Iberian Minerals Reports Hedging Update at Condestable

Iberian Minerals Corp. today announced an update to the hedging positions at Condestable Mine.

In light of the current buoyant copper pricing environment the Board of Directors decided to set some high pricing ranges on a reasonable level of future copper production. This action provides a degree of revenue protection on the downside as these current high copper market prices may not be sustainable over the long term and also provides upside copper price participation to current high prices, if sustained.

Condestable Mine has added the following copper hedge collars to its overall position from February 2012 to March 2013, inclusive (the ‘Period’):

– 75 FMT per month with floor price of $7,500/FMT ($3.40/lb) and ceiling
price of $10,450/FMT ($4.74/lb)

– 140 FMT per month with floor price of $8,000/FMT ($3.63/lb) and ceiling
price of $10,970/FMT ($4.98/lb)

– 285 FMT per month with floor price of $8,000/FMT ($3.63/lb) and ceiling
price of $10,950/FMT ($4.97/lb)

This new hedging represents an additional 25% of forecast production in the Period and is in addition to previously hedged volumes of copper production, bringing the overall hedging for the Period to 50% of total production. The counter party to these contracts is Condestable’s senior secured lender (Societe Generale) and is without any margin call requirements.

The hedging has been executed using a zero cost collar hedging strategy whereby positions have been entered into to achieve a minimum hedge price (floor) and a maximum hedge price (ceiling). There is no cost to the Company for this collar hedging strategy.

Corporate Development

Iberian reports that the C$ 3,609,750, 7% convertible debenture (the “Debenture”), placed with certain insiders of Iberian in June 2010, was converted to registered shares (the “Shares”) of the Company. Iberian had a contractual option such that at any time 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 was equal to or greater than a 60% premium to the conversion rate of C $0.56 per share, then the Company had the right to accelerate the conversion of the Debentures upon delivery of written notice to the holders. Iberian exercised this option and issued 6,445,983 to the holders of the Debenture on February 11, 2011.