Iberian Minerals Ltd. http://iberianminerals.ca/ TSX.V: IML; OTQCB: SLDRF SO:246.7m Insiders: 22%

Last: C$0.055 Iberian Minerals/Mineworx UPDATE

Mission Statement: The objective of Iberian Minerals and Mineworx is to become a low-

cost producer of precious metals in an environmentally responsible, sustainable and

profitable manner by utilizing innovative technologies and expertise.

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Iberian Minerals-Mineworx UPDATE The Morgan Report Involvement Timeline:

* TheTMR Team visits the mobile mill prototype, August, 2015. * TMR covers Iberian Minerals/Mineworx in the December, 2015 Issueissue.

In December, 2015, TMR published a report with the following title:

Iberian Minerals Ltd, with a Conditional Agreement with Mineworx, is Looking at an Early-Stage Gold-Recovery System that Could Become a Game-Changer. The introduction of this

report segued into the following News Release:

Iberian Minerals Enters Into Amalgamation Agreement With Mineworx

Technologies (NR of Tuesday, November 17, 2015 released 08:15 ET.)

http://www.marketwired.com/press-release/iberian-minerals-enters-into-amalgamation-agreement-with-mineworx-technologies-tsx-venture-iml-2074422.htm the core of which

stated:

Iberian Minerals Ltd. announced today that it has entered into an amalgamation agreement dated November 16, 2015 (the “Amalgamation Agreement”) with Mineworx Technologies Inc., a private arms’ length mining and technology company (``Mineworx``) and a newly incorporated subsidiary of Iberian (``SubCo``), pursuant to which Iberian has agreed to acquire all of the outstanding shares of Mineworx by way of a three-cornered amalgamation (the “Transaction”). Under the terms of the Amalgamation Agreement, Mineworx and Subco will amalgamate under the Business Corporations Act (British Columbia) and continue as one corporation, which is a wholly-owned subsidiary of Iberian and will carry on the business of Mineworx following the completion of the Transaction. On December 22, 2015, Iberian Minerals formally announced completion of the Acquisition of Mineworx Technologies.

During the summer of 2015, The Morgan Report Team went to Nevada, in order to observe

a proto-type mobile gold mill in operation. Several months later, we chronicled our initial

observations and conclusions, telling our subscribers in part:

The components are definitely mobile, enabling this technology to be moved almost anywhere that a decent road is present...At the initial test location, we were convinced that this gold acquisition process does in fact work - and works well. Crushed or alluvial ore-bearing material is fed into the initial hopper, and at the end of the process the yield is visible gold. The operation involves multi-stage gravity concentration and mass yield reduction of gold-bearing materials, greatly enhancing the grade of the throughput while substantially lowering the ore mass being processed. Energy and operating costs are reduced, and require much smaller operational and environmental footprints. A further benefit is that the cut-off grade (the lowest grade that is economically feasible) can be reduced, potentially placing additional properties on "the production table".

Since this is an update on the company and the continued development of its business

model, we will not be restating the entire back story here. We strongly suggest, especially

for new subscribers, that you log in to our site and read the report on the mobile gold mill in

the December, 2015 issue of TMR. What follows is the Back Story as to why, in recent months, The Morgan Report has been unable to provide substantive information for our subscribers, in updating the substantial progress that Iberian Minerals/Mineworx has been

making on their Mobile Gold Mill and related activities. .....................................................................................

In September 2015 Mineworx was negotiating a purchase/merger with Iberian Minerals. At

that time Equitorial Exploration owned approximately 45% of Mineworx Technologies. As

Iberian was only interested in 100% ownership, Equitorial was included in the negotiations.

A purchase price and issuing share amount for Mineworx was negotiated and agreed upon

by all three parties. The executive of Mineworx wanted the resulting shares distributed to

the shareholders of Equitorial prior to any further dilution to Equitorial. As part of the

agreement, Equitorial agreed to distribute the Mineworx/Iberian shares by way of dividend

to the shareholders.

As per the agreement, on October 2nd, 2015 Equitorial Exploration issued a press release in

which it declared a dividend to the shareholders. As per the announced declaration, the

Board of Directors of Equitorial would issue the shares of Mineworx to the shareholders of

record as at October 2nd,2015. This fulfilled and confirmed the agreed upon representations

of Equitorial and the purchase/merger with Iberian was completed and announced on

November 13th, 2015.

The resulting shares of Iberian that would be issued to Equitorial was announced at

approximately 43,000,000 shares. These shares were to be distributed by way of dividend

to the shareholders of record as at Oct 2nd, 2015.

Immediately after the announced merger, Equitorial issued a press release in which it

effectively cancelled the declared dividend. This meant the 43,000,000 shares would not be

distributed to the shareholders as agreed by Equitorial. Instead these shares would be

liquidated by Equitorial to fund its day to day operations and other ventures.

The cancellation of the announced dividend gives the appearance of being a deliberate

misrepresentation by Equitorial, to the parties involved in the transaction, including

shareholders of record as at October 2nd, 2015.

Based upon Equitorial's contradictory news releases, it doesn't look like it made a

reasonable effort to fulfill its obligations to shareholders as announced, especially given

that the press release announcing the declaration was not conditional upon any events and

did not contain language as to the potential of cancellation.

As a general rule, 3rd party definitions of a dividend describe it as a declaration of an

obligation of debt to its shareholdlers, and as such cannot be rescinded.

Duane Nelson and other shareholders of Mineworx immediately filed a lawsuit against

Equitorialin which they are suing for damages including, misrepresentation, breach of trust

and oppressive actions towards its shareholders.

We have been informed that all shareholders of Equitorial as of October 2, 2015 are eligible

to participate in the lawsuit.

As at this date, it is estimated that Equitorial has liquidated approximately 35 million shares

of Iberian.

It is our understanding that Iberian/Mineworx's current funding levels, which have been

stated to be substantial, have enabled continuation of the development of their proprietary

technologies, which are now being deployed via recently-signed agreements with mine

owners.

Notice that the market's initial response in the week following the November, 2015 news

release, was quite positive.

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On February 25, 2016, Bob Moriarty, a shareholder in Equitorial, posted the

following column on his website at 321gold.com:

http://www.321gold.com/editorials/moriarty/moriarty022516.html

Bob outlined the behavioral pattern of Jack Bal and concluded with these observations on

Bal's(unsurprising?) turnabout in relation to the previously-stated Equitorial-Iberian-

Mineworx transaction:

Here’s how Jack Bal maximizes value from an investment. He takes a share of EXX worth $.10 on October 2 and adds to it a share of Iberian worth $.10 when the deal was completed and turns it magically into a $.02 stock less than three months later. So I think it’s a pretty easy call to say that he has done his level best to destroy yet another company. But it gets worse. As a result of the $.06 PP announced six days after closing a $.10 PP he took the share structure from about 42 million shares to the current 52 million outstanding in EXX. But now the shares have dropped to a low of $.02 so the company went from being worth $4.2 million to just over $1 million all the while holding shares in Iberian now worth $3.4 million. Naturally the management of Iberian is madder than a wet hen, they just put 43 million shares of their stock into the hands of a fool and a liar. As long as that particular overhang exists there isn’t going to be a lot of people standing in line to buy Iberian shares knowing the fools at EXX will dump their shares the instant they can. Mineworx shareholders have sued Equitorial in order to force them to do what they said they would do in October. ............................................................................................................................ In the interim, Equitorial Exploration Corp (TSX-V: EXX) has been selling Iberian shares into the market, depressing its share price.

Between February 26 and May 10, 2016, by virtue of holding >10% of the outstanding

shares of Iberian Minerals (over 43m shares), EXX was legally required to file on the

System for Electronic Disclosure by Insiders (SEDI) whenever shares were sold.

The record of these transactions can be found at https://www.sedi.ca/sedi/ Between these

dates, more than 20 million shares of Iberian were sold by EXX. After May 10, their holdings

comprised < 10% of Iberian shares, and they no longer had to report their sales...which, as

of this writing, have nonetheless continued.

As best we (TMR) can determine, EXX now still holds about 10 million shares of Iberian.

They have thus apparently sold over 75% of their holdings of Iberian Minerals.

Also, as of this writing, legal action against EXX continues in Canadian courts.

Rendering of the HM X-Tract portable processing unit.

........................................................................................... The following as stated by the company, is for inclusion in this TMR Update:

Mineworx's work and accomplishments in 2016...

Since early January 2016, Mineworx has spent considerable time and effort on the design

and development of additional mining technologies to complement their efforts, plus source

and evaluate future gold alluvial and hard rock deposits, primarily in the southwestern U.S.

Accomplishments:

• Mineworx opens a 7,000 square foot fabrication/assemblyfacility in Coquitlam, British

Columbia for the development of its proprietary mineral grinding unit known as the X

Mill.

• Mineworx opens a 1,500 square foot laboratoryin Coquitlam, BC to continue its

development on its proprietary, non-cyandide based environmentally friendly

lixiviant to be used in the exctraction/leaching of precious metals from ores, gravity

concentrates, flotations concentrates and electronicwaste.

• Signs the first agreement to operate their initialpatent-pending, environmentally

friendly, portable heavy mineral extraction unit, HM X-tract, for alluvial/placer

deposits, on the Vulture Peak mine site near Wickenburg, Arizona.

• HM X-tract mobilized and setup at Vulture Peak, with final calibration being

completed now to maximize efficiencies for this particular deposit to allow full

commercial production on a 24/7 work schedule. All employees have successfully

completed the Mine Safety and Health Administration regulatory requirements

• Sign a second agreement to operate their processing equipment at the hard-rock

Foothill Gold Mine, near Kingman, Arizona.

• Patent submission for a portable grinding unit (the HM X-mill) as an added

component for the second HM X-tract for hard-rock processing.

• Deployment of the second hard-rock HM X-tract to Arizona expected in August.

Expanded View Rende

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The Process as shown

TMR Conclusions based upon It is The Morgan Report's intent

progress of the mobile gold mill

Unfortunately, as careful as we a

We actually watched the progres

and did give a preview to our Ma

capable of taking on greater risk

ndering of the HM X-Tract portable processin......................................................................

own in the December Issue of The Morgan R

pon what we know at the present time:

ent to provide our readers with updates and repo

ill technology and associated developmental effo

we are at TMR, some events just cannot be seen

gress of this speculative investment for more tha

r Master Mind group, because most of these mem

risk, if they chose to do so.

ssing unit ................

an Report

eporting on the

efforts.

en in advance.

than two years

embers are

This company has always remained a speculation, because as good as the technology is -

and has been verified to the TMR team - we simply did not know the outcome of moving

away from the original "shell" company into a single company with clearly defined

objectives. Simply put, let us state that it is unfortunate this took place. We also suffered,

due to the actions primarily of one large insider from Equitorial Exploration. Although this

has initially been a significant set-back, if progress goes as planned, the situation should

result in a reasonably good speculation.

It is The Morgan Report's intent to provide our readers with updates and reporting on the

progress of the mobile gold mill technology and associated developmental efforts, as

information becomes publicly available. If progress goes as planned, this will likely result in

a reasonably consistent flow of data to aid in your decision-making, should you become

interested in the progress of this endeavor.

We believe that as sales of Iberian shares being sold into the market by Equitorial

Exploration Corp.(EXX) continue, the effect of these sales will exert a decreasing influence

on the share price level of Iberian Minerals/Mineworx (IML.V). Meanwhile, Mineworx's

efforts in 2016 have continued unabated. The potential for this technology is still very

favorable and we continue to hold these shares.

This writer (David Smith) has been and remains a shareholder in Iberian Minerals. Prior to

this, he was a shareholder in Equitorial Exploration Corp.

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