Drilling Has Commenced At Arikepay Copper-Gold Project

VANCOUVER, BC – Candente Copper Corp. reported that Compania Minera Zahena S.A.C. has commenced diamond drilling on Candente’s Arikepay copper-gold porphyry project, located in southern Peru.

Zahena plans to drill a minimum of 3,000 metres (m) and possibly 5,000m by the end of 2016. A second drill is currently being mobilized to the project. Drill holes are planned to extend to depths of 600m to 800m. "We are very excited that drilling at Arikepay is underway," commented Joanne Freeze, P.Geo., Candente Copper’s CEO. "The drill depths anticipated by Zahena will be at least 300m to 500m deeper than the Company’s initial reverse circulation (RC) drilling program and will provide an excellent deep test of the Arikepay porphyry system."

Candente Copper drilled 3,630m in 14 widely spaced RC holes to a maximum machine depth of 300m in 2012. The drilling in 2012 defined a mineralized porphyry system that extends laterally at least 2,200m by 700m to 1,200m and vertically to a depth of at least 300m. Within the mineralized porphyry system is a zone of significant copper, gold and silver mineralization that measures approximately 1,200m by 800m and is open to depth. Approximately two-thirds of the mineralized porphyry system is covered by recent gravel cover deposits.

Zahena has the right to earn up to 100% interest in the Arikepay property from Candente Copper by completing the following terms:

Zahena can earn a 75% interest in Arikepay by making US$5 million (M) in exploration expenditures and US$4M in payments to Candente within 4 years (First Option).

Upon completion of the First Option, Zahena can earn an additional 25% interest, by completing a bankable feasibility study and by paying Candente US$10M within 5 years of earning its initial 75% interest (Second Option). Completion of the Second Option would result in Zahena earning 100% interest in Arikepay subject to a 2% Net Smelter Return (NSR) to Candente. A final payment of USD$5M would be made to Candente 60 days from the start of commercial production or within 4 years of completion of the bankable feasibility study, whichever occurs first. Payments for First and Second Option total US$19M.

Zahena would retain the right to purchase 1% of the NSR for an additional USD$5M at any time up to 60 days from the start of commercial production, leaving Candente with a 1% NSR.