Kobex Resources Ltd.
TSX VENTURE : KBX

Kobex Resources Ltd.

July 06, 2007 08:30 ET

Kobex Provides Corporate Update

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 6, 2007) - Kobex Resources Ltd. (Kobex) (TSX VENTURE:KBX) is pleased to provide the following update on the development of its Lucky Jack Molybdenum Project (the Project) located in Gunnison County, Colorado.

Kobex has now received approval by the TSX Venture Exchange for the Exploration, Development and Mine Operating Agreement entered into with U.S. Energy Corp., Crested Corp. and U.S. Moly Corp on April 3, 2007 in respect of the Lucky Jack Molybdenum Project (previously known as the Mt. Emmons Project) located near Crested Butte, Colorado, USA. As previously reported, Kobex will manage and operate as well as fund the development of the Project, and has the option to earn from U.S. Energy and Crested Corp., up to a 65% interest in the Project, or be required to purchase, through the issuance of up to 50% (but not 50% or greater) of the issued share capital of Kobex, 100% of the Project through a newly formed wholly owned subsidiary of U.S. Energy Corp, all upon certain terms and conditions being met.

A budget of USD $14.2 million for the next 12 months for the development of the Lucky Jack Project has been approved by the Board of Directors. This budget includes the operational costs for both Kobex Resources Ltd. as well as its wholly owned subsidiary Kobex Colorado Corporation. The primary areas of expenditure will be the rehabilitation of existing underground access to drill stations, underground definition drilling, preliminary engineering studies to support the Plan of Operations, and operating costs associated with the water treatment plant.

Kobex Colorado Corporation has entered into a contract with Thyssen Mining Construction of Canada Inc. (Thyssen) for the underground rehabilitation at the Project. Thyssen is currently mobilizing its team and equipment to carry out the underground work program. This will provide safe and efficient access to historic drill stations, to planned additional drill access drifts and new drill stations and allow delineation of the areas of higher grade mineralization identified by Climax Molybdenum Corporation. The underground rehabilitation work is expected to take approximately nine to ten months. Thyssen is a leading mining contractor in the Western USA and Canada with over 40 years experience in the mining industry. They are known for their safe mining practices and commitment to the protection of the environment.

A Plan of Operations is currently being prepared and evaluated prior to being presented to the U.S. Forest Service. This submission is the first step in the formal environmental permitting process for the Project. A series of studies examining infrastructure sites, transportation routes, hydrology, and socio-economic conditions and projections have been commissioned and are nearing completion. It is Kobex`s intent to submit the Plan of Operations for the Lucky Jack Project to the U.S. Forest Service in the fourth quarter of 2007.

Kobex is planning to commence a Feasibility Study on the Lucky Jack Project in the first quarter of 2008. Geological resource estimation, mine production scheduling, process metallurgical test work, plant and tailing impoundment design, infrastructure and manpower requirements will all be evaluated in sufficient detail for preparation of an Environmental Impact Statement (EIS). Kobex is projecting U.S. Forest Service approval in 2010. If these timelines are met, Kobex expects mine construction to begin in 2011, with first production of molybdenum concentrate anticipated in 2013.

The market for molybdenum remains robust. Since 2005, annual global demand has risen from 380 million pounds (lbs.) to an estimated 426 million lbs. in 2007, and demand is projected to reach 461 million lbs. by 2009. With demand being fuelled by economic and industrial growth in China, India, the U.S. and the global energy sector, some economists forecast growth at a 5% compound annual growth rate for the foreseeable future. If such forecasts prove realistic, worldwide demand for molybdenum would reach or exceed 700 million pounds annually by 2020. Today molybdic oxide (Mo) is trading in the $30/lb. range in a tight supply/demand market environment.

Kobex has recently added to their staff and is pleased to announce several appointments:

Ms. Andrea Zaradic, P. Eng., has been appointed to the position of Senior Project Manager. Ms. Zaradic is a graduate of the University of British Columbia and holds both Masters and Bachelors degrees in Mechanical Engineering. In a career with 20 years experience, Andrea has played an instrumental role in consulting engineering, project management, design and plant commissioning, operations and owners project development in the mining, forestry and high technology sectors. Recent examples include the Forrest Kerr Hydroelectric Project, Oyu Tolgoi Copper Project, Onca Puma Nickel Project and the Ekati Diamond Mine. Ms. Zaradic is a registered Professional Engineer in the provinces of British Columbia and Ontario.

Mr. William (Bill) Kazel is appointed to the position of Site Manager with Kobex Colorado Corporation. Bill has over 40 years of experience in the exploration, development, reclamation & closure and operations management of large and small underground mines. Bill has a degree in Chemical Engineering from the University of Denver and is a Colorado resident.

Mr. Robert (Bob) Weigel is appointed to the position of Contract Supervisor with Kobex Colorado Corporation. Bob was born and raised in Gunnison County, near the Lucky Jack Project and has worked in underground mining in the western USA for the last 30 years.

Kobex president, Mr. Leo King remarked " we are pleased with recent progress in moving forward on the Lucky Jack project. Our successful financing and addition of key staff will allow us to aggressively advance the work on this exciting project. US Energy has been very supportive in our initial start-up efforts and we look forward to a long-lasting co-operative relationship."

Kobex is committed to sustainable mining operations that balance economic, social and environmental values. In all its activities it commits to:

- Protecting human health and safety

- Protecting the environment and wildlife habitat

- Operating with transparency and accountability

- Complying with all national, regional and local laws and regulations

- Engaging and partnering with local communities

- Providing long-lasting benefits to local communities

By working in this manner, Kobex will deliver value to its shareholders while providing sustainable economic, social and environmental benefits to local communities in regions where it operates.

On behalf of the Board of Directors

H. Leo King, President

This news release includes certain statements that express management's expectation or estimates of future performance and may be deemed "forward-looking statements". These forward-looking statements include plans, estimates, forecasts and statements as to management's expectations concerning Kobex and its proposed acquisition of an interest in the Lucky Jack Project, including, among other things, Kobex's plans to earn a 65% interest in the Project and the requirement to purchase 100% of the Project. These forward-looking statements involve assumptions, risks and uncertainties and actual results may vary materially. For these reasons shareholders should not place undue reliance on such forward-looking information.

United States residents are cautioned that some of the information that may be published by Kobex may not be consistent with United States Securities and Exchange Commission disclosure rules and may be materially different from what the Company is permitted to disclose in the United States and therefore United States residents should not rely on such information.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this News Release.

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