Zaruma Resources Reports Annual Filings

TORONTO, May 3 /CNW/ --
(all financial figures are in United States dollars)

TORONTO, May 3 /CNW/ - Zaruma Resources Inc., (TSXV: ZMR.H), (the 'Company' or 'Zaruma'), today reported that the Consolidated
Financial Statements and Management's Discussion and Analysis report
for the year ended December 31, 2010 have been filed on SEDAR, www.sedar.com and will be posted on the Company's website, www.zaruma.com.

Activity in the fourth quarter of 2010 was focused on the negotiation of
the terms and conditions of an equity investment of $20 million in
units of common shares and warrants of the Company by Zaruma Gold
Mining Ltd. ('Zaruma Gold'), $5 million from other equity investors and
a debt financing of $30 million by a major international bank. The
financings are dependent on both being completed at the same time,
along with the settlement of the outstanding debt financing from a
subsidiary of Glencore International AG, resolution of the litigation
with creditors, and a Conditional Approval of the listing of the
Company's shares as a Tier 1 Company on the TSX Venture Exchange.

As previously reported, the shareholders approved the proposed equity
financing at a meeting held on December 29, 2010, pursuant to which
Zaruma Gold will become the controlling shareholder of the Company on
completion of the financing, with an estimated 61% of the outstanding
common shares, and the conditionally elected additional directors will
give Zaruma Gold a majority of the seats on the Board of Directors.
Both financings will initially close in escrow, with the creditors
filing the necessary documentation that will see an end to the
litigation and the removal of liens that were placed on the Company's
mining concessions. On acceptance of the documentation by the courts in
Mexico, the funds held in escrow will be used to make payments to the
creditors, after which the bank's interest will be secured by a new
lien on the concessions, fixed assets and a pledge of the shares of
Minerales Libertad, S.A de C.V., the Company's wholly owned subsidiary
in Mexico, which will be putting the Luz del Cobre Copper Project into
production as early as the first quarter of 2012.

The Company' application to the TSX Venture Exchange is being reviewed
by the TSXV Listing Committee and a Conditional Approval of the listing
is expected soon. A condition of the approval will be that the
financings must be completed prior to receiving Final Approval of the
listing.

The financings have required extensive legal work from a number of legal
firms working in three countries. The documentation of the agreements
for the financing and settlement transactions is nearing completion and
the Company expects to announce the move into escrow very shortly.
Subsequently, it may take a number of weeks to obtain the necessary
court approvals before the final closing and release of funds.

The net loss for 2010 was $3,350,000 (3 cents per share) compared to a
loss of $4,114,000 (4 cents per share) for 2009. The loss for the year
included all costs and the interest accruing on the Luz del Cobre
project debt during the current period of inactivity on the project.
The project's interest cost for the year was $1,120,000, (2009-
$1,206,000) and the loss for the year includes estimated creditor
settlement costs. Corporate administrative costs for the year were
$525,000 compared to $707,000 in 2009. A rebuilding of staff will
commence on the closing of the financings.

This News Release contains forward-looking statements which are
typically preceded by, followed by or including the words 'believes',
'expects', 'anticipates', 'estimates', 'intends', 'plans' or similar
expressions. Forward-looking statements are not guarantees of future
performance as they involve risks, uncertainties and assumptions,
including the completion of the proposed financing transactions.

Zaruma Resources Inc. is listed on the NEX Board of the TSX Venture
Exchange (symbol ZMR.H) and the Frankfurt Stock Exchanges, (symbol:
ZMR). Common shares outstanding 123,608,747.

Neither TSXVenture 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.

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