ATM Atacama Pacific Gold Corporation

Atacama Pacific Gold Corporation (TSX VENTURE:ATM) ("Atacama Pacific") is
pleased to report that it has entered into an agreement for the purchase of 2.5
million cubic metres ("m3") of water annually, representing a flow rate 80
litres per second ("l/s"), from Aguas Chanar S.A. ("Aguas Chanar"), a Chilean
water utility. Treated industrial water will be supplied by Aguas Chanar at
their treatment facility in the City of Copiapo for use at Atacama Pacific's
Cerro Maricunga Oxide Gold Project located 120 kilometres northeast of Copiapo.


"We are very pleased to have obtained a sustainable water source for the
proposed development of our Cerro Maricunga oxide gold deposit," stated Carl
Hansen, President and CEO of Atacama Pacific. "It is anticipated that the use of
industrial water will simplify the permitting process for the project as the
water is not being extracted directly from the environment. A pipeline from
Copiapo would be of similar distance to the pipeline currently under
consideration for the development of Cerro Maricunga but has the benefit that it
would likely be constructed along the road from Copiapo to Argentina which
passes within 20 kilometres of Cerro Maricunga."


The current preliminary economic assessment for the Cerro Maricunga deposit
envisions the development of an open pit mining operation and 80,000 tonne per
day ("tpd") heap leaching facility producing 267,000 ounces of gold annually at
a cash of cost of $652 per ounce over a period of approximately 10 years. To
sustain these production rates, approximately 100 l/s of water flow is required.



The 80 l/s of water available under the supply agreement would support
production levels of 65,000 tpd. Aguas Chanar has stated that increases in the
volume of water available for sale are anticipated due to planned and proposed
plant expansions at Copiapo. Atacama Pacific has the right of first refusal to
acquire any volume increases available.


Atacama Pacific is reviewing the economics of a 65,000 tpd operation using a
coarse crush of +10 centimetres and valley fill leaching. The goal is to reduce
capital expenditures through the elimination of the currently proposed secondary
and tertiary crushers and the conveyor system associated with the conventional
leach pads.


Under the terms of the agreement, Aguas Chanar will supply 2.5 million m3 of
water to Atacama Pacific over a period of 13 years at a rate of US$0.75/m3
commencing upon the start of production at Cerro Maricunga. The supply agreement
is renewable for successive 5-year periods at the end of the 13 year term. Prior
to production at Cerro Maricunga, Atacama Pacific will pay Aguas Chanar
US$574,000 annually which is equivalent to a price of US$0.225/m3 of water.
Aguas Chanar may sell the contracted water during the pre-production period and
the funds received from water sold will be credited against the payments. 


Aguas Chanar is a Chilean water utility which distributes and treats water in
the communities in the Atacama region including Copiapo, Chanaral, and Caldera.
It serves approximately 77,000 customers in the region. Aguas Chanar has been
authorized by the Environmental Evaluation Service to sell treated industrial
water to mining companies and presently provides water to Freeport-McMoRan
Copper & Gold Inc.'s Candelaria copper mine located south of Copiapo.


Water Exploration Programs

Atacama Pacific plans to continue exploring for water at its AMX concessions
located 100 kilometres north of the Cerro Maricunga deposit and at the
concessions located 70 kilometres to the east the deposit which are under a
50:50 joint venture arrangement with Exeter Resource Corporation. Currently, the
costs associated with these programs are minimal.


National Instrument 43-101

Michael Easdon, a professional geologist registered with the American Institute
of Professional Geologists, is the independent qualified person for the current
exploration program and has reviewed the contents of this press release. Carlos
Guzman, a mining engineer, Fellow of the Australasian Institute of Mining and
Metallurgy and a registered member of the Chilean Mining Commission, is the
independent qualified person as defined by National Instrument 43-101 for the
January 28, 2013 Preliminary Economic Assessment for the Cerro Maricunga
project. Mr. Guzman is a Principal and Project Director with NCL Ingeneiria y
Construccion Ltda., Santiago, Chile. 


FORWARD LOOKING STATEMENTS

This news release contains forward-looking statements, including predictions,
projections and forecasts. Forward-looking statements include, but are not
limited to, statements with respect to the PEA, including the potential for
annual gold production in the first five years of production of 298,000 ounces,
total gold production of 2.7 million ounces over a 10.1 year mine life, initial
life of mine estimated operating cash costs of $652 /oz Au, preliminary initial
capital cost estimate of $514.6 million with sustaining capital of $249.0
million, pre-tax pay-back period of 2.5 years at $1,450/oz Au and 1.7 years at
$1,700/oz Au, pre-tax NPV of $741 million at $1,450/oz Au and a 5% discount rate
After-tax NPV5% of $531 million, pre-tax NPV5% of $1,247 million and an
after-tax NPV5% of $923 million at $1,700/oz Au, pre-tax IRR) of 33.9% at
$1,450/oz Au (after-tax IRR of 26.6%), statements regarding the expectation to
increase mineral resources, statements regarding expectations for receipt of
permits and environmental approvals, exploration results (including with respect
to water resources), the success of exploration activities generally, mine
development prospects, and potential future gold production. Often, but not
always, forward-looking statements can be identified by the use of words such as
"plans", "planning", "expects" or "does not expect", "continues", "scheduled",
"estimates", "forecasts", "intends", "potential", "anticipates", "does not
anticipate", or "belief", or describes a "goal", or variation of such words and
phrases or state that certain actions, events or results "may", "could",
"would", "might" or "will" be taken, occur or be achieved. 


Forward-looking statements involve known and unknown risks, future events,
conditions, uncertainties and other factors which may cause the actual results,
performance or achievements to be materially different from any future results,
prediction, projection, forecast, performance or achievements expressed or
implied by the forward-looking statements. Such factors include, among others,
the results of due diligence activities, changes in economic parameters and
assumptions, the interpretation and actual results of current exploration
activities; changes in project parameters as plans continue to be refined; the
results of regulatory and permitting processes; future prices of gold; possible
variations in grade or recovery rates; failure of equipment or processes to
operate as anticipated; labour disputes and other risks of the mining industry;
the results of further economic and technical studies, delays in obtaining
governmental approvals or financing or in the completion of exploration, as well
as those factors disclosed in Atacama Pacific's publicly filed documents.


Although Atacama Pacific has attempted to identify important factors that could
cause actual actions, events or results to differ materially from those
described in forward-looking statements, there may be other factors that cause
actions, events or results not to be as anticipated, estimated or intended.
There can be no assurance that forward-looking statements will prove to be
accurate, as actual results and future events could differ materially from those
anticipated in such statements. Accordingly, readers should not place undue
reliance on forward-looking statements. 


Neither the TSX Venture Exchange nor its Regulation Services Provider (as that
term is defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Atacama Pacific Gold Corporation
Carl B. Hansen
President and CEO
416 861 8267
416 861 9116 (FAX)
info@atacamapacific.com
www.atacamapacific.com

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