I would like to take this opportunity to wish you all a very prosperous and happy 2013. It has been a difficult year in the markets and I would like to thank all of our shareholders for their support over the past year.

The Siribaya Gold Project has advanced significantly during the last 12 months with substantial progress made in exploring the entire 850 square kilometre land package. During 2012, approximately 22,000 metres of diamond, RC and auger drilling were completed on the Siribaya and Bambadinka Trends, an updated NI43-101 Resource Estimate encompassing drilling on the Siribaya Trend was released and further drilling is required to increase this resource.

In addition, six new extremely strong gold anomalous zones outside of the Siribaya and Bambadinka areas were identified by termite mound sampling. Drilling is required to test these exciting new anomalies.

I travelled to Mali during 2012, most recently in October, and was very pleased to note that the political situation in the south is calm and stable. I expect that our ongoing exploration at Siribaya, which is in the extreme south-west of Mali, will not be impacted by any future unrest in the north-eastern region. Our analyst tour later this month is going ahead as planned and Merrex personnel will be making several trips to Bamako and the permit area this year.

The 2013 Exploration Program is being finalized and details will be press released once the program is approved by the joint management committee. We are extremely anxious to start the 2013 program.

The formal joint venture operating agreement with IAMGOLD is complete and execution is scheduled for later this month. We will announce the final execution by news release.

We added a new director this year and are pleased to have the valuable assistance of Elias Foscolos on the board of directors.

We are also continuing in our efforts to position the Jubilee and Irish zinc projects for divesture in 2013.

2013 will be an exciting year for Merrex and I am looking forward to considerable progress being made in exploring our large land package.

Thank you again to all of our shareholders for your support. The staff and management of Merrex wish you all the best for 2013.

Sincerely,

Greg Isenor
President & CEO