Advanced Explorations Inc.
TSX VENTURE : AXI
FRANKFURT : AE6

Advanced Explorations Inc.

March 13, 2012 03:00 ET

Advanced Explorations Inc. Closes $5,000,000 Convertible Debenture Financing

TORONTO, ONTARIO--(Marketwire - March 13, 2012) - Advanced Explorations Inc. (TSX VENTURE:AXI)(FRANKFURT:AE6) (the "Company" or "AEI") announces that it has closed its non-brokered private placement financing (the "Financing") of a $5,000,000 principal amount convertible debenture (the "Debenture") involving strategic partner XinXing Ductile Iron Pipes Co. Ltd. ("XDIP") and its wholly-owned Hong Kong based subsidiary, XinXing Pipes (Hong Kong) Co. Ltd. ("XDIP HK"), previously announced on October 31, 2011 and updated January 9, 2012.

XDIP HK is a specific purpose, wholly-owned Hong Kong based subsidiary of XDIP established for the purpose of completing the Financing. In addition to serving as a platform for the successful completion of the Financing, XDIP HK will also help facilitate the development of the Roche Bay Iron Project.

Pursuant to the closing of the Financing, the Company issued the Debenture to XDIP HK which, if fully converted, will result in the issuance of 11,111,111 common shares in the capital of the Company (the "Common Shares").

The Debenture is non-interest bearing, has a term of 24 months maturing March 2, 2014 (the "Maturity Date"), and is convertible for Common Shares as per TSX regulations and subject to a minimum conversion price of $0.45 per Common Share (the "Conversion Price"). The Debenture may be converted, in whole or in part, into Common Shares any time prior to the Maturity Date at the Conversion Price.

All securities issued pursuant to the financing are subject to resale restrictions until August 1, 2012.

The Company also wishes to inform shareholders that in the near future it will provide updates on the progress of its feasibility study, its intended summer programs, and any partnering initiatives relating to both its Copper-Nickel and Tuktu iron ore projects.

ON BEHALF OF THE BOARD

John Gingerich, President & CEO

ABOUT Advanced Explorations Inc.

Advanced Explorations Inc., based in Toronto, Ontario, is a resource development company focused on developing its Roche Bay and Tuktu Iron Ore Projects in one of the world's largest developing iron ore districts, the Melville Peninsula in Nunavut. The Ocean-based Roche Bay Project boasts an NI 43-101 compliant resource estimate of over 500 million tonnes outlined within a small portion of the potential 140 km of banded iron formation. A feasibility study for the project's C-Zone is near completion. To date, the Company has delineated over 1 billion tonnes of iron under NI 43-101 among its Roche Bay and Tuktu deposits and continues to explore other targeted deposits in areas to the north, south and west of Roche Bay. A preliminary economic assessment from the Roche Bay deposit alone indicates a potential net present value of US $1.1 billion, and the potential for rapid advancement into development of either iron concentrate or high value iron nugget products. The management team has extensive technical, exploration and Canadian Arctic mining expertise to effectively develop the high quality iron ore opportunities on the Melville Peninsula.

This news release also includes forward-looking statements that involve a number of risks and uncertainties. The information reflects numerous assumptions as to industry performance, general business and economic conditions, regulatory and legal requirements, taxes and other matters, many of which are beyond the control of the company. Similarly, this information assumes certain future business decisions that are subject to change. There can be no assurance that the results predicted here will be realized. Actual results may vary from those represented, and those variations may be material.

This news release does not constitute an offer to sell or a solicitation of an offer to sell any securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED WITHIN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

Contact Information

  • Advanced Explorations Inc.
    (416) 203-0057 x226