Mr. Roy Bonnell reports

ARGEX ANNOUNCES 3000% SCALE UP OF TIO2 PILOT-PLANT

Following the successful completion of the testing of its La Blache ore, Argex Mining Inc. will expand the size of its pilot plant to 30 times (3,000 per cent) its current production capacity. The production capacity of high-purity titanium dioxide from its 100-per-cent-owned deposits will increase from 0.3 kilogram per day up to 10 kg/day.

"The pilot plant expansion represents a significant milestone," said Roy Bonnell, president and chief executive officer of Argex, "the primary objective of the expansion is to increase the quantity of TiO2 product samples we can provide to end-users."

Argex expects the pilot plant expansion to be completed before the end of the first quarter of 2012 and production to begin by the second quarter of 2012. "The scale-up permits us to not only increase production," noted chief operating officer Enrico Di Cesare, "it will also allow us to conduct larger scale testing and continue to optimize the key performance indicators."

Argex recently announced the successful completion of the pilot plant testing of the ore from its 100-per-cent-owned La Blache deposit. Highlights included:

• Repeated and consistent results demonstrating production of 99.8 per cent pure titanium dioxide rutile product directly from run-of-mine material;
• Repeated and consistent results demonstrating titanium dioxide production with brightness and colour in line with or superior to some of the major TiO2 industry producers;
• An improved and consistent TiO2 recovery rate of 90 per cent;
• Organics used in the process recycled more than 100 times successfully demonstrating process viability and TiO2 produced to the optimal 0.25-micron size.