Hondo Minerals set to pay off $2.4 Million in Equipment Purchase

CHLORIDE, AZ, June 9, 2011 /PRNewswire/ - Hondo Minerals Corporation (OTCBB:HMNC.OB - News) announces that it is set to pay the remaining balance of $1,900,000 on the $2.4 million dollars purchase of additional processing equipment as previously announced in our Press Release dated May 9, 2011. The closing for the remaining payment is set for June 10, 2011. All of the equipment in this purchase is valued at over $4 million dollars and is virtually brand new with no prior use other than testing.

William R. Miertschin, Chairman and CEO of Hondo Minerals said, "As we have drilled a water well to assure us of sufficient water for processing, acquired an excavator and bulldozer to remove mineralized material and installed diesel powered generator to provide sufficient and reliable electric power, we continue to take significant steps to not only begin production but to gain momentum for greater processing sooner. Finalizing this acquisition of the processing equipment will allow us to greatly increase our production capacity and have the ability to reach production and revenue targets 6 to12 months ahead of schedule." Miertschin went onto say, "This accelerated closing was made possible by the overwhelming success of our recent private placement and the confidence that our shareholders have demonstrated for our Company.  We believe this will in turn create greater value for our Company and therefore its shareholders."

The Tennessee Mine processing facility located near Chloride, Arizona, will recover gold, silver, zinc, and other metals. It is estimated that the daily processing capabilities will commence at 10-20 tons per day and increase to 150 tons per day during late 2011 and 350 tons daily in 2012 as the newly acquired equipment becomes operational.

Hondo's initial independent testing has indicated the Tennessee Mine tailings and dumps could produce an average of 1 oz. to 3 oz. of gold and about 30 oz. or more of silver per ton using our exclusive environmentally friendly technology. At the Tennessee Mine there are approximately a million tons of metal rich tailings and dump material.

About The Company

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 1800's until 1947 producing lead, zinc, gold and silver. The Company also owns numerous other mining claims in the US Southwest, which are being evaluated for additional reserves.

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-KSB and 10-QSB. 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