November 27, 2006 19:05 ET

Lexam Explorations Inc.: Third Quarter Results

Natural Gas Permitting Advances Evaluating Large Nevada Gold Properties

TORONTO, ONTARIO--(CCNMatthews - Nov. 27, 2006) -

(All amounts expressed in Canadian dollars)

LEXAM EXPLORATIONS INC. (TSX VENTURE:LEX) is pleased to announce financial results for the third quarter 2006, an update on the Baca Oil and Gas Project in Colorado and the Company's gold exploration potential in north-eastern Nevada.


Permitting Moves to Advanced Stage at Baca Oil and Gas Project

Nevada Gold Properties Being Evaluated To Unlock Value

$4.4 Million Financing Completed

New TSX-Venture Listing: Symbol LEX

Option Agreement With HudBay Minerals To Sell Jason Property


For the third quarter Lexam reported a profit of $11,599 or nil per share, compared with a profit of $134 or nil per share in 2005. During the quarter Lexam continued to advance the 100,000-acre Baca Oil and Gas Project, situated in the San Luis Valley of south-central Colorado, and initiated an evaluation of its large land position in north-eastern Nevada.

At the end of the third quarter Lexam had working capital of $3.9 million, compared with a working capital deficit of $507,781 in 2005. On August 1st the Company closed its oversubscribed $4.4 million financing.

The complete third quarter report, including management's discussion and analysis, financial statements, and notes can be found on the Company's website at www.lexamexplorations.com and on SEDAR at www.sedar.com.


Permitting at Advanced Stage

Lexam continued to advance the permitting process at the Baca Oil and Gas Project. Lexam is permitting the Baca Project for a 3D seismic survey and two natural gas wells that will reach depths of 14,000 ft (4,265 m).

During the quarter, Lexam surveyed lines to be used for data collection on the 26 sq. miles covered by the 3D seismic survey. A cultural resource inventory began that is necessary to identify potential cultural sites along the survey routes. Sites that are identified will be inventoried and avoided during the seismic survey. Final planning for a pre-drilling baseline water quality study was completed. Sampling during the fourth quarter will establish water quality values in the surrounding area prior to drilling. Post-drilling, the survey will be repeated.

At the request of the surface owner, the U.S. Fish and Wildlife Service, Lexam has agreed to perform the 3D seismic survey during the winter season when the ground is frozen to minimize possible surface disturbance. The decision to perform the 3D seismic during the winter season does not impact time frames regarding possible drilling.

The 3D seismic survey is designed to help Lexam confirm and define the deep targets that have been identified through the use of extensive 2D seismic and also the potential for finding gas in the lower Tertiary section of the San Luis basin.


Large, Underexplored Land Position

Lexam has begun to evaluate its large land holdings in north-eastern Nevada in order to generate more value from these assets. Exploration activity within this area of Nevada has been rapidly accelerating with companies such as New West Gold having reported very encouraging results from their 2006 drill programs.


New Ticker Symbol: LEX

On August 1st Lexam began trading on the TSX Venture Exchange under the ticker symbol LEX. Previously shares of Lexam traded on the NEX under the symbol LEX.H.

Lexam's reactivation was part of its oversubscribed $4.4 million financing. Lexam issued 8.8 million units at $0.50 per unit. Each unit consisted of one common share and one-half share purchase warrant exercisable at $0.70 per share over a period of two years. Rob McEwen, Chairman and CEO of Lexam, personally purchased 4 million units or $2.0 million of the offering.

As part of Lexam's listing on the TSX-Venture, the Company eliminated all of its outstanding debt. Rob McEwen forgave debt totaling $402,720, which was owed to a Company he controls. Concurrent with the offering, Lexam issued 189,852 common shares to insiders of Lexam at a price of $0.50 per common share and cash considerations totaling approximately $132,024 to related and non-related parties in order to eliminate the remaining portion of the debt.


In order to strengthen Lexam's cash position and sharpen its focus, the Company announced that its 62% owned subsidiary, MacPass Resources, entered into an agreement with HudBay Minerals to sell the Jason property located in the Yukon for $1,000,000. The option agreement is set to expire during March 2007.

HudBay has paid an initial non-refundable deposit of $100,000 to MacPass with the balance of the $900,000 payable on exercise of the option during a six-month period.


Lexam is a Canadian based oil and gas exploration company. Lexam's shares have recently been listed on the TSX-Venture under the symbol LEX. The company is advancing the Baca Grant Oil & Gas Project located in the San Luis Valley in south-central Colorado, which is 75% owned by Lexam and 25% by ConocoPhillips.


Some of the statements contained in this release are "forward-looking statements". Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from anticipated results include risks and uncertainties such as: ability to raise financing for further exploration and development activities; risks relating to estimates of reserves, deposits and production costs; extraction and development risks; the risk of commodity price fluctuations; political, regulatory and environmental risks; and other risks and uncertainties in the reports and disclosure documents filed by Lexam from time-to-time with Canadian securities regulatory authorities. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. The complete second quarter report including management's discussion and analysis, financial statements and notes can be found on our Company's website at www.lexamexplorations.com and on SEDAR at www.sedar.com.

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