Alexis Minerals Corporation

Alexis Minerals Corporation

December 02, 2008 08:30 ET

Alexis Minerals Mine Enters Full Production-Cash Flow Supports Continued Exploration

TORONTO, ONTARIO--(Marketwire - Dec. 2, 2008) - ALEXIS MINERALS CORPORATION (TSX:AMC) is pleased to announce that the third custom milling campaign of ore stockpiles at the Lac Herbin mine commenced on November 22. The Lac Herbin mine in Val d'Or, Quebec is now in full production, on schedule and on budget. The positive cash flow generated by the Lac Herbin mine allows Alexis to continue its strategy of exploration in a world class area of mineral potential, the Abitibi district; despite the current turmoil in worldwide financial markets, the dramatic changes in the market price of many mining companies and the difficulty of many peer companies to maintain their exploration focus during these times.

Total production in 2008 will be 17,000 ounces gold. Alexis is positioned to produce approximately 36,000 ounces of gold in 2009, and, annually thereafter, maintain this level of production over the current Life-of-Mine (LOM) plan, while maintaining a projected LOM average production cost of C$ 536/oz.Au (US$ 447/oz.Au.). Mine Exploration is budgeted to continue throughout the LOM plan in order to explore the open extensions of economic zones and to evaluate the immediate area of the mine. Exploration is focused on the replacement of ore mined during each year of the LOM plan thereby extending the life of the operations.

Alexis Minerals currently has positive working Capital of C$12.1 M including cash of C$4.8 M. Future cash flows are clearly leveraged to gold prices (see Table 1). Alexis has no debt and no forward hedge position or forward sales.

Table 1: Sensitivity to gold Price of Operations at Lac Herbin, Val d'Or,
Quebec, net of sustaining capital costs at Lac Herbin, royalties, G&A
expenditures and full support of regional exploration.

Gold Price December 2010 December 2010
C$/oz.Au Working Capital(i)(C$) Projected Cash position (C$)
850 14.0 M 9.9 M
1000 25.8 M 22.5 M
1200 42.3 M 39.3 M
(i) Working Capital includes: Cash, Accounts Receivable, gold inventory and
outstanding Quebec Rebates.

Five-year revenue from the Lac Herbin mine is projected to be C$160 million, with projected operating profits totaling C$59 million over this period. These projections have been calculated using C$850/oz. gold prices and include all sustaining capital costs at Lac Herbin, royalties, G&A expenditures and full support of regional exploration across Alexis' unique land package in Val d'Or and Rouyn-Noranda, Quebec. In particular, exploration will focus on its recent encouraging copper discovery in the Deep West target, 1.5 kilometres from the past producing Louvicourt Mine, and in other prospective areas of the Bourlamaque batholith near Lac Herbin.

In light of the current markets and the Company's cost awareness measures, the Lac Pelletier project is being re-evaluated with a view to minimize risk associated with executing the exploration strategy. A pre-feasibility study evaluating alternate approaches and minimizing risks is nearing completion.

The Company is also evaluating its options to accelerate its business strategy through possible acquisitions of complementary properties.

Alexis' senior management believes that the Company remains in a strong financial position, especially with the Canadian price of gold above the C$850 per ounce budgeted. The demand for gold currently continues to be strong while supply is lagging. Alexis Minerals is positioned to support worldwide demand for gold for many years to come.

Alexis has presented this financial outlook to provide investors with additional information regarding the Company's strategic direction and general financial position. Readers are cautioned that the financial projections require the use of forward-looking information and readers are requested to read the forward looking statement below.

Qualified Person

The content of this press release has been reviewed by Keith Boyle, P.Eng., Chief Operating Officer, Alexis Minerals and acting as Qualified Person as defined under NI 43-101 guidelines.

About Alexis Minerals

Alexis Minerals Corporation is a junior Canadian Mining company listed on the Toronto Stock Exchange. Alexis owns the 1400 tonne per day Aurbel gold mill and has recently opened the adjacent, wholly owned Lac Herbin Gold deposit where the company is projecting and annual run rate of 36,000 ounces of gold. Alexis also has the right to earn in into a 100% interest in the Lac Pelletier gold property in Rouyn-Noranda and is focused on advancing this project towards a commercial production decision in 2008. Alexis holds an outstanding portfolio of properties covering 1,005 sq. km. of the prospective Val d'Or and Rouyn-Noranda Mining Camps in Quebec and explores these properties for both gold and base metals. Approximately 786 sq. km. of the Rouyn-Noranda Mining Camp is explored in a 50/50 joint venture with Xstrata Copper. Alexis has budgeted C$5.5 million for surface exploration in 2008 and C$5.0 million in 2009. There are currently five underground drills active at Lac Herbin and two surface drills active in Val d'Or.

Forward looking information.

This document may contain or refer to forward looking information based on current expectations, including, but not limited to, mineralization projections, future exploration plans and techniques, theories regarding the characteristics regarding the deep zone, estimates regarding the timing and costs of exploration, mineral prices, and future mining plans. Forward looking statements are subject to significant risks and uncertainties, including those risks identified in the annual information form of the Company, which is available under the profile of the Company on SEDAR, and other factors that could cause actual results to differ materially from expected results. Estimates and assumptions underlying the future-looking information are based upon extensive technical and scientific analysis conducted by the management of the Company, the analysis of external consultants and information obtained by the Company from third parties. Readers should not place undue reliance on forward-looking information. Forward looking information is provided as of the date hereof and we assume no responsibility to update or revise them to reflect new events or circumstances.

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