Auryx Gold Corp.

Auryx Gold Corp.

May 11, 2011 08:45 ET

Auryx Gold Corp.: Minister of Mines Confirms That Existing Licences Not to Be Affected

TORONTO, ONTARIO--(Marketwire - May 11, 2011) - Auryx Gold Corp. ("Auryx" or the "Company") (TSX:AYX)(NSX:AYX) advises that, further to the Company's release of April 29, 2011, the Minister of Mines and Energy of Namibia, the Honourable Isak Katali, clarified by way of a media statement on May 10, 2011 that:

  1. Existing exploration and mining licenses (EPLs and MLs respectively) will not be affected by the above change in policy.
  2. Previously submitted but as of yet approved applications for EPLs and MLs will be evaluated under the existing procedure. However, the licenses might be granted with the condition of offering the Government of Namibia (or the State-owned mining company, Epangelo Mining Company) a right of first refusal on future capitalization of the licenses.
  3. ML applications arising from currently granted EPLs would be treated as described in item 2.
  4. New licenses for "strategic minerals" should only be issued to a State owned company. Subsequent to the approval of the licenses by the Ministry of Mines and Energy, the State-owned company (Epangelo) may enter into joint ventures with interested parties for exploration and development.

The management of Auryx view these proposed changes as having no material impact upon its business activities in Namibia.

Auryx's Otjikoto Gold deposit is located within EPL 2410 which was recently renewed for a period of two years, as of 15 September 2010. EPL 2410 consists of more than 54,000 ha which hosts 40 km of favourable strike. Of that 40 km only the 3 km which hosts Otjikoto has been significantly tested. The company has a further 360,000 ha of current EPL's within Namibia and another 500,000 ha of EPL applications pending approval.

On behalf of the Board of Directors

Tim Searcy, P.Geo., Chief Executive Officer

Cautionary Notes

Certain information set forth in this press release contains "forward-looking information" under applicable securities laws. Except for statements of historical fact, certain information contained herein constitutes forward-looking information which include management's assessment of Auryx future plans and operations and are based on Auryx current internal expectations, estimates, projections, assumptions and beliefs, which may prove to be incorrect. These risks and uncertainties include, but are not limited to: successful completion of the proposed transactions referred to herein; the satisfaction of the Escrow Release Conditions; liabilities inherent in mine development and production; geological, mining and processing technical problems; Auryx inability to obtain required mine licenses, mine permits and regulatory approvals required in connection with mining and mineral processing operations; competition for, among other things, capital, acquisitions of reserves, undeveloped lands and skilled personnel; incorrect assessments of the value of acquisitions; changes in commodity prices and exchange rates; currency and interest rate fluctuations; various events which could disrupt operations and/or the transportation of mineral products, including labour stoppages and severe weather conditions; the demand for and availability of rail, port and other transportation services; and management's ability to anticipate and manage the foregoing factors and risks. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Auryx undertakes no obligation to update forward-looking information if circumstances or management's estimates or opinions should change except as required by applicable securities laws. The reader is cautioned not to place undue reliance on forward-looking information.

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