Tao Minerals Announces Procurement of $500,000 Financing to Fund Further Development of El Colmillo Gold Mine

Tao Minerals, Ltd. announced that it has executed an agreement with Galleon Investments, Ltd., providing for a $500,000 financing. This financing is in the form of a convertible debenture, with terms stipulating an interest rate of 8% and a loan repayment due 90 days from the date of the execution of the agreement, either in the form of cash or through conversion of shares of Tao Minerals stock.

The securities offered in the private placement to the investor were not registered under the Securities Act of 1933 as amended (the “Act”), and may not be offered or sold in the United States absent registration, or an applicable exemption from registration, under the Act.

The monies from this financing will be utilized to cover operational costs at Tao’s El Colmillo Gold Mine, including those expenses derived from setbacks or delays in the mine startup process. It will also provide funds to cover unforeseen costs that may arise in the first few months of operations. Additionally, the availability of these funds will provide management some assistance with its ability to upgrade mine operations to Phase II and Phase III production levels in a timely fashion.

“We are very pleased to have concluded this financing with Galleon Investments and are appreciative of the 90 days allowed before repayment is due. While we may not require the use of the entire $500,000 that this financing provides,” stated James Sikora, CEO of Tao, “its availability will help to ensure that mine operations and upgrades at El Colmillo will proceed in a smooth and timely fashion.”