Cerro Resources Announces AUD$3,850,000 Private Placement

MONTREAL, QUEBEC -- (Marketwire) -- 12/15/10 -- Cerro Resources NL (ASX: CJO) (TSX VENTURE: CJO) ('Cerro' or 'Company') is pleased to announce it has agreed to place a total of 35,000,000 fully paid and ordinary shares (the 'Shares') at a price of AUD$0.11 per Share to raise AUD$3,850,000. The placement is being made through Patersons Securities Limited ('PSL') of Australia to sophisticated and professional investors. PSL will receive a 5% cash commission in connection with this placement.

The Company intends to use the gross proceeds of the sale of the Shares on the feasibility study on the gold silver heap leach production at Cerro del Gallo, for further exploration on the Mt Philp Iron Ore Project as results are received and for working capital purposes.

This placement is within the 15% permitted under Listing Rule 7.1 of the ASX and is an excluded issue under Section 708 of the Australian Corporations Act. In accordance with Australian laws and regulations, shareholders will be asked to ratify this placement at the next general meeting of shareholders.

The placement is subject to receipt of final approval of the TSX Venture Exchange.

Option Grants

The Company also reports that on December 3, 2010 it granted a total of 24,200,000 options to acquire shares of the Company to directors, officers and consultants, including the previously announced 1,500,000 options granted to two consultants performing investor relations activities and the 20 million options granted to the Company's recently appointed Managing Director and Chief Executive Officer and the Company's Executive Vice Chairman, which grant was approved at the Company's Annual General Meeting held on November 30, 2010.

The options issued to the Company's Managing Director and Chief Executive Officer and the Company's Executive Vice Chairman vest immediately and have a term of 59 months, with half of the options being exercisable at AUD$0.15 per share and the other half at AUD$0.20 per share. The options issued to persons performing investor relations activities were fully described in the Company's news release of December 7, 2010. The remaining options are subject to vesting conditions; half of these options are exercisable at a price of AUD$0.15 per share and have a three-year term, and the other half are exercisable at AUD$0.20 per share and have a four-year term.

About Cerro Resources

Cerro Resources is a precious and base metals exploration and development company. The Company is currently focused on developing the Cerro del Gallo gold/silver project in the central state of Guanajuato, Mexico. The Company also maintains an active working focus on the Mt Isa exploration project, Queensland, Australia.

Additional information about the Company is available on the Company's website at www.cerroresources.com and on SEDAR.

Forward-Looking Information

This news release contains certain 'forward-looking information' under Canadian securities laws. All statements that address future plans, activities, events or developments that the Company believes, expects or anticipates will or may occur are forward-looking information. Specifically, this news release contains forward looking information about the use of proceeds of the placement. Forward looking information is based upon assumptions by management that are subject to known and unknown risks and uncertainties beyond the Company's control, including risks related to mining exploration and the availability of financing for companies such as the Company. There can be no assurance that outcomes anticipated in the forward looking information will occur, and actual results may differ materially for a variety of reasons. Accordingly, readers should not place undue reliance on forward-looking information. The Company undertakes no obligation to update publicly or otherwise revise any forward-looking information, except as may be required by law.

Neither 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.

Contacts:

Cerro Resources NL

Tony McDonald, Managing Director

Craig McPherson, Chief Financial Officer

61 7 3252 0122


For North America, please contact:

Ms Gerri Paxton

Manager Investor Relations

514-544 2696
www.cerroresources.com