Merrex Resources Inc.: $2,000,000 Financing

FEB 27, 2006 - 23:00 ET

HALIFAX, NOVA SCOTIA--(CCNMatthews - Feb. 27, 2006) - Greg Isenor, President of Merrex Resources Inc. (NEX:MRX.H), (the "Corporation") announces:

The Corporation announces a financing by way of private placement of up to $2,000,000.

The placement will be comprised of two parts:

a) $1,000,000 from the sale of 1,666,667 Units at $0.60 per Unit, each Unit comprised of one common share and one-half of one share purchase warrant. Each whole share purchase warrant will entitle the holder to acquire one additional common share at a price of $0.75 per share for a period of one year from the date of closing., and

b) $1,000,000 from the sale of 1,428,572 common shares at a price of $0.70 per share, such shares having flow-through Income Tax benefits attached thereto.

The proceeds of this private placement will be used for exploration on the Jubilee property and the Corporation's Mali Permits and for working capital, all in connection with the Corporation's application for graduation from the NEX to TSX Venture Exchange Tier 2.

Commissions and/or finder's fees of up to 7% of the amount financed may be paid in respect of this financing. The finder's fees and/or commissions may be paid either in cash or by the issuance of up to 240,000 Units of the Corporation (equal to approximately 7% of the financed amount), such Units to be comprised of one share and one-half of one share purchase warrant exercisable for one year at $0.75 per share.

The private placement, the property transactions referred to above and graduation to Tier 2 are all subject to required TSX approvals.

The closing price of the Corporation's shares on the TSX Venture Exchange NEX board on March 24, 2006 was $0.72 per share.

John Cumming, Director

This release contains forward-looking information. Statements that are not descriptions of historical facts are forward-looking statements provided under the "safe harbor" protection of the Private Securities Litigation Reform Act of 1995. These statements are made to enable a better understanding of our business, but because these forward-looking statements are subject to many risks, uncertainties, future developments and changes over time, actual results may differ materially from those expressed or implied by such forward-looking statements. Examples of forward-looking statements are statements about anticipated financial or operating results, financial projections, business prospects, future product performance and other matters that are not historical facts. Such statements often include words such as "believes," "expects," "anticipates," "intends," "plans," "estimates" or similar expressions.

These forward-looking statements are based on the information that was currently available to us, and the expectations and assumptions that were deemed reasonable by us, at the time the statements were made. We do not undertake any obligation to update any forward-looking statements in this report or in any of our other communications, except as required by law, and all such forward-looking statements should be read as of the time the statements were made, and with the recognition that these forward-looking statements may not be complete or accurate at a later date.

THE NEX HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ACCURACY OF THIS RELEASE.

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