Cerro Grande Mining Corporation Reports 3 Months and 6 Months Results for its Fiscal Period Ended March 31, 2013 Compared to Comparable Period a Year Ago

TORONTO, May 15, 2013 /CNW Telbec/ - Cerro Grande Mining Corporation (the "Company" or "CEG") (TSX: CEG) (OTCQX: CEGMF) announced today its interim unaudited consolidated Financial Statements and Management Discussion and Analysis for the 3 months fiscal quarter ended March 31, 2013 compared to the same quarter a year ago and its results for the six months fiscal period ended March 31, 2013 compared to the six month period ended March 31, 2012 a year ago have been filed on SEDAR and the Company refers the reader to those materials for additional information.

The table below shows the summary of unaudited results of the consolidated profit and loss statements for the six and three fiscal month periods ended March 31, 2013 and 2012. (Expressed in thousands of US dollars except per share amounts)

Net income after taxes was a negative $1,082 for the three month period ended March 31, 2013.  During the period, depreciation and amortization amounted to $614 resulting in a negative cash flow of $468 after exploration expenses of $506.

Net income after taxes for the three month period ended 2012 was a negative $995. During the period, depreciation and amortization amounted to $541 resulting in a negative cash flow of $454 after exploration expenses of $611.

On a stand alone basis for the three month period ended March 31, 2013, the Pimenton mine had net loss of $20. Depreciation and amortization amounted to $704. In total (net earnings (loss) plus depreciation and amortization) the Pimenton mine had a positive cash flow of $684 for the three month period ended March 31, 2013. This compares to $628 in the comparable three month period ended March 31, 2012.

Pimenton's cash cost per ounce of gold produced was $1,289 for the three month period ended March 31, 2013 compared to $967 in the same period a year ago.

Net income after taxes was a negative $1,194 for the six month period ended March 31, 2013. During the period, depreciation and amortization amounted to $1,276 resulting in a positive cash flow of $82 after exploration expenses of $1,201.

Net income after taxes was a negative $953 for the six month period ended 2012. During the period, depreciation and amortization amounted to $1,072 resulting in a positive cash flow of  $119 after exploration expenses of $1,013.

On a stand alone basis for the six month period ended March 31, 2013, the Pimenton mine had net earnings of $973. Depreciation and amortization amounted to $1,344. In total (net earning plus depreciation and amortization) the Pimenton mine had a positive cash flow of $2,317 for the six month period ended March 31, 2013. This compares to $1,863 in the comparable six month period ended March 31, 2012.

Pimenton's cash cost per ounce of gold produced was $1,067 for the six month period ended March 31, 2013 compared to $1,142 in the same period a year ago.

The principal reason for the poor results in the second quarter ended March 31, 2013, compared to the six months ended March 31, 2013, was an increase in costs and a reduction in  ore grades into the mill. We are working to improve the ore grades into the mill along with cost reductions in the entire organization. These cost reductions will not be recognized completely until the fourth quarter of our fiscal year ended September 30, 2013.

Cerro Grande Mining Corporation is a minerals producing, exploration and development company with properties and activities currently focused in Chile.

Cautionary Statement on Forward-looking Information
This news release contains "forward-looking information", which may include, but is not limited to, statements with respect to the future financial or operating performance of CEG. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes" or variations (including negative variations) of such words and phrases, or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of CEG to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Forward-looking statements contained herein are made as of the date of this press release based on current expectations and beliefs and CEG disclaims, other than as required by law, any obligation to update any forward-looking statements whether as a result of new information, results, future events, circumstances, or if management's estimates or opinions should change, or otherwise. 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. Accordingly, the reader is cautioned not to place undue reliance on forward-looking statements.

SOURCE Cerro Grande Mining Corporation