CHLORIDE, AZ, May 9 /PRNewswire-FirstCall/ – Hondo Minerals Corporation (OTCBB: HMNC),
announces that it has entered into an agreement to purchase $4 million
dollars worth of additional processing equpment for $2.4 million. All
of the equipment is virtually brand new with no prior use other than
testing.

William R. Miertschin, Chairman and CEO of Hondo Minerals said, “I am
pleased to report to our shareholders the acquisition of this equipment
which is a near perfect fit for our operations. This will allow us the
opportunity to increase our production 10 fold, lower costs, and
significantly increase revenue. Because of this, the company may have
the ability to reach its production and revenue targets 6 to12 months
ahead of schedule.”

The initial processing facility is anticipated to begin operations by
May 30, 2011. Once complete, the Tennessee Mine processing facility
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.

“Our Tennessee Mine property has approximately one million tons of
tailings and dumps available for processing This acquisition of
additional equipment will allow Hondo Minerals the opportunity to
increase processing to hundreds of tons per day,” says William R.
Miertschin.

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. Please visit www.Hondominerals.com

SOURCE Hondo Minerals Corporation