Advanced Explorations Announces Shandong Fulun Steel Exercises Right to Off-take Agreement on Roche
Bay Iron Project
(TSX
VENTURE: AXI)
(FRANKFURT:
AE6)
TORONTO,
ONTARIO--(Marketwire - March 2, 2011) - Advanced
Explorations Inc. (the "Company" or "AEI) is pleased to
announce that it has received an exercise request from Shandong Fulun Steel
Company ("Fulun Steel") for its 7,000,000 warrants as part of the framework
agreement between the two companies (Press Release September 29, 2010) at a
price of $0.55. With the exercise of the warrants, Fulun Steel is securing its
right to a 19% off-take agreement on iron product from the future Roche Bay
mine..
John Gingerich,
President and CEO, commented:
"We
are very pleased that Fulun Steel is securing its off-take right on future
product from Roche Bay. The exercise demonstrates their confidence in the AEI
team taking the Roche Bay project to production. Our relationship with
Fulun Steel compliments that of our partner XinXing Pipes Group. We
continue to investigate opportunities for Fulun Steel to partner with AEI on
other projects".
Mr Liu Ji An, Vice-Chairman, General Manager of Shandong Fulun Steel
Co. Ltd., commented:
"Advanced
Explorations has worked closely with Fulun Steel over the last several
months. Securing production off-take from Roche Bay is an important part
of our future supply requirements. We have a good relationship with AEI
management and hope we can expand our business relationship in the
future."
AEI is well funded, and ? outside of the
Feasibility Program ? plans to commit up to $7
million to other exploration campaigns including; drilling dedicated to
increasing the resource base at Roche Bay and Tuktu, a drilling program for the
Alaska Iron Sands Property as well as to the assessment of the West Melville
nickel-copper, copper-gold, silver and molybdenum prospects. The Company
anticipates using its additional funds for project contingency and/or new
acquisition opportunities.
ON BEHALF OF THE BOARD
John Gingerich, President
& CEO
ABOUT Advanced
Explorations Inc.
Advanced Explorations Inc., based in Toronto,
Ontario, is a resource development company focused on its Roche Bay Iron Ore
Project in Nunavut, one of the world's largest developing iron ore districts.
The Roche Bay Project is located proximal to a natural deep water harbour on
the coast of the Melville Peninsula in Nunavut, Canada giving it many
logistical advantages. The project has an inferred resource of 357 million
tonnes, outlined within a small portion of the potential 140 km of banded iron
formation. This iron formation incorporates the Roche Bay deposits, the
Company's Tuktu deposits and other targeted deposits in areas to the north,
south and west of the Company's Roche Bay Project. The preliminary
economic assessment from the Roche Bay deposit alone indicates a potential
net present value of US $1.1 billion. Together with its Chinese partner XinXing
Pipes Group, Advanced Explorations is completing the feasibility study on Roche
Bay, targeting a rapid advancement into start-up concentrate production. The
management team has extensive technical, exploration and Canadian Arctic mining
expertise to effectively develop the high quality iron ore opportunities on the
Melville Peninsula.
NEITHER
THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS
DEFINED WITHIN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY
FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
This news release also includes forward-looking statements that involve a number of risks and uncertainties. The information reflects numerous assumptions as to industry performance, general business and economic conditions, regulatory and legal requirements, taxes and other matters, many of which are beyond the control of the company. Similarly, this information assumes certain future business decisions that are subject to change. There can be no assurance that the results predicted here will be realized. Actual results may vary from those represented, and those variations may be material.
This news release does not constitute an offer to sell or a solicitation of an offer to sell any securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
For further information: (416) 203-0057 x226