Vancouver, BC: The Company announced on June 02, 2010 that it had entered into a binding Memorandum of Understanding with Tahoe Resources Group LLC ("TRG") of Reno, Nevada, USA to sell TRG a 40% interest in the Cuatro Ciénegas Project (the "Project") for US$5.0 million.  The sale was subject to a Finder's Fee of up to US$500,000 and was to be completed by July 15, 2010 ("Completion Date").

The Completion Date has been extended to September 1, 2010 at TRG's request in order for both TRG and the Company to consider the possibility of incorporating a second business transaction contemplated by TRG with this transaction, and to provide additional time to determine an appropriate operational structure satisfactory to all parties concerned.

In lieu of payment of a Finder's Fee of US$500,000, the Company has agreed to loan TRG US$500,000 from the sale proceeds to be repaid over three (3) years.  Other material conditions in the MOU remain unchanged.

Ian Smith

President & CEO

For further information contact Ian Smith:

Telephone: 604.678.8823 ext. 1
e-mail:        info@santafemetals.com
website:     www.santafemetals.com

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Information set forth in this news release may involve forward-looking statements under applicable securities laws. Forward-looking statements are statements that relate to future, not past, events. In this context, forward-looking statements often address expected future business and financial performance, and often contain words such as "anticipate", "believe", "plan", "estimate", "expect", and "intend", statements that an action or event "may", "might", "could", "should", or "will" be taken or occur, or other similar expressions. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the following risks: the risks associated with outstanding litigation, if any; risks associated with project development; the need for additional financing; operational risks associated with mining and mineral processing; fluctuations in uranium, gold and other commodity prices; title matters; environmental liability claims and insurance; reliance on key personnel; the potential for conflicts of interest among certain officers, directors or promoters with certain other projects; the absence of dividends; competition; dilution; the volatility of our common share price and volume; and tax consequences to U.S. shareholders. Forward-looking statements are made based on management's beliefs, estimates and opinions on the date that statements are made and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change. Investors are cautioned against attributing undue certainty to forward-looking statements.