site has been ongoing in 2008, with significant surface and underground milestones reached.

First payment of the facility is due December 31, 2009, and semi-annually thereafter until maturity on June 30 2013, plus mandatory costs if any in each case. Drawdown on the Long-Term Loan is subject to the satisfaction of certain conditions precedent which Iberian expects to be completed shortly.

In connection with the Convertible Loan, the lenders will be granted 7,640,353 transferable stand alone warrants pursuant to a warrant instrument. Each warrant is exercisable to acquire on common share of Iberian at a price of $1.30 per share and expire on the maturity of the Facility. The warrants contain a forced conversion for a 30 day period after the common shares in the capital of Iberian trade at a price in excess of 250% of the exercise price of the warrants for a period of 20 consecutive trading days. The issuance of the warrants is subject to the prior approval of the TSX Venture Exchange.

The Facility may be voluntarily prepaid at certain times and subject to certain conditions. The Facility also contains terms relating to mandatory prepayment of the Facility from excess cashflows after debt service.

About Iberian Minerals Corp.

Iberian Minerals Corp. is a Canadian-based global copper and zinc company with developing and producing interests in both Spain, the Aguas Tenidas Project and Peru, the Condestable Mine. Iberian Minerals Corp. is well-funded with a strong, experienced management team and a significant partner in it's largest shareholder, Trafigura Beheer B.V.

This press release does not constitute an offer of securities in the United States, Canada or elsewhere. The securities of Iberian have not been, registered under the United States Securities Act of 1933, as emended, or any state securities laws, and may not be offered or sold in the United States or to U.S. persons unless registered or exempt therefrom.

FORWARD LOOKING STATEMENTS:

This news release contains certain "forward-looking statements" and "forward-looking information" under applicable securities laws. Except for statements of historical fact, certain information contained herein constitutes forward-looking statements. Forward-looking statements are frequently characterized by words such as "plan", "except", "project", "intend", "believe", "anticipate", "estimate", and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are based on a number of assumptions and subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. Many of these assumptions are based on factors and events that are not within the control of Iberian and there is no assurance they will prove to be correct. Factors that could cause actual results to vary materially from results anticipated by such forward-looking statements include changes in market conditions and other risk factors discussed or referred to in the management information circular of Iberian dated November 20, 2007 and in the annual Management's Discussion and Analysis for Iberian filed with the applicable securities regulatory authorities and available at www.sedar.com. Although Iberian 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 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. Iberian undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change except as required by applicable securities laws. The reader is cautioned not to place undue reliance on forward-looking statements.

FOR FURTHER INFORMATION PLEASE CONTACT:

Iberian Minerals Corp. Norman Brewster  (416) 815-8558    

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release