Mr. Reno Calabrigo reports

BARRANCO ANNOUNCES DEBT SETTLEMENT

Barranco Gold Mining Corp. intends to settle an aggregate of $88,167.62 of indebtedness to a non-arm's-length creditor of the company through the issuance of 89,601 common shares in the capital of the company at a price of 98.4 cents per common share pursuant to the terms of a debt settlement agreement to be entered into between the company and the creditor.

Closing of the debt settlement remains subject to receipt of all applicable regulatory approvals and the policies of the Canadian Securities Exchange. All securities issued pursuant to the debt settlement are subject to a statutory hold period of four months and one day from the date of issuance.

The creditor under the debt settlement is the spouse of Reno Calabrigo, director and chief executive officer of the company, and therefore constitutes a related party of the company pursuant to Multilateral Instrument 61-101, Protection of Minority Security Holders in Special Transactions. Accordingly, the debt settlement constitutes a related party transaction within the meaning of MI 61-101. Pursuant to the debt settlement, the creditor will receive an aggregate of 89,601 common shares. The company is not required to obtain a formal valuation or minority shareholder approval in connection with the debt settlement in reliance on sections 5.5(a) and 5.7(1)(a) of MI 61-101, which provide an exemption where the fair market value of the related party transaction is less than 25 per cent of the market capitalization. The company did not file a material change report more than 21 days before the expected closing of the debt settlement as the details thereof were not settled until shortly prior to closing and the company wished to close on an expedited basis for sound business reasons.

The board of directors of the company has determined that it is in the best interests of the company to settle the outstanding debts by the issuance of common shares in order to preserve the company's cash for working capital. Mr. Calabrigo disclosed an interest in the dsbt Settlement and deliberations regarding the viability of the debt settlement were discussed between the other directors.

About Barranco Gold Mining Corp.

The company is a junior mining exploration company. Its initial focus is to conduct the proposed exploration program on the King property, located in the Nicola and Similkameen mining divisions in British Columbia, and to continue to identify and potentially acquire additional property interests, assess their potential, and engage in exploration activities.

We seek Safe Harbor.