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SULFATOS CHILE/BLUESTONE S.A.	6 Months Ended
Jun. 30, 2012
Notes to Financial Statements
Note 5. SULFATOS CHILE/BLUESTONE S.A.	On February 15, 2012, Santa Teresa Minerals sold its 60% equity interest in Sulfatos Chile to Bluestone S.A., an entity organized under the laws of Chile (“Bluestone”), pursuant to the stock purchase agreement dated January 26, 2012, as amended. The interests in Sulfatos Chile were sold in exchange for (a) Santa Teresa Minerals receiving 2,000 shares of common stock of Bluestone, representing 20% of the outstanding capital stock of Bluestone at the time; and (b) $2.2 million, with $1.1 million paid by cancellation of a demand loan made to Santa Teresa Minerals by Angelique de Maison in January 2012, which loan had been assigned by Ms. de Maison to Bluestone, and the balance of $1.1 million to be paid in monthly installments from time to time upon demand by Santa Teresa Minerals. A total of $2,065,000 has been paid as of June 30, 2012 with $135,000 remaining as a note receivable. Santa Teresa Minerals retained an obligation to provide $214,000 to Sulfatos Chile, which was paid by Santa Teresa Minerals with the proceeds from the purchase price. The Company determined this transaction to be a related party transaction since both companies have a common officer and director. The $4,042,882 difference between the value of the interest and the consideration received was recorded through additional paid in capital. The 20% interest in Bluestone S.A. is valued at $nil, Bluestone’s historical cost.

SULFATOS CHILE/BLUESTONE S.A.

6 Months Ended

Jun. 30, 2012

On February 15, 2012, Santa Teresa Minerals sold its 60% equity interest in Sulfatos Chile to Bluestone S.A., an entity organized under the laws of Chile (“Bluestone”), pursuant to the stock purchase agreement dated January 26, 2012, as amended. The interests in Sulfatos Chile were sold in exchange for (a) Santa Teresa Minerals receiving 2,000 shares of common stock of Bluestone, representing 20% of the outstanding capital stock of Bluestone at the time; and (b) $2.2 million, with $1.1 million paid by cancellation of a demand loan made to Santa Teresa Minerals by Angelique de Maison in January 2012, which loan had been assigned by Ms. de Maison to Bluestone, and the balance of $1.1 million to be paid in monthly installments from time to time upon demand by Santa Teresa Minerals. A total of $2,065,000 has been paid as of June 30, 2012 with $135,000 remaining as a note receivable. Santa Teresa Minerals retained an obligation to provide $214,000 to Sulfatos Chile, which was paid by Santa Teresa Minerals with the proceeds from the purchase price.

The Company determined this transaction to be a related party transaction since both companies have a common officer and director. The $4,042,882 difference between the value of the interest and the consideration received was recorded through additional paid in capital. The 20% interest in Bluestone S.A. is valued at $nil, Bluestone’s historical cost.