Merrex Gold Inc.
TSX VENTURE : MXI

Merrex Gold Inc.

October 20, 2009 13:58 ET

Merrex Gold Inc. Shareholder Update

HALIFAX, NOVA SCOTIA--(Marketwire - Oct. 20, 2009) - Gregory Isenor, P.Geo. President and CEO of Merrex Gold Inc. ("Merrex") (TSX VENTURE:MXI) provides a shareholder update on the Siribaya Gold Project:

Siribaya Gold Project

The Siribaya Gold Project located in West Mali, Africa is a joint venture exploration project funded by IAMGOLD Corporation and operated by Merrex. Pursuant to the Merrex-IAMGOLD option agreement IAMGOLD may earn up to 50% interest in the 700 square kilometre Siribaya Gold Project by expending $10.5 Million over four years. The 2009 exploration program, which totalled over $3,000,000, was comprised of diamond drilling, soil sampling, termite mound geochemical sampling and an airborne magnetometer and spectrometer survey.

The geochemical survey of termite mounds was conducted over the ten kilometre strike length of the Siribaya mega-structure with additional sampling on areas to both the east and west of the Siribaya mega-structure. A total of 4,297 samples were collected on a grid of 200 x 40 metres. The assay results were plotted using a range of values up to 200 ppb gold. The termite mound survey identified new gold-anomalous zones that were not evident from prior surface soil sampling and confirmed previous surface geochemical survey results and prior RAB drilling results. The interpretation of the termite mound survey delineated two strong north-south trending parallel gold-mineralized structures hosting the previously identified Zones 1A and 1B with the Zone 1A anomaly much more clearly and strongly identified than it was by prior conventional soil sampling, and stronger than Zone 1B where the 2009 drilling campaign focussed.

The 2009 diamond drilling program totalled 4,706 metres with 17 holes to depths of 200 – 250 metres. Drilling was focused on the Siribaya Gold Project's most prominent target, Zone 1B, where prior drilling over a 250 metre strike length had delineated an initial indicated resource of 2.1 million tonnes grading 1.81 g/t Au (123,000 contained ounces) and inferred resources of 5.7 million tonnes grading 1.74 g/t Au (319,000 contained ounces) at cut-offs of 0.5 g/t Au. All drill results have now been received and have almost tripled the strike length of the continuously mineralized Zone 1B from 300 metres to 900 metres. The mineralization is still open to the north, south and at depth. The initial resource estimate was prepared in February 2009 by ACA Howe International Limited and is compliant with the disclosure requirements of NI 43-101. An updated resource estimate incorporating the results of the 2009 drill program at Zone 1B is underway.

A detailed airborne geophysical survey over the full concession area was also completed and data analysis is still underway. Once the analysis is complete, the newly acquired data will be integrated with the existing geochemical and drilling data and used to re-interpret the structural architecture of the Siribaya trend. Further details of the results of the airborne survey will be released after the analysis is complete.

The 2009 exploration program for the Siribaya Gold Project is managed jointly by a Merrex and IAMGOLD Corporation technical committee. Merrex is the program Operator. Jean-Marc Gagnon, P. Eng., Project Manager at Siribaya, is the Qualified Person as per NI 43-101 and is responsible for the information in this news release.

Merrex's principal projects are its Siribaya Gold Project in Mali (West Africa), an advanced exploration project with an initial NI 43-101 resource estimate and the Jubilee Zinc Deposit in Cape Breton, Nova Scotia, also with an initial NI 43-101 resource estimate.

Sale of Non-core Assets to Chrysos Capital Corporation

Merrex is in the process of vending certain of its non-core assets to Chrysos Capital Corporation, a Halifax based 'capital pool corporation'. The assets to be sold include a one-half interest in the Jubilee Zinc Project, all exploration permits in Turkey and all mineral claims in the Red Lake/Birch Lake area of Ontario. Merrex will receive 18,675,000 shares of Chrysos for those assets. In addition Chrysos has committed to carry 100% of the cost of the first phase of the 2010 exploration program at Jubilee after which further exploration programs will be on a joint venture basis. The transaction is subject to TSX approvals.

Merrex Gold is a mineral resource exploration company focusing on gold exploration in West Mali, western Turkey and in the Red Lake area of Ontario and zinc exploration in Cape Breton, Nova Scotia. Merrex has a solid organization of people and projects enabling aggressive exploration, discovery and growth.

Please visit our website at www.merrexgold.com for the most recent presentation.

This press release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, that address future exploration drilling, exploration activities and events or developments that the Company expects, are forward looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions.

Neither the 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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