Merrex Gold Inc.
TSX VENTURE : MXI

Merrex Gold Inc.

August 18, 2010 08:45 ET

Merrex Gold-Siribaya Drilling Hits Extension of Zone 1A

HALIFAX, NOVA SCOTIA--(Marketwire - Aug. 18, 2010) - Gregory Isenor, P.Geo., President and CEO of Merrex Gold Inc. ("Merrex") (TSX VENTURE:MXI) announces that Line RC-L-3 (28+80 N) located 1500 metres north of the Zone 1A NI 43-101 Resource at the Siribaya Gold Project in West Mali has intersected the interpreted northern extension of Zone 1A and returned the best intersections to date from the 2010 Reverse Circulation ("RC") drill program.

Highlights

- Best intersections to date

- Two major intersections in Hole TYC 10- 033 (1.77 g/t Au over 24 m and 1.59 g/t Au over 16 m)

- A major intersection of 1.58 g/t Au over 13.0 m in Hole TYC 10-34

- 51.4 g/t Au over 1.0 m in Hole TYC10-035 (initial assay was constrained to greater than 10 g/t Au over 1 m)

- Zone 1A interpreted in Line RC-L-3 1.5 kilometres north of Zone 1A NI 43-101 Resource

- 0.90 g/t Au over 13.0 m in Hole TYC 10-32; interpreted new zone

- Assay results for holes testing the area of the Zone 1B substructure still pending



Assay Highlights

-------------------------------------------------------------------------
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Table of Assays Highlights RC-L-3 (28+80N)
(see map attached)
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Hole Depth (in metres) Assay
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TYC10 - 032 10.0 - 23.0 0.90 g/t Au over 13.0 m
13.0 - 15.0 Incl. 1.81 g/t Au over 2.0 m
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TYC10 - 033 16.0 - 40.0 1.77 g/t Au over 24.0 m
17.0 - 27.0 Incl. 2.64 g/t Au over 10.0 m
35.0 - 40.0 Incl. 1.98 g/t Au over 5.0 m
45.0 - 61.0 1.59 g/t Au over 16.0 m
52.0 - 53.0 Incl. 5.80 g/t Au over 1.0 m
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TYC10 - 034 36.0 - 49.0 1.58 g/t Au over 13.0 m
36.0 - 40.0 Incl. 3.13 g/t Au over 4.0 m
(hole stopped in mineralization)
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TYC10 - 035 23.0 - 24.0 51.4 g/t Au over 1.0 m
-------------------------------------------------------------------------
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Note: Assay table intersections are drill intersection lengths, not true
widths.


Commentary

"Without doubt RC-L-3 of our reconnaissance Reverse Circulation (RC) drill program has returned the best drill results thus far from the 2010 RC drill program," said Gregory Isenor, President and CEO of Merrex. "With only assays from the eastern portion of the line including across the 1A substructure, Line RC-L-3 (see attached map), an east-west fence of drill holes located approximately 1500 metres north of the Zone 1A NI 43-101 resource area, has yielded very impressive intersections in four adjacent drill holes drilled on 50 metre spacing.

To view the Siribaya Project 2010 Drill Results map, please visit the following link: http://file.marketwire.com/release/MerrexDrillResultsMap.pdf.

Where RC-L-3 crosses the Siribaya 1A substructure, holes TYC-10-32, 33, 34 and 35 all intersected significant mineralization. As supported by geochemistry, magnetic structures and IP the drill holes are on strike with the Zone 1A NI 43-101 resource area 1500 metres to south and with the interpreted Zone 1A extension encountered in RC-L-2 500 metres to the north. Holes TYC-10-32, 33, 34 and 35 are interpreted as being part of the northern extension of Zone 1A and provide strong evidence of the continuity of mineralization over at least two kilometres (2,000 metres) within the Zone 1A substructure.

Three other noteworthy points: Hole #34 was stopped at 49 metres but ended in mineralization; Hole #33 contains two long intervals of 24 and 16 metres but if the cut-off grade is reduced from 0.5 to 0.4 grams then the two intervals can be combined into a single interval grading 1.49 g/t Au over 49 metres; and lastly, Hole #35, which initially assayed at greater than 10 g/t over 1 metre, returned 51.4 g/t Au over 1.0 metre in the second assay (first assay was by fire assay pre-concentration and atomic absorption finish and was constrained to 10 grams Au upper limit, second assay by fire assay was not limited).

Based on these new drill results and the other available geological data I am confident that additional drilling will establish the continuity of the Zone 1A substructure gold mineralization over at least the two kilometres from RC-L-2 to RC-L-6, the location of the Zone 1A NI43-101 resource.

Lastly, just to the west of Hole TYC-10-32, Hole #30 intersected an interpreted new zone of mineralization. While it is premature to draw too many conclusions based on limited data, the mineralization in Hole TYC-10-32 may connect to any or all of the mineralized intersections in Holes SRC10-33, 36A and 36 in RC-L-2 500 metres to the north. Additional drilling will be required."

RC-L-3 (28+80N) 1500 metres north of Zone 1A

RC-L-3 is located approximately 1500 metres north of the Zone 1A NI 43-101 Resource area. The drill holes were oriented at 270 degrees with a dip of -50 degrees and were drilled to approximately 100 metres target depth at 50 metre spacing and are interpreted as intersecting the northern extension of Zone 1A, and an additional new gold zone.

Zone 1A Extension

Four holes, TYC-10-32, 33, 34 and 35, are interpreted as having intersected the northern extension of the Zone 1A NI 43-101 Resource. These four holes are on strike with the Zone 1A NI43-101 resource 1500 metres to the south and the Zone 1A interpreted drill holes 500 metres to the north in RC-L-2. (see table of assays below)

Interpreted New Gold Zone

Hole TYC-10-30 intersected an interpreted new zone of mineralization which may connect to any or all of the mineralized intersections in Holes SRC10-33, 36A and 36 in RC-L-2 500 metres to the north. Additional drilling will be required.

Zone 1B Substructure

Assay results from RC-L-3 for the area of the Zone 1B substructure are still pending.

The 2010 RC Drill Program

Working in concert with IAMGOLD Corporation ("IAMGOLD"), Merrex has initiated a 14,500 metres RC reconnaissance drill program. Although some of the RC drilling results could be used in a future resource estimate, this program was not intended to expand the NI 43-10 resource estimate; rather it was designed to explore new areas of the Siribaya Mega-structure and begin defining the potential magnitude of the mineralised areas within the Siribaya Mega-structure. The RC results will also aid identification of future diamond drill target areas.

Six drill fences, 500 metres apart, consisting of drill holes oriented at 270 degrees with a dip of -50 degrees to approximately 100 metres target depth at 50 metre spacing, have been placed east-west across the entire width of the 1A and 1B substructures. The first drill fence, RC-L-1, (43+80N) is approximately 250 metres north of the Zone 1B NI 34-101 Resource area; the remaining five drill fences are to the south of Zone 1B starting 40 metres south of the Zone 1B NI 43-101Resource area and thereafter at approximately 500 metres step-outs. The southern-most drill fence will reach the old Berekegni artisanal underground gold workings on the 1B substructure and the major RAB anomaly at Zone 1A.

Drilling has been suspended during the rainy season.

RC drilling is by BLY Mali SA, the Malian division of Boart Longyear Canada of North Bay, Ontario.

Mechanized auger drilling to test gold anomalies outside of the Siribaya Mega-structure at Zone Bambadinka and on the Babara and Kofia Permits has begun.



Table of Assays
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Table of Assays RC-L-3 (28+80N)
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Hole Depth (in metres) Assay
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TYC10 - 030 30.0 - 32.0 0.57 g/t Au over 2.0 m
--------------------------------------------------------------------------
TYC10 - 032 6.0 - 8.0 0.65 g/t Au over 2.0 m

10.0 - 23.0 0.90 g/t Au over 13.0 m
13.0 - 15.0 Incl. 1.81 g/t Au over 2.0 m

27.0 - 31.0 0.75 g/t Au over 4.0 m

38.0 - 39.0 0.91 g/t Au over 1.0 m

43.0 - 46.0 0.76 g/t Au over 3.0 m
45.0 - 46.0 Incl. 1.57 g/t Au over 1.0 m

53.0 - 55.0 1.61 g/t Au over 2.0 m

57.0 - 59.0 0.56 g/t Au over 2.0 m

71.0 - 72.0 0.72 g/t Au over 1.0 m
--------------------------------------------------------------------------
TYC10 - 033 12.0 - 13.0 1.81 g/t Au over 1.0 m

16.0 - 40.0 1.77 g/t Au over 24.0 m
17.0 - 27.0 Incl. 2.64 g/t Au over 10.0 m
35.0 - 40.0 Incl. 1.98 g/t Au over 5.0 m

45.0 - 61.0 1.59 g/t Au over 16.0 m
52.0 - 53.0 Incl. 5.80 g/t Au over 1.0 m

78.0 - 80.0 0.82 g/t Au over 2.0 m
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TYC10 - 034 15.0 - 17.0 0.60 g/t Au over 2.0 m

36.0 - 49.0 1.58 g/t Au over 13.0 m
36.0 - 40.0 Incl. 3.13 g/t Au over 4.0 m
--------------------------------------------------------------------------
TYC10 - 035 23.0 - 24.0 greater than 10 g/t Au over 1.0 m on
first assay; 51.4 g/t Au over 1.0 m
on second assay

60.0 - 61.0 1.41 g/t Au over 1.0 m
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About the Siribaya Gold Project

Merrex controls 100% of the Siribaya Gold Project comprising over 840 square kilometres of contiguous exploration permits in West Mali including the Siribaya Mega-structure. The Siribaya Mega-structure has a CIM compliant NI43-101 resource estimate of 4,015,000 tonnes grading 2.39 g/t Indicated (308,200 oz Au) and 946,000 tonnes grading 2.29 g/t Inferred (69,500 oz Au). The NI43-101 resource is open to the north, south and at depth.

Within the Siribaya Mega-structure there are at least two distinct substructures; the 500 metre wide by 10.5 kilometre long 1B substructure and the twin 500 metre wide x 9.5 kilometre long 1A sub-structure. The Siribaya Mega-structure has yielded ore-grade drill intercepts in a number of selected targets along its entire length.

In December, 2008 Merrex closed an Option Agreement with IAMGOLD pursuant to which IAMGOLD may incur up to CDN$10.5 million in exploration expenditures over 4 years, to earn a 50% interest in the Siribaya Gold Project, of which approximately $5.5 million has been spent to date. The current exploration program will satisfy IAMGOLD's 2010 exploration obligation. Merrex is currently the Project Operator; IAMGOLD will become Project Operator at the conclusion of the 2010 exploration program estimated for sometime during the summer months. The operator transition process is underway.

Since 2005 over CDN$13,500,000 has been spent on exploration at Siribaya.

Gregory P. Isenor, P. Geo., is the Qualified Person as defined under NI 43-101 who has reviewed and is responsible for the technical information presented in this news release.

Merrex is a Mali focused gold exploration company with experienced management, a solid exploration team, a prominent gold-producer as a partner and an expanding gold resource ... a winning combination offering investors an extraordinary opportunity.

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

On Behalf of the Board

Gregory Isenor, P.Geo., President & CEO

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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