Merrex Gold Inc.

Merrex Gold Inc.

July 16, 2008 09:30 ET

Merrex Exploration Update Private Placement Withdrawn

HALIFAX, NOVA SCOTIA--(Marketwire - July 16, 2008) - Merrex Gold Inc. ("Merrex" or the "Company") (TSX VENTURE:MXI) announces that the private placement announced June 12, 2008 is withdrawn due to adverse market conditions for equity financings, especially for junior resource companies such as Merrex. Alternate financing sources are being investigated.

"Notwithstanding the significant results achieved to date or the considerable potential of both of Merrex's Siribaya Gold Project in Mali, West Africa or its Jubilee Zinc Deposit in Cape Breton, Nova Scotia, there was insufficient support in the equity markets at terms acceptable to management to warrant continuing with the financing effort", commented Merrex President and CEO Greg Isenor.

Siribaya Gold Project, Mali

Merrex's Siribaya Gold Project is within a 700 square kilometre contiguous land package hosting an estimated 100 kilometres of gold-anomalous structural lineaments. Extensive diamond and rotary air blast drilling has identified extensive gold mineralization along a 10 kilometre section of the Siribaya Structure. At Area 55 of Zone 1B a hydrothermal breccia-hosted, very high grade zone (5.07 g/t over 33 metres and 5.92 g/t over 20 metres) of gold mineralization over a minimum of 200 metres strike length, over 200 metres depth and open to the north, south and at depth is under active exploration. This Zone appears to extend for an additional two kilometres. Phase II (2008) diamond drill program is underway to test the depth and strike extension of this gold mineralization and an additional 4,000 metres of core drilling has been completed. The assay results of this drilling will be released as soon as results have been received and interpreted. A NI 43-101 compliant resource estimate has been commissioned.

Management believes that the Siribaya Project has the potential to host a substantial gold deposit. Drilling has shown that the Area 55 mineralized zone is continuous for 200 metres on a north-south strike length. An intersection 400 metres to the south is believed to be the same zone. Drilling 2,000 metres to the south intersected the controlling fault and artisanal workings in the same area exploited sulphide-rich gold-bearing rocks. The Area 55 mineralized zone was drill-confirmed to 200 metres depth and the gold-bearing sulphide/massive sulphides are open at depth. The average grades present in certain drill holes within Area 55 is between 3.0 to 5.0 grams Au per tonne.

Jubilee Zinc Deposit

Merrex owns a 228 claim block located in Cape Breton, Nova Scotia. Diamond drilling has defined a mineralized zone over 2.1 kilometres long and open to the north (the Jubilee Main Zone) with drill intersections as high as 21.16% zinc-lead over 2.7 metres including 41.39% zinc-lead over 1.2 metres.

Drilling also intersected zinc-lead mineralization in zones outside of the Jubilee Main Zone including one to the east which yielded assays as high as 5.3% zinc-lead over 9.6 metres including 10.25% zinc-lead over 4.15 metres (Hole MJ-07-24). These zones appear to run parallel to the Jubilee Main Zone but may also be controlled to some extent by cross structures. This type of parallel and cross faulting is common to carbonate-hosted zinc-lead deposits. An additional 16 core holes were drilled in the parallel zones. Results will be released when assays have been received and interpreted.

A NI 43-101 compliant resource estimate of 3.1 million tonnes grading 4.71% Zinc equivalent was completed by Mercator Geological Services Limited. This resource will be updated with recent drill results.

About Merrex

Merrex is a mineral resource exploration company focused on exploration for gold in West Mali, Africa, zinc in Cape Breton, Nova Scotia, nickel in West Voisey's Bay, Labrador, and gold in Red Lake, Ontario, with a solid organization of people and projects to enable continued aggressive exploration, discovery, and growth.

This press release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, that address future exploration drilling, exploration activities and events or developments that the Company expects, are forward looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions.


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