Advanced Explorations Inc.
TSX VENTURE : AXI.H
NEX BOARD : AXI.H
TSX VENTURE : AXI

Advanced Explorations Inc.

November 12, 2008 11:01 ET

Advanced Explorations Inc. Announces Further Iron Nugget Operation Details

TORONTO, ONTARIO--(Marketwire – Nov. 12, 2008) - Advanced Explorations Inc. (TSX VENTURE:AXI.H)(NEX BOARD:AXI.H)(TSX VENTURE:AXI) (the "Company" or "AEI") is pleased to announce further details on its planned, wholly-owned iron nugget operation associated with the Roche Bay Project in Nunavut, Canada. Under the current agreement structure, the proposed nugget operation would be 100% Company-owned and would acquire concentrate from the mine joint venture. As a stand-alone business unit the nugget operation provides significant advantages to AEI stakeholders.

The unique location of the Roche Bay deposit near a natural deep water harbour results in transportation efficiencies which the Company believes would also benefit an iron nugget facility. The nugget plant would capture additional shipping and various costs that other merchant facilities would experience. With the numerous advantages that accrue to the project it is estimated that AEI could be uniquely competitive with other low cost producers in the sector.



Iron Nugget Business Plan - Targeted Advantages

- Minimizes transportation cost due to its location at high water and
local to the proposed mine.

- The high purity iron product (98% Fe) is typically marketed at
higher values than traditional pellets iron product.

- The typical economies of scale other iron ore producers need are
not required.

- Nugget price potentially (greater than) 7 times concentrate
price.

- Small operational foot print - reduced capital.

- Plant projections indicate approximately 1.5 Mtpy of concentrate
feed per million tonnes of nugget production.

- Waste heat capture potentially provides all site power and
heating requirements.


The Company believes that the key benefits of a nugget plant, a simpler shipping solution and derivative low cost power associated with the potential to capture waste heat, address the most significant concerns stakeholders have in any proposed northern operation. The scale and scope of a proposed nugget operation is driven by market conditions and stakeholder needs, and a mining operation can potentially be optimized to service the plant decoupled from a traditional iron ore mine plan.

Advanced Explorations expects it can address the power challenges faced in this Arctic operation, and it may also produce surplus power that could be distributed to local communities. By capturing waste heat from the nugget plant the Company believes it is possible to produce enough steam-generated electrical power sufficient to supply the mine, as well as, local communities. As a result, the Company is considering a nugget plant design scaled to incorporate the regional community power needs and focused on heat re-capture to heat all buildings of the operation.

AEI has also identified that going to a coal gasification plant in order to provide combustion fuel to the reduction process could reduce related fuel costs. The cost to produce power using coal gasification is expected to be substantially lower than the energy cost of using Arctic Diesel as the combustion fuel. Furthermore, the coal gasification process also produces waste heat and an additional source for steam electrical power. In this scenario the Company believes it can not only avoid the use of expensive Arctic diesel but would have an additional source of low cost electrical power.

John Gingerich, President & CEO of AEI, commented:



"We believe that, through energy savings and additional power
generation, the Company will be able to offer a low cost power
solution for the mine and local communities of Roche Bay. The
potential for a community owned industrial park that could be powered
and heated by waste heat from the iron nugget operation can also be
considered. There are important benefits to this project that go
beyond the economic impact of a mining/nugget operation."


Advanced Explorations continues to discuss with Roche Bay plc a structure that aligns the mine joint venture with the proposed wholly-owned nugget operation.

ON BEHALF OF THE BOARD

John Gingerich, President and CEO

ABOUT Advanced Explorations Inc.

Advanced Explorations Inc., based in Toronto, Ontario, is a mining exploration company exclusively focused on developing high quality iron ore opportunities. In early 2007, AEI acquired the option to earn an interest in the Roche Bay Magnetite Project located on the Melville Peninsula in Nunavut, Canada. Led by an experienced management team with technical, exploration and mining expertise the company has the capabilities to rapidly advance the Roche Bay Project and explore other local and global opportunities. Located proximal to a natural deep water harbour the Roche Bay deposit benefits from transportation efficiencies possibly making it one of the world's premium iron ore prospects. Shares of the company trade at the TSX Venture Exchange (AXI) and at the Frankfurt Stock Exchange (AE6). For more information please visit www.advanced-exploration.com.

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.

THE TSX VENTURE EXCHANGE HAS NEITHER APPROVED OR DISAPPROVED OF THE CONTENTS HEREIN.

Contact Information

  • (416) 203-0057 x226