VANCOUVER, B.C. – Baroyeca Gold & Silver Inc. (the “Company”) is pleased to announce  that it is commencing its 2012 work program on its Baroyeca 4 Property, Sonora State, Mexico. Upon the recommendation of its independent consulting geologist, Linda Caron, M.Sc., P.Eng., the program will include ground gravity and IP surveys to extend the area of the Property surveyed last year and will be followed by a reverse circulation drilling program with an initial stage of up to 5,000 metres. With respect to the geophysical work, the Company has entered into a contract with S. J. Geophysics, of Langley, B.C. to carry out the ground gravity and IP surveys. Line cutting has commenced in preparation for these surveys. The drilling program is set to start at the end of January.

Update on Directors and Officers

The Company’s Annual General Meeting (“AGM”) was held on December 13, 2011. All matters presented in the Company’s Notice of Meeting and Information Circular were approved at the Meeting. The directors elected for the ensuing year include the incumbents Richard Wilson, Eberhard Mueller, Erik Ostensoe and Douglas Eacrett together with the newly elected directors William T. Carr, of New York, U.S.A. and Bruno Mosimann, of Zurich, Switzerland.

Mr. Carr brings to the Board over thirty years experience in corporate finance in a variety of areas including real estate, mining and golf course finance and development. For the last twenty years, Mr. Carr has served as President of Auriga Capital Corporation, of Bronxville, New York, a private company providing corporate  finance and loan workout services to the mining, construction and real estate industries.

Mr. Mosimann brings to the Board over 25 years experience in finance and investment as CEO of Romofin AG of Zurich, Switzerland., a  private investment counselling and portfolio management company.

At the AGM, Mr. Mueller announced that he was stepping down as President and CEO of the Company and will continue his involvement as a member of the Board of Directors. Accordingly, following the AGM the directors  appointed Richard Wilson as President and CEO of the Company. The directors also appointed William Carr as COO of the Company with responsibility for Mexican operations. Mr. Carr will employ his project development and financial management experience to this new role with the Company.

BAROYECA GOLD & SILVER INC.

The primary focus of the program was the wholly-owned Baroyeca 4 concession (the “B-4″), which was tested by 10 holes (2524.5 metre). Drilling confirmed the presence of a large, intrusive-hosted mineralized system at the B-4 target. The remaining 4 holes were drilled on the southern (optioned) part of the property. Two holes tested the Alfi Ridge zone where surface samples had returned elevated values of copper and silver within intrusives, to test for the southern continuation to the B-4 target. Two holes were drilled to test the Tescalama shear zone at depth. Select grab samples from surface at the Tescalama showing had returned an average grade of 12.2 g/t Au and 2.3% Cu, with one sample returning 95.7 g/t Au and 10.7% Cu. There were no results of interest from holes drilled at the Alfi Ridge and Tescalama showings.

Drilling at B-4 tested a portion of the core and flanks of a large, at-depth chargeability anomaly that was identified by the Phase 1 program. Drilling also testing, in part, several large areas of intensely altered intrusive rocks (quartz-hematite, sericite) seen on surface. Widespread silicification, brecciation and pyrite mineralization was encountered in drilling, with several intervals exceeding 100 m in length. Level of oxidation was variable, ranging to in excess of 300 metres in one drill hole.

Significant results from the 2011 drill program included:

Drill Hole Description
ddh B4-11-01 22.05 m @ 12.4 g/t Ag + elevated Zn, Hg, including 8.4 m @ 25 g/t Ag Hole lost at depth in zone of highly anomalous Ag, Zn, Hg
ddh B4-11-02 wide intervals of strong brecciation, silicification + pyrite
ddh B4-11-06 85.5 m @ 5.4 g/t Ag + elevated Cu, Au, As, Hg, Sb, Se, Te including 21.6 m @ 14.8 g/t Ag Hole lost at depth in mineralized zone
ddh B4-11-08 wide intervals of strong brecciation, silicification + pyrite
ddh B4-11-09 300 + metre deep oxidation
ddh B4-11-10 20.05 m @ 0.21% Zn, 5 g/t Ag + elevated Hg, Cu wide intervals of very strong brecciation and silicification

Geochemical data from drill core samples shows a strong correlation between silver and copper, mercury and tellurium, and a modest correlation between silver and lead, zinc, arsenic, antimony and selenium. The extent and strength of alteration, the encouraging geochemistry, and the size of geophysical and geochemical anomalies all support the potential for a large intrusive-hosted deposit.

Drilling was logistically and technically difficult. The intense clay-sericite alteration and the degree of fracturing and shearing caused 2 holes to be lost at depth. Two additional holes were lost near surface, in a sandy aquifer. Where oxidation was extensive, core recovery was very poor. The combined result of these difficulties is that the B-4 target remains open in all directions, the quartz-hematite breccia zone seen on surface remains untested by drilling, and the zone of most intense sericite alteration is not adequately tested at depth.

Based on the results of its 2011 work programs, the Company’s independent geological consultant, Linda Caron, MSc, PEng, has recommended a follow-up two-phased program: Phase I consisting of 7,000 metres of reverse circulation drilling and additional geophysical programs of ground gravity and IP surveys, at an estimated cost of $1,500,000, and Phase II, contingent on the results of Phase I, consisting of 2,500 metres of diamond drilling at an estimated cost of $1,500,000.

Results reported in this release are weighted averages from continuous drill core samples collected. Sample intervals were determined by mineralization and geology. Intervals ranged from 0.2 to 8.75 metres and averaged 2.9 metres. All intervals reported are drill intercepts. The relationship between drilled intercept and true thickness is unknown. Core was split with half core samples shipped to ALS Chemex’s facility in Hermosillo, Mexico for preparation. Pulps were shipped to the ALS Chemex laboratory in North Vancouver for analysis. Both facilities have ISO 9001:2000 and ISO 17025 accreditation. All samples were analysed for a multi-element suite by ALS’s method MS41 (ICP-MS and ICP-AES following aqua-regia digestion). Gold analyses by method ICP-22 (analysis by FA/ICP-AES on 50 gm sample) were included for a subset of samples.

A total of 375 drill core samples were collected during the 2011 program. A quality control-quality assurance program was implemented by the company during the drill program, including company-inserted blanks and standards at regular intervals.

Linda Caron, M.Sc., P.Eng. is the qualified person under NI 43-101 who has reviewed and approved the technical content of this news release.

BAROYECA GOLD & SILVER INC.

Per:
Richard Wilson, Director