Mr. Gregory Isenor of Merrex reports

MERREX GOLD - DIAKHA DISCOVERY ZONE FUTURE EXPLORATION DESIGNED FOR MAIDEN RESOURCE ESTIMATE IN 2015

Merrex Gold Inc. has provided the following update on next steps in the exploration of the Siribaya gold project's Diakha discovery zone in West Mali.

Prior assay highlights

• Multiple RC (reverse circulation) and DD (diamond drill) holes with significant gold mineralization;
• Continuity of gold mineralization over a wide area;
• Numerous significant assays including:
  • RC-445: 34 metres of 3.22 grams per tonne gold and 16 metres of 2.06 grams per tonne gold;
  • RC 429: 30 metres of 2.58 grams per tonne gold;
  • RC 421: 26 metres of 3.03 grams per tonne gold;
  • RC 441: 10 metres of 3.88 grams per tonne gold;
  • DD 148: 34 metres of 4.85 grams per tonne gold;
  • DD 145: 21 metres of 4.31 grams per tonne gold;
  • DD 146: 12 metres of 10.99 grams per tonne gold;
  • RC 489: 24 metres of 2.36 grams per tonne, including four metres of 11.26 grams per tonne gold (hole ended in mineralization);
  • RC 471: 24 metres of 1.06 grams per tonne, including four metres of 3.3 grams per tonne gold, 10 metres of 1.71 grams per tonne gold and two metres of 7.16 grams per tonne gold;
  • RC 474: 10 metres of 2.03 grams per tonne gold;
  • RC 504: 32 metres of 0.99 gram per tonne gold.

Project operator Iamgold Corp. has reported that drilling on the Diakha discovery will resume in the fourth quarter of 2014 following the rainy season. Based on the encouraging drill results received to date (see Merrex news releases dated July 2, Aug. 28 and Oct. 8, 2014), future exploration programs will be designed to support completion of a maiden resource estimate in 2015 if results continue to be encouraging.

Commentary

"Both Merrex and Iamgold were encouraged by the positive drill results from the phase I RC and the phase II DD and RC drill results from the advancing gold discovery at Diakha," said Merrex president Greg Isenor, "and I am pleased that drilling will resume once ground conditions allow following the end of the season rains and will continue through to the end of the 2014 drill season. Details of the drill plan will be released as soon as they are available. Additionally, planning for the 2015 exploration season is now under way, and while the details and the budgets for that season are not yet settled, I am pleased to report that the drill results to date from the 2014 program are sufficiently encouraging that the 2015 program will be designed towards delivery of a maiden resource estimate in 2015."

About the Diakha discovery zone

The Diakha gold discovery is located in the westernmost portion of the 910-square-kilometre Siribaya exploration concessions approximately 10 kilometres south along strike of Iamgold's Boto gold discoveries (scoping study in progress) and approximately 20 kilometres south along strike from B2Gold's (formerly Papillon's) five-million-ounce Fekola deposit (permitted for production).

The Diakha area was highlighted for exploration by the presence of a gold geochemical anomaly delineated from a regional termite mound sampling survey and coincident with artisanal (orpailleur) mining activity.

RC drilling (over 9,000 metres) and diamond drilling (over 900 metres) in 2014 confirm the presence of multiple zones of gold mineralization over a wide area at significant widths and grades, in association with disseminated sulphide and albite-hematite-chlorite alteration in sandstone host rocks with little quartz veining. There is mineralization at both the southeast and northwest strike extensions. The mineralization and associated mineralization bears similarities to the Boto gold deposit mentioned above.

The Diakha discovery zone is at the southern end of the Fekola-Boto-Diakha trend in alignment with major deposits at Malikoundi and Boto 6 (Iamgold) and Fekola (B2Gold/Papillon).

  
     FEKOLA (B2GOLD/PAPILLON) RESOURCE 
       ESTIMATE AS AT SEPT. 3, 2013        
 
Resource category    Grade Au   Total ounces
   
Measured             2.43 g/t      3,160,000   
Indicated            2.35 g/t      1,480,000   
Inferred             1.90 g/t        500,000  
Total resources      2.35 g/t      5,150,000   
 
     BOTO (IAMGOLD) RESOURCE ESTIMATE 
           AS AT JULY 29, 2013   
     
Resource category    Grade Au   Total ounces
 
Indicated            1.62 g/t      1,142,000   
Inferred             1.35 g/t         81,000     

Note: The Karita permit is pending final issuance at this date.

About Merrex's Siribaya gold project

The Siribaya gold project is a 50/50 joint Merrex-Iamgold advanced-stage gold exploration project in West Mali comprising approximately 910 square kilometres of gold-prolific exploration permits and permit applications pending. Exploration of the Siribaya gold project is conducted under a joint management committee with Iamgold as the project operator. Expenditures to date on the Siribaya project total approximately $40-million. The Siribaya gold project presently hosts a gold resource estimated at 303,900 ounces grading 2.34 grams per tonne indicated and 301,400 ounces grading 2.17 grams per tonne inferred. The gold resource estimate was prepared in accordance with CIM definitions, as required by National Instrument 43-101, and as at July 31, 2012, by ACA Howe International Ltd. The deposit areas are open to the north, south and at depth. Numerous other gold-anomalous target areas have been identified by geochemistry and require drilling.

Gregory P. Isenor, PGeo, is the qualified person as defined under NI 43-101 who has reviewed and is responsible for the technical information presented in this news release.

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