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Baja Mining Secures Us$64 Million Equipment Lease Agreement With Caterpillar Financial

Wednesday, November 14th, 2007

Baja Mining Corp. is pleased to announce that its wholly owned Mexican subsidiary, Minera y Metalurgica del Boleo S.A. de C.V., has entered into an agreement with Caterpillar Financial SARL (“Cat Financial (Zurich)”), of Zurich, Switzerland, to act as Arranger and Provider in relation to an Equipment Lease Facility in an aggregate principal amount of up to US$64 million.
The proceeds of the Facility will be used for the financing of mobile (underground and surface) equipment in connection with the El Boleo project (“Boleo”) located near Santa Rosalia, Baja California Sur, Mexico, which is 100% owned by the Company.
The Facility has a final maturity date of 7 years from initial drawdown. The Agreement is subject to the satisfaction of various conditions precedent. The Company will act as guarantor of the transaction.
Caterpillar Financial (Zurich) is the structured trade and project finance arm of Cat Financial, which itself is a wholly-owned subsidiary of Caterpillar Inc. Cat Financial provides a wide range of financing alternatives for Caterpillar machinery and engines, Solar® gas turbines, as well as other equipment and marine vessels. The company also extends loans to customers and dealers. Cat Financial has offices and subsidiaries located throughout the Americas, Asia, Australia, and Europe, with headquarters in Nashville, Tennessee, USA.
The Facility is in addition to the previously announced underwritten commitment from Bayerische Hypo- und Vereinsbank AG, a member of the UniCredit Group, for a Term Loan Facility of US$475 million and a Cost Overrun Facility of US$40 million.
Endeavour Financial International Corporation (“EFIC”) is retained by the Company as its Financial Advisor for the financing of the El Boleo Project. EFIC continues to work with the company on the successful closing of the Facilities as well as discussions with offtake counterparties and subordinated debt providers.
The Company completed a Definitive Feasibility Study on Boleo in May 2007. The Company is presently preparing the Boleo site for construction and will be proceeding to break ground in early 2008.
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