Iberian Minerals Reports Second Quarter 2009 Results

TORONTO, ONTARIO, Aug 27 (MARKET WIRE) --
Iberian Minerals Corp. (TSX VENTURE: IZN) today announced financial and
operating results for the second quarter ended June 30, 2009, with
comparative figures for the second quarter ended June 30, 2008. The
second quarter 2009 unaudited consolidated financial statements and
related notes, along with the Management Discussion and Analysis, may be
found on www.sedar.com. The Company reported a net loss of $ 45.6 million
for Q2 2009, representing a loss per share of $0.15.

Highlights for the Second Quarter Ended June 30, 2009

During the three months ended June 30, 2009:

- Iberian reported a net loss of $45.61 million for the three months
ended June 30, 2009, compared with a net loss of $59.29 million for the
corresponding period in 2008.

- the main reason for the consolidated loss in the current quarter was an
unrealized loss on derivative financial instruments of $68.14 million.
This loss is a notional loss that must be recorded in accordance with
Canadian GAAP. It is not an economic obligation of the Company and it
does not estimate future losses to be realized.

- the Company announced the completion of a financing by way of special
warrants. The Company issued 76,925,000 Special Warrants for gross
proceeds of $40,001,000. Each Special Warrant was exercised into one
common share of the Company.

- the shareholders of the Company approved a special resolution
authorizing the re-domiciling of the Company by way of corporate law
continuance from being governed by the laws of Canada to those of
Switzerland, which continuance was effective on June 17, 2009.

Overview of the Three Months Ended March 31, 2009

During the three months ended June 30, 2009, the Company continued the
ramp-up at Aguas Tenidas, and maintained steady state operations at
Condestable.

Iberian reported a net loss of $45.61 million for the three months ended
June 30, 2009, compared with a net loss of $59.29 million for the
corresponding period in 2008. The main reason for the consolidated loss
in the current quarter was an unrealized loss on derivative financial
instruments of $68.14 million. This loss is a notional loss that must be
recorded in accordance with Canadian GAAP. This loss is not an economic
obligation of the Company and it does not estimate future losses to be
realized. The loss was partially offset by CMC's gross margin of $6.91
million, future tax recovery of $17.11 million and a foreign exchange
gain of $4.80 million.

Condestable Mine

The following are the highlights of Condestable for the second quarter of
2009:

- Revenues were approximately $29.73 million.

- Production for the three months ended June 30, 2009 was:

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Production Unit Three months ended
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June 30, 2009
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Concentrate DMT 24,309
Contained copper t 5,973
Fine gold oz 4,414
Fine silver oz 59,502
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- An average head grade of approximately 1.23% Cu, and a recovery rate
of 91%.

- Operating costs for Q2 (C1 and C3) were US$0.49 and US$1.11 per pound
of copper produced (or US$11.96 and US$27.24, respectively, per tonne of
ore processed).

As described in Note 3 of the June 30, 2009 unaudited interim
consolidated financial statements, the results for the second quarter
ended June 30, 2008 have been restated to recognize the future tax asset
related to CMC's unrealized losses on its derivative instruments due to a
change in Peruvian tax law.

Aguas Tenidas Mine

At Aguas Tenidas, capitalized expenditure for the three months ended
March 31, 2009, amounted to approximately $58.05 million, of which $5.55
million was for mining interest, $45.68 million for construction in
progress and $6.82 million for machinery and equipment.

Aguas Tenidas produced 7,911 tonnes of copper concentrate and 1,912
tonnes of zinc concentrates for revenues of US$8.5 million during the
second quarter of 2009. Since the facilities have not achieved commercial
production for accounting purposes, all expenses and sales have been
capitalized.

Outlook

Iberian continues to expect a number of challenging quarters ahead as the
effects of the global recession play out in the world economy. The
Company's operations are subject to the fluctuations in the market prices
of copper, zinc and lead and to some extent those of gold and silver.

CMC has been in continuous production since 1998. The outlook for CMC is
positive. It is expected to continue to produce copper at similar levels
to 2008.

At Aguas Tenidas, as noted, unanticipated events have further negatively
affected cash flow, including acquisition of the Insersa underground
contractor and continued delay of receipt of the approved government
grant. Delays in production due to modifications to the polymetallic
circuit, together with on-going ramp-up issues, both of which have been
and are being addressed, have also affected the financial condition at
MATSA.

While the Company has undertaken to roll forward out of the money hedges
to maximize cash in 2009, together with other cash conservation measures,
the Company foresees a further potential cash shortfall as a result of
the MATSA operation. Management is currently examining all factors
relevant to determining the extent of such a shortfall, and is taking all
available measures to minimize the amount in issue. Based on current
information and assumptions, the indicated cash shortfall to the Company
could be in the range of $20 to $30 million. As such, the Company is also
actively pursuing non-dilutive external financing options, but there can
be no assurance that any financing will be obtained, or the terms on
which any financing will be obtained.

About Iberian Minerals Corp.

Iberian Minerals Corp. is a Canadian-based global base metals company
with interests in Spain and Peru. The Condestable Mine located in Peru
approximately 90 km south of Lima operates at 2.2 million tonnes per year
producing copper concentrates that also have associated silver and gold.
The Aguas Tenidas Mine is in the Andalucia region of Spain approximately
110 km north-west of Seville. Ramp-up continues on a 1.7 million tonnes
per year underground mine and concentrator that will produce copper, zinc
and lead concentrates that also contain gold and silver.

FORWARD LOOKING STATEMENTS:

This news release contains certain "forward-looking statements" and
"forward-looking information" under applicable securities laws. Except
for statements of historical fact, certain information contained herein
constitutes forward-looking statements. Forward-looking statements are
frequently characterized by words such as "plan", "except", "project",
"intend", "believe", "anticipate", "estimate", and other similar words,
or statements that certain events or conditions "may" or "will" occur.
Forward-looking statements are based on the opinions and estimates of
management at the date the statements are made, and are based on a number
of assumptions and subject to a variety of risks and uncertainties and
other factors that could cause actual events or results to differ
materially from those projected in the forward-looking statements.
Assumptions upon which such forward-looking statements are based included
that all required third party regulatory and governmental approvals will
be obtained. Many of these assumptions are based on factors and events
that are not within the control of Iberian and there is no assurance they
will prove to be correct. Factors that could cause actual results to vary
materially from results anticipated by such forward-looking statements
include changes in market conditions and other risk factors discussed or
referred to in the annual Management's Discussion and Analysis and Annual
Information Form for Iberian filed with the applicable securities
regulatory authorities and available at www.sedar.com. Although Iberian
has attempted to identify important factors that could cause actual
actions, events or results to differ materially from those described in
forward-looking statements, there may be other factors that cause
actions, events or results not to be anticipated, estimated or intended.
There can be no assurance that forward-looking statements will prove to
be accurate, as actual results and future events could differ materially
from those anticipated in such statements. Iberian undertakes no
obligation to update forward-looking statements if circumstances or
management's estimates or opinions should change except as required by
applicable securities laws. The reader is cautioned not to place undue
reliance on forward-looking statements.

Neither 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:
Iberian Minerals Corp.
Laura Sandilands
Investor Relations and Corporate Communications
416-815-8558

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