Coronet Signs Agreement to Re-Process Gold Tailings

Coronet Metals Inc. (TSX VENTURE:CRF) ("Coronet" or "the Company") is pleased to announce that its wholly owned subsidiary, Coronet Metals Peru S.A.C ("Coronet Peru") has entered into a non-binding agreement with Compania Minera Nueva California S.A. to evaluate re-processing up to 950,000 tonnes of vat leach gold tailings in Peru.

This project is located in the Rio Santo Valley 16 km below Coronet's Yanamina Project where the Company's experienced team of Peruvian social specialists is engaging with the local communities. As well as meeting cash flow objectives, the tailings project would give Coronet the opportunity to demonstrate social, environmental and employment best practices in the area.

Mr. Joel Dumaresq of Coronet states: "This low-capital project could move Coronet into gold and silver production with the objective of generating sufficient free cash flow to cover the Company's overhead. The contractors are already permitted and completion of due diligence is targeted for Q1, 2012. The personnel operating out of Coronet Peru's office have the technical and metallurgical expertise to develop this project".

The Company is currently evaluating two advanced-stage projects that meet its acquisition criteria. The Company anticipates additional updates in the coming months regarding these acquisition targets.

About Coronet Metals Inc.

Coronet Metals Inc. is well-funded and positioned to build a substantial junior gold mining and exploration enterprise by acquiring advanced, near production assets in Latin American countries. The proven management team has a strong base of contacts in South America, and experience in all aspects of the development and financing of resource projects.

This news release contains certain forward-looking statements, and such statements involve risks and uncertainties. The results or events predicted may differ materially from actual results or events. Any forward-looking statement speaks only as of the date of this news release. Except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results, or any other occurrence.

Neither the TSX Venture Exchange nor its regulation services provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contacts: Coronet Metals Inc. Joel Dumaresq Chief Executive Officer and Director +1 604 306 [e-mail] Doyle Investments Inc [phone] or Toll free: +1 877 608 [e-mail]