Hondo Minerals Corporation Provides Chloride Mine Update

CHLORIDE, AZ, June 27, 2012 /PRNewswire/ – Hondo Minerals Corporation (OTCBB:
HMNC.OB) today announced an updated report as it commences commercial
scale production at its Old Tennessee Mine in Chloride, Arizona. The
Company has completed initial construction of its first commercial
scale extraction plant that will be used to process the estimated one
million tons of tailings and dumps at the mine site. The Company
intends to extract gold, silver, zinc, lead, and other metals that it
believes to be present from the pile.

As referenced in the latest Form 10-Q in Quarterly Developments, the
Company has experienced substantial delays in the delivery and
implementation of the RenoCell system. However, the Company has finally
received and installed its 24 Bank RenoCell system and other separation
and extraction equipment. Testing has been completed on the entire
production circuit for initial operation. During the period of the
delay the Company doubled its potential processing capacity with the
installation of the additional equipment.

Bill Miertschin, Chairman and CEO of Hondo, said, “We are extremely
happy that the long-anticipated day has arrived, and that we have begun
commercial processing. Our expectations run high as we continue to
initially load the circuit and bring it up into full operation.”

About Hondo Minerals

Hondo Minerals Corporation is engaged in the acquisition of mines,
mining claims and mining real estate in the United States, Canada and
Mexico with mineral reserves of precious metals or non-ferrous metals.
Hondo owns the Tennessee and Schuylkill Mines in Chloride, Arizona. The
Tennessee Mine was the largest producing silver mine in Arizona
history. The Tennessee Mine operated from the late 1800s until 1947
producing lead, zinc, gold and silver. The Company also owns numerous
other mining claims in the U.S. Southwest, which are being evaluated
for additional reserves.

Cautionary Note Regarding Forward-Looking Statements

This press release contains forward-looking statements that involve
risks and uncertainties, including the Company’s beliefs about its
business prospects and future results of operations. Some factors that
could cause actual results to differ materially include economic and
operational risks, changes in anticipated earnings, continuation of
current contracts, and other factors detailed in the Company’s filings
with the Securities and Exchange Commission, including its most recent
Forms 10-K and 10-Q. The Company forecasts provided above are dynamic
and therefore refer only to this release date. The Company does not
undertake to update any forecasts that it may make available to the
investing public.

SOURCE Hondo Minerals Corporation