Siribaya:  Zone 1B Initial Resource Estimate

The Resource Estimate is compliant with the Canadian Institute of Mining, Metallurgy and Petroleum Standards on Mineral Resources and Reserves (CIM Standards) and with disclosure requirements of National Instrument 43-101 (NI 43-101).

Commentary

�Pursuant to NI 43-101, Merrex is pleased to disclose the first mineral resource estimate for Siribaya with resources in both the Indicated and Inferred categories� said Merrex President Gregory Isenor. �The estimate of 123,000 ounces Au Indicated and a further 319,000 ounces Au Inferred is based on drill results primarily from the 300 metre-long Area 55 at Zone 1B which was the subject of our 2008 drill program. Area 55 has been drilled to a depth of 250 metres and is open along strike to the north and south and also at depth. Additionally, Area 55 is just a portion of the one kilometre Zone 1B which in turn is part of the 10 kilometre Siribaya Structure. Continuity of gold mineralization within the Siribaya Structure has been established by geochemistry, RAB and Diamond drilling. Numerous high priority drill targets remain within Zone 1B and throughout the Siribaya Structure and Management believe that the additional drilling planned for 2009 has the potential to significantly increase this initial resource estimate.�

About the Siribaya Gold Project

Merrex controls 100% of the Siribaya Gold Project which comprises over 700 square kilometres of exploration permits in West Mali. Zone 1B, the subject of the current resource estimate, is a one kilometre zone within the10 kilometre Siribaya Structure which has yielded ore-grade drill intercepts along the entire length. Since 2005 Merrex has invested over $8,000,000 in exploration at Siribaya.

On December 19, 2008 Merrex closed an Option Agreement with IAMGOLD Corporation (�IAMGOLD�) pursuant to which IAMGOLD may incur up to CDN$10.5 million in exploration expenditures over 4 years, to earn a 50% interest in the Siribaya Gold Project, of which $3.0 million must be incurred during 2009. Merrex will be the Project Operator for two years or until exploration expenditures of $5.5 million after which IAMGOLD can elect to be the Operator.

Resource Estimate and Methodology

The resource estimate, prepared by independent consultants ACA Howe International Limited, is effective January 31, 2009.

Several types of gold deposits have been encountered to date at the Siribaya Project. The first type is characterised by mineralised lenses developed in brecciated felsic volcanic rock and interbedded sediments close to a fault. The strongest gold values occur in hydrothermal breccia-style mineralisation with a polymetallic assemblage, comprising pyrite and arsenopyrite, with subordinate chalcopyrite, galena and sphalerite. Other styles of mineralisation include stockworks, veins and disseminated sulphide hosted by quartz feldspar porphyry and felsic dykes.

Micromine (Version 11.0.3) resource evaluation software was used. Mineralised zones were outlined to enforce geological control during block modelling. Cross-sections were defined over the site grid and twenty mineralised zones were outlined on fourteen cross-sections.

Analysis of the sample statistics indicates that there is no evidence of near-surface supergene gold enrichment. The mean sample grade for the laterite zone is 0.39 g/tonne. For the saprolite zone, the mean grade is 1.10 g/tonne and for the hard rock zone, the mean grade increased to 1.69 g/tonne. In other words, sample grades generally increased with depth.

Directional semi-variogram data were calculated for several directions within the plane of the mineralisation to investigate whether there were trends or shoots within the plane. There were very few sample pairs in the strike direction. The dip and normal (to the mineralised plane) directions both produced reasonably good results to which variogram models were applied. No trends in the other directions were detected.

A block model was constructed for the purpose of grade estimation. The ordinary block kriging (�OBK�) method was used for estimating block grades. Resource classification parameters were chosen based on a combination of variography results and the author�s judgement. Resources were reported, as required by NI 43-101, according to the CIM Standards on Minerals Resources and Reserves.

The Mineral Resource estimate is based on Diamond drilling through to July 2008, which was generally limited to 150 metres depth. Diamond drill samples were typically one metre in length. Average specific gravity (�SG�) values for the laterite cover, for the saprolite zone and for hard rock were 3.0, 1.8 and 2.8, respectively. All samples were assayed by 50 gram fire assay at the ALS Assay Laboratory in Bamako, Mali.

Resources were determined using a block cut-off grade of 0.5 g/tonne. Non-diluted resources for Siribaya Zone 1B were estimated to be:

No resources in the Measured category or Mineral Reserves were outlined. Mineral resources are not mineral reserves and by definition do not demonstrate economic viability.

In agreement with the sample statistics, block grades were higher in the deeper, hard rock zone than in the shallower, saprolite zone. The �ounces per vertical metre� value approximately doubled below 100 metres depth.

Doug Roy, M.A.Sc., P.Eng., a Qualified Person under National Instrument 43-101 and an Associate Mining Engineer with ACA Howe International Limited, estimated the property�s resources, authored the resource section of the report and has reviewed related technical information presented in this news release. This report will be filed on Sedar within 45 days of this news release. Mr. Roy is independent of Merrex applying all of the tests in Section 1.4 of NI 43-101.

Merrex�s principal projects are its Siribaya Gold Project, an advanced exploration project in Mali (West Africa), and the Jubilee Zinc Deposit in Cape Breton, Nova Scotia.