Peruvian Precious Metals Corporation: Announces Completion of Convertible Debenture Financing

Closing of Second Tranche of Unit Financing; Corrects Appointee Name

Vancouver - Peruvian Precious Metals Corp. (the "Company") is pleased to announce the closing of its previously announced non-brokered private placement of a convertible debenture in the principal amount of US$100,000.00 to one subscriber with the following material attributes:

Principal Due:  October 22, 2016

Interest Rate:  12% per year; payable every four months in arrears on the principal due date

Conversion:   The subscriber may convert all or part of the outstanding principal amount of the debenture into common shares at the conversion price of CA$0.05 per share at any time during the term of the debenture.

A director of the Company purchased the debenture and, accordingly, the private placement constituted a "related party transaction" under applicable Canadian securities laws. The Company did not file a material change report more than 21 days before the expected closing of the private placement as the Company wished to close the private placement on an expedited basis for sound business reasons.  The Company is also pleased to announce that it has closed the second and final tranche of a non-brokered private placement of 2,943,750 units for gross proceeds of $294,375.

Each unit consists of one common share and one common share purchase warrant. Each warrant entitles the holder, on exercise thereof, to purchase one additional common share at a price of $0.15 on or before January 22, 2018, provided that if the daily volume weighted average price for 20 consecutive days of trading of the Company’s shares on the TSX Venture Exchange (or such other stock exchange on which shares of the Company are listed) exceeds $0.24 per share, the expiry date of the warrants may be accelerated to the day which is 30 calendar days after notice of acceleration has been sent by the Company to the warrant holder.

Securities issued under the debenture and the second tranche of the unit private placement will be subject to a four month hold period expiring on May 23, 2016, in accordance with applicable Canadian securities laws and the policies of the TSX Venture Exchange, in addition to such other restrictions as may apply under applicable securities laws of jurisdictions outside Canada.

The Company intends to use the proceeds of the private placements for general working capital purposes.

The Company would like to clarify the correct full name of the Board appointee announced on December 18, 2015: Miguel Fernando Arias Vargas.  The Company apologizes for any confusion the previous announcement may have caused.


On behalf of the Board of Directors

Brian J. Maher
President and Chief Executive Officer



FOR FURTHER INFORMATION, PLEASE CONTACT:

Peruvian Precious Metals Corp.
Kimberly Ann Arntson, Vice President - Corporate Development
Phone: 1-530-414-4400
Email: kimberly.ann@peruvianpmc.com
Website:  www.peruvianpmc.com



Cautionary Statement: 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.