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TORONTO, ONTARIO--(Marketwire - Dec. 17, 2012) - Advanced Explorations Inc. (the "Company" or "AEI") (News - Market indicators)(FRANKFURT:AE6) today announced that it has completed a summary report on its Tuktu 2 Iron Project (the "Report") located 60 km north of its flagship Roche Bay Iron Project. The Report, which was compiled in consultation with APEX Geoscience Ltd., has now been submitted to XinXing Pipes Group Co. Ltd. ("XDIP") for comment and review pursuant to the recently signed Tuktu Framework Agreement between AEI and XDIP (the "Framework Agreement") (see press release August 21, 2012). In line with AEI's obligations under the Framework Agreement, the Report summarizes this year's exploration, mapping and drilling program completed for the purpose of evaluating the direct-ship ore ("DSO") potential of the high grade banded iron formation in this area. This Report is a necessary step in the future funding of the Tuktu 2 Project by XDIP under the Framework Agreement.
Over the course of this year's field season, the Company conducted several exploration programs to further validate the DSO potential of the Tuktu 2 area after a surface sampling program in 2011 returned high grade iron samples from outcrops with results exceeding 60% iron content.
The exploration and drill program completed in late October confirmed the existence of DSO-type material at the Tuktu 2-H occurrence (see press release November 26th, 2012: hole 12TK007 returned intersections of 58.8% Fe over 63.9 metres including 66.3% Fe over 37.5 metres) to the east of the original showing (Tuktu 2-A) where similar material was also confirmed in drill core. In its Report, the Company has suggested to its partner that additional drilling is warranted to fully assess the DSO resource potential of the Tuktu-2 high grade mineral occurrences. It has also recommended continuing exploration for additional occurrences including a re-examination of the Roche Bay area.
John Gingerich, President & CEO, commented:
"We have made tremendous progress in understanding the high grade iron potential at the Tuktu 2 area and have had detailed discussions with our Chinese partner over the past month on how to best proceed with the exploration of this asset and a joint development plan for both the Roche Bay and Tuktu 2 projects. We are encouraged by these recent discussions and confident that we can deliver a plan that is to the utmost benefit of all parties."
ON BEHALF OF THE BOARD
John Gingerich, President & Chief Executive Officer
ABOUT Advanced Explorations Inc.
Advanced Explorations Inc., based in Toronto, Ontario, is a resource development company focused on developing its Roche Bay and Tuktu Iron Ore Projects in one of the world's largest developing iron ore districts, the Melville Peninsula in Nunavut. The Ocean-based Roche Bay Project boasts an NI 43-101 compliant resource estimate of over 500 million tonnes outlined within a small portion of the potential 140 km of banded iron formation. A positive feasibility study for the project's C Zone revealed a net present value of $642M on a base case 5.5 Mtpa start-up concentrate operation and substantial upside potential including becoming a low quartile cost producer. To date, the Company has delineated over 1 billion tonnes of iron under NI 43-101 among its Roche Bay and Tuktu deposits and continues to explore other targeted deposits in areas to the north, south and west of Roche Bay. 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.
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.