October 20, 2009 12:28 ET

J.A.G. Mines Ltd: Promising Results on Completion of Third Year of its Oil and Gas Research Program on the Temiscouata Property

MONTREAL, QUEBEC--(Marketwire - Oct. 20, 2009) - J.A.G. Mines Ltd ("JAG" - The Company) (TSX VENTURE:JML) announce that it has completed the third year of its oil and gas research program on its Temiscouata Property (Quebec), during which were performed regional geochemical soil and soil gas surveys, gravimetric and radiometric surveys and Rock Eval analyses on nearly a hundred sedimentary rock samples.

Promising results obtained by JAG in 2008 in the course of a first soil gas survey, have brought JAG to focus third year exploration work near the towns of St. Eusebe, Packington and Notre-Dame-du-Lac, west of Lake Temiscouata. Therefore, JAG has conducted in these areas, a second and more detailed geochemical soil survey including sampling of 450 soil and 450 soil gas samples. Results obtained in 2008 were confirmed by this second survey. In the northern part of the Temiscouata Property, background levels of soil gases ethane and methane are respectively 21 ppb and 1,200 ppb, whereas ethane contents reach more than 1,000 ppb in many soil gas samples of the St. Eusebe area. Indeed, the highest ethane content obtained for a sample coming from the St. Eusebe area is 7,631 ppb and the highest methane content, more than 4,000,000 ppb. Surveys have shown that soil gas contents are higher near the regional Temiscouata reverse Fault and in the area located between the fault and the fold axis of the Temiscouata anticline. Moreover, a thermogenic origin of soil gases is indicated by ethane/propane ratios thus suggesting the presence of oil and condensates despite the relatively high level of thermal maturation of the organic matter contained in sedimentary rocks located in this part of the Appalachian Belt.

JAG has also conducted a regional radiometric survey (%K, eTh, eU) over the St. Eusebe-Packington-Notre-Dame-du-Lac area which has allowed identification of U and K anomalies. These radiometric anomalies are locally superposed on soil gas anomalies and may have been developped by hydrocarbon microseepage. U abundances are higher in the area located between the Temiscouata fault and the regional anticline fold axis, the highest anomalies being observed in the southern part of the anticline. Results of the gravimetric survey carried out by JAG have further shown that soil gas and radiometric anomalies are located over an important gravimetric low and that the highest ethane contents in soil are located over the more negative part of the Bouguer anomaly. JAG plans to focus further exploration work in this anomaleous area.

The Temiscouata Property is part of the Appalachian sedimentary basin (Lower St.Lawrence - Gaspe). Geology of the Temiscouata area is little known compared to that of the Gaspe Peninsula and the area remains largely unexplored for oil and gas. However, promising results obtained so far encourage JAG to carry on its research program.

About JAG

Since April 2006, JAG holds exploration permits for oil and natural gas, covering an area of 332,790 hectares (932,000 acres) located in three regions in the province of Quebec: Temiscouata, Lac St-Jean and Charlevoix. More than $1,146,000 of exploration work has been completed so far on those three properties with the collaboration of geologists from l'Institut de la Recherche Scientifique (INRS).

JAG is also active on its gold propery in Belleterre. The property is composed of 77 claims in the Guillet Township, covering an area of 1,153 hectares over the years in excess of $3,000,000 of exploration work has been done. The most promising sector is the Aubelle 1 where a number of gold and silver veins have been located. The company is currently active on the property and 4,000 meters of drilling should be completed by the end of the year.

This press release was prepared by Mrs. Genevieve Camire, geologist in collaboration with Dr. Marc Richer-LaFleche, qualified geologist.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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