Merrex Gold Inc.
TSX VENTURE : MXI

Merrex Gold Inc.

December 07, 2007 08:06 ET

Merrex Gold Inc: Announces Up To $3 Million Private Placement of Flow-Through Common Shares

NOVA SCOTIA, HALIFAX--(Marketwire - Dec. 7, 2007) -

NOT FOR DISSEMINATION IN THE UNITED STATES OR THROUGH U.S. NEWSWIRE SERVICES

Merrex Gold Inc. (TSX VENTURE:MXI) has entered into an agreement with Blackmont Capital Inc. (the "Agent") to raise up to $3,000,000 by way of a best efforts marketed private placement of up to 4,615,385 flow-through common shares at a price of $0.65 per flow-through common share.

The Agent will receive a cash fee equal to 7% of the gross proceeds raised from the placement, and broker's warrants to purchase a number of common shares equal to 7% of the number of flow-through common shares issued via the private placement exercisable at $0.60 per share for a period of 24 months.

Completion of the private placement is subject to certain conditions, including satisfactory due diligence by the Agent and receipt of all necessary regulatory approvals.

The net proceeds of this private placement will be used for Canadian Exploration Expenses (within the meaning of the Income Tax Act Canada) which qualify as a "flow-through" mining expenditure for the purposes of the Income Tax Act Canada and will be renounced for the 2007 taxation year. Management anticipates that funds will be expended primarily on the Company's Jubilee Zinc Project in Cape Breton, Nova Scotia and its Birch-Uchi gold project in Ontario.

Merrex Gold is a mineral resource exploration company focused on exploration for gold in West Mali, Africa, zinc in Cape Breton, Nova Scotia, gold in Red Lake, Ontario and nickel in West Voisey's Bay, Labrador, with a solid organization of people and projects to enable continued aggressive exploration, discovery, and growth.

The securities offered have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States or to, or for the benefit of U.S. persons except in certain transactions exempt from the registration requirements of such Act. This news release shall not constitute an offer to sell or the solicitation of an offer to buy and there shall not be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful.

Disclosure regarding forward-looking statements

Note: This press release contains projections and forward-looking information that involve various risks and uncertainties regarding future events. Such forward-looking information can include without limitation statements based on current expectations involving a number of risks and uncertainties and are not guarantees of future performance of the Corporation. These risks and uncertainties could cause actual results and the Corporation's plans and objectives to differ materially from those expressed in the forward-looking information. Actual results and future events could differ materially from those anticipated in such information. These and all subsequent written and oral forward-looking information are based on estimates and opinions of management on the dates they are made and expressly qualified in their entirety by this notice. The Corporation assumes no obligation to update forward-looking information should circumstances or management's estimates or opinions change.

THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

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