Advanced Explorations Inc.
TSX VENTURE : AXI
FRANKFURT : AE6

Advanced Explorations Inc.

May 19, 2010 08:50 ET

Advanced Explorations Inc. Closes First Tranche of Private Placement for $2,023,900

TORONTO, ONTARIO--(Marketwire - May 19, 2010) - Advanced Explorations Inc. (the "Company" or "AEI") (TSX VENTURE:AXI)(FRANKFURT:AE6) is pleased to announce the closing of the first tranche of the private placement previously press released on April 29, 2010. A total of 9,199,545 units (the "Units") at a price of $0.22 per Unit were sold for gross proceeds of $2,023,900. Each unit consists of one common share of the Company and one non-transferable share purchase warrant exercisable for a term of one year, wherein one whole warrant may be exercised for the purchase of one further common share of the Company at the exercise price of $0.40 per common share during a term of one year, subject to the following acceleration provision: if the closing trading price for the common shares of the Company as traded on the TSX Venture Exchange is equal to or greater than $0.75 per common share for 5 consecutive trading days occurring any time after 4 months from the date of issuance of the warrant (the "Threshold Period"), then the Company shall issue a press release announcing the occurrence of the Threshold Period. The Subscribers shall have until 4:00 pm (Toronto, Ontario Time) of the 30th calendar day after the date of dissemination of the press release to exercise the share purchase warrants (the "Accelerated Expiry Date"). The share purchase warrants shall expire on the earlier of the last day of the one year exercise term or the Accelerated Expiry Date.

In connection with the first tranche, the Company paid finders' fees of $132,433 and granted 601,968 compensation warrants having a term of one year (not subject to any acceleration provisions) and an exercise price of $0.22 per share. All common shares issued and issuable upon any warrant exercises are subject to a hold period expiring on September 19, 2010.

John Gingerich, President & CEO of AEI, commented:

"The Company expects to close the second tranche shortly. Although these are unsettled times in the financial markets the iron ore sector continues to see increased interest with the expectation of continued growth in the future. We believe the Company and the project are well positioned to further develop its core Roche Bay site, and expand upon existing opportunities to add value for its shareholders."

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 high quality iron ore opportunities. Currently, the company holds interests in projects located in Nunavut with low infrastructure needs. The Roche Bay magnetite project is located on the coast and is bolstered by a deep water access to its eastern coast. The Company intends to build upon logistical benefits when developing its current projects at Roche Bay and Tuktu. AEI plans to produce high quality iron products from the 357 million tonnes inferred resource of the project's C-Zone. Its preliminary economic assessment for the project indicates a potential US $2.76 billion net present value, a minimum of 50 years mine life and a return on investment between three and five years. Led by an experienced management team with technical, exploration and mining expertise the company has the capabilities to rapidly advance the Roche Bay and Tuktu Projects and explore other local and global opportunities.

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