Mr. Craig Schneider reports

COREX AND VALE SIGN AGREEMENT TO FURTHER DEVELOP SANTANA PROPERTY

Corex Gold Corp. has signed a letter agreement with Vale Exploration Canada Inc., a wholly owned subsidiary of Vale SA, wherein Vale may acquire an interest of up to 65 per cent in the company's Santana project. The objective of this alliance is to further develop the Santana property in Sonora state, Mexico, to expand the copper-gold porphyry target located approximately 80 kilometres southwest of the world-class Mulatos district. The Corex claim block is situated along a trend of producing mines in the Sierra Madre Occidental. Corex and Vale plan to commence drilling immediately upon execution of a definitive agreement.

Vale has the option to acquire up to a 51-per-cent interest in Santana by making the aggregate minimal annual exploration expenditures of $8-million over a three-year term as shown in the associated table.

                 ANNUAL EXPLORATION EXPENDITURES

                                           Exploration expenditure
Year                                             work requirements

1 (i)                                                   $2-million
2                                                     $2.5-million
3                                                     $3.5-million
Total                                                   $8-million

Note
(i) First year expenditures are committed; Vale may  
at its option terminate the letter agreement at any 
time after completing the committed expenditures.                                                 

Vale shall make an initial cash payment of $100,000 to be credited toward the expenditures in the first year and at its option Vale may make a further cash payment of $100,000 to be credited toward the expenditures in the second year.

Vale may at its option earn an additional 9 per cent by making expenditures during the subsequent 18 months after the third year as shown in the associated table.

                            EXPENDITURES
                                              Exploration expenditure
Year                                                work requirements

Fourth year and first six months of fifth year             $4-million

Additionally, Vale at its option may earn a further 5 per cent by making expenditures during the subsequent 18 months after the second option period as shown in the associated table.

                          EXPENDITURES
                                               Exploration expenditure
Year                                                 work requirements

Second six months of fifth year and sixth year              $4-million

Vale shall have 30 days from the date of the letter agreement to complete its due diligence and 90 days to enter into an option agreement. Vale shall act as operator under the option agreement.

"We are very pleased to have a company such as Vale as a strategic partner to further advance the Santana property to its next phase of development," reported Craig Schneider, president and chief executive officer of Corex.

We seek Safe Harbor.