PROJECT UPDATE – AGUAS TEÑIDAS

Iberian Minerals Corp. (“Iberian” or “the Company”) is pleased to provide the following
update on the development of its 100% owned Aguas Teñidas copper/zinc Project in
Huelva Province, Region of Andalucia, SW Spain (the “Project”). The Project is owned
and operated by the Company’s wholly owned Spanish subsidiary Minas de Aguas
Teñidas S. A.U. (“MATSA”).

Highlights
• Project technical optimisation process almost completed.

• Apart from the operating permit for the tailings storage facility (“TSF”), all other
significant permits and licences required for: i) developing and operating the
underground mine, ii) processing plant construction and operation, and iii) TSF
construction, have been received.

• Sinking of a new production ramp is now well advanced.

• EPCM contract has been awarded to Aker Kaverner.

• Site construction work has commenced.

• Revised geological model, resource estimate, reserve estimate and mine plan have
been completed.

• Additional metallurgical test work which is ongoing is expected to confirm enhanced
metallurgical recoveries for zinc.

• Increased capital and operating costs are as expected.

• Financial analysis, with the updated technical results, confirms strong project
economics.

Post Feasibility Optimisation Work

Under the management of SRK Consulting Pty Limited (“SRK”), Iberian completed a
positive feasibility study on the Project in January 2006 (the “January 2006 FS”).

Subsequent to receiving the January 2006 FS, management determined that material
benefits to the Project could be realised by undertaking the following:-

• Sinking a new and much larger ramp dedicated to production, thus allowing the
existing steeper dipping ramp to be reserved for men and materials.

• Placing a greater emphasis on high productivity Longhole Open Stope (“LOS”)
mining methods, as opposed to the more labour intensive Drift and Fill (“DAF”) mining
methods.

• Recovering zinc from the processing plant’s primary copper circuits.

The Company has awarded the EPCM contract for the construction and detailed
engineering of the processing plant to Aker Kvaerner Engineering Services Limited (“AK”).
Following this, the Company undertook a comprehensive optimisation program for the
Project that included the following:-

• Re-interpretation of the geological model.

• Resource estimate revision.

• Detailed review of mine development, stoping methods and schedules.

• Design of new access ramp with portal proximal to the primary crusher.

• Reserve estimate revision.

• Development of updated mine plan.

• Additional metallurgical test work.

• Final test work on paste tailings backfill.

• Completion of an updated financial model.

Independent Technical Reviews
RSG Global Pty Limited (“RSG”) is compiling a technical report (“the Technical Report”),
which is expected to be completed shortly and will be made available on SEDAR in due
course. RSG has reviewed the updated resource estimate, mine plan, mineral reserves
and mine schedules. In addition, RSG is undertaking a review of all metallurgical test
work, process design and recovery projections. Qualified Persons accepting responsibility
for various aspects of the Technical Report will include SRK (January 2006 FS resource
estimate), Adam Wheeler, C. Eng. Eur.Ing., Independent Consulting Mining Engineer
(updated resource estimate, reserve estimate, mine schedules) and RSG (metallurgy and
processing).

Updated Resource Estimate
The new resource estimate is based on an updated geological interpretation completed by
MATSA personnel on data from 101 surface drill holes and 157 underground drill holes.
The resource estimate was completed by Adam Wheeler, an independent consultant to
the Company. The January 2006 FS resource estimate was revised and updated for that
portion of the resource model (east of 690,400mE) where there is sufficient data from
underground infill drilling. The January 2006 FS model was not revised west of section
line 690,400mE.

The main revisions to the 2006 FS resource model are summarised as follows:-

• Database Update. The drill hole database was updated to reflect the most recent
drilling, which was completed at the end of 2005.

• Interpretation Changes. Based on the updated drill hole database, and detailed
underground mapping, modifications were made to the interpretation of the
mineralised zone envelopes. In this new interpretation, the previously separately
modeled barren pyrite and cupriferous zones were combined into a single
cupriferous/pyrite zone, which MATSA personnel believe more accurately reflects the
actual geology of the deposit. This resulted in some underlying copper intersections,
which appear to be copper stockwork material, being excluded in the revised
interpretation.

• Volumetric Model. A new volumetric block model was generated, based on a
parent block size of 10m by 10m by 5m. Modifications were also made to the
assigned density values for each of the principal rock types, based on new density
data available from more recent drilling.

• Grade Interpolation. Ordinary Kriging was still used as the principal means of grade
interpolation, however search parameters and geo-statistical parameters were
revised using an updated study of composite assay data subdivided into each of the
relevant rock types.
The revised Measured and Indicated Mineral Resource estimate for the Aguas Teñidas
Project is summarised in the table below.

Table 1: Aguas Teñidas - Measured and Indicated Mineral Resources (December 31,
2006)1
Tonnes GradeMineralisation Type Category (000 t) Cu (%) Zn (%) Pb (%) Ag (g/t) Au (g/t)
Polymetallic Measured 4,540 0.70% 7.80% 2.20% 67.1 1.0
Indicated 5,580 1.30% 8.60% 2.70% 86.5 0.9
Total 10,120 1.1% 8.24% 2.48% 77.8 0.9
Cupriferous Measured 6,510 2.30% 1.10% 0.20% 27.7 0.4
Indicated 2,920 2.70% 0.50% 0.20% 29.5 0.5
Total 9,430 2.4% 0.9% 0.20% 28.3 0.4

1)Mineral resources evaluated using cut-offs of 5% Zn for polymetallic material, and 1.5% Cu for
cupriferous material. Measured and Indicated Resources shown are inclusive of Mineral
Reserves.

The revised Inferred Mineral Resource estimate for the Project is summarised below.

Table 2: Aguas Teñidas – Inferred Mineral Resources (December 31, 2006)1

Mineralisation Type Category Tonnes Grade
(000 t) Cu (%) Zn (%) Pb (%) Ag (g/t) Au (g/t)
Polymetallic Inferred 870 1.20% 10.3% 2.60% 111.2 0.9
Cupriferous Inferred 1,550 3.10% 0.70% 0.10% 23.6 0.4
Total 2,420 2.42% 4.15% 1.00% 55.1 0.6
1)Mineral resources evaluated using cut-offs of 5% Zn for polymetallic material, and 1.5% Cu for
cupriferous material.

(1) Mineral resources which are not mineral reserves do not have demonstrated economic viability. The
estimate of mineral resources may be materially affected by environmental, permitting, legal, title,
taxation, sociopolitical, marketing, or other relevant issues.

(2) The quantity and grade of reported inferred resources in this estimation are conceptual in nature and
there has been insufficient exploration to define an indicated mineral resource on the property and it
is uncertain if further exploration will result in discovery of an indicated or measured mineral resource
on the property

The mineral resources in this press release were estimated using the Canadian
Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral
Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing
Committee on Reserve Definitions and adopted by CIM Council December 11, 2005.
Measured Resources are predominantly located in the area that has been covered by
underground infill drilling, generally spaced at 40m intervals. Indicated Resources are
predominantly in the area currently covered by surface exploration drilling, generally
spaced at 100m or less. Inferred Resources are also defined from surface exploration
drilling where intersections are generally spaced at more than 100m, generally west of
689,900Em.

Updated Mine Plan

The updated mine plan has resulted in increasing the mill throughput to 1.7MMtpa
(850ktpa of cupriferous (copper rich) ore and 850ktpa of polymetallic (zinc rich) ore)
resulting in a 12 year mine life. Including construction, start up, mining and closure, the
Project’s life is expected to exceed 15 years. The Company’s management expects that
the mine life will be further extended by underground infill drilling on the western portion of
the current mineral resource and by upgrading current inferred resources to measured and
indicated, however, there can be no guarantee that actual future results will confirm
management expectations.

The new access ramp has been designed to link the surface processing facilities with the
main underground haulage system and has a portal adjacent to the primary crusher. The
ramp will be 3,800m long and 585m deep; it will be developed initially from surface
(2,600m) and subsequently from underground (1,200m). It has dimensions of 5.2m by
5.5m with a gradient of 15%. Mineralised material will be hauled up the new ramp by a
fleet of 65t trucks.

The new mine plan incorporates a much higher proportion of LOS, which is a cheaper bulk
mining method compared with the DAF stoping method. The January 2006 FS envisaged
60% DAF and 40% LOS. As a result of the geological re-interpretation, LOS is now
expected to comprise some 89% of all stoping activity, with approximately 6% DAF and
5% Bench and Fill (“BAF”). Primary LOS stopes will be backfilled with high strength
cemented paste fill from tailings. It has been estimated that an average of 12,000 tonnes
per month can be extracted from each LOS ore block.

Additional Metallurgical Test Work in Progress

Subsequent to the January 2006 FS, the Company has been conducting an ongoing
program of metallurgical test work with a view to optimising the process flow sheet and
increasing mineral recoveries. The final metallurgical results are the subject of a review
process, including a detailed independent review by RSG as part of the Technical Report.
The Company is currently constructing a sophisticated pilot plant for further in house
metallurgical testwork.

One of the main objectives of the test work was to investigate the possibility of recovering
zinc from the cupriferous ore. This work was successful and a zinc recovery from the
cupriferous ore has now been incorporated into the cupriferous ore reserves, the process
design, the mine schedules and the financial model.

The additional metallurgical test work was undertaken by the RPC Process and
Environmental Technology Group in New Brunswick, Canada (“RPC”). The test work
included bench scale tests, locked cycle tests and pilot plant tests.
The results of the test work are being confirmed and will be included in the Technical
Report.

Updated Reserve Estimate

Stope layouts were evaluated against the geological block model. The model evaluation
directly introduced an element of planned dilution and mining recovery. An additional 1%
dilution and 1% mining loss were applied to secondary LOS stopes, because most of
these will have two paste fill walls, which will result in more waste dilution. The resultant
mining factors are summarised in the table below.

Table 5: Aguas Teñidas – Mining Dilution and Recovery Factors
Mining Method Dilution Mining Recovery
Longhole Open Stopes (LOS) Primaries 5.7% 95%
Secondaries 6.7% 94%
Bench and Fill Stopes (BAF) 2.8% 97%
Drift and Fill Stopes (DAF) 1.9% 98%

The basic average stoping costs for long-term mine planning purposes have been derived
from current mining cost estimates, predominantly from supplied mining contractor rates
Stoping costs used for the reserve estimates are €15/t ore (LOS), €21/t ore (BAF) and
€27/t ore (DAF). Metal prices used for the reserve estimates are summarised in the table
below.

Table 6: Aguas Teñidas – Metal Prices (US$) used in Mineral Reserve Estimates
Metal Price
Copper ($/lb) 1.79
Lead ($/lb) 0.34
Zinc ($/lb) 0.96
Gold ($/oz) 501
Silver ($/oz) 6.70

Based on the updated resource model, updated mine plan and revised cost structures,
the new Mineral Reserve Estimate for the Aguas Teñidas Project, as estimated by Adam
Wheeler, is:
Table 7: Aguas Teñidas – Proven and Probable Mineral Reserves (December 31, 2006)
Cupriferous
Class Tonnes (MMt) Grade
Cu (%) Zn (%) Pb (%) Ag (g/t) Au (g/t)
Proven 6.11 2.02 1.41 0.28 28.2 0.42
Probable 2.24 2.64 0.77 0.23 29.9 0.46
Total 8.35 2.19 1.24 0.27 28.6 0.43
Polymetallic
Class Tonnes (MMt) Grade
Cu (%) Zn (%) Pb (%) Ag (g/t) Au (g/t)
Proven 4.79 0.80 6.21 1.78 60.0 0.86
Probable 5.88 1.23 6.96 2.16 73.7 0.76
Total 10.66 1.03 6.62 1.99 67.5 0.81

The Mineral Reserves subdivided by mining method are summarised in the table below.

Table 8: Aguas Teñidas – Proven and Probable Mineral Reserves (December 31, 2006)
Class Longhole Open Stopes (MMt) Bench-And Fill (MMt) Drift-And Fill (MMt) Total (MMt)
Proven 10.41 0.16 0.33 10.90
Probable 6.44 0.77 0.91 8.11
Total 16.85 0.93 1.24 19.01
Proportion 89% 5% 6%

Updated Capital Cost Estimates

The direct capital costs of the project prior to the start of production (“Initial Capital Costs”)
have increased from the January 2006 FS estimate as a result of the second ramp
access, cost inflation for materials and equipment, modifications to the processing circuits,
escalation of wage rates in Spain and a stronger Euro against the US Dollar. The January
2006 FS initial capital cost estimate for the project was approximately $170MM.

The revised Capital Cost estimate for the project is summarised in the table below:

Table 9: Aguas Teñidas – Initial Capital Cost Estimate
Initial Capital Cost Item ( All figures in 'US$000) Cost Base Contigency
Total Mining 51,938 49,341 2,597
Surface Facilities (Ore Treatment Plant) 139,404 131,040 8,364
Electricity 8,421 7,663 758
Building Licence 5,070 5,070
Total Process Plant 152,895 143,773 9,122
Tailings Storage Facility 8,813 8,020 793
Drilling Program 5,230 5,230
Other (IT, etc.) 4,580 4,580
Total Other 18,623 17,830 793
Owners’ costs (operating costs during construction) 19,438 19,438 -
2006 Capital Cost 27,702 27,702 -
Total Project Initial Capex 270,596 258,084 12,512
Total Project Capex 2007 - 2008 242,894 230,382 12,512

Revised CAPEX includes the following contingencies:
Mine 5%
Plant 6%
Electricity 9%
Tailings Storage Facility 9%

The revised Capital Costs for underground mining are $52MM including $2.6MM of
contingency and is composed primarily of underground development costs for the new
ramp access and other ancillary development required prior to the commencement of
commercial production. The drilling program comprises mainly of infill drilling from the
exploration drive.

Operating Costs

Cash operating costs have been estimated in detail for each stope block in the mine
schedule on an NSR basis. Ore treatment operating costs have also been estimated in
detail and are considered accurate to a 10% variation. Plant operating costs will be
updated as required as detailed design work progresses.

Treatment and refining costs (“TC/RC”) are based on advice and the offtake agreement
between the Company and Trafigura Beheer B.V. (“Trafigura”).

Total operating costs over the life of mine are given in the table below based on the
extraction of 10.6MMt of polymetallic reserves and 8.4MMt of cupriferous reserves.
Table 10: Aguas Teñidas – Total Life of Mine Operating Costs (‘000 US$)
Operating Cost Item Cost (US$000)
Mining Polymetallic Ore 226,539
Mining Copper Ore 178,179
Total Mining 404,718
Total Mill 266,765
Total Fixed Cost 110,393
Total LOM Operating Costs 781,877

Operating costs on a unit cost basis are summarised in the table below.

Table 11: Aguas Teñidas – Units Operating Cost (US$/t milled)
Cost Base Cost Estimate ($/t milled)
Mine 21.5
Plant 14.1
Fixed costs 5.9
Total 41.5

Note that the unit cost estimates above do not include treatment, refining or transport cost,
which vary year by year.

Updated Financial Data
The Company has developed a detailed financial model for the Project. A summary of the
project economics is given in the table below.
Table 12: Aguas Teñidas – Summary of Project Production
Total Plant Throughput 19.01 MMtpa
Total Metal Produced
Cu 642 MMlb
9
Zn 1770 MMlb
Pb 513 MMlb
Ag 31 MMoz
Au 0.4 MMoz
Mine Reserve Life 12 years
Initial Capital Cost (USD Millions) 271
Sustaining Capital (USD Millions) 41
Concentrate Produced (tonnes)
Cu Concentrate 915,454
Zn Concentrate 1,248,362
Pb Concentrate 189,950
Average Metal Prices Used Cu ($/lb)
2008 3.22
2009 2.85
2010+ 2.50 - 1.25
Total LOM Operating Cash Flow ($) 655,984,000
Internal Rate of Return (%) 32.55
Net Present Value (USD Millions) 226 at 8%
Pay Back Period (Years) 2

The metal prices used in Table 12 are based on those supplied by Trafigura.

A Euro/US Dollar exchange rate of 0.77 has been used for 2007 and 2008 and a rate of
0.80 has been used for all subsequent years. Management believes that these are rates
within the context of today’s metal and foreign exchange markets. Metallurgical recovery
assumptions used in the financial model are given in the table below. While these
assumptions are based on the work being done by RPC, these assumptions are
subject to confirmation and final metallurgical assumptions/estimates concerning
recoveries may differ from those indicated below. They are provided here as
assumptions to the current project economic model only and not factual results,
and while they are considered to be reasonable in the opinion of management, they
remain subject to confirmation.

Table 13: Aguas Teñidas – Assumed Metallurgical Recoveries used in Summary
Project Economics
Commodity %Recovery
Cu to Poly-Cu Concentrate 69.8
Ag to Poly-Cu Concentrate 37.9
Au to Poly-Cu Concentrate 2.0
Zn to Poly-Zn Concentrate 82.3
Ag to Poly-Zn Concentrate 13.9
Ag to Poly-Pb Concentrate 22.9
Au to Poly-Pb Concentrate 12.0
Pb to Poly-Pb Concentrate 35.3
Cu to Cup-Cu Concentrate 83.1
Ag to Cup-Cu Concentrate 40.7
Au to Cup-Cu Concentrate 18.4
10
Zn to Cup-Zn Concentrate 77.7
Ag to Cup-Zn Concentrate 37.0
Source: MATSA Financial Model

Permitting

All major permits for mine development and construction have been obtained, apart from
the permit to operate the Tailings Storage Facility (TSF). Tailings will be cemented, high
density, dry paste tailings and no environmental issues are expected. The Company has
now filed all the documents requested by the Spanish authorities for issuing the TSF
operating permit and it is hoped this permit will be issued shortly. The Company and the
Project continue to receive strong support from all levels of local government, the unions
and the community. It should be noted that the TSF will not be required until the process
plant is in operation in the second half of 2008.

Project Development Status
Sinking of the new production ramp commenced in late January 2007 and has now
advanced approximately 540 metres. Scheduled completion is late February 2008.
Underground development work also includes stope access by cross cuts, and extending
westwards the existing ramp and hanging wall investigation gallery. The latter is used for
infill drilling purposes and will be used as a return airway. All underground work is being
carried out by local contractors (Insersa). Safety, geotechnics and ground support are
being supervised by RSG.

AK has been awarded the EPCM contract and has commenced construction activities
including site clearance, civil engineering and construction of a new access road. The
engineering and design of the TSF is being undertaken by Golder & Associates (“Golder”).

A 70,000m drilling program has commenced utilising two drill rigs; these will be initially
used: i) to carry out infill drilling from the underground investigation gallery in order to
upgrade the Indicated and Inferred Resources to Measured status, and ii) to test for
possible eastward and shallower extensions of the mineralisation, iii) to complete a
planned geotechnical drilling program ahead of the new ramp advance, and iv) for drilling
the La Majada prospect, west of the Rio Tinto mine.

Financing

The Company expects to be using a combination of equity and conventional bank project
financing to fund Aguas Teñidas to commercial production. Discussions with interested
financial institutions are in progress. A variety of grants, ‘soft’ loans and low interest loans
are available from the Spanish Government (at national and provincial level) and from the
European Union. These potential sources of funding are being investigated and the
Company is optimistic that some of them may be made available, thus reducing the
amount of any conventional debt facility.

Exploration Potential

Based on internal geological interpretations, extensions to the main mineralised zone
westwards and down plunge are anticipated. Management hopes that the current mine
life can be extended as a result of the current drilling program. Surface drilling indicates
mineralisation extends for an additional 1,300m west beyond the western limits of the
current 1,200m long Mineral Reserve. Initial indications suggest the tenure of the
mineralisation in the west of the deposit is broadly similar to that in the east.

MATSA controls a substantial portfolio of exploration and investigation licences,
comprising approximately 300km2 of the Iberian Pyrite Belt. A number of targets have
been identified that require further exploration work, including drilling. The Company is in
the process of formulating appropriate exploration programs. Many of the primary
exploration targets are located within a 5km radius of the Aguas Teñidas processing plant.

As mentioned previously, the Board of Iberian recently approved a 70,000m
(approximately $10MM) property and regional exploration drilling program to be completed
over the next two years, which will include drilling of the higher priority exploration targets.

Consideration is being given to the funding of some of the exploration projects in a
separate entity.

A summary table listing pertinent technical and financial parameters of the Project is given
below:

Aguas Teñidas Project Update, May 22nd, 2007 - Summary Table
1. Mineral Resources
Measured and Indicated Resources
Tonnes Cupriferous
Tonnes Polymetallic
8,430,000
10,120,000
Grade Cupriferous Ore (1.5% Cu cut-off grade)
% Copper 2.4
% Zinc 0.9
% Lead 0.2
g/t Silver 28.3
g/t Gold 0.4
Grade Polymetallic (5% Zn cut-off grade)
% Copper 1.1
% Zinc 8.2
% Lead 2.5
g/t Silver 77.8
g/t Gold 0.9
2. Mineral Reserves
Proven and Probable Reserves
Tonnes Cupriferous
Tonnes Polymetallic
8,350,000
10,660,000
Grade Cupriferous
% Copper 2.19
12
% Zinc 1.21
% Lead 0.27
g/t Silver 28.6
g/t Gold 0.43
Grade Polymetallic
% Copper 1.03
% Zinc 6.62
% Lead 1.99
g/t Silver 67.5
g/t Gold 0.81
3. Mining and Processing
Plant Throughput (tonnes)
Annual Average 1,700,000
Material Processed (tonnes)
Total 18,850,000
Project Life (Years) 15
Mining Underground (89% LOS)
Processing Conventional Mill / Flotation
Concentrate Production (LOM)
Copper Concentrate (tonnes) 915,500
Zinc Concentrate (tonnes) 1,248,000
Lead Concentrate (tonnes) 190,000
Concentrate Production (Annual Average)
Copper Concentrate (tonnes) 82,000
Zinc Concentrate (tonnes) 112,200
Lead Concentrate (tonnes) 17,200
4. Capital Costs
Initial Capital (USD Millions) 270.5
- Mining 52
- Process Plant & Infrastructure 153
- Tailings Management Facility 9
- Drilling Program 5
- Others 4.5
- Owners’ costs (operating costs during
construction)
19
- 2006 Capital Costs 28
- Total Capital Costs 2007-2008 230.4
- Mining 36.5
- Process Plant & Infrastructure 3
- Drilling program 1
5. Operating Costs
Project Operating Costs
- in USD per Tonne of Ore Milled
- Mining 21.5
- Processing 14.1
- Fixed costs 5.9
Total Production Cost 41.5
13
6. Financial Analysis
Project Cash Flows (USD Millions)
Total Revenues 1,470
Less: Operating Costs (782)
Total Operating Surplus 688
Less: Capital Costs (311)
Project Cash Flow (Pre-Tax) 377
Income Tax (27)
Project Cash Flow (After-Tax) 350
Pay Back Period (Years) 2
Internal Rate of Return (100% Equity Basis) 22.6%
Net Present Value (8% Discount Rate) 226

About Iberian Minerals Corp.

Iberian Minerals Corp. through its wholly owned subsidiary MATSA, is proceeding with the
re-opening of the Aguas Teñidas copper/zinc project located in the Andalucia Region of
SW Spain. The Project has sufficient reserves for a 12 year mine life at a production rate
of 1.7MMtpa. The Company has been undertaking significant optimisation, design,
construction and development work on the project subsequent to a positive feasibility
study completed in January 2006, and has awarded the EPCM contract to Aker Kvaerner.
The Company has also signed an off take agreement with Trafigura, which commits
Trafigura to purchase 100% of all the metal concentrates produced by the mine.

Mike Newbury P.Eng is the Qualified Person who has reviewed the technical information
in this news release on behalf of the Company.

Iberian Minerals Corp. trades on the TSX-V under the symbol IZN and on May 18th 2007
had 167,904,433 shares issued and outstanding. To find out more about Iberian Minerals
Corp., please contact Peter Miller or Norman Brewster at 1-416-815-8558