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Iberian Minerals Announces Private Placement of Convertible Debentures

08:31 EDT Tuesday, June 08, 2010

TORONTO, ONTARIO--(Marketwire - June 8, 2010) - Iberian Minerals Corp. (TSX VENTURE:IZN) today announced that it will conduct, on a non-brokered basis, a private placement of 7% redeemeable convertible debentures due December 31, 2011 (the "Debentures") in the aggregate principal amount of approximately $3.5 million (the "Offering") to certain insiders of Iberian. The Debentures shall be convertible into registered shares of Iberian (the "Shares") at a conversion rate of $0.56 per share.

At any time after the closing of the offering and prior to the maturity date, if the volume weighted average price of the Shares on the TSX Venture Exchange for any consecutive 20 day period is equal to or greater than a 60% premium to the conversion rate, then Iberian shall have the right to accelerate the conversion of the Debentures upon delivery of written notice to the holders. The Debentures are unsecured, and the Offering is expected to close on or around June 15, 2010.

Jeffrey Hillis, Iberian's Chief Financial Officer, stated: "We are pleased to have addressed the previously reported 2010 corporate funding shortfall. Having reviewed various options that were presented to us, it was concluded that this transaction, being the least dilutive, is most advantageous for Iberian at the present time."

Pursuant to Multilateral Instrument 61-101 ("MI 61-101"), each insider subscription is a "related party transaction". Iberian is exempt from the formal valuation requirement of MI 61-101 in connection with the insider subscriptions in reliance on section 5.5(b) of MI 61-101 as no securities of Iberian are listed or quoted for trading on the Toronto Stock Exchange, the New York Stock Exchange, the American Stock Exchange, the NASDAQ Stock market or a stock exchange outside of Canada and the United States. Additionally, Iberian is exempt from obtaining minority shareholder approval in connection with the insider subscriptions in reliance on section 5.7(1)(a) of MI 61-101 as the fair market value of the insider subscriptions does not exceed 25% of Iberian's market capitalization.

The Offering is subject to the approval of the TSX Venture Exchange.

For further information on the conference call, please contact the Investor Relations Department, or visit our website, www.iberianminerals.com.

About Iberian Minerals Corp.

Iberian Minerals Corp. is a Canadian listed global base metals 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 in the Andalucia region of Spain approximately 110 km north-west of Seville and operates a 1.7 million tonnes per year underground mine and concentrator that produces copper, zinc and lead concentrates that also contain gold and silver. Plans are underway for a plant expansion resulting in a capacity of 2.2 Mtpa at Aguas Tenidas