Philippine Metals Inc.: Transaction Update

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Jan 8, 2015) - Philippine Metals Inc. ("PMI" or the "Company") (TSX VENTURE:PHI) is pleased to provide the following update in connection with its proposed acquisition of the shares of Molycomex S.A. de C.V. ("Molycomex" and the "Molycomex Acquisition"), which owns several highly prospective copper projects in the state of Coahuila, Mexico and a parallel option to acquire a 100% interest in the Cuatro Cienagas Project from Santa Fe Metals Corp. ("Santa Fe") see News Release dated November 27, 2014).

Since issuing the transaction announcement, the Company has been working diligently on finalizing all due diligence and documentation required to complete the Transaction. Specifically, the Company has filed draft NI 43-101 Technical Reports in connection with both the Madero Property (owned by Molycomex) and the Cuatro Cienagas Project. These reports will be filed on SEDAR when complete. Additionally, the Company has substantially completed a draft Share Purchase Agreement in connection with the Molycomex acquisition and a draft Option Agreement with Santa Fe in connection the Cuatro Cienagas transaction. Further, the Company is working with Molycomex to finalize the completion of their audited financial statements and transaction structuring details. Finally, the Company has begun the preparation of a draft Information Circular and is working on finalizing the projected transaction completion dates.

Completion of the transactions is subject to a number of conditions, including TSX Venture Exchange (the "Exchange") acceptance and the approval by a majority of disinterested PMI shareholders. The Transactions cannot close until the required shareholder approval is obtained. There can be no assurance that the Transactions will be completed as proposed, or at all. Investors are cautioned that, except as disclosed in the Management Information Circular and/or Filing Statement to be prepared in connection with the transactions, any information released or received with respect to the RTO may not be accurate or complete and should not be relied upon. Trading in the securities of PMI should be considered highly speculative. The Exchange has in no way passed upon the merits of the proposed transactions and has neither approved nor disapproved the contents of this press release.

Forward-Looking Information

This news release contains forward-looking statements and other statements that are not historical facts. Forward-looking statements are often identified by terms such as "will", "may", "should", "anticipate", "expects" and similar expressions. All statements other than statements of historical fact included in this release, including, without limitation, statements regarding the transactions, the concurrent financing or any contemplated name change of the Company, are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations are risks detailed from time to time in the filings made by the Company with securities regulations.

The reader is cautioned that assumptions used in the preparation of any forward-looking information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the Company. As a result, the Company cannot guarantee that any forward-looking statement will materialize and the reader is cautioned not to place undue reliance on any forward-looking information. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement. The forward-looking statements contained in this news release are made as of the date of this news release and the Company will only update or revise publicly any of the included forward-looking statements as expressly required by Canadian securities law.

Neither the Exchange nor its regulation services provider (as that term is defined in the policies of the Exchange) accepts responsibility for the adequacy or accuracy of this release.

ON BEHALF OF THE BOARD OF PHILIPPINE METALS INC.

Craig Lindsay, CEO and Director

Neither the 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.