Cerro Resources Announces Excellent Initial Beneficiation Results From Its Mt Philp Haematite Iron Prospect-68% Fe Highlights- Excellent flotation beneficiation achieved in sighter tests averaging 68% Fe- No significant concentrations of deleterious

MONTREAL, QUEBEC -- (Marketwire) -- 12/22/10 -- Cerro Resources NL (ASX: CJO)(TSX VENTURE: CJO) -

Discussion

Cerro Resources NL is pleased to announce initial metallurgical test results for its 100% owned Mt Philp Iron Prospect located in Queensland, Australia.

Further to the Company's announcement of November 15, 2010, the Company has completed test work using conventional methods to evaluate material from each of the three zones within the Mt Philp Iron Prospect (Figure 3).

Representative samples of surface outcrop were collected from the three geologic zones (Figure 2) identified during rock-chip sampling ensuring that the sample grade was comparable to the zone average in iron and silica.

One kilogram samples were crushed and ground to P80=45 micrometres then floated in a 3.3 litre cell at 25% pulp density.

The sighter flotation test results (Table 1, Figure 1) were excellent with:

Zone 1 final product grading 68.0% Fe and 1.5% Silica and recovering 79.6%
of the Fe
Zone 2 final product grading 67.7% Fe and 1.5% Silica and recovering 82.6%
of the Fe
Zone 3 final product grading 67.5% Fe and 1.5% Silica and recovering 68.6%
of the Fe

All deleterious elements are well below normal iron ore shipment specifications.

The results indicate excellent potential to produce a saleable iron ore product if future exploration efforts are successful.

Further optimization of grind size and reagents is planned in 2011 to increase the iron recovery whilst minimizing silica in the final product.

A preliminary drilling program will commence early in 2011 to test the depth continuity in each of the three zones prior to a full drill-out of the 3.7km long mineralized structure with the objectives of preparing a preliminary resource estimate.

The Mt Philp Iron Prospect occurs within EPM 14232 Trafalgar, which is located 57km southeast of Mt Isa and within 25km of the Mt. Isa - Townsville highway, rail and electricity supply infrastructure.

Competent Person/Qualified Person

The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr John Skeet (as it relates to process related material), who is a Member of the Australasian Institute of Mining and Metallurgy and Mr Trevor Leahey, who is a Member of the Australasian Institute of Mining and Metallurgy. Mr Skeet is the Chief Operations Officer of Cerro Resources NL and Mr Trevor Leahey is a consultant to Cerro Resources NL. They have sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which they are undertaking to qualify as a Competent Person as defined in the 2004 edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves' and 'qualified persons' as this term is defined in Canadian National Instrument 43-101 ('NI 43-101'). Mr Skeet and Mr Leahey consent to the inclusion in the report of the matters based on their information in the form and context in which it appears.

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 and 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 completion of the potential to produce a saleable iron ore product, the plans to increase the iron recovery and the planned drilling program and plans to complete a resource estimate. 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.

                     Table 1: Flotation Test Results

---------------------------------------------------------------------------

SAMPLE         Fe          SiO2           S            P            MgO
              % %dist      % %dist      %  %dist     %  %dist      %  %dist
---------------------------------------------------------------------------
Zone1      68.0  79.6   1.50  4.64  0.004  35.62  0.01   50.9  0.005   51.7
Zone2      67.7  82.6   1.50  2.48  0.006  68.15  0.01   47.4  0.021   83.8
Zone3      67.5  68.6   1.50  0.93  0.006  42.07  0.02   40.0  0.036   77.5
---------------------------------------------------------------------------

SAMPLE       Al2O3         CaO           K2O         TiO2           MnO
              % %dist      % %dist      %  %dist     %  %dist      %  %dist
---------------------------------------------------------------------------
Zone1      0.11  40.1  0.009  55.7    0.0   50.7  0.30  77.72  0.018  74.84
Zone2      0.23  44.4  0.046  89.4    0.0   63.9  1.07  81.17  0.022  80.70
Zone3      0.19  26.7  0.023  62.9    0.0   44.0  0.92  67.65  0.025   66.9
---------------------------------------------------------------------------

SAMPLE              Cr                     V                     Na2O
                 %      %dist           %      %dist           %      %dist
---------------------------------------------------------------------------
Zone1         0.13       70.9       0.006       83.8        0.01       75.3
Zone2         0.17       70.0       0.020       84.3        0.02       76.7
Zone3         0.16       59.7       0.014       76.4        0.01       41.0

To view Figure 1, please visit the following link: http://media3.marketwire.com/docs/cjo1222_fig_1.pdf

To view Figure 2, please visit the following link: http://media3.marketwire.com/docs/cjo1222_fig_2.pdf

To view Figure 3, please visit the following link: http://media3.marketwire.com/docs/cjo1222_fig_3.pdf

ABN: 72 006 381 684

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

61 7 3252 0122


Cerro Resources NL

Craig McPherson

Chief Financial Officer

61 7 3252 0122


Cerro Resources NL

John Skeet

Chief Operating Officer

61 7 3252 0122


Cerro Resources NL - North America

Ms Gerri Paxton

Manager Investor Relations

1 514 544 2696
gpaxton@cerroresources.com
www.cerroresources.com