Benz Capital Corp. Announces Definitive Agreement and New NI 43-101 Technical Report to Update the Resource Disclosure on the San Javier Copper Project

VANCOUVER, BRITISH COLUMBIA--(Marketwired - May 6, 2014) -

NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES AND DOES NOT CONSTITUTE AN OFFER OF THE SECURITIES DESCRIBED HEREIN.

Benz Capital Corp. (the "Corporation" or "Benz") (TSX VENTURE:BZ) announced that it has entered into a Definitive Agreement (the "Agreement") with Tusk Exploration Ltd., a private British Columbia company ("Tusk") for the option to acquire up to a 100% interest (the "Transaction") in the San Javier Copper Project (the "Property"), near the village of San Javier, which is 140km (by road) east-southeast of Hermosillo, Sonora, Mexico.

At this time, the Transaction remains subject to a number of approvals, including completion of due diligence investigations to the satisfaction of Benz by June 15, 2014, acceptance by the TSX Venture Exchange (the "Exchange") and approval of the shareholders of Benz.

Benz also announced the results of a mineral resource estimate in accordance with National Instrument 43-101 ("NI 43-101") for the Cerro Verde and La Trinidad Deposits within the Property.

"The size and grade of this updated mineral resource estimate will allow Benz to complete a NI 43-101 Preliminary Economic Assessment, in the next few weeks, as well as to initiate the necessary technical studies and metallurgical tests for a feasibility study, which is set to begin in the third quarter of 2014", said Miloje Vicentijevic, President and CEO of Benz.

Highlights

• New NI 43-101 Resource Estimate reporting 47.7 million tonnes of Indicated Resources, average copper grade of 0.32%, containing 222.8 million pound of recoverable copper; and 5.8 million tonnes of Inferred Resources, average copper grade of 0.39%, containing 29.7 million pound of recoverable copper.
• The Corporation has initiated a study to complete a full Preliminary Economic Assessment in accordance with NI 43-101.
• 89% of the reported resources are classified as the Indicated category, providing an opportunity for a quick transition to the feasibility study stage, and a construction decision.
• San Javier's location in Sonora, Mexico, one of the world's most favorable mining jurisdictions, is aligned with the Corporation's strategy to develop mining projects within the Americas.
• Significant exploration potential at the Property to expand current mineral resource.
• Excellent Infrastructure - a paved highway to the Property as well as access to the national grid power line are in place.

Transaction Overview

Under the terms of the Agreement, Benz may acquire an initial 40% interest in the Property (the "First Option") through (i) the payment of $200,000 upon receipt of the conditional acceptance of the Exchange and in any event on or before July 15, 2014; (ii) the issuance, on or before the date that is five business days following October 31, 2014, of such number of common shares of Benz (the "Consideration Shares") having a value of $5,000,000 at a deemed price per Consideration Share equal to the lesser of $0.50 and the price per common share of the Company to be issued pursuant to a private placement to be conducted by Benz in connection with the Transaction (the "Financing"); and (iii) the payment of $2,000,000 on or before January 02, 2018. Upon exercise of the First Option, Benz may, through the payment of $2,000,000 on or before January 02, 2019, acquire an additional 60% interest for a total 100% interest in the Property (the "Second Option") subject to a net smelter returns royalty ("Royalty Percentage") to be granted to Tusk on the earlier of (i) the date Benz has exercised the Second Option and (ii) the date commercial production from the Property commences. The Royalty Percentage will be determined based on the realized price of copper and will have a range of 0.5% and 1.5%.

The Consideration Shares to be issued to Benz will be restricted and released in stages over a four year period. Under the terms of the Agreement, Benz has until June 15, 2014 to complete its due diligence review.

Benz currently intends to close the Financing for minimum gross proceeds of $8,000,000 prior to, or concurrently with, the issuance of the Consideration Shares, on or before October 31, 2014.

The terms of the Option Agreement also provide for the formation of a joint venture between the Corporation and Tusk in the event the Corporation determines not to, or fails to, exercise the Second Option.

Mineral Resources

The Property consists of two non-contiguous groups of concessions. The Group 1 land block (379.8 hectares) contains the Cerro Verde Deposit and includes the Uno, Dos, Tres, Cerro Verde, and Ampliacion Cerro Verde concessions. The Group 2 land block (307.5 hectares) contains the Mesa Grande and La Trinidad deposits, and includes the San Carlos, La Trinidad Fraction 1, and La Trinidad Fraction 2 concessions.

The Property is essentially copper-only mineralization which is hosted within Laramide age volcanic rocks.

The mineral resource estimate reported herein was prepared by Dr. Gilles Arseneau of Arseneau Consulting Services, of North Vancouver, BC, Canada.

Mineral Resource Estimate, May 5, 2014, at a cut-off grade of 0.05% recoverable oxide copper

		Metric Tonnes (M)	Total Cu (%)	Copper Oxide (%)	Contained Copper (M lbs)
Cerro Verde Resources
	Indicated	47.7	0.32	0.21	222.8
	Inferred	3.8	0.28	0.14	12.06
La Trinidad Resources
	Inferred	2	0.61	0.39	17.6
Total Indicated		47.7	0.32	0.21	222.8
Total Inferred		5.8	0.39	0.23	29.66

Mineral resources that are not mineral reserves do not have demonstrated economic viability. Mineral resource estimates do not account for mineability, selectivity, mining loss and dilution. These mineral resource estimates include inferred mineral resources that are normally considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves. There is also no certainty that these inferred mineral resources will be converted to measured and indicated categories through further drilling, or into mineral reserves, once economic considerations are applied.

Mineral Resources Estimate Methodology

Mineral resources were estimated using Gems Version 6.6 block modeling software into 15 by 15 by 10 m blocks using ordinary kriging. The estimates have been generated from drill hole sample assay results and the interpretation of a geologic model that relates to the spatial distribution of copper mineralization in the deposits. Resources have been classified using average distances and a minimum number of drill holes within the search ellipse and are reported according to the CIM definition standards for Mineral Resources and Mineral Reserves. For the Cerro Verde deposit, blocks that were within 50 m of three drill holes were classified as Indicated Mineral Resources. All mineral resources for the Trinidad deposit were classified as Inferred Mineral Resource.

Quality Assurance and NI 43-101 Compliance

Dr. Gilles Arseneau, P. Geo, has verified the technical and scientific information including sampling, analytical and test data underlying the information or opinions relating to the updated Mineral Resource estimate included in this news release. There are no known legal, political, environmental, or other risks that could materially affect the potential development of the Mineral Resources.

The technical information in this news release has been prepared in accordance with Canadian regulatory requirements set out in NI 43-101 and reviewed by Michael Gareau, P. Geo., Benz's VP Exploration, a "Qualified Person" under NI 43-101. The mineral resource estimate reported herein for the Property was prepared by Dr. Gilles Arseneau, an independent "Qualified Person" as defined by NI 43-101.

About the Corporation

Benz is a junior mining company focused on the exploration and development of mineral properties located in the Americas. Its strategic vision is to become a profitable mining producer providing value for all stakeholders. For more information, please refer to the Company's website at www.benzcapital.com.

Technical Report

A NI 43-101 compliant Technical Report related to the mineral resources reported herein, will be filed under Benz's profile on SEDAR at www.sedar.com within 45 days.

This news release contains forward-looking statements or information (collectively referred to herein as "forward-looking statements") about the Corporation's expectations regarding the Transaction and the Property's mineral resources that are forward-looking in nature and, as a result, are subject to certain risks and uncertainties. Although the Corporation believes that the expectations reflected in these forward-looking statements are reasonable, undue reliance should not be placed on them as actual results may differ materially from the forward-looking statements and there can be no assurance that such expectations will prove to be correct. Risks, uncertainties and factors that could cause the actual results to differ materially from those in forward-looking statements include failure to complete the Transaction for any reason whatsoever, including that the shareholders and/or the Exchange may not approve the Transaction or the Corporation may not be able to complete the Financing, the mineral resource estimate for the Property may be substantially less than as indicated in the technical report and the potential development of the Property to a producing mine may not occur as planned or at all. Readers are cautioned that the foregoing list of risks, uncertainties and other factors is not exhaustive. Unpredictable or unknown factors not discussed could also have material adverse effects on forward-looking statements. The impact of any one factor on a particular forward-looking statement is not determinable with certainty as such factors are dependent on other factors, and the Corporation's course of action would depend on its assessment of the future considering all information then available.

The forward-looking statements contained in this news release are made as of the date hereof, and the Corporation undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, except as required by applicable securities laws. The forward-looking statements contained in this news release are expressly qualified by this cautionary statement.

Neither the 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.