Located 25 kilometres from the Company’s Aguas Tenidas Mine, the 17 new concessions cover approximately 200 ha ² , and were awarded by the Junta de Andalucia government after a public bidding process. Included in the concessions is the previously operating Sotiel Mine, which is an underground copper-zinc mine.

The Company intends to undertake a work program consisting of de-watering, underground drilling and studies to confirm resources. Iberian intends to commission a prefeasibility study in 2011. Rehabilitation of the mine is expected to take place over an 18 to 24 month period. All the annotated activities will be carried out concurrently, and are planned to start immediately. Prefeasibility study costs are expected to be covered by operating cash flows.

Sotiel Mine

Part of the Sotiel Migollas complex, the Sotiel Mine is located on the same pyritic mineral belt as Aguas Tenidas. It is a copper, zinc and lead mine which has been intermittently active since Roman times and was in operation until 2002 when low metal prices contributed to its closure.

While in operation, the mine produced approximately 8.4MT of polymetallic ores at 4.52% zinc from 1983-2000 and approximately 1.1MT of cupriferous ores at 3.27% copper from 1994-2000. The deposit is very similar to Aguas Tenidas, with 2/3 polymetallic and 1/3 cupriferous ores. The Company expects that recoveries from the Sotiel ores will be similar to those of Aguas Tenidas.

The Sotiel Mine consists of three deposits – Sotiel, Sotiel Este and Migollas. In 2000, a resource and reserve estimate was included in the final report to the government authorities as part of the mine closure plan and was compiled using an earlier resource estimate (prepared in accordance with the Australasian Code for Reporting of Mineral Resources and Ore Reserves (the “JORC Code”)) along with substantiated drilling and block modelling. Those historical resources are listed below:

SOTIEL
	POLYMETALLIC ORE				CUPRIFEROUS ORE
	Tones	%Cu	Zn	Pb	Tones	%Cu	Zn	Pb
ORE MINED 1983-2000	8,438,500		4.52		1,102,000	3.27

RESOURCES MEAS. 2000
SOTIEL	577,000	0.56	5.57	2.24
SOTIEL EAST	941,000	0.73	5.71	2.62
MIGOLLAS ZONE 2					279,000	6.20	0.75	0.39
RESOURCES IND. 2000
SOTIEL	4,100,000	0.5	5.7	2.3
SOTIEL EAST	2,338,000	0.61	5.24	2.19
MIGOLLAS ZONE 1	4,940,000	0.60	4.77	2.24
MIGOLLAS ZONE 2					151,000	4.6	1.11	0.52

The Company intends to undertake an extensive drilling program to further define the inferred resource category. There is also an additional deposit at Migollas Este which could, with further definition, add increased tonnage to the resource.

Cross section of the Sotiel Mine, including historical drilling.

Sotiel operated via an underground crusher and conveyor system which was capable of operating at more than 1MT per year, and which are still in place. The mine has levels descending to approximately 300m below surface and, similar to the Aguas Tenidas operation, consists of large stopes which were subsequently backfilled with rock fill.

Copper Reserves at Migollas

The foregoing historical resource estimate was completed using the JORC Code prior to the implementation of NI 43-101. Given the prior drilling and subsequent production from the property discussed herein, the company believes the resource estimates to be both relevant and reliable. However, for the purposes of NI 43-101, a qualified person has not completed sufficient work to classify the historical estimate as current mineral resources. The Company is not treating the historical estimate as current mineral resources as prescribed by NI 43-101 and the historical estimate should not be relied upon.