August 31, 2010 15:07 ET

J.A.G. Mines Ltd: Fourth Year of Oil and Gas Research Program Completed on the Charlevoix Property

MONTREAL, QUEBEC--(Marketwire - Aug. 31, 2010) - J.A.G. Mines Ltd (JAG) (TSX VENTURE:JML) and Olitra Inc. announces that it completed its fourth year of exploration work on the Charlevoix Property (Quebec), during which were performed a soil gas survey in the Du Gouffre River Valley between the towns of Baie-St-Paul and St-Urbain, and Rock Eval analysis on sedimentary rocks outcropping in the Baie-St-Paul area.

Since the end of 2006, JAG is actively researching oil and gas in the Charlevoix area, where it holds two research permits covering 39,258 hectares. JAG has developed a comprehensive two phases research program which can be consulted on SEDAR. In Phase 1, JAG has chosen to use a step by step integrated interdisciplinary approach combining geology, subsurface geophysics, soil gas and other surface geochemical exploration methods, in order to determine the petroleum-generative potential of the sedimentary rock sequence and identify the surface expression of eventual hydrocarbon-induced soil and sediment alterations. Collected results during Phase 1 should enable JAG to define targets before conducting more detailed research and more conventional surveys during Phase 2.

During the fall of 2009 and the spring of 2010, the Company has conducted a soil gas survey including the analysis of 500 samples collected along 36 sections of various lengths and orientations. The survey allowed location of interesting soil gas anomalies preferentially located in the transition zone between farming lands and surrounding hills, where ethane reach more than 1,000 ppb (36 samples), methane more than 25,000 ppb (13 samples) and propane more than 1,000 ppb (27 samples). Indeed, the highest ethane content is 20,864 ppb, the highest methane content, 2,600,000 ppb and the highest propane content, 16,850 ppb. A thermogenic origin of soil gases is indicated by [methane / (ethane + propane)] ratios and the source was probably oil.

Rock Eval analysis performed on about forty limestone samples from the Baie-St-Paul area confirmed results obtained in 2007. Organic matter present in the Ordovician limestones has reached the oil window (Tmax = 443 degrees C) and about a quarter of the samples has shown a good to very good petroleum-generative potential.

During its fourth year of exploration, the Company has invested some additional $ 78,000, bringing its total investment on the Charlevoix Property at nearly $ 210,000. The Charlevoix Property covers Paleozoic sedimentary rock of Ordovician age, locally preserved in the Du Gouffre River and La Malbaie River graben structures cutting the Grenville Basement. The Paleozoic sedimentary rocks exposed on the Charlevoix Property belong to the St.Lawrence Platform. The area remains largely unexplored for oil and gas, however, results obtained so far encourage JAG to carry on its research program.

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