Bacanora Finalizes Lithium Farm-in Deal With Rare Earth Minerals Plc on El Sauz and Fleur Lithium Concessions and Commences D...

BACANORA MINERALS LTD. ("Bacanora" or the "Company") (TSX VENTURE:BCN) is
pleased to announce that it has executed formal agreements with Rare Earth
Minerals Plc ("REM"), a London Stock Exchange listed company (AIM: REM),
pursuant to which it has granted REM certain rights to participate in drilling
and project evaluation of the El Sauz and Fleur Lithium concessions (the
"Concessions" or individually, a "Concession") in northern Mexico per the
Company's February 14, 2013 news release. The Concessions are adjacent to and
along strike from the Company's La Ventana Concession. 


Highlights of the Agreement:



--  REM will earn an initial 10% interest in Bacanora's 100% owned
    subsidiary that will hold the Concessions by making an upfront cash
    payment of $250,000 (which has been received by Bacanora) and providing
    another $500,000 to the Company in two instalments, to be used for
    exploration and drilling on the Concessions and delivered in full no
    later than 4 weeks after drilling starts. 
    
--  Following completion of the above, REM shall have an option to increase
    its interest in the Company's subsidiary to 30% by providing written
    notice of exercise, together with delivery of an additional cash payment
    of $500,000, on or before August 11, 2013, and thereafter depositing a
    further $1,000,000 within 6 months of exercise of this option, which
    funds shall be used for drilling and exploration expenditures on the
    Concessions. 
    
--  Following completion of the prior two stages, REM will thereafter have
    an exclusive option to negotiate terms to increase interest in the
    subsidiary holding the Concessions from 30% to a maximum of 49.9%.



Drilling Update: 

Bacanora is also pleased to announce that a diamond drill under contract from
Godbe Drilling of Colorado, USA has arrived on the Concessions. The drill is set
up and has commenced drilling the first of 10 holes on the Concessions. 


The initial diamond drilling will consist of approximately 2,500 metres of NQ
core in 10 holes, which will have the following objectives:




--  Test the thickness and extent of the clay units exposed on El Sauz
    Concession; 
--  Provide an initial estimate of the lithium content of these units at
    depth; 
--  Determine if the clay units on El Sauz continue to the north and onto
    the Fleur Concession; and 
--  Determine if the clay units on the Concessions are the same units as
    those exposed on the adjoining La Ventana concession.



The drilling programme is estimated to take approximately 80 days, with final
results of drill core analyses expected in roughly late August. 


In conjunction with the drilling, mapping and rock sampling will resume on the
Fleur Concession in order to provide the Company with a full assessment of the
lithium potential of this Concession. Previous surface rock sampling, as
announced April 10, 2013, demonstrated that exposures with lithium values range
from 10 to 7,220 ppm Li (3.84% LCE(i)), with 10 samples greater than 2,168 ppm
(0.95 percentile). The samples also have values in potassium which range from
0.04% to 3.07%, as well as other alkali metals. Results of geological mapping
have delineated exposures of the sedimentary-volcanic succession that hosts the
lithium-bearing clay units cover an area of 80 hectares in an arcuate belt
approximately 2 km long in a northwesterly direction and 1 km in width.
Sediments on the southwest side of the arc dip gently to the southwest, whereas
those on the northeast dip to the northeast. 


About the Sonora Lithium Project: 

The Company's interests in El Sauz and Fleur Concessions cover 3,411 hectares
out of a total of 5,786 contiguous hectares that make up the Sonora Lithium
Project (the "Project") owned by Bacanora. 


Initial rock sampling and mapping of the Project by Bacanora located the
lithium-bearing clay units within a sedimentary-volcanic sequence. Drilling by
Bacanora in 2010 and 2011 located two lithium-bearing clay units (upper and
lower) that average 41 and 22 m in thickness, respectively, and that are
separated by an ignimbrite unit varying from 1 to 45 m in thickness. The
sedimentary-volcanic sequence dips at approximately 20 degrees to the east and
crops out along 3.5 km of strike length. The exposures are in erosional windows
looking through overlying basalt that covers much of the area. The
lithium-bearing clay minerals have been identified as hectorite and
polylithionite.


Within the Project area on the La Ventana concession that is 100% owned by
Bacanora and adjoins the ground under option to REM, National Instrument 43-101
("NI 43-101") compliant inferred resources have been estimated for two clay
units (referred to as the "La Ventana Lithium Deposit"). The inferred resources
for the two clay units total 60 million tonnes averaging 3,000 ppm Li
(equivalent to 1.6% lithium carbonate assuming 100% recovery and no process
losses). Bacanora has used the inferred resources on the La Ventana Lithium
Deposit for a Preliminary Economic Assessment ("PEA") of the concession (refer
to Bacanora news release dated January 25, 2013). Highlights of the PEA for a
potential lithium mining and production operation with an output of 35,000
tonnes battery grade lithium carbonate per annum over a 20 year open pit mine
life suggest annual revenue of $US210 million for an Internal Rate of Return of
138%, with a 1.9 year pay back. Capital costs are estimated at $US114 million
and average operating costs at $US1,958/tonne. Net present value of the Project,
discounted at 8%, is $US848 million, assuming an average lithium carbonate price
of $US6,000/tonne. 


Management is very pleased with the results to date which merit advancing the El
Sauz project to the first drill testing of lithium bearing clay units on this
property. Should the outcropping lithium clays on El Sauz be found to correlate
with those on the Company's La Ventana Lithium Deposit, then a reasonable
inference will be capable of being made based on available geological evidence
that the sedimentary basin that hosts the lithium-rich clays extends, in a
northwesterly direction, for at least 7 kilometres. 


Lithium is the lightest of the alkali metals and has unique electrochemical
properties that make it the element of choice for batteries of high energy
storage capacity and other energy applications as well as a host of other
industrial and health applications. 




(i) LCE = lithium carbonate (Li2CO3) Equivalent: determined by multiplying  
    Li value in percent by 5.324 to get an equivalent Li2CO3 value in       
    percent. Use of LCE assumes 100% recovery and no process losses in      
    conversion of Li to Li2CO3.                                             



Carl G. Verley, P.Geo. is the Qualified Person pursuant to NI 43-101 and has
reviewed of the technical contents of this news release.


Reader Advisory

This press release shall not constitute an offer to sell or the solicitation of
an offer to buy any securities nor shall there be any sale of securities in any
state in the United States in which such offer, solicitation or sale would be
unlawful. 


Except for statements of historical fact, this news release contains certain
"forward-looking information" within the meaning of applicable securities law.
Forward-looking information is frequently characterized by words such as "plan",
"expect", "project", "intend", "believe", "anticipate", "estimate" and other
similar words, or statements that certain events or conditions "may" or "will"
occur. In particular, forward-looking information in this press release
includes, but is not limited to, the estimated future value of the La Ventana
Lithium Deposit. Although we believe that the expectations reflected in the
forward-looking information are reasonable, there can be no assurance that such
expectations will prove to be correct. We cannot guarantee future results,
performance or achievements. Consequently, there is no representation that the
actual results achieved will be the same, in whole or in part, as those set out
in the forward-looking information.


Forward-looking information is based on the opinions and estimates of management
at the date the statements are made, and are subject to a variety of risks and
uncertainties and other factors that could cause actual events or results to
differ materially from those anticipated in the forward-looking information.
Some of the risks and other factors that could cause the results to differ
materially from those expressed in the forward-looking information include, but
are not limited to: commodity price volatility; general economic conditions in
Canada, the United States, Mexico and globally; industry conditions,
governmental regulation, including environmental regulation; unanticipated
operating events or performance; failure to obtain industry partner and other
third party consents and approvals, if and when required; the availability of
capital on acceptable terms; the need to obtain required approvals from
regulatory authorities; stock market volatility; competition for, among other
things, capital, skilled personnel and supplies; changes in tax laws; and the
other risk factors disclosed under our profile on SEDAR at www.sedar.com and
within the body of the PEA. Readers are cautioned that this list of risk factors
should not be construed as exhaustive. 


The forward-looking information contained in this news release is expressly
qualified by this cautionary statement. We undertake no duty to update any of
the forward-looking information to conform such information to actual results or
to changes in our expectations except as otherwise required by applicable
securities legislation. Readers are cautioned not to place undue reliance on
forward-looking information.


FOR FURTHER INFORMATION PLEASE CONTACT: 
BACANORA MINERALS LTD.
Paul Conroy
President and Chief Executive Officer
[phone]
[phone] (FAX)