BAT Batero Gold Corp

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THE UNITED STATES


Batero Gold Corp. (TSX VENTURE:BAT)(FRANKFURT:68B) ("Batero," or "the Company")
is pleased to announce that it has entered into a letter agreement with
Consorcio Minero Horizonte S.A. ("Horizonte"), pursuant to which the Company
will both enter into a strategic alliance and complete concurrent equity private
placement financings with Horizonte. As a result of this agreement, Horizonte,
together with its affiliates and shareholders (the "CMH Group"), will acquire
ownership of 35% of Batero's issued and outstanding shares (together, the
"Transaction"). The equity financings associated with the Transaction, together
with a loan of up to $2,210,150 to be provided by Horizonte to Batero, will
raise up to an aggregate $20,000,000 for the development of the Batero-Quinchia
Project. Batero also gains a strategic alliance partner in Horizonte, a
privately owned company and the fifth-largest gold producer in Peru. The
Transaction is intended to further Batero's efforts in advancing the
Batero-Quinchia Project in Colombia towards a production decision.


As part of the Transaction, and concurrent with the execution of the definitive
agreement for the strategic alliance, Batero will complete an initial share
financing to Horizonte of 8,913,000 common shares at $0.65 per share, a premium
of approximately 46% (to the volume weighted average closing price of Batero's
shares of approximately $0.46 from October 3, 2012 to October 31, 2012), for
total consideration of $5,793,450, subject to the approval of the TSX Venture
Exchange ("TSX-V"). Batero will pay finder fees in connection with this initial
financing, subject to compliance with the policies of the TSX-V. Upon completion
of this initial financing, the CMH Group will own 19.99% of Batero's issued and
outstanding shares (assuming exercise of all convertible securities held by
Horizonte).


Concurrent with the initial share financing and execution of the definitive
agreement governing the strategic alliance, Batero will complete a subsequent
financing to Horizonte, subject to the approval of the TSX-V and Batero
shareholders, of 18,456,000 subscription receipts at $0.65 per subscription
receipt, a premium of approximately 46% (to the volume weighted average closing
price of Batero's shares of approximately $0.46 from October 3, 2012 to October
31, 2012), for total additional consideration of $11,996,400, such that after
conversion of the subscription receipts, the CMH Group will own 35% of Batero's
issued and outstanding shares (and approximately 39.4%, assuming exercise of all
convertible securities then held by the CMH Group). Each subscription receipt
will automatically convert into one unit on satisfaction of certain conditions,
including, among others, receipt of the required shareholder and TSX-V approvals
for the subsequent financing and issuance of the underlying securities upon
conversion of the subscription receipts. Each unit issuable upon conversion of a
subscription receipt will comprise one common share and the relevant fraction of
one whole common share purchase warrant (such that the subscription receipts
will convert into an aggregate 18,456,000 common shares and 5,000,000 warrants).
Each warrant will be exercisable for a period of three years following the
issuance date at a price of $0.90. Until conversion of the subscription
receipts, the full subscription price therefor will be held in escrow by a third
party escrow agent and may be returned to Horizonte under certain circumstances,
including the failure to obtain the requisite Batero shareholder approval.


The strategic alliance will give Batero access to Horizonte's operational
expertise, accelerating the process of bringing the Batero-Quinchia Project to
production. Two nominees of Horizonte will join Batero's board of directors
subject to the satisfaction of certain conditions, with one of these individuals
selected specifically based on technical acumen. Horizonte will also supply
Batero with any required technical personnel.


Batero's management believes that both the strategic alliance and associated
financings will create several benefits for the Company's existing shareholders.
These include:




--  The financings will generate sufficient cash to fund development of the
    Batero-Quinchia Project through to the completion of a technical study
    compliant with Colombian legislation for production.

--  The benefit of Horizonte's operational expertise reduces development
    risk.

--  The financings will be transacted at a premium to Batero's volume
    weighted average price, minimizing dilution for the Company's current
    shareholders.

--  Batero will maintain 100%, royalty-free ownership of the Batero-Quinchia
    Project.



Brandon Rook, President and CEO of Batero, stated, "Batero is pleased to have
gained a partner of Horizonte's stature. Horizonte's expertise will serve as an
invaluable asset as we focus upon moving the La Cumbre deposit through to a
production decision. In addition to its more than three decades of mining
experience, Horizonte possesses exceptionally high technological, safety, and
environmental standards. These standards will assist Batero in prioritizing both
responsibility and sustainability across our operations."


Felix Navarro, Horizonte's Managing Director, stated, "Horizonte is pleased to
have the opportunity to work alongside Batero in Colombia. Since Batero
commenced exploration on the Batero-Quinchia Project in 2010, the Company has
quickly outlined a large mineral resource and focused its attention on the
promising opportunity at La Cumbre. We believe the addition of our insight and
experience will assist in establishing the La Cumbre deposit as a successful
gold mining operation."


Additional terms of the strategic alliance include the following:



--  Horizonte will have a pre-emptive right to maintain its percentage
    interest in any future financings as long as the CMH Group holds
    beneficial ownership of 10% or more of Batero's outstanding shares.
--  Horizonte will be Batero's preferred partner for any future joint
    ventures in respect of the Batero-Quinchia Project.
--  Horizonte will have right of first refusal in respect of any sale of all
    or any part of the Batero-Quinchia Project.
--  Horizonte will be entitled to representation on Batero's board of
    directors in accordance with the terms of the letter agreement.
--  The strategic alliance will be subject to an area of interest clause
    restricting Horizonte's other activities within 10 km of the Batero-
    Quinchia Project.
--  Batero is entitled to nominate a buyer if Horizonte proposes to sell a
    portion of its position that represents at least 5% of Batero's
    outstanding shares, if such sale is not through the facilities of a
    stock exchange.
--  Horizonte will vote its shares in accordance with the recommendations of
    Batero's management in connection with the election of directors for a
    period of three years.
--  The CMH Group is subject to a standstill with Batero, with its combined
    shareholdings limited to no more than 45% on an undiluted basis, until
    the earlier of the commencement of commercial production and three years
    from closing of the initial financing, subject to certain exceptions.



Mr. Rook concluded, "We believe that Horizonte's investment and the creation of
this strategic alliance lends tremendous credibility to the Batero-Quinchia
Project, and further increases its potential to become a producing asset."


About Batero Gold

Batero Gold Corp. is a Vancouver-based precious and base metals exploration and
development company focused on its 100% owned Batero-Quinchia project in the
Quinchia district of Colombia's emerging Mid-Cauca porphyry gold and copper
belt. The Company is evaluating the most efficient mine scenario at the La
Cumbre deposit, one of three porphyry deposits at the Batero-Quinchia Project.
Batero plans to leverage its strong management team, regional relationships, and
strategic partnership, to develop its prospective project into Colombia next
major mining venture.


About CMH Group

The CMH Group is a group of private companies dedicated to exploration,
exploitation and the metallurgy of gold. The CMH Group owns the Parcoy Mine in
the Pataz Batholith in northern Peru; the Untuca mine in the South, and also
controls over 150,000 hectares of mining prospects in Peru and elsewhere in
South America. The group has produced 200,000 ounces of gold in 2012, for an
accumulated gold production to date of 2.1 million ounces. With this agreement,
the CMH Group consolidates its position in Colombia, a country with important
gold mining opportunities.


ON BEHALF OF THE BOARD OF BATERO GOLD CORP.

Brandon Rook, President & CEO

Batero Gold Corp.

FORWARD-LOOKING STATEMENTS:

Certain of the statements and information in this press release constitute
"forward-looking statements" or "forward-looking information." Any statements or
information that express or involve discussions with respect to predictions,
expectations, beliefs, plans, projections, objectives, assumptions or future
events or performance (often, but not always, using words or phrases such as
"expects", "anticipates", "believes", "plans", "estimates", "intends",
"targets", "goals", "forecasts", "objectives", "potential" or variations thereof
or stating that certain actions, events or results "may", "could", "would",
"might" or "will" be taken, occur or be achieved, or the negative of any of
these terms and similar expressions) are not statements of historical fact and
may be forward-looking statements or information. Forward looking statements or
information related to, among other things the proposed terms of the
Transaction, including the proposed strategic alliance, equity financings and
the loan, the proposed terms of the securities issuable in connection therewith,
and the expected effect and benefits that the Transaction and the strategic
alliance will have on Batero's operations and the exploration and development of
the Batero-Quinchia Project.


Forward-looking statements or information are subject to a variety of known and
unknown risks, uncertainties and other factors that could cause actual events or
results to differ from those reflected in the forward-looking statements or
information, including, without limitation, the need for additional capital by
the Company through financings in order to continue its operations and the
planned exploration and development of the Batero-Quinchia Project, and the risk
that such funds may not be raised; the ability for the Company and Horizonte to
successfully negotiate the applicable definitive agreements and complete the
Transaction, as described; the ability for the Company to obtain the requisite
regulatory and shareholder approval for the Transaction; the speculative nature
of exploration and the stages of the Batero-Quinchia Project; the effect of
changes in commodity prices; regulatory risks that development of the
Batero-Quinchia Project will not be acceptable for social, environmental or
other reasons and the efforts and abilities of the senior management team. This
list is not exhaustive of the factors that may affect any of the Company's
forward-looking statements or information. Although the Company has attempted to
identify important factors that could cause actual results to differ materially,
there may be other factors that cause results not to be as anticipated,
estimated, described or intended. Accordingly, readers should not place undue
reliance on forward-looking statements or information.


The Company's forward-looking statements and information are based on the
assumptions, beliefs, expectations and opinions of management as of the date of
this press release, and other than as required by applicable securities laws,
the Company does not assume any obligation to update forward-looking statements
and information if circumstances or management's assumptions, beliefs,
expectations or opinions should change, or changes in any other events affecting
such statements or information. For the reasons set forth above, investors
should not place undue reliance on forward-looking statements and information. 


FOR FURTHER INFORMATION PLEASE CONTACT: 
Batero Gold Corp.
604.568.6378
info@baterogold.com

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