Processing Facility Establishes Electrical Corridor

Arequipa, Peru, May 16th, 2013 — Gold Horizons Mining Co. Ltd.

(GXG Markets: GHMG) (“GHM” or the “Company”)

Gold Horizons Mining is pleased to announce through negotiations with the property adjacent to its processing plant that permission has been granted to connect its electrical grid establishing a corridor on their property. The significance here is that the costly electrical extension distance from the previous two kilometers from the Pan American Highway to the facility is greatly reduced resulting in Gold Horizons Mining’s energy supply cost being paired down to the minimum.

There were many options available to connect to the grid but none more strategic or economical. The most obvious advantage is the electrical infrastructure on the property is already in place. This allows the Company to piggyback on the already existing grid simplifying the installation. Secondly, the distance between the plant and the grid is mostly a direct, straight line further reducing installation cost. Thirdly and perhaps most importantly is the relationship now being cemented between GHM and its neighbor. This neighbor has deep roots in the community and is held in high esteem. His voice and opinion carries weight and influence in local politics. Being a good neighbor and having the support of the community on a grassroots level is key to being accepted and ultimately successful.

Energy is one of the largest costs confronting the mining industry. The cost of producing one ounce of gold is greatly affected by the cost of energy. Processing plants are energy intensive and are operated non-stop twenty-four hours a day.  Many of the processing plants that we will be competing with operate in areas where there is no electrical grid available. Their only option is to run diesel generators to produce their electricity. This gives GHM a distinctive competive advantage: our overhead is a fraction of the cost because the plant will be connected to 3-phase 380 volts industrial electricity. Furthermore, many of the surrounding mines have to ship their mineral hundreds of kilometers to these processing plants. Our goal is to produce an ounce of gold below $600. The combination of our processing plant being within 20 kilometers of the mine, within 5 kilometers of the Pan American Highway and connected to the electrical grid will support us in meeting this $600 cost benchmark.