Mr. Greg Isenor reports

MERREX GOLD REPORTS INITIAL MINERAL RESOURCE ESTIMATE FOR THE DIAKHA DEPOSIT, SIRIBAYA GOLD PROJECT, WEST MALI

Merrex Gold Inc. has provided an initial resource estimate for the Diakha deposit.

The company today announced the initial mineral resource estimate for the Diakha deposit located on the Merrex-Iamgold 50/50 joint venture Siribaya gold project in western Mali, West Africa. The resource estimate, which includes previously reported resources at zone 1B and Taya Ko (part of zone 1A) along the Siribaya trend as well as the new Diakha deposit, comprises indicated resources totalling 2.1 million tonnes averaging 1.90 grams of gold per tonne for 129,000 ounces and inferred resources comprising 19.8 million tonnes averaging 1.71 grams of gold per tonne for 1.1 million ounces. The bulk of the estimate is derived from the newly discovered Diakha deposit, which is open in all directions and at depth, and has significant potential for expansion.

The mineral resource estimate prepared in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) definition standards incorporated by reference in National Instrument 43-101 is summarized in the attached table at cut-off grades ranging from 0.45 to 0.60 gram of gold per tonne. The effective date of this resource estimate is Dec. 31, 2015.

            SIRIBAYA PROJECT -- MINERAL RESOURCE ESTIMATE -- DEC. 31, 2015                           

Classification      Zone  Tonnage (000s) Gold grade (g/t Au) Contained ounces (Au)(000s)

Indicated        Zone 1B          2,102                1.90                         129

Total indicated                   2,102                1.90                         129
Inferred         Zone 1B          4,094                1.52                         200
Inferred         Taya Ko            882                1.02                          29
Inferred          Diakha         14,840                1.81                         863
Total inferred                   19,816                1.71                       1,092

(1) CIM definitions were followed for classification of mineral resources.
(2) Cut-off grades range from 0.45 to 0.60 g/t Au and vary by weathering material type.
(3) Mineral resources are estimated using a gold price of $1,500 (U.S.) per ounce.
(4) Bulk density varies from 1.55 grams per cubic centimetre to 2.63 grams per cubic
    cm based on deposit and weathering code.
(5) The resources are constrained by a Whittle optimized pit shell.
(6) Numbers may not add due to rounding.
(7) Assays are capped prior to compositing.

Capping levels reduced the resource estimate gold grade for Diakha by approximately 12 per cent, and for zone 1B and Taya Ko by approximately 4 per cent.

Commentary

"This Diakha resource estimate, combined with resources at 1B and Taya Ko, now shows independently verified resources in excess of one million ounces(1,092,000 ounces inferred, 129,000 ounces indicated). This is a significant milestone and a major accomplishment for a junior gold explorer," commented Merrex president Greg Isenor. "As stated above, the Diakha deposit remains open in all directions and at depth, and I believe that there is significant potential to expand the current resource with infill and expansion drilling. Diakha was advanced from a grassroots discovery in May, 2014, to an initial resource in December, 2015, a period of only 20 months, which is a remarkable achievement, and on behalf of the management and the shareholders of Merrex, I extend our congratulations to our JV exploration team."

About the resource estimate

The mineral resource for the Diakha deposit incorporates assay results from 216 diamond and reverse-circulation drill holes totalling 25,696 metres, and for zone 1B and Taya Ko zones, incorporates results from 129 drill holes totalling 3,903 metres. The estimate was prepared using a block model constrained with 3-D wireframes of the principal mineralized domains. Values for gold were interpolated into blocks using inverse distance squared (ID2). A preliminary open-pit optimization algorithm was run on the estimated grade block model to constrain the resource, and to support the Canadian Institute of Mining, Metallurgy and Petroleum requirement that mineral resources have "reasonable prospects for eventual economic extraction." The resource estimate assumes a long-term gold price of $1,500 (U.S.) per ounce. Only mineralization contained within the preliminary pit shell has been included in the resource estimate.

In support of the mineral resource estimate SGS Minerals Services in Lakefield, Ont., completed preliminary metallurgical testing on three composite samples prepared from Diakha diamond drill core, which indicated that the gold mineralization is not refractory and that a gold recovery of approximately 92 per cent can be expected from a conventional leach/carbon-in-pulp (CIP) circuit.

For additional details about the resource estimate, readers are referred to the supporting NI 43-101 technical report which will be posted on SEDAR no later than 45 days after the date of this release.

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, which consists of 11 contiguous exploration permits which cover a total area of 876.5 square kilometres and is located in the Kedougou-Kenieba inlier of the West African Craton region of western Mali along the borders with Senegal and Guinea. The Diakha, Siribaya 1B and Taya Ko deposits are hosted within highly prospective, Birimian-aged metasedimentary, volcanic and intrusive rocks proximal to the Senegal-Mali shear zone.

At Diakha, gold mineralization occurs within an albitized sandstone similar to Iamgold's Boto gold deposit located approximately 10 kilometres to the north along strike. Zone 1B and Taya Ko occur within the north-northeast-trending Siribaya structural trend, which extends over 10 kilometres along strike, and gold mineralization occurs within breccia-hosted stockworks or fault-related silicified zones.

During 2014 and 2015 activity at the project was focused primarily on the Diakha deposit area, which is located along the Fekola-Boto trend in the westernmost portion of land package approximately 10 kilometres south along strike of Iamgold's Boto gold deposit (evaluation studies in progress) and approximately 20 kilometres south along strike from B2Gold's Fekola deposit (mine construction commenced).

Next steps

The mineralization at Diakha remains open along strike and at depth where further drilling is warranted. In 2016, additional drilling is planned to increase confidence in the current resources, and continue to expand the mineralization along strike and at depth.

Jubilee zinc exploration licence

The Province of Nova Scotia Department of Natural Resources has granted to the company an exploration licence over certain property contiguous to the company's Jubilee lead-zinc prospect near Little Narrows, N.S. The grant is subject to various conditions, including completion of formal documentation which is in progress. Further details will be announced once all paperwork has been completed.

Qualified persons

The mineral resource estimate, including verification of the data disclosed, has been completed by RPA Inc., and reported in accordance with National Instrument 43-101 requirements and CIM estimation best practice guidelines. The resource estimate was prepared by RPA principal geologist Luke Evans, PEng. The supporting NI 43-101 technical report will be posted on SEDAR no later than 45 days after the date of this release.

Mr. Evans, who is an independent qualified person under NI 43-101, has reviewed and approved the contents of this release. Greg Isenor, PGeo, president of Merrex Gold and a qualified person as defined by NI 43-101, has also reviewed and approved the contents of this release.

We seek Safe Harbor.