Advanced Explorations Inc.

Advanced Explorations Inc.

July 14, 2008 13:12 ET

Advanced Explorations Inc. to Earn up to 70% Interest in Roche Bay Project

TORONTO, ONTARIO--(Marketwire – July 14, 2008) - Advanced Explorations Inc. (TSX VENTURE:AXI.H)(NEX BOARD:AXI.H)(TSX VENTURE:AXI) (the "Company" or "AEI") is pleased to announce that it has amended its Farm In Agreement with Roche Bay Plc ("RB") that will allow AEI to earn up to a 70% interest (up from 50.1%) in the Roche Bay magnetite project in Nunavut. Pursuant to the amendments, on or before September 1st, 2008 AEI may give notice to exercise an option to acquire an additional 19.9% interest in the project for $19,500,000, consisting of $3,500,000 in cash and the issuance of 6 million AEI shares priced at $2.50 per share, all net of applicable Canadian withholding tax which the Company anticipates, based on the information provided by RB, should be $5,500,000.

John Gingerich, President and CEO of AEI, commented;

"The ability of AEI to acquire a substantial majority of the Roche Bay project is a significant step forward for the AEI shareholders. The simpler clear majority structure will impact our ongoing negotiations with members of the mining and steel communities. The resource and economic studies are in the pipeline and we expect to be in a position to announce the results of these studies later this summer."

The notional price of $2.50 per share represents a 77% premium ($1.09) over the current market price of the AEI shares. Roche Bay Plc has provided a significant period of time for AEI to initiate the option and conclude the transaction. The transaction is subject to the approval of the TSX Venture Exchange and, if required, pursuant to applicable securities laws, to the approval of the shareholders of AEI.

Benjamin Cox, President and CEO of Roche Bay plc, stated;

"We have been extremely pleased with the progress made by AEI and providing a flexible option from which to earn in to a greater share of the project demonstrates the confidence our company has that AEI will successfully advance this project to a production decision. We at Roche Bay, due to our economic view of the project, are willing to give up some of our ownership stake in exchange for a financing model under the current terms that takes us up to a 16 million tonnes per year project in the longer term"

In addition, the Company also announces that China Steel Resources Investment ("CSRI") has failed to meet its previously announced financing commitments. AEI has given notice to CSRI and Melville Capital Corporation ("MCC") that they are in breach, and all parties are working in best efforts to cure the breach. MCC has stated it remains committed to the AEI agreement. AEI has also received proposals from other interested parties to independently address its project requirements. In the long term AEI and MCC remain committed to the Aboriginal community development plans. AEI will release further details when it makes a decision with respect to MCC and/or alternatives sources. The beneficial restructuring and simplifying of the joint venture gives AEI more flexibility to consider alternative proposals and options.


John Gingerich, President & CEO

ABOUT Advanced Explorations Inc.

AEI, based in Toronto, Canada, is exclusively focused on developing high quality iron ore opportunities. In early 2007 the Company expanded its capabilities in iron ore exploration and development with the acquisition of strategic management personnel. AEI has the management, technical and exploration expertise and experience to rapidly advance the Roche Bay magnetite project, which was acquired in June 2007, as well as, to develop new opportunities in the area and globally. The Roche Bay magnetite project is located proximal to a natural harbour which makes it potentially one of the world's premier iron ore opportunities. Shares of the company trade on the TSX Venture Exchange under the symbol AXI. For more information please visit

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 of 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

  • (416) 203-0057 x226