Advanced Explorations Inc.

Advanced Explorations Inc.

September 30, 2010 09:15 ET

Advanced Explorations Inc. Expands Its Development Options Through Agreement With Shandong Fulun Steel Company

TORONTO, ONTARIO--(Marketwire - Sept. 30, 2010) - Advanced Explorations Inc. (the "Company" or "AEI") (TSX VENTURE:AXI)(FRANKFURT:AE6) is pleased to announce that it has entered into an agreement (the "Agreement") with Shandong Fulun Steel Company ("Fulun Steel"). The Agreement sets out initial terms for a private placement of $2.8 million and a framework for mutual cooperation in the potential development of AEI's other iron projects not pursued by its strategic partner, XinXing Pipes Group Ltd. ("XXP").

Fulun Steel has agreed to subscribe for 7,000,000 Units issued by AEI at a price of $0.40 per Unit. Each Unit will consist of one (1) common share and one (1) non-transferable common share purchase warrant exercisable within four months from the closing date of the Offering. Fulun Steel shall be entitled to convert each whole warrant to one (1) common share of the Company at the exercise price of $0.55 per common share. Conditional on the exercise of all warrants by Fulun Steel it will earn the right to 19% of the off-take on iron products.

John Gingerich, President and CEO, commented:

"We are extremely pleased that we have successfully expanded our network of support in the Chinese steel industry. Building a relationship with Shandong Fulun Steel provides a broader range of development opportunities for our projects and iron ore assets. Our recently announced strategic agreement with XinXing Pipes Group provides a solid foundation to build the Company and a clear framework for mutually beneficial project development. We expect the relationship with Fulun Steel to compliment the lead efforts of our strategic partner, XXP. AEI has established supportive partnerships and a valuable team from which to grow the company and move our assets forward to development.

In concluding this deal, the company believes it now has the networks and development commitments in place to pursue an aggressive growth agenda without the need of additional near term financings. Management will now focus on implementing its strategic agreements and growing value (share price) for the shareholders." 

A finder's fee in shares, cash, warrants or a combination of both may be payable in connection with this placement in accordance with the policies of the TSX Venture Exchange. The Agreement is conditional upon regulatory and other relevant approvals as well as approval by the TSX Venture Exchange.

The terms are subject to TSX Venture Exchange and other regulatory approvals.


John Gingerich, President & CEO

ABOUT Advanced Explorations Inc.

Advanced Explorations Inc., based in Toronto, Ontario, is a resource development company that currently focuses on developing its flagship Roche Bay Project, one of the world's largest developing iron ore districts. The project is located proximal to a natural deep water harbour on the coast of the Melville Peninsula in Nunavut, Canada giving it many logistical advantages. The project has an inferred resource of 357 million tones, outlined within a small portion of the 140 km of identified banded iron formation. This iron formation incorporates the Roche Bay deposits, as well as the Tuktu area to the north and the recently acquired F Zone to the south. The preliminary economic assessment of part of the Roche Bay deposit alone indicates a potential US $1.1 billion net present value, and the potential for rapid advancement into development, producing either a 96% iron nugget or a >65% iron concentrate.

The experienced management team facilitates its technical, exploration and Canadian Arctic mining expertise to effectively develop the high quality iron ore opportunities on the Melville Peninsula, and evaluate a potential acquisition of an iron sands project on the Alaskan coast. In addition, the company has identified precious metal exploration targets on the Melville Peninsula, which will be further explored in 2011.

ABOUT Shandong Fulun Steel Co. Ltd.

Shandong Fulun Steel Company Limited is a private company united with mineral, metallurgy, casting and forging, manufacturing, new materials and coke industry. The company has more than 7000 employees and the fixed assets are 15.8 billion yuan. Fulun Steel has experience continued growth over recent years of almost 100%. The total revenue of Fulun Steel in 2009 was approximately $1.85 billion. With another 1680 m³ furnace ready for production in the fourth quarter of this year, the total iron and steel capacity of Fulun will reach 8 million tonnes a year.

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.


Contact Information

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