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DEBT

6 Months Ended

Jun. 30, 2012

In connection with the closing of the Exchange Agreement, the Company issued a note with a principal amount of $1,087,000 (the “Camus Note”) to Juan Carlos Camus Villegas (“Mr. Camus”), one of the Santa Teresa Shareholders and presently an officer and director of the Company, in exchange for a note in the same amount owed by Santa Teresa Minerals to him. See “Note 4: Santa Teresa Minerals Acquisition.”

On August 16, 2011, the Company entered into an Exchange Agreement with Mr. Camus pursuant to which the Camus Note was cancelled, upon certain terms and conditions, in exchange for $130,000 in cash, 2,000,000 shares of common stock of the Company, valued at a fair value of $1.00 per share, and a new non-convertible promissory note in the amount of $1,000,000 (the “New Promissory Note”).

The New Promissory Note, which does not contain the anti-dilutive features of the Camus Note, bears interest at a rate of 10% per annum, payable monthly in arrears. Principal and accrued and unpaid interest shall be due and payable on November 1, 2012, provided however that the loan will become payable immediately upon demand by Mr. Camus following certain events, including the Company’s insolvency, bankruptcy, or general assignment for the benefit of creditors and Mr. Camus no longer being a director of the Company (unless Mr. Camus is not a director because of his voluntary resignation as a director). As of June 30, 2012 the Company has paid Mr. Camus $58,333 in accrued interest.

In April 2010, prior to the Company’s acquisition of Santa Teresa Minerals, Metales Acer LTDA, loaned Santa Teresa Minerals 19,970,700 Chilean Pesos or approximately $39,870. The loan did not bear interest and did not specify a maturity date. During the six months ended June 30, 2012 Metales Acer LTDA loaned Santa Teresa Minerals an additional 77,401,871 Chilean Pesos or approximately $157,305. As of June 30, 2012, the balance of the loans from Metals Acer LTDA were $197,175. Juan Carlos Camus Villegas, our Chief Executive Officer and a director, is the CEO of Metales Acer LTDA. Santa Teresa Minerals may from time to time repay all or a portion of this outstanding debt.

In December 2011, Suprafin, Ltd. provided a total of $300,000 to the Company for short-term working capital needs. This balance was paid in full in January 2012. Zirk Engelbrecht, the Company’s President and a director, is the Chief Executive Officer, sole director and sole shareholder of Suprafin, Ltd.

From December 2011 through February 15, 2011, Ms. de Maison provided a total of $1,100,000 in working capital advances in the form of an unsecured demand loan with no interest and no set terms of repayment to the Company’s subsidiary, Santa Teresa Minerals. In February 2012 these advances were assigned to Bluestone SA, of which Ms. de Maison is a major shareholder, and were applied to the purchase of Santa Teresa Minerals’ 60% equity interest in Sulfatos Chile by Bluestone S.A in February 2012. See “Note 5: Sulfatos Chile.”

Santa Teresa Minerals has several lines of credit with Banco Security with a total limit of CLP 177,715,084 or approximately $354,799. These lines of credit have historically been rolled over at the due date into a new line of credit with a revised due date and interest rate.

The following table sets forth the consolidated indebtedness of Casablanca and Santa Teresa Minerals at the date indicated. Inter-company transactions have been eliminated in the consolidated balance sheets:

Description	Terms		Balance Due at June 30 2012		Balance Due at December 31, 2011

Angelique de Maison Loan	No Set Terms	$	–	$	860,000
Suprafin Short Term Advance	No Set Terms - Repaid in 30 Days		–		241,064
Loan with Metales Acer LTDA 4/30/10	Interest Free, No Repayment Date		197,175		38,446
Note to Juan Carlos Camus	See Note 4		1,000,000		1,000,000
	Total Related Party Debt	$	1,197,175	$	2,139,510

Line of Credit with Banco Security	Due 10/9/12 - 8.2%	$	30,102	$	29,014
Line of Credit with Banco Security	Due 8/20/12 - 8.8%		137,349		133,627
Line of Credit with Banco Security	Due 8/20/12 - 8.8%		181,785		175,443
Line of Credit with Banco Security	Due 6/28/13 - 8.8%		9,554		–
MasterCard Credit Card with Banco Security	Revolving Credit Card		1,861		2,810
	Total Loans Payable	$	360,651	$	340,894
	Total Debt	$	1,557,826	$	2,480,404

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

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