Temex sets terms for Mill City earn-in on certain claim groups near Noront Ni-Cu-PGE discovery



    TSX Venture Exchange: TME, Frankfurt Exchange: TQ1

    TORONTO, Dec. 12 /CNW/ - Temex Resources Corp. (TSX Venture Exchange:
TME, Frankfurt: TQ1) ("Temex" or "the Company") announces that it has entered
into a binding letter of intent with Mill City Gold Corp. ("Mill City")
whereby Temex has granted Mill City the option to acquire a 50% interest in 64
staked mining claims (the "Claims") totaling 1012 units (40,480 acres), in the
general area of the Noront Resources Ltd. ("Noront") recent Ni-Cu-PGE
discovery. The Claims, which are located in the Sachigo Greenstone Belt in the
James Bay Lowlands region of northern Ontario, are in two areas, one of which
includes approximately two thirds of the Claims and are located north of the
Noront Double Eagle discovery. The northern claims are subject to a 2% NSR
royalty payable as 1% NSR to each of Noront and Baltic Resources Inc. Temex
now holds a direct interest in 4391 mining claim units covering over 175,000
acres in the immediate area and region of the Double Eagle discovery making
Temex one of the largest landholders in the region. The other claim blocks
were recently acquired by Temex to the southwest of the Noront discovery and
are currently 100% owned by Temex.
    The Claims cover features thought to represent geological environments
similar to the geological environment near the Noront Ni-Cu-PGE discovery. It
is believed that the recently acquired Claims have never been subjected to any
previous exploration for Ni-Cu-PGE mineralization, and for the most part, the
Claims have not been covered by a modern magnetic and electromagnetic
geophysical survey. The initial exploration program will consist of a
combination of airborne and ground geophysical surveying followed shortly
thereafter by diamond drilling of any priority targets.
    In order to earn its undivided 50% interest in the claims Mill City
shall, upon execution and delivery of a definitive Option and Joint Venture
Agreement, make a cash payment of $300,000 and issue to Temex 250,000 common
shares of Mill City, and complete an aggregate of $2,500,000 of exploration
expenditures over a three-year period. Mill City must also issue an additional
250,000 shares on the first anniversary of the agreement.
    Mill City shall be entitled to extend for one year the time for
completion of each milestone of the Work Commitment by notice to Temex if
given prior to the applicable anniversary of signing. Each extension shall
require Mill City to issue Temex 250,000 common shares of Mill City.
    During the earn-in period, Temex will act as Mill City's Agent to carry
out the exploration programs and is entitled to charge an industry standard
management fee. Upon Mill City earning its 50% interest in the Claims, Temex
shall have 60 days from the date of exercise of the Option to elect either to
form a 50:50 Joint Venture with Mill City for further exploration and
development of the claims or to forego the Joint Venture and reduce its
undivided 50% interest in the Claims to a 15% carried and non-assessable
interest in the Claims to the date of commencement of commercial production
from the Claims. Should Temex elect to form a joint venture, Temex shall be
the operator and the Joint Venture shall be governed by a joint management
committee.
    The terms of the transaction are subject to TSX Venture Exchange
approval.

    Bruce Durham, P. Geo., is the designated qualified person responsible for
the preparation of this news release.

    Temex is a well-funded Canadian exploration company focused on advancing
its precious metal, diamond, nickel and uranium projects in Manitoba and
Ontario.

    On behalf of the Board of Directors,

    "Ian Campbell"

    Ian Campbell
    President and CEO

    (*)The TSX Venture Exchange has not reviewed and does not accept
    responsibility for the adequacy or accuracy of this news release(*)

    %SEDAR: 00005513E




For further information:

For further information: on Temex please contact Ian Campbell or Bruce
Durham, at (416) 862-2246 or visit the Company's website at www.temexcorp.com

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Temex Resources Corp.

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