San Anton Resource Corporation announces that, subject to certain conditions, it has agreed in principle with its controlling shareholder, Kings Minerals NL (ASX: KMN) ("Kings"), to complete a business combination whereby Kings will acquire all of the issued and outstanding shares of San Anton not presently owned by Kings in exchange for shares of Kings. In connection with the transaction, Kings intends to apply for a listing on the Toronto Stock Exchange ("TSX") and to complete a financing to be used for the development of the Company's San Anton Project.

Under the terms of the proposed transaction, Kings will establish a wholly-owned Canadian subsidiary which will amalgamate with San Anton (the "Amalgamation") to form an amalgamated company ("Amalco"). Pursuant to the Amalgamation, Kings will receive all of the common shares of Amalco so that Amalco will become a wholly-owned subsidiary of Kings and the shareholders of San Anton, other than Kings, will receive two (2) ordinary shares in the capital of Kings for each San Anton common share held.

On February 2, 2010, the last trading day before the announcement of the proposed transaction, the closing price of San Anton's common shares on the TSX was C$0.25 and the closing price of Kings' ordinary shares on the Australian Securities Exchange ("ASX") was A$0.155. Using the noon nominal exchange rate of the Bank of Canada on February 2, 2010, the share exchange ratio represents an approximately 16% premium over the value of the Company's common shares based on such closing prices, and an approximately 25% premium based on the volume weighted average trading prices for San Anton's common shares on the TSX and for King's ordinary shares on the ASX over the twenty most recent trading days.

San Anton currently has 105,195,690 common shares issued and outstanding, of which Kings owns, indirectly through its wholly-owned subsidiary Kings Minerals Mexico Pty Ltd., 75,000,001 common shares, representing approximately 71.3% of the issued and outstanding common shares of the Company. Kings currently has 424,510,871 ordinary shares issued and outstanding, as well as 6,350,000 ordinary shares issuable upon exercise of outstanding stock options. Upon completion of the Amalgamation, the former shareholders of San Anton (other than Kings) will hold approximately 60,391,378 ordinary shares of Kings, representing approximately 12.5% of the issued and outstanding ordinary shares of Kings after giving effect to the Amalgamation but before the proposed financing by Kings.

In addition to its interest in San Anton, Kings owns the Mount Isa Project, which is an exploration stage molybdenum/copper/gold/rhenium project of significant promise, located near Mount Isa, Australia and composed of six exploration permits and three exploration permit applications. The Mount Isa Project hosts a current mineral resource of 30,000 tonnes of molybdenum, 2,300,000 ounces of rhenium, 195,000 tonnes of copper, and 295,000 ounces of gold estimated in September 2008, and based on 74 drill holes for a total of 33,318 metres. Kings has commenced project studies to evaluate the opportunities for development of Mount Isa, with initial indications that underground mining is the preferred option, and a review of the geological model for input into more detailed underground geotechnical and mining studies has been initiated. Metallurgical test work results from six core samples sent to JK Tech Laboratories, Brisbane showed excellent recoveries of all valuable metals in preliminary flotation test work on samples from the two mineralised domains. The results indicate that the primary recovery stages will yield high metal recoveries for the downstream cleaning/upgrading stages and that high value products from the deposit containing molybdenum, rhenium, copper and gold can be produced utilising a conventional flow sheet and process conditions. Kings intends to continue with pre-development studies on the project, and a budget has been prepared for undertaking a bankable feasibility study.

Norman Seckold, the Chairman of San Anton, is the Chairman of Kings and Craig McPherson, a director of San Anton, is the Chief Financial Officer of Kings.

In connection with the completion of the Amalgamation, Kings intends to change its name and to apply for a listing on the TSX. Kings has not yet applied nor been accepted for listing on the TSX, and listing will be subject to fulfilling all of the listing requirements of the TSX. There is no assurance that a listing on the TSX will be obtained. In addition, Kings intends to complete a financing to be used for the development of the Company's San Anton Project.

Norman Seckold, the Chairman of San Anton, stated "Combining San Anton and Kings will better position the companies for advancing the development of the San Anton Project, which will be for the benefit of the shareholders of both of our companies. Moreover, we believe that the terms of the proposed transaction are attractive to San Anton's minority shareholders and they will be able to participate in Kings' Mount Isa Project in addition to the San Anton Project."

John Cook, the President and Chief Executive Officer of San Anton, added "In the course of recent financing efforts, we have received much feedback from potential investors that they would prefer a unified Kings and San Anton structure. This transaction will achieve that goal and we believe that will enable us to adequately fund the next stage towards development of the San Anton Project, which will benefit San Anton's shareholders. As an added benefit, we will also be able to reduce a significant amount of duplicative public company costs that both San Anton and Kings incur as separate reporting issuers in Canada and Australia".