Jubilee, Nova Scotia

Property | Resource Estimate | Ownership | History | Project Status

PROPERTY
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Merrex’s Jubilee Property consists of 189 contiguous claims in the Little Narrows area of Cape Breton Island, in Nova Scotia, Canada. The claim group covers the Jubilee Zinc/Lead deposit, as well as multiple untested structures.

The Jubilee Deposit is a stratabound zinc-lead-barite deposit, analogous to “Irish style” and Mississippi Valley Type (MVT) base metal deposits. Ore grade mineralization at Jubilee is carbonate-hosted, with galena and sphalerite occurring as replacements of host rock and breccia matrix phases, locally accompanied by barite.

INDEPENDENT RESOURCE ESTIMATE
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An independent 43-101 compliant resource estimate was completed in November 2007. The estimate outlines a modeled inferred resource 3.1 MT grading 4.71% Zinc Equivalent, including 2.1 million tonnes grading 5.6%, and 1.9 million tonnes grading 5.79%.

Resource Category Equivalent Zn% Threshold Tonnes Tonnes (Rounded) Lead % Zinc % Zinc Equivalent %

Inferred 2 3,464,892 3,460,000 0.86 3.62 4.48

Inferred 2.5 3,140,877 3,140,000 0.89 3.81 4.71

Inferred 3 2,668,343 2,670,000 0.95 4.1 5.05

Inferred 3.25 2,306,066 2,310,000 0.99 4.37 5.36

Inferred 3.5 2,058,322 2,060,000 1.02 4.58 5.6

Inferred 3.75 1,878,871 1,880,000 1.04 4.75 5.79

The main mineralized trend reflected in this estimate remains open to the northwest, along strike of the Jubilee Fault. Extension of the structure to the northwest was confirmed by previous operators by means of seismic reflection in St. Patrick’s Channel. Also included are two parallel zones identified in recent drilling by Merrex.

OWNERSHIP
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All properties comprising the Jubilee project are owned 100% by Merrex; subject to a 2% NSR in favour of Teck Cominco (1% may be purchased by Merrex for $1 million).

PROJECT HISTORY
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High-grade mineralization was first discovered in outcrop at Jubilee in 1927. Early work consisted of trenching and two short adits; samples recovered from one of the adits are reported to have assayed as high as 33% Zinc and 12% lead over 1.6 meters. More than 200 diamond drill holes were completed in the intervening years by several operators, yielding grades of up to 24% Zinc and Lead over 4.8 meters.

Since acquiring the Jubilee properties in 2005, Merrex has drilled a total of 72 holes, which has extended the Jubilee Main Zone to more than 2.1 km strike length, which remains open to the northwest.

Drilling carried out by Merrex in 2007 identified two new mineralized zones parallel to the Jubilee Main Zone. Further drilling on these targets in 2008 demonstrated the significant potential for these parallel mineralized structures, with values of up to 11.29% Zinc/Lead over 11.65 meters.

PROJECT STATUS
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Due to market conditions, no drilling is planned at Jubilee for 2009. On July 30, 2009, Merrex announced the signing of a Letter of Intent to sell the Jubilee Project, as well as it’s other non-Malian assets to Crysos Capital Corporation (a capital pool corporation), further to the company’s goal of positioning Merrex as a “pure” gold play focused on the Siribaya Project in southwest Mali.

Future work will consist of geophysics, geochemistry, and diamond drilling of the Jubilee Main Zone, as well as any untested structures which merit investigation by diamond drilling. This work will be funded through a financing to be completed in conjunction with the planned divestiture of the property.