April 30, 2008 17:32 ET

Lexam Explorations Announces Fourth Quarter Results

TORONTO, ONTARIO--(Marketwire - April 30, 2008) -

(All amounts expressed in Canadian dollars)

LEXAM EXPLORATIONS INC. (TSX VENTURE:LEX)(PINK SHEETS:LEXEF)(FRANKFURT:D2Q) is pleased to announce financial results for the fourth quarter 2007 as well as provide an update on the Baca Oil and Gas Project in Colorado, USA, and the Otish Uranium Project in Quebec, Canada.


- Colorado Oil & Gas Conservation Commission Renews Lexam's Drilling Permits

- Uranium Zone Identified at Otish Project - Grades up to 0.51% U3O8

- Cash and Securities total $13.3 million at December 31, 2007


For the fourth quarter and full year Lexam reported net income of $2,055,697 ($0.04 per share) and $10,798,630 ($0.22 per share) compared with a loss of $354,043 ($0.01 per share) and $598,402 ($0.01 per share) in the respective periods, 2006. The net income recorded for the year was primarily attributable to the gain recorded on the sale of the Nevada properties during the second quarter. The Company also recorded a gain on the sale of the Jason Properties. These gains were partially offset by the exploration, permitting and legal work on the Baca Oil and Gas Project, spending at the Otish Uranium Project, the provision for income taxes due to the property sales and increased administrative costs.

For 2007 Lexam incurred $2.4 million in exploration expenses versus $0.6 million in 2006. The increase during the year was related to the completion of a 3D seismic survey at the Baca Oil and Gas Project as well as commencing exploration at the Otish Uranium Project. During the year administrative expenses increased to $0.8 million in 2007 versus $0.5 million in 2006. Administrative expenses have increased due to additional corporate and exploration activity.

At the end of the fourth quarter Lexam had working capital of $3.0 million, compared with a working capital of $3.6 million in 2006. Total shares outstanding at the end of 2007 totaled 48,469,287 versus 48,397,287 in 2006.

The complete 2007 report, including management's discussion and analysis, financial statements, and notes can be found on the Company's website at www.lexamexplorations.com and on SEDAR at www.sedar.com.


The Baca Oil and Gas Project totals 100,000 acres and is located in south-central Colorado, USA. Lexam owns 75% of the hydrocarbon rights, and the remaining 25% is owned by ConocoPhillips. In 2006 Lexam informed the surface owner, the United States Fish and Wildlife Service (USFWS) that it intended to perform exploration activities on the project area.

In early 2007 Lexam completed a 3D seismic survey over a total of 16,000 acres. Based on this data and previous 2D seismic surveys, Lexam informed the USFWS that it intended to drill two test wells down to 14,000 ft (4,265 m).

On May 25th, 2007 Lexam announced that the San Luis Valley Ecosystem Council (SLVEC) had filed and served a Complaint against the USFWS in Federal District Court in Colorado. The SLVEC claimed that the USFWS had not complied with the National Environmental Policy Act (NEPA) in connection with the exploration activities being carried out and proposed by Lexam. The USFWS proceeded to voluntarily comply with NEPA and commissioned an Environmental Assessment (EA) study based on Lexam's proposed exploration activities.

Lexam has since been informed by USFWS that the draft Environmental Assessment has been completed and that the public comment period concluded on March 3rd, 2008. Once the USFWS has finished reviewing the public's comments, it will make a decision regarding the level of impact Lexam's proposed exploration activities will have on the federal land. The USFWS decision is not whether Lexam has the right to conduct exploration activities, but determines the necessary measures to be taken in order to mitigate any possible surface disturbance, which may include conducting additional environmental studies. If the USFWS determines that Lexam's proposed exploration will not have a significant environmental impact, the Company is planning to proceed with road and well pad construction as soon as possible. Alternatively, the USFWS decision may require the proposed exploration activities to be furthered studied under NEPA.

On April 1st, 2008, Lexam appeared before the Colorado Oil and Gas Conservation Commission (COGCC) in order to seek an extension to its state drilling permits that were originally granted last April. Lexam's request for an extension was opposed by Saguache County, where the Baca Project is located. The COGCC ruled in favour of Lexam and stated that the Company made good faith efforts to commence operations under the permits and the delay was outside of its control. The permits will include the terms and conditions from the final EA being completed by the USFWS.


The Otish Uranium Project totals 205,000 acres and is located in central Quebec, Canada. Lexam has an option to earn 50% of the project from Golden Valley Mines by spending $3.0 million over three years.

The first phase of exploration on the Lexam-Golden Valley joint venture properties began early July and included airborne surveys over the project. Phase two of the exploration program commenced in the fall with ground crews focused on confirming earlier high-grade uranium showings, including ground follow-up of radiometric anomalies as defined by the airborne surveys.

During the fourth quarter, Lexam and Golden Valley Mines completed a compilation of the historical holes drilled by Western Mines Ltd (Ministere de l'Energie et des Ressources naturelles documentation technique GM 35584) in 1979 on the project area. The results have identified a zone of uranium mineralization on the Mistassini portion of the project that is larger and higher grade than was previously believed to exist.

Lexam has committed to spending $2.0 million for the 2008 exploration program. This program will consist of two phases of drilling that will total 4,000 meters (13,125 ft.). The first phase is scheduled to begin in May of 2008 and will focus on extending the uranium mineralization that has been identified on the Mistassini project area and will also test priority targets that have been outlined using artificial intelligence and advanced mathematics. The second phase will include follow-up drilling and testing other targets in the Otish portion of the project.

In December 2007 Lexam engaged Diagnos Inc. to use its artificial intelligence technology to target uranium mineralization in the Mistassini Basin. Geological, magnetic and spectrometric data was used to detect possible patterns that would help outline new areas for uranium mineralization.

The results have highlighted several areas considered by Diagnos to be highly prospective for uranium. Each of these areas is believed to have the potential to host unconformity-associated uranium mineralization.

About Lexam

Lexam Explorations is a North American based energy exploration company. The company is advancing the Baca Oil & Gas Project located in south-central Colorado, USA, which is 75% owned by Lexam and 25% by ConocoPhillips and has an option to earn 50% interest in Golden Valley Mines' Otish Basin uranium project located in Quebec, Canada.


Some of the statements contained in this release are "forward-looking statements". Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to differ materially from the anticipated results, performance or achievements expressed or implied by such forwardlooking statements. Factors that could cause actual results to differ materially from anticipated results include risks and uncertainties such as: ability to raise financing for further exploration and development activities; risks relating to estimates of reserves, deposits and production costs; extraction and development risks; the risk of commodity price fluctuations; political, regulatory and environmental risks; and other risks and uncertainties in the reports and disclosure documents filed by Lexam from time-to-time with Canadian securities regulatory authorities. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. The complete fourth quarter report including management's discussion and analysis, financial statements and notes can be found on our Company's website at www.lexamexplorations.com and on SEDAR at www.sedar.com.

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