Argex announces brokered private placement with MGI Securities

MONTREAL, Aug. 16 /CNW Telbec/ - Argex Mining Inc. (TSX-V: RGX) (FSE: ASV) (OTCBB: ARGEF) ("Argex" or the "Company") is pleased to announce that it has entered into an agreement with MGI Securities Inc. (the "Agent"), to complete an offering of Special Warrants by way of private placement (the "Offering"). The Agent has been engaged on a best efforts, agency basis to raise gross proceeds of up to $3.6 million, at an issue price of Cdn.$0.30 per Special Warrant ("Special Warrants").

In addition, Argex will grant the Agent an option to increase the size of the Offering by up to $0.4 million, exercisable on not less than one day's notice. If the Agent exercises its option in full, the Offering will be increased to 13,333,333 Special Warrants issued for total gross proceeds of $4 million.

Each Special Warrant will be exercisable, for no additional consideration, for one Common Share of Argex and one Warrant, and will expire on the earlier of: five business days following the later of a receipt being issued in respect of a final prospectus filed in certain Canadian jurisdictions being declared effective; and four months following the closing date of the offering. Each Warrant will entitle its holder to purchase one additional Common Share for Cdn. $0.52 and will expire 48 months after closing. Each Special Warrant will be subject to statutory resale restrictions and absent registration of the securities with applicable securities regulators and the clearing of the prospectus in Canada, neither the Special Warrants nor the underlying securities may be traded in Canada during the period of four months following closing.

Under the agreement, the Company will file the prospectus in certain Canadian jurisdictions, which will qualify for distribution the Common Shares and Warrants upon exercise of the Special Warrants, among other securities. In the event that 120 days following closing, receipts have not been issued in respect of the prospectus by applicable Canadian securities authorities each Special Warrant will be converted, at no additional cost, to 1.1 Common Shares and 1.1 Warrants (instead of one Common Share and one Warrant).

In addition to a commission paid to the Agent of 8% of the gross proceeds raised under the offering, Argex has also agreed to grant compensation options to the Agent to issue that number of Common Shares and Warrants to the Agent equal to 10% of the Special Warrants sold in connection with the Offering.

Argex plans to use the net proceeds from the Offering for further development of Argex's La Blache Project, Québec, and for general corporate purposes. There are currently 56,842,400 common shares of Argex issued and outstanding.

The Offering is scheduled to close on or about September 16, 2010 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the TSX Venture Exchange.

About Argex

Argex is a junior titanium, iron, vanadium and magnesium explorer with projects in Quebec, Canada. Headquartered in Montreal, Quebec, the company is committed to the interests of its shareholders, with plans to rapidly advance towards titanium production at the 100% owned La Blache deposit located near Baie-Comeau, Quebec. Argex also owns 100% of the Mouchalagane Iron Ore project, 380 kilometres north of Baie-Comeau, Quebec and of the same type of deposit type to ore bodies currently being mined by Quebec Cartier Mining's (Arcelor Mittal) Fire Lake Mine and Consolidated Thompson's Bloom Lake Mine. Recently Argex expanded its land holdings near Baie-Comeau, Quebec surrounding Consolidated Thompson's Lac Brule 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 Titanium Inc.

For further information: For further information: Michael Dehn, President and CEO, Argex Silver Capital Inc, 647-477-2382 michael@avantimac.com; Paradox Public Relations: 514-341-0408, 1-866-460-0408

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Argex Titanium Inc.

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