Orex Exploration Inc.
TSX VENTURE : OX
FRANKFURT : O5D

Orex Exploration Inc.

August 13, 2009 11:20 ET

Orex Exploration Inc.: Update From the Goldboro Project, Nova Scotia

MONTREAL, CANADA--(Marketwire - Aug. 13, 2009) - OREX EXPLORATION INC.  (TSX VENTURE:OX)(FRANKFURT:O5D)wishes to update shareholders on the progress of the on-going exploration on its 100% owned Goldboro Gold Project in Nova Scotia, following last week's announcement on the new National Instrument NI 43-101 Mineral Resource Estimates or 2009 MRE.

The 2009 Summer-Fall Exploration and Development Program at Goldboro

  • Preparations have commenced to complete the scoping of possible mining scenarios and economic viability of the identified resources, that would also include the removal of a bulk sample of at least 10,000 tonnes (upon completion of the permitting process) for pilot mill and metallurgical testing, the surveying of the surface infrastructure and environmental baseline studies.
  • Preparations are also underway for the 8,750m / 35 holes Phase 2D and 2E drilling along the remaining >1km segment of BRDZ from West Goldbrook to Dolliver Mountain.
  • Orex is also planning a 2,500m in-fill drilling program to confirm gold grades where 0 g/t intervals were given to 97 historic drill holes in the 2009 MRE.

Expenditures are estimated at $1.8 to $2 million for the planned work, except the bulk sampling campaign.

Financing

Orex plans to proceed with a financing of $1.5 million consisting of 11,538,500 Flow-Through Shares priced at $0.13 per share, and $2 million consisting of 18,181,818 Non Flow-Through Units priced at $0.11 per unit. Each unit consists of one common share and one warrant giving the holder the right to buy one common share at a price of $0.185 per share for a period of twenty-four months after closing. The common shares and the common shares underlying the warrants will be subject to a hold period of four months. This financing is subject to final Orex Board and regulatory approvals.

Convertible Debenture

The company intends to finance the bulk sampling campaign and potential assets and immobilisation acquisitions with a 5 to 20 million dollar convertible debenture that will be sold through a complete offering prospectus. Terms of the debenture will be communicated at a later date.

Comparative Summary of the last Resource Estimates

The 2009 MRE covers a 1.5 km segment of the Boston-Richardson Deformation Zone or BRDZ. This segment is illustrated below in comparison with the 2004 and 2006 mineral resource estimates (refer to the discussion below).

At cut-off gold grades of 0.5 g/t and 1.5 g/t gold for the 2009 MRE, and the 2006 and 2004 resource estimates are outlined as follows:

GOLD
CUT-OFF GRADES
(
g/t)
NI 43-101 MINERAL RESOURCE CATEGORIES(1)YEAR OF MINERAL RESOURCES ESTIMATES
2004(2)2006(3)2009(4)
Tonnes / Grade / Ounces(5)Tonnes / Grade / Ounces(5)Tonnes / Grade / Ounces(5)
0.0MEASURED + INDICATED13.26 / 0.78 / 330n/a(6)n/a(6)
INFERRED15.60 / 0.63 / 314n/a(6)n/a(6)
0.5MEASURED + INDICATEDn/a(6)13.26 / 1.13 / 4857.93 / 2.13 / 543
INFERREDn/a(6)15.60 / 0.63 / 31610.39 / 2.81 / 594
1.5MEASURED + INDICATEDn/a(6)n/a(6)2.71 / 4.56 / 397
INFERREDn/a(6)n/a(6)3.44 / 3.67 / 406

Notes:

(1) Mineral resources which are not mineral reserves do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues. The quantity and grade of reported Inferred Mineral Resources in this estimation are conceptual in nature and there has been insufficient exploration to define an Indicated Mineral Resource on the Project and it is uncertain if further exploration will result in discovery of an Indicated or Measured Mineral Resource on the Project.
(2) The 2004 mineral resource estimates were contained in NI 43-101 technical reports available on SEDAR at www.sedar.com titled
(3) The 2006 mineral resource estimates were contained in NI 43-101 technical reports available on SEDAR at www.sedar.com titled
(4) The current MRE* were calculated by Donald Gervais, B. Sc., P. Geo., and Alain Carrier, M. Sc., P. Geo., both of InnovExplo, independent Qualified Persons under NI 43-101 guidelines, and were calculated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council December 11, 2005. The 2009 MRE Technical Report will be available on SEDAR at www.sedar.com.
(5) Numbers in millions of tonnes / g/t gold / in thousands of gold ounces. Any discrepancies between the estimates here and the original estimates are due to rounding following the recommendations in NI 43-101.
(6) n/a signifies no estimation available for the year reported.

The 2004 estimates were based on the documented resource evaluation work prepared by Mr. Guy Parent in 1990. The resource estimation was audited by MRB & Associates in August 2004, and the numbers were subsequently re-classified into the Measured, Indicated and Inferred mineral resource category in order to comply with National Instrument 43-101 standards of disclosure for mineral projects. The 2004 estimate was calculated for a 1.5 km length of the deposit to a depth of 300m.

The 2006 estimates were calculated for the 225m long "Ramp Area" at a 0.5 g/t gold cut-off grade and included a revised interpretation of the historically accepted "slate-belt" model for Goldboro. Additional mineral resources were calculated "Outside the Ramp Area" over a 1.5km distance covering the West Goldbrook Shaft, Ramp Areas and East Goldbrook Shaft by subtracting the 2006 resource estimate for the "Ramp Area" from the August 2004 mineral resource estimate. The Measured Resources were estimated using grades from bulk sample metallurgical test results of composite drill core samples dating from the late 1980's and early 1990's vintage. The metallurgical testing done from the same era (38 bulk test samples totalling 12.4 tonnes) demonstrated that conventional assay grades understated actual grades due to a strong nugget effect. The Indicated Resources were estimated using grade determinations from conventional drill core sample assaying during the same era.

The 2009 estimates were modeled by extending the interpreted mineral zones 825m along strike to the east and 500m to the west from the Company's 2006 NI 43-101 mineral resources calculated to a -520m vertical depth from surface over a 1.5km strike length of the BRDZ. It was estimated that 97% of the MRE* are located within the first 350m from surface. The 2009 MRE are significantly higher and of better quality in terms of grade over the 2006 estimates and the same 0.5 g/t gold cut-off grade and 1.5km distance. The combined Measured and Indicated resource estimates at a 0.5 g/t gold cut-off grade 2.13 g/t gold, an 88% grade increase from 2006, with an additional Inferred resource grading 1.78 g/t gold, a 182% grade increase from 2006.

About Orex Exploration Inc.

Orex Exploration Inc. is a Canadian-based junior resource and exploration company trading under the symbol OX on the TSX Venture Exchange and O5D on the Frankfurt Stock Exchange. The Company holds a 100% interest in the Goldboro Gold Project in Nova Scotia.

The technical information contained in this news release has been prepared by Mr. Jean Lafleur, M. Sc., P. Geo., Senior Technical Advisor to Orex, and Mr. Alex Horvath, B.A.Sc., P. Eng., of A. S. Horvath Engineering Inc. (Ottawa, Ontario), both individuals are Qualified Persons under National Instrument 43-101 regulations.

Mineral resources which are not mineral reserves do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues. The quantity and grade of reported Inferred Mineral Resources in this estimation are conceptual in nature and there has been insufficient exploration to define an Indicated Mineral Resource on the Project and it is uncertain if further exploration will result in discovery of an Indicated or Measured Mineral Resource on the Project.

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 news release. This news release may contain forward-looking statements reflecting the Company's objectives, estimates, expectations and the impact of acquisitions on the Company's financial performance. By their very nature, these types of statements involve risks and uncertainty. Consequently, reality may differ materially from the Company's projections or expectations.

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