Advanced Explorations Inc.
TSX VENTURE : AXI
FRANKFURT : AE6

Advanced Explorations Inc.

April 29, 2010 23:57 ET

Advanced Explorations Inc. Announces Up to $3,740,000 Private Placement

TORONTO, ONTARIO--(Marketwire - April 29, 2010) - Advanced Explorations Inc. (the "Company" or "AEI") (TSX VENTURE:AXI)(FRANKFURT:AE6) is pleased to announce a non-brokered private placement of up to 17,000,000 units (the "Units") at a price of $0.22 per Unit for aggregate gross proceeds of up to $3,740,000 (the "Offering"). 

Each Unit consists of one (1) common share and one (1) non-transferable common share purchase warrant (the "Warrants") with a term of twelve months from the closing date of the Offering. The holder of Warrants shall be entitled to convert each whole Warrant to one (1) common share of the Company where one whole warrant may be exercised for the purchase of one further common share of the Company at the exercise price of $0.40 per common share, subject to the following acceleration provision: if the closing trading price for the common shares of the Issuer as traded on the TSX Venture Exchange is equal to or greater than $0.75 per common share for 5 consecutive trading days occurring any time after 4 months from the date of issuance of the warrant (the "Threshold Period"), then the Company shall issue a press release announcing the occurrence of the Threshold Period. The Subscriber shall have until 4:00 pm (Toronto, Ontario Time) of the 30th calendar day after the date of dissemination of the press release to exercise the share purchase warrants (the "Accelerated Expiry Date"). The share purchase warrants shall expire on the earlier of the last day of the 1 year exercise term or the Accelerated Expiry Date.

A finder's fee in shares, cash, warrants or a combination of all may be payable in connection with this placement which will not exceed the maximum allowable under the policies of the TSX Venture Exchange. The offering and finder's fee are subject to completion and execution of appropriate documentation and acceptance for filing by the TSX Venture Exchange.

Advanced Explorations Inc. announces that it has retained Clarus Securities Inc. ("Clarus") to assist in a review of the Company's strategic alternatives to enhance value for the shareholders. Together with Clarus, the Company is reviewing all options that will enable it to unlock value. In connection with this agreement AEI will pay a signing and success fee of $25,000. In addition the Company will issue Clarus 500,000 compensation warrants (the "Compensation Warrants") subject to TSX Venture Exchange approval. Each Compensation Warrant will entitle Clarus to acquire one common share in the capital of the Company at a price of $0.22 for a period of two (2) years from the date on which the Compensation Warrants were issued.

AEI is also pleased to announce that it has retained San Diego Torrey Hills Capital, Inc. ("Torrey Hills Capital") to act as investor relations consultants to the Company.

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.

ABOUT Torrey Hills Capital

Torrey Hills Capital is a leading investor and financial public relations firm specializing in small and micro-cap companies, primarily in the natural resource sector. Torrey Hills Capital will increase awareness about AEI through its established relationships with investment professionals, investment advisors, and money managers focused on the microcap market space. This will allow AEI to build and maintain an informed investor audience. Torrey Hills Capital will also develop a profile on AEI for coverage on its website, http://www.babybulls.com/, a website developed to showcase and provide exposure for emerging micro-cap companies to an audience of proven micro-cap investors. Torrey Hills Capital has been engaged for an initial term of one month for a cash fee of US$6,000 followed by a subsequent term of eleven months for a cash fee of US$6,000 per month and the granting of options to purchase 400,000 shares of AEI. The relationship can be terminated at any time by either party with thirty days' notice. The agreement is subject to the approval of the TSX Venture Exchange.

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.

NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED WITHIN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

Contact Information

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