Mr. Graham Harris reports

CAP-EX ENTERS INTO AGREEMENT WITH KING & BAY WEST MANAGEMENT

Cap-Ex Iron Ore Ltd. has entered into a non-exclusive finder's fee agreement with King & Bay West Management Corp., a company wholly owned by Mark Morabito, whereby King & Bay is to provide services in finding an interested party or parties who wish to complete equity financing, debt financing, off-take or acquisition agreements with the company. The finder's fee, when determined on the closing of a transaction, is payable in cash.

The agreement is for a term of 24 months from its effective date, unless renewed in writing by the company and the finder. The fee only applies to transactions closed with a list, agreed between the company and the finder, of specific potential interested parties. The agreement, and any transaction, may be subject to acceptance for filing with the TSX Venture Exchange.

Graham Harris, chief executive officer, commented: "We are pleased to be working with King & Bay West Management Corp. Mark Morabito has a proven track record of introducing strategic partners to the iron ore potential of the Labrador Trough. Block 103 represents one of the largest iron ore deposits in the world that is 100 per cent independently owned by Cap-Ex Iron Ore Ltd. We remain on track to release the PEA this month."

Stock option grant

The company also announces that it has granted an aggregate of 3.6 million stock options to various officers, directors, consultants and employees of the company. Each stock option shall entitle the holder thereof to acquire one common share at a price of 12.5 cents for a period of five years. The grant is subject to regulatory approval.

We seek Safe Harbor.