Dr. Shane Ebert reports

CANEX OPTIONS AN ADVANCED COPPER GOLD PORPHYRY IN BRITISH COLUMBIA

Canex Metals Inc. has entered into an option agreement on an advanced copper-gold porphyry deposit in British Columbia with excellent exploration upside.

Highlights:

• Canex has entered into a low-upfront-cost option agreement to earn a 100-per-cent interest in the Louise copper-gold porphyry in British Columbia.
• The project is road accessible, contains a large historic copper-gold-molybdenum (Cu-Au-Mo) resource, and has only been explored to shallow depths.
• Previous drilling at Louise has returned strong copper and gold grades, including 0.41 per cent copper and 0.40 gram per tonne (g/t) gold over 158 metres, and several holes indicate increasing grades with depth.
• The company is compiling and analyzing the large, high-quality historic database for the Louise project and will develop a plan to advance the project once data evaluation is complete.

Dr. Shane Ebert, president of the company, stated: "We are pleased to announce this new transaction to acquire the Louise project, which has very low upfront costs, no spending requirements and provides the company another excellent avenue to potentially create value for shareholders. The management and board of Canex have decades of experience exploring porphyry deposits in Mexico and Canada, spanning from initial deposit discovery through to the sale of an advanced deposit. We can leverage this experience at the Louise project, which offers a low-risk, high-value copper-gold opportunity with significant untested discovery potential that can be advanced as market conditions allow. The project is located in the safe mining jurisdiction of British Columbia, is road accessible, and contains a historic resource with 924,333 ounces of gold and 658 million pounds of copper in the inferred category, plus an additional 183,902 ounces of gold and 132 million pounds of copper in the indicated category. This historic resource base is an excellent indicator of the exploration potential of the project and most of the historic drilling was shallow, completed to less than 350 metres, and, in several drill holes, grades were noted to increase with depth. The deposit and surrounding district have never been evaluated with a modern deep-looking induced polarization geophysical survey, opening up potential for a low-cost initial evaluation of the system. The company will complete a thorough data compilation and review prior to announcing next steps."

Summary of the Louise project

The Louise project is road accessible and located approximately 35 kilometres west of Smithers, in west-central British Columbia. The property has been explored by a number of companies since the initial discovery of mineralization exposed at surface in the 1960s. Previous drilling has defined a near-surface mineralized zone 1,000 metres long by 100 m to 200 m wide, extending to approximately 270 metres depth. Mineralization occurs as chalcopyrite (CuFeS2), enargite (Cu2AsS4) and molybdenite (MoS2), disseminated and in stockwork quartz veins associated with sericite and argillic alteration, hosted within a monzonite porphyry and surrounding sedimentary and volcanic rocks. The known deposit has been disrupted by faulting and the roots of the system have not yet been identified or evaluated. No drilling has been conducted at the property since 2008 and the system has not been explored below about 350 metres depth. Past induced polarization (IP) geophysical surveys were shallow looking and done in the 1970s and 1990s. A modern deep-looking IP-resistivity survey over the project area could be a low-cost and highly effective tool to help understand and explore the system both at depth and laterally below till cover.

Previous drilling has intersected strong copper and gold grades highlighted by hole LL04-03, which returned an interval of 158 metres grading 0.41 per cent copper and 0.40 g/t gold starting at 53.5 metres downhole. Such strong grades, that appear to be increasing with depth, suggest good grade potential could exist in the main body of the porphyry system which is hypothesized to occur at depth or adjacent to the known mineralized zone.

The Louise project contains historic resource estimates conducted in 2006 and 2007. The company is not relying on these estimates but is using them as a positive exploration guide demonstrating that a strong porphyry system occurs at the project, and gives insight into the character and controls on mineralization. The project contains a large amount of high-quality surface and drill hole exploration data that will aid immensely in the understanding of the system and the targeting of new zones.

Terms of the option

Canex has entered into an option agreement to earn a 100-per-cent interest in the Louise project from prospector Bernie Kreft. Under the terms of the option, Canex must make the following payments over a five-year period to Mr. Kreft to earn a 100-per-cent interest in the project:

• $10,000 in shares or cash on regulatory approval;
• $25,000 in shares or cash on or before March 1, 2025;
• $50,000 in shares or cash on or before March 1, 2026;
• $90,000 in shares or cash on or before March 1, 2027;
• $200,000 in shares or cash on or before March 1, 2028;
• $400,000 in shares or cash on or before March 1, 2029.

There are no expenditure commitments allowing Canex to advance the project as market conditions allow. Mr. Kreft will retain a 2.5-per-cent net smelter royalty (NSR), with Canex having the right to buy back 40 per cent of the NSR (1 per cent of the 2.5-per-cent NSR) for $1.5-million. Canex will retain a right of first refusal on the sale of Mr. Kreft's royalty.

A milestone bonus of $50,000 in shares or cash will also be payable if Canex drills over 4,250 metres of core, and a second milestone bonus of $50,000 in shares or cash will be payable if Canex publishes a resource estimate with greater than 1.5 million contained ounces of gold.

The transaction is subject to TXS Venture Exchange approval. Additional information on the Louise project will be posted to the company's website following compilation and review of the historic data.

An update on the Gold Range project is anticipated shortly.

About Canex Metals Inc.

Canex Metals is a Canadian junior exploration company focused on advancing its 100-per-cent-owned Gold Range project in northern Arizona. With several near-surface bulk-tonnage gold discoveries made to date across a four-kilometre gold mineralized trend, the Gold Range project is a compelling early-stage opportunity for investors. Canex is led by an experienced management team, which has made three notable porphyry and bulk-tonnage discoveries in North America, and is sponsored by Altius Minerals, a large shareholder of the company.

Dr. Shane Ebert, PGeo, is the qualified person for Canex Metals and has approved the technical disclosure contained in this news release.

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