Americas Mining Corporation Files Reorganization Plan to Retain Equity Interest in ASARCO LLC.

AMC Plan Provides Superior Economic Value to Vedanta Offer and Has Full Support of ASARCO's Asbestos Creditors

PHOENIX -- Americas Mining Corporation, (AMC), an affiliate of Grupo Mexico SAB de CV (GMEXICO), today filed its Reorganization Plan for ASARCO to retain its equity interest in its wholly-owned indirect subsidiary, ASARCO LLC. AMC has been seeking to reclaim full equity ownership of its indirect wholly-owned subsidiary ASARCO LLC since it filed for Chapter 11 protection in August 2005.

Under the terms of the plan, which was filed in connection with ASARCO's Chapter 11 proceeding, AMC is offering a total consideration of more than $1.6 billion, including $1.3 billion in cash and a $250 million fully-committed loan to ASARCO. In contrast, the competing plan under consideration by the Court, offered by India-based Vedanta, offers only $1.1 billion in cash and a non-interest bearing so-called "copper note," which Vedanta values at $200 million, backstopped only by a $100 million letter of credit.

In addition to the superior economic value, AMC's plan has the full support of ASARCO's asbestos creditors, one of the most important creditor groups involved in ASARCO's bankruptcy. Vedanta's plan is conditioned upon its obtaining support of the asbestos creditors, which limits its ability to be confirmed by the Court.

"AMC's plan is superior to Vedanta's proposal in every way," said Alberto de la Parra, General Counsel of Grupo Mexico. "It offers exceptional value and enjoys the full support of the asbestos creditors, which is essential to receiving ultimate approval by the Courts. We look forward to the Court's decision in this process and to regaining control of our subsidiary."