Mr. Greg Isenor reports

SHARE PLACEMENT WITH IAMGOLD CORPORATION

Merrex Gold Inc. has arranged a shares-for-debt settlement with one creditor. Iamgold Corp. has agreed to subscribe for 6,666,667 shares at a price of six cents per share to settle $400,000 of debt relating to the 2012 Siribaya gold project joint venture exploration program. The remaining balance of debt relating to the 2012 Siribaya gold project joint venture exploration program will be paid in cash concurrently with the issuance of the shares. The issuance of the shares will increase Iamgold's shareholding in Merrex from 17,616,883 shares (14.8 per cent) to 24,283,550 (19.34 per cent).

The shares are subject to a four-month hold period from the date of issuance. The debt settlement is subject to regulatory approval.

We seek Safe Harbor.