Mr. Michael Dehn reports

ARGEX ANNOUNCES RESOURCE ESTIMATE FOR THE LA BLACHE PROPERTY

Argex Mining Inc. has released the results of its National Instrument 43-101 mineral resource estimate. It demonstrates that the La Blache property is a significant titanium and vanadium resource and a high-grade iron resource. Importantly, the titanium dioxide ore grade is high compared with most major titanium ores currently being mined around the world, and the vanadium grades are higher than what was expected and that the homogeneity of the mineralization at East Hervieux and West Hervieux shows that orebody has great consistency that should work well with the process flow sheet for the hydrometallurgical plant developed by Process Research Ortech.

Highlights

• With only two of the three known lenses used to define the historic estimate drilled, a National Instrument 43-101-compliant resource estimate with over 70 per cent in the measured and indicated categories;
• NI 43-101-compliant resource estimate including 30,888,000 tonnes measured and indicated and 13,013,000 tonnes inferred resource estimate grading greater than 44 per cent iron (63.36 per cent Fe2O3), greater than 11 per cent titanium (18.67 per cent TiO2) and greater than 0.24 per cent vanadium (0.43 per cent V2O5);
• As reported by Ti Insights LLC, since 2010, when the average world price for high-quality TiO2 pigment was approximately $2,400 (U.S.) per metric tonne, until 2015, the TiO2 price forecast to double to $4,800 (U.S.) per metric tonne;
• West Hervieux measured and indicated resource of 18.44 million tonnes with in situ grade of 44.32 per cent Fe (63.36 per cent Fe2O3), 11.36 per cent Ti (18.95 per cent TiO2) and 0.26 per cent V (0.46 per cent V2O5);
• West Hervieux inferred resource of 4,173,000 tonnes with in situ grade of 44.14 per cent Fe (63.11 per cent Fe2O3), 11.40 per cent Ti (19.02 per cent TiO2) and 0.27 per cent V (0.48 per cent V2O5);
• East Hervieux measured and indicated resource of 12,448,000 tonnes with in situ grades of 44.19 per cent Fe (63.18 per cent Fe2O3), 11.12 per cent Ti (18.55 per cent TiO2) and 0.24 per cent V (0.43 per cent V2O5);
• East Hervieux inferred resource of 8.84 million tonnes with in situ grade of 44.10 per cent Fe (63.05 per cent Fe2O3), 11.09 per cent Ti (18.50 per cent TiO2) and 0.23 per cent V (0.41 per cent V2O5);
• Met-Chem reports that the drill holes recently completed by Argex show that the East Hervieux deposit is in large part open at depth;
• Met-Chem's opinion is that Argex's La Blache property has sufficient merit to warrant further exploration and development to fully develop its iron, titanium and vanadium potential;
• The consistency of the orebody across the zones facilitates the hydrometallurgical process's successful application;
• As previously reported, the phase I test work produced high-purity 99.8 per cent titanium dioxide. Argex has signed an LOI for control of this technology.

Met-Chem Canada Inc. prepared the National Instrument (NI) 43-101-compliant measured, indicated and inferred resource estimates for the 100-per-cent-owned La Blache property, East and West Hervieux zones. The La Blache property is composed of 73 contiguous claims and covers an area of 40.25 square kilometres.

The titaniferous magnetite from the La Blache property is hosted in three lenses: West Hervieux, East Hervieux and Lac Schmoo for which historic tonnages and grades of mineralization have been published. The mineral resources of the East Hervieux and West Hervieux deposits were estimated by Met-Chem.

                                 EAST HERVIEUX AND WEST HERVIEUX 
                                     (Cut-off 40 per cent Fe)     
                
                                                       In situ grades   Calculated in situ oxide grades
Resource category         In situ (tonnes)     Fe %     Ti %      V %     Fe2O3%       TiO2%      V2O5%

Measured and indicated          30,888,000    44.27    11.26     0.25      63.29       18.78       0.45
Inferred                        13,013,000    44.11    11.19     0.24      63.06       18.67       0.43

The resource estimate was performed in accordance with NI 43-101, standards of disclosure for mineral projects, and the CIM definition standards on mineral resources and mineral reserves.

Basic geological interpretation, numerical modelling and resource estimation were performed using Mintec MineSight mining software. Met-Chem used a cut-off grade of 40 per cent Fe for the mineralization.

Met-Chem completed the geological interpretation on the vertical drill sections of the East Hervieux and West Hervieux deposits in three dimensions to assist with interpretation.

The lithological unit titaniferous magnetite was used to draw the contact of the mineralized envelope, considering the excellent correlation between this unit and the Fe, Ti and V values. The contacts of the mineralization with the host anorthosite are generally very sharp.

The bulk of the mineralization in the East Hervieux deposit consists of several closely spaced, discrete, elongate zones, steeply dipping to the southeast. Several isolated pods or lenses were also intersected by the drill holes. Abrupt changes in the width of the mineralization are locally observed between adjacent sections and are interpreted by Argex to be controlled by folds.

The West Hervieux mineralization is essentially contained in two subhorizontal rod-shaped lenses, more massive and rounded than the zones at East Hervieux.

Met-Chem further reported that the drill holes recently completed by Argex show that the East Hervieux and West Hervieux deposit are in large part open at depth.

A block model was constructed by Met-Chem in order to estimate the mineral resources of the East Hervieux and West Hervieux deposits. The block size is 10 metres by 10 metres by 10 metres. Met-Chem considers this block size to be adequate for the current estimate of the narrow mineralized zones.

The resources in each block are classified through grade interpolation using geostatistical study results (variograms). Mineral resources for the La Blache property, East Hervieux and West Hervieux deposits are presented in the associated tables. The oxide grades were calculated with ratios of 1.4297 for iron, 1.6681 for titanium and 1.7852 for vanadium.

               RESOURCES ESTIMATION SUMMARY FOR WEST AND EAST HERVIEUX (COMBINED)
                                  (Cut-off 40 per cent Fe)                
      
                                                       In situ grades Calculated in situ oxide grades
Resource category          In situ (tonnes)     Fe %     Ti %     V %       Fe2O3%      TiO2%   V2O5%

Measured                          8,017,000    44.22    11.27    0.25        63.22      18.80    0.45
Indicated                        22,871,000    44.28    11.26    0.26        63.31      18.78    0.46
Measured and indicated           30,888,000    44.27    11.26    0.25        63.29      18.78    0.45
Inferred                         13,013,000    44.11    11.19    0.24        63.06      18.67    0.43


                          RESOURCES ESTIMATION SUMMARY FOR EAST HERVIEUX
                                       (Cut-off 40 per cent Fe) 
                              
                                                           In situ grades     Calculated in situ oxide grades
Resource category            In situ (tonnes)    Fe %      Ti %       V %      Fe2O3%       TiO2%       V2O5%

Measured                            2,416,000   44.28     11.12      0.24       63.31       18.55        0.43
Indicated                          10,032,000   44.17     11.12      0.24       63.15       18.55        0.43
Measured and indicated             12,448,000   44.19     11.12      0.24       63.18       18.55        0.43
Inferred                            8,840,000   44.10     11.09      0.23       63.05       18.50        0.41


                            RESOURCES ESTIMATION SUMMARY FOR WEST HERVIEUX
                                        (Cut-off 40 per cent Fe)      
                         
                                                             In situ grades  Calculated in situ oxide grades
Resource category          In situ (tonnes)       Fe %        Ti %      V %      Fe2O3%      TiO2%     V2O5%

Measured                          5,601,000      44.19       11.34     0.25       63.18      18.92      0.45
Indicated                        12,839,000      44.37       11.37     0.27       63.44      18.97      0.48
Measured and indicated           18,440,000      44.32       11.36     0.26       63.36      18.95      0.46
Inferred                          4,173,000      44.14       11.40     0.27       63.11      19.02      0.48

Met-Chem is of the opinion that the La Blache property has sufficient merit to warrant further exploration and development to fully develop its iron, titanium and vanadium potential. Met-Chem cautions that mineral resources have no demonstrated economic viability. In addition, there is no certainty that all or part of the mineral resources will be converted into reserves.

Argex has mandated BBA to complete an NI 43-101-compliant preliminary economic assessment (PEA). Met-Chem's work and conclusions will form an important part of this PEA.

"The results from East Hervieux are complementary to those previously released from West Hervieux and the homogeneity of the mineralized zones," commented Argex president and chief executive officer Michael Dehn. "With the more than 10-per-cent increase in titanium dioxide prices in the market since the start of the year, Argex is well positioned to take advantage of the further expected price increases with the La Blache property and the Canadian Titanium Ltd. technology."

Argex had previously announced on Jan. 26, 2011, that Ti Insight's report on the global TiO2 market reported that since 2010, when the average world price for high-quality TiO2 pigment was approximately $2,400 (U.S.) per metric tonne, until 2015, the TiO2 price is forecast to double to $4,800 (U.S.) per metric tonne. This report and its conclusions will form an important part of the PEA.

Argex announced on Feb. 14, 2011, that it had signed an LOI to purchase up to 50.1 per cent of Canadian Titanium Ltd. (CTL) to give it control of the CTL proprietary technology and the underlying patents. Metallurgical tests conducted on Argex's La Blache ore produced high-purity 99.8 per cent titanium dioxide. The results from the metallurgical tests will form an important part of the PEA.

The first outcrops of titaniferous magnetite on the La Blache property were found in an anorthosite and were discovered at Schmoo Lake in 1951 by Anglo-Canadian Pulp and Paper Mills Ltd., which later founded the Bersimis Mining Co. From 1951 to 1954, the Bersimis Mining Co. performed airborne and ground dip-needle magnetic surveys, geological mapping, surface sampling and assaying, as well as metallurgical testing. Four iron lenses distributed over a distance of 15 kilometres were identified: West Hervieux, East Hervieux, Schmoo Lake and La Blache East. This was followed by 20 exploration drill holes done in 1964 which showed several intersections of major strength containing more than 45 per cent Fe and 15 per cent TiO2.

In 2009, work carried out by Argex consisted of a helicopter-borne survey of the La Blache property. This 418.5-line-kilometre survey conducted in November, 2009, by Geophysics GPR International of Longueuil, Que., consisted of a magnetic, electromagnetic (VLF) and spectrometric survey. Based on analysis of the survey results, Argex decided to carry out a diamond drilling program on the showings in the East Hervieux and West Hervieux.

A total of 20,294 metres was drilled on the La Blache property, including 10,936 metres on East Hervieux and 9,358 metres on West Hervieux. The drilling campaign was aimed at confirming the historic values of the 1964 drilling campaign. The two mineralized zones on the La Blache property are made up of massive titaniferous magnetite, black in colour, with a high density of around 4.5. Greenish, semi-massive zones are also found, likely consisting of serpentine. The host rock is an anorthosite containing over 90 per cent labradorite crystals and/or gabbroic anorthosites richer in amphibolites and/or pyroxenes. The iron content ranges from 35 per cent to 47 per cent Fe, titanium from 7 per cent to 12 per cent Ti and vanadium from 0.17 per cent to 0.30 per cent V.

This release has been reviewed and approved by Jean-Sebastien Lavallee, PGeo (OGQ No. 773), Consul-Teck Exploration Inc., of Val d'or, Que., Argex Mining's consulting geologist and qualified person since 2007, and by Met-Chem Canada Inc.

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