Micrex Development Corp.

Micrex Development Corp.

December 17, 2007 07:00 ET

Micrex Makes Beneficial Changes at Burmis

EDMONTON, ALBERTA--(Marketwire - Dec. 17, 2007) - Micrex Development Corp. (TSX VENTURE:MIX) announced today a significant change in both the product to be sold and the processing requirements thereof at its Burmis Magnetite Project in south-western Alberta.

Project proposals to this point have focused on the production of "heavy media" a high-grade magnetite product used by the coal industry.

In its continued efforts to minimize impact on its neighbors and the environment, the Company has developed a product line and production system that eliminates the need for water in the process. In addition, the end product will use almost 100% of the raw ore rather than only that portion that consists of magnetite. This will eliminate tailings issues, extend the life of the mine and lower operating costs.

Mr. Stan Marshall, President of Micrex Development Corp., is quoted as saying, "This announcement is another example of how Micrex continues to meet its commitment to work towards innovative solutions to reduce project impact while enhancing the value to our shareholders. Two years ago, a Micrex controlled lab scale crushing and grinding circuit was commissioned to carry out research and development. Over the last year Micrex introduced its dry products to the intended market. Micrex is pleased to announce the successful conclusion to this effort. The response received has been excellent. The markets identified are both long term and of sufficient size to justify the move to products that require only dry processing. Micrex has already taken significant steps towards a minimal impact project but this change will truly move this project to one of least possible impact while enhancing its economics."

Positive changes from the perspective of local stakeholders:

1. The need for process water has been eliminated.

2. A process water holding pond is no longer required.

3. The product line utilizes the whole rock rather than just the magnetite portion of the ore, meaning tailings, in the form of non-economic reject materials, have largely been eliminated.

4. Some stakeholders expressed concerns about tailings disposal in a holding pond next to the plant and in the quarry. The new products produce virtually no tailings, thereby eliminating the need for a tailings pond. As there will be no disposal of tailings in the quarry, the quarry operation will also have a lower impact.

5. Because the operation does not reject a portion of the ore in the production process less ore is required to be mined. This means decreasing by 2/3 the number of truck trips from the quarry to the plant compared to the original projections. It also results in a much smaller operation at the quarry, a reduced ore stockpile at the plant and a smaller plant to process ore, overall, a smaller project footprint.

6. By lowering the number of tonnes required from the quarry, the seasonal operation of the quarry can be even more flexible.

7. Under the original 10 year mine life projection, an area of approximately 100 meters by 200 meters would be impacted per year. Under the new design that same 100 by 200 meter area will last 3 years, further decreasing the environmental impact.

8. Local employment opportunities created will remain the same, but with a longer project life.

Along with addressing stakeholder concerns, this project revision will create a significant economic benefit for Micrex and its shareholders.

Positive changes from the perspective of Micrex shareholders:

1. The cost to produce a tonne of marketable product has been reduced by almost 50%.

2. The capital cost of building a tailings pond/water holding pond has been eliminated.

3. Tailings disposal costs for trucking and reclamation are gone.

4. The tonnage requirements for raw ore have been cut by 2/3 resulting in lower mining costs, trucking costs and processing costs.

5. The processing plant has been simplified with much of the equipment either eliminated or downsized resulting in lower capital cost for the processing plant and lower costs overall for processing.

6. The largest economic benefit for the shareholders is the increased value of the project as a result of utilizing 100% of the raw ore. Without changing the projected area, the life of the mine has been extended from the originally projected 10 years of heavy media production to 30 years for the new products. Micrex can take advantage of the resulting increase in mine life by realizing an annual economic benefit on par with heavy media but for 30 years rather than 10.

Micrex believes that these changes represent a major benefit to all those involved with the Burmis Magnetite Project and look forward to moving to mine permitting shortly.


Peace River Diamond Property - Burmis Magnetite/Titanium Property - St. Charles de Bourget Magnetite/Titanium Property - Fort Steel Placer Property - Bighorn Gold Mine - Banks Gold Mine - Mount Royal Gold Mine - Deadwood Gold Mine - Sunburst Gold Property

Certain disclosures in this release, including management's assessment of Micrex's plans and projects, constitute forward-looking statements that are subject to numerous risks, uncertainties and other factors relating to Micrex's operation as a mineral exploration company that may cause future results to differ materially from those expressed or implied in such forward-looking statements. Readers are cautioned not to place undue reliance on forward-looking statements. Micrex expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.

A Mineral Exploration and Development Company Operating in Canada and the United States

SEC 12 g (3) Exemption 82-4281

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

    Perry Meszaros
    (780) 448-0922
    S.E. Marshall
    (780) 448-0922
    Email: mixinfo-1@micrex.net