HONDO MINERALS ANNOUNCES INITIAL PRODUCTION

CHLORIDE, AZ, July 11, 2011 /PRNewswire/ - Hondo Minerals Corporation (OTCBB: HMNC.OB) announced today that it has commenced production at its Tennessee Mine property in western Arizona.  During the first half of the year, the company completed all work related to the construction of the plant structure, installed all equipment used for its innovative E-Leach extraction process, and completed all required training and regulatory approvals. The company is now processing ore from the 1 million tons of tailings present on the mine site, producing gold, silver, zinc, and lead.

Production rates are currently at pilot levels, and are expected to ramp to a commercial rate of 150 tons per day over the next six months.  Based on the company's analysis of mineral content in the tailings, Hondo expects the tailings to average an approximate yield of  1-3 ounces of gold, as much as 30 ounces of silver along with hundreds of pounds of zinc, and lead per ton. These projections represent the company's best estimate of average yields based on independent study and testing; actual yield could vary materially from these projections.

As of the close of trading on Friday, July 8, spot gold was trading at $1,556.32 an ounce, and spot silver was trading at $36 an ounce with zinc and lead prices at $ 1.22 and $ 1.06 per pound, respectively.

William R. Miertschin, Chairman and CEO of Hondo Minerals said, "We are very excited to hit this milestone in the development of Hondo Minerals.  After years of preparation, planning, and expense, we are transitioning from the development stage to the operating stage.  We look forward to rapid growth in production rates, revenue, and cash flow now as we ramp up the Tennessee Concentration Plant.  We are also excited to see the efficacy of our environmentally friendly and cost effective E-Leach extraction technology being verified in commercial production."

About Hondo Minerals

Hondo Minerals Corporation is engaged in the acquisition of mines, mining claims and mining real estate in the United States, Canada and Mexico with mineral reserves of precious metals or non-ferrous metals. Hondo owns the Tennessee and Schuylkill Mines in Chloride, Arizona. The Tennessee Mine was the largest producing silver mine in Arizona history. The Tennessee Mine operated from the late 1800s until 1947 producing lead, zinc, gold and silver. The Company also owns numerous other mining claims in the US Southwest, which are being evaluated for additional reserves.

Cautionary Note Regarding Forward-Looking Statements

This press release contains forward-looking statements that involve risks and uncertainties, including the Company's beliefs about its business prospects and future results of operations. Some factors that could cause actual results to differ materially include economic and operational risks, changes in anticipated earnings, continuation of current contracts, and other factors detailed in the Company's filings with the Securities and Exchange Commission, including its most recent Forms 10-KSB and 10-QSB. The Company forecasts provided above are dynamic and therefore refer only to this release date. The Company does not undertake to update any forecasts that it may make available to the investing public.

SOURCE Hondo Minerals Corporation