ISX Resources Inc.

May 17, 2006 14:57 ET

ISX Announces Option to Acquire Potash Exploration Permit in Saskatchewan

DELTA, BRITISH COLUMBIA--(CCNMatthews - May 17, 2006) - ISX Resources Inc. (TSX VENTURE:ISX)(FWB:I5X) is pleased to announce that it has entered into an option agreement with Invictus Minerals Corporation to acquire up to a 100 percent interest in the KP-289 Subsurface Mineral Permit located in southern Saskatchewan. The permit area is comprised of 97,239 acres and adjoins the approximately 60,573 acre existing solution potash mine at Belle Plaine owned and operated by The Mosaic Company (NYSE:MOS) of Plymouth, Minnesota USA. The permit includes areas where solution mining pilot plant tests were made at Findlater and Bethune. The centre of the permit is some 60 kilometers northwest of Regina.

The geology of the potash-bearing beds of the Middle Devonian Prairie Evaporite Formation has been well documented. Potash mines in the Saskatoon area extract potash from the Patience Lake Member of the Prairie Evaporite using conventional underground mining techniques while mines in southeast Saskatchewan extract potash from the Esterhazy Member of the Prairie Evaporite Formation using similar techniques.

Potash Corporation of Saskatchewan Inc.'s (TSX:POT) Patience Lake potash mine east of Saskatoon extracts potash by pumping potash-rich brine from flooded underground mine workings.

The Mosaic Belle Plaine potash mine at Belle Plaine extracts potassium chloride from these potash-bearing members by means of "solution" mining whereby wells are drilled into the potash deposit and the mineral is dissolved and pumped to surface as potash-bearing brine.

The Permit is underlain by the potash-bearing Patient Lake, Belle Plaine and Esterhazy members.

Preliminary examination of available chemical assays of drill core taken from the Prairie Evaporite and well log and gamma log data from the Imperial Findlater 16-10-21-25W2M well, located in the northern portion of the KP-289 Permit, indicate that the Patience Lake, Belle Plaine, and Esterhazy potash-bearing Members have an aggregate thickness of approximately 39.3 metres (129 feet). Publicly available borehole geophysical logs from the Aquitaine Moose Jaw 16-22-18-24W2M well, which is located immediately to the south of the KP-289 Permit, and located within the area of lands bounding the Mosaic Belle Plain KL-106 potash lease, indicates that the Patience Lake, Belle Plaine and Esterhazy potash-bearing Members have an aggregate thickness of about 42.4 metres (139 feet). On the eastern edge of the KP-289 permit, publicly available borehole geophysical logs from the Lumsden Potash Bethune 2-17-20-23W2M well indicate that the Patience Lake, Belle Plaine and Esterhazy potash-bearing Members have an aggregate thickness of approximately 37.2 metres (122 feet).

Preliminary recent work on the prospect consisted of the analysis of available public data including geophysical bore hole logs from previously drilled test holes, review of historical core analyses taken through the potash-bearing beds, the preparation of structural and stratigraphic cross sections, investigation into solution mining techniques and geological interpretations.

Preliminary core assays and well log and gamma log data from the Imperial Findlater 16-10-21-25W2W well located in the northern portion of the permit show a potash thickness of 23.5 metres (77 feet) with a weighted average grade of 21.4% KCl. (non-National Instrument 43-101 compliant and therefore of historical interest only and may not be relied upon).

The Company plans to proceed with an exploration program, which is to include the acquisition of trade seismic and drilling data with at least one exploratory well to be cored to assist in the evaluation of the potash potential within the permit area.

An independent qualified person is preparing a National Instrument 43-101-compliant Technical Report on the Permit.

ISX Resources Inc. has contracted North Rim Exploration Ltd. of Saskatchewan, under the supervision of Stephen P. Halabura, P.Geo., P.Geol., to undertake preparation and supervision of the exploration and drill program.

To acquire 100% of the property, ISX has an agreement to make staged payments comprising $3.21 million cash and by the issuance of the equivalent value of $1 million worth of shares, based on the Company's average closing price for the previous 20 trading days prior to such final payment date and conduct $2.5 million of exploration in 2006. ISX has made an initial cash payment of $60,000 upon the execution of the agreement. The agreement, including the issuance of any shares of the Company, is subject to regulatory approval.

Part and parcel to this transaction, ISX intends to complete a private placement of a minimum of one and a maximum of three million units at $1.00 per unit. Each unit shall be comprised of one common share and one half warrant exercisable at $1.50. Finders' fees in accordance with TSX.V policies will be payable in connection with this placement. Proceeds will be utilized to meet obligations arising from this transaction and to supplement general working capital.

On Behalf of the Board of Directors,

Thomas R. Tough, P.Eng., President & CEO.

About ISX:

ISX Resources Inc. is a Canadian resource company that is well funded with over one million dollars in unallocated working capital and is focused on creating shareholder value through the aggressive acquisition of undervalued, near production, resource assets.


Statements in this release that are not historical facts are "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Readers are cautioned that any such statements are not guarantees of future performance and that actual developments or results may vary materially from those in these "forward-looking statements".

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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