TORONTO, ONTARIO--(Marketwire - June 15, 2011) - ALEXIS MINERALS CORPORATION (News - Market indicators)(OTCQX:ASXMF) ("Alexis" or the "Company") today announces its first quarter financial and operational results for the period ending March 31, 2011. All figures are reported in Canadian dollars, unless otherwise noted. Complete financial statements and related Management's Discussion and Analysis documents will be available under the Company's profile on www.sedar.com before the market opens on June 16, 2011 and at the Company's website www.alexisminerals.com.

Financial Summary:

• Alexis reported revenue of $2.34 million for the quarter ending March 31, 2011.
• The Company sold 1,826 ounces of gold at an average realized price of $1,364/oz (US$ 1,380/oz.).
• Cash cost (see non-GAAP measures) of sales per ounce of Lac Herbin gold production was to $2,555/oz. 
• The Company raised $20,125,000 gross proceeds from the issuance of 201,250,000 common shares at a price of $0.10 per share.

 Operations Summary:

• During the quarter, the Company implemented a decentralized management structure whereby regional senior management has been dedicated to each operation. In this regard, Mr. Sylvain Lehoux joined the Company as Vice-President, Quebec Operations and Mr. Gerald Thornton joined as Vice-President, Manitoba Operations. Both Mr. Lehoux and Mr. Thornton bring significant experience and energy to their respective projects.
• Management has developed a restructuring plan for the operations at Lac Herbin mine that will place the production profile more in line with the nature of the deposit. Guidance for the balance of the year calls for approximately 9,000 to 11,000 oz and approximately 15,000 to 20,000 oz in 2012. The plan also calls for continued exploration around the mine to develop new areas for production.
• Exploration drilling at Snow Lake confirmed the potential for mineralization from surface to 520 foot depth within the East Extension of the Main Mine, giving further support for the potential discovery of a major new ore zone on strike of the known deposit.
• The Company announced the signing of a definitive agreement with joint venture (JV) partner Xstrata Canada Corporation – Xstrata Copper Canada Division by which the Company assumes a 100% interest in JV properties covering approximately 750 sq.km. of the Rouyn-Noranda Mining Camp, Quebec.

First Quarter Results From Operations

The Company sold 1,826 ounces of gold and generated $2.34 million in revenue from mining operations during the first quarter at an average gold sale price of $1,364 per ounce. During the same period in 2010, 4,750 ounces of gold were sold generating $5.25 million in revenue with the average sale price being $1,155 per ounce. 

Mine operating expenses were $4.66 million and amortization and depletion amounted to $0.12 million. Operating expenses were $4.9 million and amortization and depletion was $1.2 million for the same period in 2010. Amortization and depletion is substantially reduced as a result of the impairment write-downs on both the Lac Herbin property and equipment during the fourth quarter of 2010. 

The gross loss for the first quarter is $2.44 million compared to gross loss of $0.83 million during the first quarter of 2010. Revenue from mining operations includes $2.49 million from gold sales (Q1-2010: $5.50 million) reduced by $0.15 million in refining and royalty charges (Q1-2010: $0.25 million). The Company is subject to an NSR of 4.5% on Lac Herbin gold sales. The cost of sales per ounce sold during the current quarter, excluding amortization and depletion, was $2,555 per ounce compared to $1,027 per ounce during the comparative quarter (see Non GAAP Measures). The deposit continues to pose challenges and the Company is focusing on reducing absolute costs. Alexis anticipates that the cash cost will be reduced further by the recently announced turnaround plan at Lac Herbin. 

Alexis recorded a net loss for the quarter ended March 31, 2011 of $2.20 million compared to a loss of $0.20 million for the quarter ended March 31, 2010. Expenses were $1.83 million during the first quarter (Q1-2010: $0.68 million). The Company recognized a future income tax recovery during Q1-2011 of $2.06 million compared to $1.32 million during Q1-2010. 

Outlook

Alexis remains encouraged as exploration continues at Snow Lake with many prospective targets. The drilling program at Snow Lake has discovered significant gold mineralization in a potential, on-strike extension to the Snow Lake Mine. This may represent the discovery of a major new ore zone and characterizes the potential remaining on the property and in proximity to the company's Snow Lake Gold Mill, currently the only gold mill in the region. As well, two new high-grade gold zones were discovered containing mineralization which is similar in character to that of the Main and the No.3 Zones, yet is of significantly higher grade.

In addition, Lac Herbin operations will undergo significant underground development and intensive drilling in order to reestablish the production profile. The operation will now benefit from more flexibility and the Company expects to complete the development by the fourth quarter where planned production will be approximately 4,250 ounces per quarter into 2012.

François Perron, President & Chief Executive Officer of the Company, commented, "Alexis is presently positioned at an inflection point. In the past, our operating difficulties have overshadowed the progress that is being made on various fronts. However, the most recent recapitalization has now placed us on solid ground to deliver meaningful progress.

The first quarter continued to highlight the operating difficulties that we face at Lac Herbin. Our decision to continue with the operation is not based on being obstinate but rather on seeing a business opportunity based on the mineral potential and the people there. We are in the process of implementing a turnaround plan that will stabilize the operations and configure them for the remaining resources that are more narrow-veined. Once the redevelopment effort is complete, which is expected by the end of the third quarter, the operation should be in a position to return to profitability and allow us to pursue other initiatives, both around the mine and in the region.

The Snow Lake project is now at the point of nearing the production decision; current efforts are centered on the finalizing project financing, building the team to deliver a mine as outlined in the feasibility study, and the evaluation of several opportunities to further optimize our plans. These efforts, enriched by our operating experiences, should provide a project that will unlock significant shareholder value.

I joined Alexis in January knowing that we faced some near term issues, and we are dealing with them. I remain convinced that the combination of our people with the significant asset base we have established represents a significant opportunity."

Non-GAAP Measures

The Company has included certain Non-GAAP performance measures, namely, cash costs per gold ounce sold [NTD: working capital not used herein or reconciled below] throughout this document. In the gold mining industry, these are common performance measures but do not have any standardized meaning, and are Non-GAAP measures. In addition to conventional measures prepared in accordance with GAAP, the Company and certain investors use this information to evaluate the Company's performance and ability to generate cash, profits and meet financial commitments. These Non-GAAP measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. The following tables provide a reconciliation of cash costs per gold ounce sold for the three months ended March 31, 2011 and 2010.

Technical programs and information included in this release have been supervised, compiled and reviewed and approved by David Rigg, P.Geo., Qualified Person as defined under NI 43-101.

About Alexis

Alexis Minerals Corporation is a Canadian publicly traded mining company concentrating on exploration and mine development. The Company is listed on the Toronto Stock Exchange ("TSX") under the symbol "AMC", and trades in the United States on the Over the Counter QX International ("OTCQX") platform under the symbol "AXSMF". The Company's focus is to grow through exploration, development and acquisition of mineral properties and directly and indirectly, through joint ventures. Alexis is now in its second full year as a junior gold-producing company. The Company holds a dominant property position (over 1,104 km²) in three of Canada's richest mining camps: Val-d'Or and Rouyn-Noranda, in the Abitibi District of Québec, Canada, historically the third richest gold producing region in the world; and Snow Lake, Manitoba, Canada. Alexis undertakes exploration across these properties searching for new world class discoveries, while maintaining a focus on growing Alexis to become a mid-tier gold producer. For more information, please visit the company's website at www.alexisminerals.com.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION

Except for statements of historical fact, certain information contained herein constitutes "forward-looking information" under Canadian securities legislation. Forward-looking information includes, but is not limited to, statements with respect to the outcome of these financial results on the future of the Company, development potential of the Company's properties; the future price of gold and other minerals; the estimation of mineral reserves and mineral resources; the successful implementation of the development plans at each of the Company's properties,; the realization of mineral reserve estimates; the timing and amount of estimated future production; future costs of production; future capital expenditures; success of exploration activities; mining or processing issues; currency exchange rates; government regulation of mining operations; and environmental risks. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is
expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made. Estimates regarding the anticipated timing, amount and cost of mining at the Lac Herbin, Lac Pelletier and Snow Lake Projects are based on assumptions underlying mineral reserve and mineral resource estimates, the results of feasibility studies on the properties and the realization of such estimates are set out herein. Capital and operating cost estimates are based on extensive research of the Company, costs incurred at the projects to date, purchase orders placed by the Company to date, recent estimates of construction and mining costs and other factors that are set out herein. Production estimates are based on mine plans and production schedules, which have been developed by the Company's personnel and independent consultants. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements, including but not limited to risks outlined in the annual information form of the Company. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.