Mr. Roy Bonnell reports

ARGEX TO SELL MOUCHALAGANE IRON ORE PROPERTY TO ITS WHOLLY-OWNED SUBSIDIARY IMPACT IRON MINES; INITIAL STEP IN PROPOSED "SPIN-OFF" OF IMPACT IRON MINES TO ARGEX SHAREHOLDERS

Argex Mining Inc.'s board of directors has unanimously approved the sale by Argex of the Mouchalagane iron ore property to Impact Iron Mines Inc., Argex's wholly owned subsidiary.

Argex president and chief executive officer, Roy Bonnell, commented as follows: "The Mouchalagane property is an undeveloped iron ore property in the Fermont-Labrador City mining district with significant near-term mineral resource potential. Our focus is to unlock the value of this asset for Argex's shareholders. The sale of the Mouchalagane property to Impact Iron Mines is the first step in the spinoff process to create two public companies: Argex as a titanium dioxide pure-play and Impact as a pure iron ore company."

On Sept. 26, 2011, Argex reported on the overall conceptual exploration potential of the Mouchalagane property as ranging between 940 million tonnes and 2.31 billion tonnes of magnetite and hematite-rich mineralization at a grade of 30 per cent to 35 per cent Fe total. The exploration information of potential quantity and grade is conceptual in nature; there has been insufficient exploration to date to define a mineral resource and it is uncertain if further exploration will result in the target being delineated as a mineral resource.

Exploration work conducted on the Mouchalagane property in the 1950s, '60s and '70s, consisting of mapping, ground geophysics, diamond drilling and metallurgical testing, successfully identified numerous magnetite and hematite-rich iron formations on the property. Iron formation thicknesses reported from drill holes vary from a few metres to more than a hundred metres, with average grades ranging from 25 per cent Fe total to 42 per cent Fe total. Extensive metallurgical testing of the magnetite-rich and hematite-rich facies completed on surface samples and drill core composites returned concentrate grades between 65 per cent and 71 per cent Fe total.

In connection with the proposed sale of the Mouchalagane property to Impact Iron Mines, Argex will receive 10 million common shares of Impact Iron Mines at a deemed price of $1.00 per share, and a cash payment of $2-million. In the event that a resource estimate compliant with National Instrument 43-101 demonstrates at least 100 million tonnes of net iron content on the Mouchalagane property, Argex will receive an additional five million common shares of Impact Iron Mines.

Argex also has the right to receive the following payments from Impact Iron Mines: (i) $10-million upon initial shipment of two million tonnes of iron concentrate from the Mouchalagane property; (ii) an additional $20-million upon shipment of an additional five million tonnes of iron concentrate from the property; and (iii) an additional $30-million upon shipment of an additional eight million tonnes of iron concentrate from the property.

Argex intends to distribute to its shareholders the 10 million common shares of Impact Iron Mines which it will receive as consideration for the sale of the Mouchalagane property.

After the share distribution, it is not expected that Argex will hold any shares of Impact Iron Mines, except for the five million shares to be issued to Argex conditional upon an NI 43-101 compliant resource estimate demonstrating at least 100 million tonnes of net iron content on the Mouchalagane property.

The sale of the Mouchalagane property to Impact Iron Mines and the proposed share distribution to Argex's shareholders are subject to a number of conditions, including the signing of a definitive agreement, and regulatory approval, including that of the TSX Venture Exchange. The final details of the proposed distribution of the shares of Impact Iron Mines to Argex's shareholders, including the record date for the share distribution and the share distribution ratio, have yet to be determined and will be announced by Argex as soon as practicable.

We seek Safe Harbor.