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Iberian Minerals Corp. Announces $40 Million Bought Deal Financing

08:49 EDT Tuesday, May 12, 2009

TORONTO, ONTARIO--(Marketwire - May 12, 2009) -

NOT FOR DISSEMINATION IN THE UNITED STATES OR OVER UNITED STATES NEWSWIRE SERVICES.

Iberian Minerals Corp. ("Iberian") (TSX VENTURE:IZN) is pleased to announce that it has entered into an agreement with a syndicate of underwriters led by Cormark Securities Inc. and including Canaccord Capital Corporation, Wellington West Capital Markets Inc. and Paradigm Capital Inc. (the "Underwriters") pursuant to which the Underwriters have agreed to purchase 76,925,000 special warrants ("Special Warrants") at an issue price of $0.52 per Special Warrant by way of private placement for gross proceeds to Iberian of approximately $40 million (the "Offering").

Each Special Warrant is exercisable into one common share (the "Common Shares") of Iberian. The Company will use its best efforts to obtain a receipt for a final short-form prospectus within 60 days of closing of the Offering which will qualify for sale the Common Shares underlying the Special Warrants issued pursuant to the Offering. In the event that such date is not met by Iberian, each Special Warrant will thereafter entitle the holder thereof to receive, at no additional cost, 1.1 Common Shares (instead of one Common Share).

Iberian has also granted the Underwriters an option (the "Underwriters' Option") to purchase up to an additional 7,693,000 Special Warrants to cover over-allotment, if any, for additional gross proceeds of up to approximately $4 million. The Underwriters' Option is exercisable in whole or in part up until 24 hours before the closing of the Offering.

Iberian plans to use the net proceeds from the Offering to fund its 2009 capital program and for general corporate purposes.

Trafigura Beheer B.V. ("Trafigura") has advised the Underwriters of its intention to purchase Special Warrants under the Offering to maintain its approximate pro rata ownership interests in Iberian. Trafigura currently holds approximately 41.2% of Iberian's issued and outstanding Common Shares.

The Offering is scheduled to close on or about May 26, 2009 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the TSX Venture Exchange.

This press release is not an offer of Special Warrants for sale in the United States. The Special Warrants have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration.

ABOUT IBERIAN MINERALS CORP.:

Iberian is a Canadian-based global copper and zinc company with interests in Spain and Peru. The Condestable mine, located in Peru approximately 90 km south of Lima operates at 2.2 million tonnes per year producing copper, and associated silver and gold in a concentrate. The Aguas Tenidas mine is a copper-zinc project in the Andalucia region of Spain approximately 110 km north-west of Seville. Commissioning is underway on a 1.7 million tonnes per year underground mine and concentrator (1.5 million tonnes during ramp up) that will produce copper and zinc concentrates that also contain gold, silver and lead.