Iberian Minerals Increases Condestable Senior Debt Facility by US$ 15 Million

TORONTO, ONTARIO -- (Marketwire) -- 05/17/11 -- Iberian Minerals Corp. (TSX VENTURE: IZN) today announced that its subsidiary, Compania Minera Condestable S.A. ('Condestable'), has arranged for amended terms to its senior, secured debt facility with Societe Generale. The amended term facility will provide an additional US$ 15 million to the Company primarily for working capital purposes at Condestable and also for general corporate purposes. Drawdown on the amended facility is expected to occur on or around May 20, 2011.

Currently the senior debt facility at Condestable, with Societe Generale acting as Sole Lead Arranger, is a term facility in the amount of US$55 million with maturity date of March 31, 2013. The current principal outstanding is US$ 45 million. Upon drawdown of the amended facility the principal outstanding will increase to US$ 60 million and the maturity date will be extended to September 30, 2013. Principal repayments under the amended facility will be as follows: US$ 4 million on December 31, 2011 followed by quarterly repayments of US$ 8 million commencing on March 31, 2012 to the new maturity date. As part of the amended facility Condestable will have increased hedging lines available without margin call requirements. However, there are no additional, mandatory hedging requirements. The closing of the amended facility is subject to execution of definitive documentation.

About Iberian Minerals Corp.

Iberian Minerals Corp. is a Canadian listed global base metals company with interests in Spain and Peru. The Condestable Mine, located in Peru approximately 90 km south of Lima operates at 2.2 million tonnes per year producing copper, and associated silver and gold in a concentrate. The Aguas Tenidas Mine is in the Andalucia region of Spain approximately 110 km north-west of Seville and operates a 2.2 million tonnes per year underground mine and concentrator that produces copper, zinc and lead concentrates that also contain gold and silver.

FORWARD LOOKING STATEMENTS:

This news release contains certain 'forward-looking statements' and 'forward-looking information' under applicable securities laws. Except for statements of historical fact, certain information contained herein constitutes forward-looking statements. Forward-looking statements are frequently characterized by words such as 'plan', 'expect', 'project', 'intend', 'believe', 'anticipate', 'estimate', and other similar words, or statements that certain events or conditions 'may' or 'will' occur. Forward looking information may include, but is not limited to, statements with respect to the future financial or operating performances of the Corporation, its subsidiaries and their respective projects, the timing and amount of estimated future production, estimated costs of future production, capital, operating and exploration expenditures, the future price of copper, gold and zinc, the estimation of mineral reserves and resources, the realization of mineral reserve estimates, the costs and timing of future exploration, requirements for additional capital, government regulation of exploration, development and mining operations, environmental risks, reclamation and rehabilitation expenses, title disputes or claims, and limitations of insurance coverage. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are based on a number of assumptions and subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. Many of these assumptions are based on factors and events that are not within the control of the Corporation and there is no assurance they will prove to be correct. Factors that could cause actual results to vary materially from results anticipated by such forward-looking statements include changes in market conditions and other risk factors discussed or referred to in the section entitled 'Risk Factors' in the Corporation's annual information form dated March 29, 2010. Although the Corporation has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. The Corporation undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change except as required by applicable securities laws. The reader is cautioned not to place undue reliance on forward-looking statements.

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:

Iberian Minerals Corp.

Laura Sandilands

Investor Relations and Corporate Communications

416-815-8558
www.iberianminerals.com