Argentina Mining Play

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Argentex signs drill contract to further test high-grade zinc, silver-gold targets at Pinguino, Argentina

2006-11-16 09:00 ET - News Release

TORONTO, Nov. 16 /PRNewswire-FirstCall/ - Argentex Mining Corporation is pleased to announce the signing of a drill contract for further drilling on its Pinguino property in Argentina's Patagonia region. This drill program, which is part of Argentex's ongoing exploration work, is scheduled to include a minimum of 3,000 meters (9,842 feet) of HQ diamond core drilling. Testing will focus on high-priority target areas within massive sulphides and precious metal epithermal veins.

"In light of recent increases in the price of zinc, we hope to aggressively advance the zinc-rich discovery made at Pinguino earlier this year," said Ken Hicks, President of Argentex. "Together with the high-grade silver and gold results from drilling in 2005, we have the unique opportunity to simultaneously pursue both precious and base metals discoveries within a single property in Argentina's most mining-friendly province."

The initial focus of drilling will be the adjoining, sulphide-rich Marta Centro and Yvonne vein systems, which have a combined strike length of more than 1,700 meters (5,577 feet). Previous drilling has demonstrated a consistent mineralized sulphide zone between these areas. In addition, we propose to test additional geophysical targets in other significant vein systems at Pinguino, such as Tranquilo and Marta Norte. Surface sampling on the Tranquilo fault vein returned anomalous copper values in surface outcrops coated with oxidized copper stain. Highlights of drilling conducted at Marta Norte in 2005 returned results including 8.8 meters of 1,095 grams per tonne (g/t) silver in the same area of an anomalous trench that returned 9.0 meters of 1,690 g/t silver on surface, as reported in press releases dated September 6, 2005 and January 6, 2006 respectively. More than 36.4 miles (58.7 kilometers) of epithermal veins have been documented to date at Pinguino.

World Zinc Industry

Zinc, which is primarily used to galvanize steel, reached a record high on November 8, 2006 after inventories tracked by the London Metal Exchange (LME) fell to a 15-year low. According to the LME's November 8th daily report, prices increased to US$2.06 per pound, representing an increase of over 180 percent in the past 12 months. Analysts, including Macquarie Bank Ltd.'s Adam Rowley, expect prices to continue rising because of surging Chinese demand and supply constraints. Stockpiles of zinc have decreased by 79 percent over the past year and are sitting at their lowest levels since April 1991.

In a 25-hole drill program earlier this year, Argentex drill tested selected areas along a 3.7+ mile (6.0+ kilometer) strike length of the Marta vein system at Pinguino. Spaced 110 meters (360 feet) apart, the two holes that targeted the Marta Centro zone both revealed significant intervals of high-grade zinc, lead and copper mineralization. Argentex is working to advance these discoveries to determine if there are commercially exploitable quantities of mineralization at Pinguino.

Drilling at Pinguino is expected to commence after the completion of geophysics currently underway. To date, 1,876.5 meters (6,156.5 feet) of successful Phase Two drilling has been completed.

Quality Assurance

Drilling will be conducted by Connors Drilling, a respected Canadian company with an office in Mendoza, Argentina, and is expected to be completed by the end of March 2007. At least 20 holes are planned to test areas with potential mineralization at shallow depths.

Samples selected for analysis will be sent to ALS Labs Chemex in Argentina. The quality system at ALS Labs complies with the requirements of the international standards ISO 9001:2000 and ISO 17025:2005. Referee analyses will be carried out by Alex Stewart (assayers) Argentina S.A. in Mendoza, Argentina. Argentex, ALS Labs and Alex Stewart Labs maintain comprehensive and independent Quality Control/Quality Assurance programs.

ABOUT ARGENTEX:

Argentex Mining Corporation is a junior mining exploration company with significant holdings in the Patagonia region of Argentina. It currently holds an option to acquire 100% mineral rights to more than 30 properties with over 377,490 acres (152,766 hectares) of prospective land, located in the Santa Cruz and Rio Negro provinces of Argentina. The company trades under the symbol AGXM on the OTCBB.

Statements in this news release that are not historical facts are forward-looking statements that are subject to risks and uncertainties. Words such as "expects", "intends", "plans", "may", "could", "should", "anticipates", "likely", "believes" and words of similar import also identify forward-looking statements. Forward-looking statements are based on current facts and analysis and on forecasts of future results, estimates of amounts not yet determined and assumptions of management. Forward-looking statements in this news release include statements about the Company's belief that its drill program will include a minimum of 3,000 meters of HQ diamond core drilling with a focus on high-priority target areas; the initial focus of drilling will be the adjoining, sulphide-rich Marta Centro and Yvonne vein systems; the company proposes to test additional geophysical targets in other significant vein systems at Pinguino; Argentex is working to advance its discoveries to determine if there are commercially exploitable quantities of mineralization at Pinguino; drilling at Pinguino is expected to commence after the completion of geophysics currently underway; and, drilling is expected to be completed by the end of March 2007. Actual results may differ materially from those currently anticipated due to a number of factors beyond the Company's control. These risks and uncertainties include, among other things, competition for qualified personnel and risks that are inherent in Argentex's operations. These and other risks are described in the Company's Annual Report on Form 10-K and other filings with the Securities and Exchange Commission.

Cautionary Note to US Investors: This news release may contain information about adjacent properties on which we have no right to explore or mine. We advise U.S. investors that the SEC's mining guidelines strictly prohibit information of this type in documents filed with the SEC. U.S. investors are cautioned that mineral deposits on adjacent properties are not indicative of mineral deposits on our properties.

Argentex Mining Corporation

CONTACT: Argentex Mining Corporation, Investor Relations, 1-866-594-7687,
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