CHLORIDE, AZ, May 2, 2013 /PRNewswire/ – Hondo Minerals Corporation (OTCBB:
HMNC.OB) (“Hondo,” “Hondo Minerals” or the “Company”) today announces
that the Company has entered into a binding Letter of Intent with
Crowncorp Investments Corporation, a Texas corporation (“Crowncorp”),
for the sale of 100% of the Company’s assets and issued and outstanding
stock for a purchase price of $88 million, which includes $13 million
in working capital to be retained in the Company post-closing (the
“Acquisition”).

Bill Miertschin, CEO of Hondo Minerals says, “We have been working
closely with Crowncorp and its associates and advisors for several
months to arrive at an acceptable structure with which to facilitate
this transaction. Of the total $88 million to be provided by Crowncorp,
it is anticipated that the Company’s shareholders will receive $75
million less the retirement of current debts and Hondo’s transactional
expenses. Of course, we will be constructing a substantive final
agreement with extensive closing documents for required regulatory
review and shareholder disclosure and subsequent approvals.”

Mr. Miertschin continues to say, “We are excited that Crowncorp
recognizes the value of Hondo’s assets both the in-ground and our
processing technology, and that Hondo and its shareholders can receive
that value.”

Crowncorp intends to acquire 100% of the assets and issued and
outstanding stock of the Company in exchange for approximately $88
million, which shall be payable in cash to the Company and the
Company’s shareholders.

As conditions to the consummation of the Acquisition, the Company and
Crowncorp intend to execute: (i) a definitive operating agreement which
shall transfer management and control of Hondo’s assets and operations
to Crowncorp; and (ii) a tender offer pursuant to which Crowncorp shall
purchase all of the Company’s issued and outstanding stock from the
Company’s shareholders in accordance with all appropriate laws and
regulations and commercially acceptable practices and procedures.

In the event that the Acquisition does not close within six (6) months
after the execution of the Letter of Intent, or if Acquirer fails to
provide the purchase price in accordance with the schedule set forth in
the Letter of Intent, or if Crowncorp otherwise repudiates its
obligations under the Letter of Intent, the Company shall be entitled
to receive from Crowncorp a breakup fee of $2,000,000.

Further, the Parties have agreed to a “no-shop period” during which the
Company shall not solicit nor accept any competing offers to be made by
a third party for the acquisition of the Company unless the Letter of
Intent is terminated.

Please review Form 8-K, which was filed with the Securities and Exchange
Commission on May 2, 2013, at www.sec.gov.

About Hondo Minerals

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 operated from the late 1800s until 1947 producing lead,
zinc, gold and silver. The Company also owns numerous other
mining claims in the U.S. Southwest.

Cautionary Note Regarding Forward-Looking Statements

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-K and 10-Q. 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