Lagasco announces private placement, appoints Highsmith to Advisory Committee
and provides update on Anchaca Project

/NOT FOR DISTRIBUTION TO U.S. NEWS SERVICES OR DISSEMINATION IN THE UNITED STATES/

Symbol: LCO.H - TSXV

VANCOUVER, May 13 /CNW/ - LAGASCO CORP. ("Lagasco" or the "Company") is pleased to announce a non-brokered private placement of up to 10,000,000 subscription receipts ("Subscription Receipts") at a price of $0.20 per Subscription Receipt for cash proceeds of up to $2,000,000. Each Subscription Receipt will entitle the holder to acquire, for no additional consideration, one unit of the Company (a "Unit"), without further action or payment on the part of the holder, concurrently with the reactivation of the Company as a Tier 2 company on the TSX Venture Exchange (the "Reactivation"). Each Unit will consist of one common share of the Company and one-half of one common share purchase warrant (a "Warrant"), with each whole Warrant entitling the holder to acquire an additional common share of the Company at a price of $0.35 for a period of one year from the date of issuance of the Warrants.

The proceeds from the sale of the Subscription Receipts will be held in escrow until the Reactivation is completed. In the event that the Reactivation does not occur on or before August 31, 2010, the Subscription Receipts shall be automatically redeemed by the Company at a price equal to the price paid by the holder plus accrued interest. A finders' fee equal to 6% of the gross proceeds, payable in cash, and 6% of the number of Subscription Receipts sold, payable in warrants (the "Finder's Warrants") to acquire common shares of the Company, exercisable at $0.35 for a period of one year from the date of issuance of the Finder's Warrants, may be payable on all or a portion of the offering.

Proceeds from the sale of the Subscription Receipts will be used to finance the exploration program on the Anchaca Project in southern Peru, for the acquisition, prospecting and evaluation of a second mineral property and for general working capital and corporate purposes.

Appointment to Advisory Committee

The Company is pleased to announce the appointment of Mr. Patrick Highsmith to its Advisory Committee, effective immediately.

Mr. Highsmith is a Geochemist/Geologist with 20 years of multi-commodity minerals industry experience from more than 200 mines and projects in over 20 countries. He has been directly involved with numerous deals, project start-ups, and financings, and has held positions in mining, exploration, and business development with Rio Tinto, BHP Billiton, and Newmont Mining. At Newmont, he was Global Manager - Exploration Business Development before leaving in 2008 to found Intuitive Exploration, Inc. and the BitterRoot Group LLC. He holds Bachelor's and Master's degrees in Geological Engineering and Economic Geology/Geochemistry from the Colorado School of Mines. He is currently President and CEO of Lithium One Inc. (TSXV: LI) and Chairman of Copper One Inc. (TSX: CUO).

Leigh Freeman, Lagasco CEO commented: "We are extremely pleased with Patrick's decision to join the Advisory Committee. Patrick is an internationally-recognized geochemist/geologist who has access to many important mineral properties for our consideration as well as relationships with institutional-grade investors in North America, Europe and Asia. On the Committee, Patrick joins Merwin (Bernie) Bernstein and Lawrence Dick, both of whom are recognized by the exploration community as proven mine-finders."

The Lagasco Corp. Advisory Committee consults with the Company's Board of Directors and management on the development of the Company's projects, beginning with the Anchaca Property in Peru. The Committee is comprised of leading experts in the technical, commercial and financial fields, who can contribute to the advancement of Lagasco's projects.

Anchaca Project Update

Leigh Freeman, President and CEO had the following comments concerning the Company's Anchaca Project: "Lagasco's million-dollar drilling and trenching work program on the Anchaca project continues on schedule. Camp construction will be completed next week, after which we'll begin construction of twelve drill pads, and start the surface trench sampling program. We are excited about the commencement of the three month drilling program to sample the continuation of outcropping gold, silver and copper values in this potential copper-gold porphyry mineral system."

About Lagasco Corp.

Lagasco is a newly constituted minerals exploration company focused on discovery of large precious- and base-metal mineral systems in stable political jurisdictions. Lagasco is traded on the NEX board of the TSX Venture Exchange. The acquisition of an interest in the Anchaca Project will form the basis of the Company's application to graduate to the TSX Venture Exchange as a Tier 2 listed company.

Cautionary Statements

This document contains statements about expected or anticipated future events and financial results that are forward-looking in nature and as a result, are subject to certain risks and uncertainties, such as general economic, market and business conditions, the regulatory process and actions, technical issues, new legislation, competitive and general economic factors and conditions, the uncertainties resulting from potential delays or changes in plans, the occurrence of unexpected events, and the Company's capability to execute and implement its future plans. Actual results may differ materially from those projected by management.

This news release does not constitute an offer to sell or solicitation of an offer to sell any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to a U.S. Person unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

For further information: D. Barry Lee, Chairman, [phone]