SAMEX Mining Corp.
OTC Bulletin Board : SMXMF

SAMEX Mining Corp.

November 08, 2005 13:49 ET

SAMEX Signs Agreement for Silver Exploration in Chile

ABBOTSFORD, BRITISH COLUMBIA--(CCNMatthews - Nov. 8, 2005) - SAMEX (TSX VENTURE:SXG)(OTCBB:SMXMF) has signed a letter agreement as the basis of an "Area of Interest" ("AOI") Agreement with SilverCrest Mines Inc. ("SilverCrest") to facilitate joint exploration for silver deposits in Region III of Chile. In addition to the Company's ongoing exploration at the Los Zorros property in Chile, SAMEX has been conducting discreet regional exploration for the past five years and has accumulated a valuable database of prospects, geological information, expertise and local connections. This agreement will enable SAMEX to utilize and advance these assets more effectively. SAMEX is pleased with the opportunity to compliment its own exploration efforts in Chile by working jointly with SilverCrest throughout the area of interest (approx. 70,000 square kilometers) which hosts the most important historic silver-producing areas of Chile.

Under the terms of this three-year agreement, SAMEX will help initiate and support SilverCrest's exploration efforts in Chile by presenting three properties of merit per year to SilverCrest for consideration. In return, SilverCrest will pay SAMEX US$150,000 consisting of four equal payments of US$37,500 over three-years. SilverCrest will have the right to earn up to a 51% interest in any property presented by SAMEX by entering into an Option Agreement and spending US$500,000 over three years on each respective property it elects to option. Within six months of earning a 51% working interest, or, upon SAMEX expending $125,000 as part of its 49% interest, which ever comes first, SilverCrest will have a further right to increase its working interest to 70% by paying SAMEX US$250,000. SAMEX may elect to convert its remaining 30% interest into a 3.5% net smelter return royalty ("NSR"), 1.5% of which, SilverCrest may purchase for US$1,000,000.

Under the "Area of Interest" Agreement, SAMEX will also have a back-in right to earn a 25% working interest in any property generated by SilverCrest on which they have spent US$250,000, by paying 25% of SilverCrest's expenses to that point. At SAMEX's discretion, this 25% working interest may be convertible to a 2.5% NSR, 1% of which SilverCrest may purchase for US$1,000,000.

This agreement is seen as a constructive way to leverage each company's individual exploration efforts through the synergy of blending expertise, human resources and finances. In good faith, SAMEX has already begun to present properties to SilverCrest for review. N. Eric Fier, CPG, P.Eng and Chief Operating Officer of SilverCrest states that, "We believe that Chile and the Area of Interest in particular, have been overlooked for the potential to host world class silver deposits. The agreement with Samex provides SilverCrest with the opportunity to greatly accelerate our corporate objectives in Chile. The Area of Interest has a history of significant silver production and is currently under intensive exploration for copper and gold. We believe that the region has the geological potential to host additional silver deposits."

Jeffrey P. Dahl, President

This News Release includes certain "forward-looking statements". Without limitation, statements regarding potential mineralization and resources, exploration results, and future plans and objectives of the Company are forward-looking statements that involve various risks. Actual results could differ materially from those projected as a result of the following factors, among others: risks inherent in mineral exploration; risks associated with development, construction and mining operations; the uncertainty of future profitability and uncertainty of access to additional capital.

The TSX Venture Exchange has neither approved nor disapproved of the information contained herein.

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