ARGEX SIGNS LOI FOR CONTROL OF TIO2 TECHNOLOGY

  • Argex to purchase up to a 50.1% of Canadian Titanium Limited, to acquire control of proprietary technology and the underlying patents.

/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/

MONTREAL, Feb. 14 /CNW Telbec/ - Argex Mining Inc. (Argex) (TSX-V: RGX) (FSE: ASV) (OTCBB: ARGEF) has signed a letter of intent (LOI) with the principals of Canadian Titanium Ltd. (CTL) for the purchase of up to a 50.1% interest in CTL for a total consideration of $1 million and 2 million shares of Argex to be paid on the successful completion of certain milestones and a 2% royalty on Argex titanium dioxide (TiO2) production. 

The Principals of CTL own proprietary technology and underlying patents that Argex will be implementing in Phase III metallurgical testing with Process Research Ortech (PRO).

Argex announced by press release on February 10, 2011, the results of the implementation of the technology by PRO in the Phase I test work on the La Blache deposit  was the production of high purity 99.8% TiO2.

At the time of the announcement, Michael Dehn, Argex president and CEO described the metallurgical results as follows, "The metallurgical results to date have been stellar. Results to date continue to exceed our expectations which were always very high. The applicability of the process to La Blache continues to demonstrate that La Blache is truly a world class titanium-iron-vanadium deposit.  By using known technology innovatively, the process allows Argex to process from ore to high value product in one location while potentially producing inert tailings. 

The LOI provides for milestone payments of the total consideration which shall be paid  as follows: (i) 10%  on signing of the transaction documents; (ii) 20% on completion of Laboratory Work (phase II metallurgical test work); (iii) 30% on completion of mini-plant work (phase III metallurgical test work), and (iv) 40 % on completion of the engineering work for a production facility.

"We are very pleased with this business transaction which will permit Argex to advance towards production with proprietary technology that we believe will change the titanium dioxide industry the way heap leaching changed the gold mining industry," stated Argex president and CEO Michael Dehn, "Going forward with CTL and its team, we will continue technological improvements and innovation aimed at improving Argex's bottom line mining profitability as well as creating additional revenue streams from licensing and maintenance revenue generated through the technology."   

Argex has been working closely with the principals of CTL for nearly 12 months and the acquisition of the technology will be mutually beneficial to both parties' shareholders.

There are numerous conditions that must be satisfied prior to the closing of this transaction, including the negotiation and signature of definitive agreements.  Argex can give no assurances that this transaction will be completed. The acquisition of a controlling interest in CTL is subject to relevant security and exchange approval.

About Canadian Titanium Ltd.

Canadian Titanium Limited (CTL) based in Mississauga, Ontario, Canada, was incorporated in 2005 by the principals of Process Research Ortech Inc (PRO) with the specific goal of commercializing the proprietory technology developed for the production of high purity TiO2 suitable for pigment production. For additional information on PRO please visit the web site at www.processortech.com.

About Argex Mining Inc.

Argex is a junior titanium, iron, vanadium and magnesium explorer with projects in Québec, Canada.  Headquartered in Montreal, Québec with plans to rapidly advance towards titanium production at the 100%-owned La Blache deposit located near Baie-Comeau, Québec.  Argex also owns 100% of the Mouchalagane Iron Ore project, 380 kilometres north of Baie-Comeau, Québec and of the same type of deposit as ore bodies currently being mined by Québec Cartier Mining's (Arcelor Mittal) Fire Lake Mine and Consolidated Thompson's Bloom Lake Mine.  Recently, Argex expanded its land holdings near Baie-Comeau, Québec surrounding Consolidated Thompson's Lac Brûlé Titanium-Iron-Vanadium deposit.  For additional information, please visit our website at  www.argex.ca.

Forward-Looking Statements

This news release contains discussion of items that may constitute forward-looking statements within the meaning of securities laws that involve risks and uncertainties. Although the company believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, it can give no assurances that its expectations will be achieved. Factors that could cause actual results to differ materially from expectations include the effects of general economic conditions, actions by government authorities, uncertainties associated with contract negotiations, additional financing requirements, market acceptance of the Company's products and competitive pressures. These factors and others are more fully discussed in Company filings with Canadian securities regulatory authorities

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

SOURCE ARGEX MINING INC.

For further information:

For More Information:
Michael Dehn, President and CEO
Argex Mining Inc.
647-477-2382
michael@argex.ca


Or

Paradox Public Relations at 514-341-0408 or 1-866-460-0408

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ARGEX MINING INC.

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