Advanced Explorations Inc. Completes Agreement to Acquire 100% Interest in the Roche Bay Project

    TORONTO, April 1 /CNW/ - Advanced Explorations Inc. (the "Company" or
"AEI") is pleased to announce that it has completed a formal Agreement (the
"Definitive Agreement") with its joint venture partner Roche Bay plc ("Roche
Bay") on the previously announced Memorandum of Understanding ("MOU") to
acquire Roche Bay's remaining interest, and thus ultimately to hold 100%
ownership interest in the mineral leases comprising the Roche Bay Project
located on the Melville Peninsula in Nunavut, Canada (the "Leases"). The
transaction will merge AEI's previously announced direct reduction iron plans
with the Roche Bay mine joint venture.

    John Gingerich, President & CEO of AEI, commented;

        "We are extremely satisfied that we have been able to conclude a
        formal agreement with Roche Bay plc.  The simpler property structure
        will make it easier for the Company to complete negotiations with
        potential Strategic Partners and move the project forward towards

    Terms of the Definitive Agreement
    Under the Definitive Agreement AEI is required to make further payments
of $365,000 in 2009 and $275,000 at the end of 2010, and the issuance of
either 4,000,000 AEI shares or 6,000,000 share purchase warrants with an
exercise price of $0.20 for the purchase of one AEI share. AEI has been
granted an option to earn up to a 100% interest in the Leases, and once the
option to acquire has been exercised, AEI may:

        (a)   acquire Roche Bay's interest in the Leases subject to: (i) a
              retained 4% GOR on iron products (such as nuggets) having
              greater than 90% iron content, (ii) a 6% GOR on iron products
              (such as concentrates and pellets) having less than 90% iron
              content, and (iii) a 10% gross overriding royalty on byproduct
              precious metals (the "Royalty"); or

        (b)   purchase Roche Bay's interest in the Leases outright, and
              terminate the Royalty if effective, for a lump sum payment of
              $25,000,000 on or before March 15, 2010 or $30,000,000 after
              March 15, 2010 and on or before March 15, 2011; (the "Royalty
              Purchase Option").

    If this Buy-Out Option is not exercised, AEI will thereafter have the
right to buy out 50% of the Royalty (other than the precious metals royalty)
before March 31st, 2020 for a total payment of $35,000,000 plus an inflation
adjustment, allowing the Company to effectively reduce the gross overriding
royalty on iron products to 2% on nuggets and 3% on concentrates/pellets,
    This transaction and the Definitive Agreement are subject to TSX Venture
Exchange approval. Shareholder approval may also be required. Once approved
and in effect, the Definitive Agreement will replace the Amended and Restated
Option and Farm-Out Agreement dated May 30th, 2007 between AEI and Roche Bay
(as amended).
    The Definitive Agreement will be posted on SEDAR upon obtaining the
required approvals.


    John Gingerich, President & CEO

    ABOUT Advanced Explorations Inc.

    Advanced Explorations Inc., based in Toronto, Ontario, is a mining
exploration company focused on developing high quality iron ore opportunities.
As part of this strategy, AEI acquired the option to earn a 100% ownership
interest in the Roche Bay Magnetite Project located on the Melville Peninsula
in Nunavut, Canada. Led by an experienced management team with technical,
exploration and mining expertise the company has the capabilities to rapidly
advance the Roche Bay Project and explore other local and global
opportunities. Located proximal to a natural deep water harbour the Roche Bay
deposit benefits from transportation efficiencies possibly making it one of
the world's premium iron ore prospects. In 2008, AEI updated its business plan
for the Roche Bay project and is examining moving forward from the traditional
iron pellet operation to a granulated pig iron (nugget) business. Shares of
the company trade at the TSX Venture Exchange (AXI) and at the Frankfurt Stock
Exchange (AE6). For more information please visit


    This news release also includes forward-looking statements that involve a
number of risks and uncertainties. The information reflects numerous
assumptions as to industry performance, general business and economic
conditions, regulatory and legal requirements, taxes and other matters, many
of which are beyond the control of the company. Similarly, this information
assumes certain future business decisions that are subject to change. There
can be no assurance that the results predicted here will be realized. Actual
results may vary from those represented, and those variations may be material.
    This news release does not constitute an offer to sell or a solicitation
of an offer to sell any securities in the United States. The securities have
not been and will not be registered under the United States Securities Act of
1933, as amended (the "U.S. Securities Act") or any state securities laws and
may not be offered or sold within the United States or to U.S. Persons unless
registered under the U.S. Securities Act and applicable state securities laws
or an exemption from such registration is available.

For further information:

For further information: (416) 203-0057 x226

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