Merrex Intersects 12.26% Zinc and 3.15% Lead Over
2.87 Meters at Jubilee Property in Nova Scotia

JAN 3, 2006 - 23:00 ET

Acquisition of Jubilee Minerals Limited Recommended

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 3, 2006) - John Cumming, President of Merrex Resources Inc. (NEX:MRX.H), (the "Corporation") announces:

Further to the Corporation's news release of August 15, 2005, the Corporation has concluded a required exploration program on the Jubilee Property, in Cape Breton, Nova Scotia. Completion of this program prior to December 31, 2005 was a requirement for the Corporation to maintain its option to acquire Jubilee Minerals Limited and one of the TSX prerequisites for the Corporation's application for graduation from the NEX to the TSX Venture Exchange Tier 2.

The 2005 Drill Program

During October and November 2005 the Corporation conducted a five-hole diamond drilling program on the Jubilee property totalling 872 meters. The objectives of this program were to independently confirm the grade and character of zinc-lead mineralization in the Jubilee deposit occurring within the previously drilled Jubilee Main Zone and Jubilee Fault Zone areas (Holes MX-4 and MX-5) and to undertake initial assessment of three additional exploration licenses to satisfy annual government assessment work requirements (Holes MX-1, MX-2 and MX-3).

Holes MX-4 and MX-5

Angled drill holes MX-4 and MX-5 were located to test positive results from previously drilled Amax-Texasgulf drill hole ATG-24 that returned a Jubilee Main Zone intercept grading 15.37% zinc and 3.59% lead over 6.55 metres of core length.

MX-4 targeted the well mineralized ATG-24 Main Zone intercept area and was designed to also test mineralized carbonate occurring within the Jubilee Fault Zone above the Main Zone elevation. MX-4 was drilled from a set-up 87 meters to the southwest of the ATG-24 collar and encountered carbonate and carbonate breccia with fracture associated galena and sphalerite within the Jubilee Fault zone that returned an average grade of 1.31% zinc and 0.55% lead over 2.85 meters of core length. The Main Zone was encountered deeper in the hole and returned an average grade of 12.26%zinc and 3.15% lead over 2.87 meters of core length, including a 0.90 meter interval grading 22.0% zinc and 4.3% lead. These zones occur within a broader mineralised Macumber Formation carbonate interval grading 3.33% zinc and 0.81% lead over 14.12 meters of core length.

Hole MX-5 was drilled from the same set-up as MX-4 but targeted the Main Zone approximately 40 meters to the northwest of ATG-24. A longer and more strongly mineralized Jubilee Fault Zone intercept was returned from this hole, grading 2.71% zinc and 0.12% lead over 9.20 meters of core length. The Main Zone intercept consisted of 10.7 meters of variably mineralized carbonate, including a 0.55 meter section of banded massive pyrite at the base on the zone. Zinc and lead grades were lower than those of MX-4, the best being 6.35% zinc and 1.06% lead over 0.50 meters or 2.81% zinc and 0.59% lead over 1.35 meters, within a broader zone grading 1.00% zinc and 0.24% lead over 8.15 meters of core length.

Holes MX-1, MX-2 and MX-3

Holes MX-1, MX-2 and MX-3 were drilled on outlying regional exploration licenses 05726, 05727 and 05728 respectively to provide initial stratigraphic assessments in three areas of structural interest and to fulfil assessment work requirements of the licenses. No new mineralised zones were intercepted by these holes.

Program Conclusions

With respect to the Jubilee Main Zone, additional drilling was recommended to assess potential for up to 2.7 kilometres of strike extension to the northwest With respect to the Jubilee Fault Zone, systematic angle hole drilling along the entire length of the structure northwest of the Jubilee surface showing was recommended. On each of the regional exploration licenses deeper drilling within specific structural corridors to test the targeted Macumber Formation stratigraphic interval was also recommended.

Exercise of Jubilee Option

Based on the encouraging results of the 2005 drill program and the recommendation of the Corporation's consultants for further exploration on the Jubilee Property, the disinterested directors of Merrex have determined that the Jubilee Property merits acquisition. Therefore, the Corporation is proceeding to call a shareholders general meeting to approve the exercise of the Jubilee Option. The exercise of the Jubilee Option remains subject to final regulatory approvals.

Michael P. Cullen, P. Geo., of Mercator Geological Services Limited, supervised the 2005 drilling program on behalf of the Corporation. Mr. Cullen is an independent third party and the qualified person, as defined under National Instrument 43-101, responsible for technical information presented in this news release.

On behalf of the Board:

John Cumming, Director

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

FOR FURTHER INFORMATION PLEASE CONTACT: