[Marinir] {Disarmed} Argex (TSX-V: RGX) to sell its Mouchalagane Iron Ore Property in proposed spin-off of Impact Iron Mines to Argex shareholders

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http://www.argex.ca/ 

ARGEX TO SELL MOUCHALAGANE IRON ORE PROPERTY TO ITS WHOLLY-OWNED 
SUBSIDIARY IMPACT IRON MINES 

Initial step in proposed "spin-off" of Impact Iron Mines to Argex 
shareholders 

Argex Mining Inc. (TSX-V: RGX 

http://www.stockwatch.com/Quote/Detail.aspx?action=go&symbol=RGX&region=C&lookup=symbol&snapshot=default 

) announced today that its Board of Directors has unanimously approved 
the sale by Argex of the Mouchalagane iron ore property to Impact Iron 
Mines Inc., Argex's wholly-owned subsidiary. 

Argex President and CEO, Roy Bonnell, commented as follows, "The 
Mouchalagane property is an undeveloped iron ore property in the 
Fermont-Labrador City mining district with significant near-term mineral 
resource potential. Our focus is to unlock the value of this asset for 
Argex's shareholders. The sale of the Mouchalagane property to Impact 
Iron Mines is the first step in the spin-off process to create two 
public companies: Argex as a titanium dioxide pure-play and Impact as a 
pure iron ore company." 

On September 26, 2011, Argex reported on the overall conceptual 
exploration potential of the Mouchalagane property as ranging between 
940 million tonnes and 2.31 billion tonnes of magnetite and 
hematite-rich mineralization at a grade of 30% to 35% Fe total. The 
exploration information of potential quantity and grade is conceptual in 
nature; there has been insufficient exploration to date to define a 
mineral resource and it is uncertain if further exploration will result 
in the target being delineated as a mineral resource. 

Exploration work conducted on the Mouchalagane property in the 1950's, 
60's and 70's, consisting of mapping, ground geophysics, diamond 
drilling and metallurgical testing, successfully identified numerous 
magnetite and hematite-rich iron formations on the property. Iron 
formation thicknesses reported from drill holes vary from a few metres 
to more than a hundred metres, with average grades ranging from 25% Fe 
total to 42% Fe total. Extensive metallurgical testing of the 
magnetite-rich and hematite-rich facies completed on surface samples and 
drill core composites returned concentrate grades between 65% and 71% Fe 
total. 

In connection with the proposed sale of the Mouchalagane property to 
Impact Iron Mines, Argex will receive 10 million common shares of Impact 
Iron Mines at a deemed price of $1.00 per share, and a cash payment of 
$2 million. In the event that a resource estimate compliant with 
National Instrument 43-101 demonstrates at least 100 million tonnes of 
net iron content on the Mouchalagane property, Argex will receive an 
additional 5 million common shares of Impact Iron Mines. 

Argex also has the right to receive the following payments from Impact 
Iron Mines: (i) $10 million upon initial shipment of 2 million tonnes of 
iron concentrate from the Mouchalagane property; (ii) an additional $20 
million upon shipment of an additional 5 million tonnes of iron 
concentrate from the property; and (iii) an additional $30 million upon 
shipment of an additional 8 million tonnes of iron concentrate from the 
property. 

Argex intends to distribute to its shareholders the 10 million common 
shares of Impact Iron Mines which it will receive as consideration for 
the sale of the Mouchalagane property. 

After the share distribution, it is not expected that Argex will hold 
any shares of Impact Iron Mines, except for the 5 million shares to be 
issued to Argex conditional upon an NI 43-101 compliant resource 
estimate demonstrating at least 100 million tonnes of net iron content 
on the Mouchalagane property. 

The sale of the Mouchalagane property to Impact Iron Mines and the 
proposed share distribution to Argex's shareholders are subject to a 
number of conditions, including the signing of a definitive agreement, 
and regulatory approval, including that of the TSX Venture Exchange. The 
final details of the proposed distribution of the shares of Impact Iron 
Mines to Argex's shareholders, including the record date for the share 
distribution and the share distribution ratio, have yet to be determined 
and will be announced by Argex as soon as practicable. 

The Mouchalagane Property 

The Mouchalagane property is located 275 km north of the city of 
Baie-Comeau, Québec, adjacent to the Manicouagan Reservoir. The 
property is composed of one block of 637 designated claim cells covering 
335 square kilometres and is 100% owned by Argex. 

The Mouchalagane property covers extensive iron formation stratigraphy 
known as meta-taconites, which are interpreted to be part of the 
prolific Wabush Geological Formation hosting the major iron ore deposits 
of the Fermont-Labrador City region. A 2,447 line-km airborne 
geophysical survey completed by Argex at the end of 2010 highlighted 
several magnetic anomalies representing more than 50 km of iron 
formation stratigraphy on the property. 

On September 20, 2011, Argex filed an updated NI 43-101 Technical Report 
on the Mouchalagane property. The report is available on Argex's website 
at www.argex.ca 

http://www.argex.ca 

and on SEDAR at www.sedar.com 

http://www.sedar.com 

. 

The technical information disclosed in this news release has been 
reviewed and approved by André Laferrière, P.Geo., the 
Qualified Person for Argex, as defined by National Instrument 43-101 
Standards of Disclosure for Mineral Projects. 

About Argex Mining Inc. 

ARGEX MINING INC. has recently transitioned from a mining exploration 
company to a near-term producer of commodities that the world needs: 
Titanium Dioxide, Iron and Vanadium Pentoxide. With a primary goal of 
advancing rapidly towards production, Argex has adopted a simple and 
low-risk strategy for the scale-up of its proprietary process that 
allows it to produce high purity TiO2 directly from its 100% owned 
deposit. 

The process is running continuously at the mini-plant in Mississauga, 
Ontario. The closed-loop process is environmentally friendly and 
produces minimal inert tailings. 

Additionally, the Company owns 100% of the Mouchalagane property, which 
is a large Labrador Trough iron ore property that represents further 
potential upside for the Argex shareholders. 

Forward-Looking Statements and Disclaimer 

This press release may contain forward-looking information within the 
meaning of applicable securities laws. All information and statements 
other than statements of historical facts contained in this press 
release are forward-looking information. Such statements and information 
may be identified by words such as "about", "approximately", "may", 
"believes", "expects", "will", "intends", "should", "plans", "predicts", 
"potential", "projects", "anticipates", "estimates", "continues" or 
similar words or the negative thereof or other comparable terminology. 
Forward-looking statements are based on the best estimates available to 
Argex at this time and involve known and unknown risks, uncertainties 
and other factors that may cause Argex's actual results, performance or 
achievements to be materially different from any future results, 
performance or achievements expressed or implied by such forward-looking 
statements. A description of the risks affecting Argex's business and 
activities appears under the heading "Risk Factors" in Argex's Amended 
and Restated Annual Information Form dated January 14, 2011 for the 
fiscal year ended December 31, 2009, which is available on SEDAR at 
www.sedar.com 

http://www.sedar.com 

. No assurance can be given that any events anticipated by the 
forward-looking information in this press release will transpire or 
occur, or if any of them do so, what benefits that Argex will derive 
therefrom. In particular, no assurance can be given as to the future 
financial performance of Argex. The forward-looking information 
contained in this press release is made as of the date hereof and Argex 
undertakes no obligation to publicly update such forward-looking 
information to reflect new information, subsequent or otherwise, unless 
required by applicable securities laws. The reader is warned against 
placing undue reliance on these forward-looking statements. 

For More Information: 

Roy Bonnell, President and Chief Executive Officer Argex Mining Inc. 

Argex Mining Inc. TSX-V: RGX 

514-788-8923 FSE: ASV 

roy at argex.ca 

MEDIA: 

Frédéric Bérard, Vice President 

HKDP Communications and Public Affairs 

514 395-0375, ext. 259 

Neither the TSX Venture Exchange nor its Regulation Services Provider 
(as that term is defined in the policies of the TSX Venture Exchange) 
accepts responsibility for the adequacy or accuracy of this release. 

For more information about this service, please see: 
www.infostockbiz.com 

http://www.infostockbiz.com 

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