Replies to post #1439 on Gold Exploration in West Africa

[Ed Monton]

Go to this link and scroll down to the Greg Isenor bio

http://www.riverstoneresources.com/s/Management.asp

[Ed Monton]

Merrex files option agreements for Mali concessions


2006-03-02 18:51 ET - News Release

Mr. John Cumming reports

CONTRACTS CONCLUDED FOR MALI CONCESSIONS

Merrex Resources Inc. has concluded and is filing, with the TSX Venture Exchange, the formal option agreement with Societe d'explorations Miniera Touba SARL of Bamako, Mali, to option certain mining concessions within the West African nation of Mali.

Pursuant to the terms of the option agreement the corporation may earn up to a 95-per-cent interest in certain mining concessions, including the Siribaya, Taya-Malea, Kofia and Babara permits, all within a 4,100-square-kilometre defined area of interest. The concessions, which cover over 500 square kilometres, will include rights to all minerals, but the corporation's primary interest in the concessions is for their potential for gold exploration. The permits, which are located in the southern West Malian Sadiola-Keniiba Birmian window, a prolific gold-producing region, have been the subject of approximately $1-million of prior exploration work. Previous exploration work has identified an area of old gold workings, several gold geochemical anomalies and associated geological structures, all of which remain undrilled.

To earn the agreed interest the corporation must make annual cash payments totalling $85,000 and incur exploration expenditures totalling $750,000 over three years as follows:


Due date Cash Explor. Interest
payments expend. earned
On
execution $10,000 - -

By first
anniversary $25,000 $200,000 30%

By second
anniversary $50,000 $250,000 30%

By third
anniversary - $300,000 35%


If optioned interests are earned and if the concessions are to be developed as a mine then the corporation's interest will be diluted in favour of the government of Mali as required by the mining laws of Mali as follows:


Parties Interest

Merrex 75% participating

Government of Mali 10% participating
(optional)
10% carried

Touba 5% carried

If the government of Mali elects not to participate then its 10-per-cent participating interest reverts to Merrex.

All concessions are encumbered by a 5-per-cent net profit interest in favour of Touba.

The option agreement is subject to the TSX approval.

We seek Safe Harbor.