Advanced Explorations Inc.
TSX VENTURE : AXI
FRANKFURT : AE6

Advanced Explorations Inc.

August 23, 2010 08:45 ET

Advanced Explorations Inc. Acquires Additional Targets

TORONTO, ONTARIO--(Marketwire - Aug. 23, 2010) - Advanced Explorations Inc. (the "Company" or "AEI") (TSX VENTURE:AXI)(FRANKFURT:AE6) is pleased to provide an update on the Company's recent field programs, the Alaska Iron Sands project and the due diligence process of China XinXing Pipes Group.

The Company has completed the first phase of its regional assessment of other commodity opportunities on the Melville Peninsula. Based on the promising conclusions of the team, AEI has expanded its 100% holding to over 140,000 acres outside of the original Joint Venture ("JV") area and added an additional 15,000 acres within the JV. Here, property acquisition was focused on iron ore targets with precious metal and base metal opportunities acquired elsewhere. Additional target evaluation will commence once the last round of sample assays are received. Depending on results, additional land may be acquired around key mineral prospects. 

On August 18th, the Company announced its option to acquire a 100% interest in an Alaska Iron Sands project from 7th Sea Holdings Company. The project is located on the Alaska Peninsula (pan handle), approximately 6500 km from China making the deposit potentially competitive to ore being shipped from Australia to China. AEI believes there is excellent tonnage potential, and the ocean location provides additional development advantages. In order to make an informed acquisition decision, metallurgical studies are currently underway to determine the process required to produce quality concentrate products with results expected in the next few months.

As part of the due diligence process of China XinXing Pipes Group (as press released on July 19th, 2010), five delegates led by the Director of the Investment Committee Mr. Guo Shijin visited the Roche Bay and Tuktu deposits and attended a variety of meetings with government and Inuit community officials (pictures can be seen on the company website www.advanced-exploration.com ). XinXing's evaluation of the Company's assets is ongoing, and a decision is expected within the timeline set out in the MOU.

John Gingerich, President & CEO, commented:

"The Company has met its three key target objectives (milestones). 

  1. Moving forward in developing a strategic partnership with XinXing Pipes Group: AEI believes XXP to be an excellent partner with the financial and technical capability to take the Roche Bay project to production. 
  2. Expanding the core (iron ore) asset base of the company with the acquisition of the large Alaska iron sands project. 
  3. Advancing the Company's precious metal (Au, Ag) and base metal (Cu, Ni) potential: A program is underway to determine the economic potential of numerous targets that have been identified which has already led to an expansion of our land holdings. The results of this review will be an important guide on how best to monetize the value of these assets for our shareholders. Within the next few months we will decide whether to spin out, joint venture or pursue these opportunities within AEI as part of our project portfolio.

There appears to be a continuing strong resurgence within the commodity sector and in particular iron ore. The Company continues to evaluate new growth opportunities and respond to unsolicited inquiries to partner on other projects not covered by the XinXing MOU. We are very confident that the next six months will be very good months for AEI."

ON BEHALF OF THE BOARD

John Gingerich, President & CEO

ABOUT Advanced Explorations Inc.

Advanced Explorations Inc., based in Toronto, Ontario, is a resource development company focused on developing high quality iron ore opportunities. Currently, the company holds interests in projects located in Nunavut with low infrastructure needs. The Roche Bay magnetite project is located on the coast and is bolstered by a deep water access to its eastern coast. The Company intends to build upon logistical benefits when developing its current projects at Roche Bay and Tuktu. AEI plans to produce high quality iron products from the 357 million tonnes inferred resource of the project's C-Zone. Its preliminary economic assessment for the project indicates a potential US $2.76 billion net present value, a minimum of 50 years mine life and a return on investment between three and five years. Led by an experienced management team with technical, exploration and mining expertise the company has the capabilities to rapidly advance the Roche Bay and Tuktu Projects and explore other local and global opportunities.

This news release also includes forward-looking statements that involve a number of risks and uncertainties. The information reflects numerous assumptions as to industry performance, general business and economic conditions, regulatory and legal requirements, taxes and other matters, many of which are beyond the control of the company. Similarly, this information assumes certain future business decisions that are subject to change. There can be no assurance that the results predicted here will be realized. Actual results may vary from those represented, and those variations may be material.

This news release does not constitute an offer to sell or a solicitation of an offer to sell any 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 U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

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Contact Information

  • Advanced Explorations Inc.
    (416) 203-0057 x226