Argex results of TiO(2) grade sensitivity analysis demonstrate improved project economics

• Increased feedstock grade significantly increases TiO₂ output tonnage
• Increased feedstock grade significantly decreases opex per tonne of TiO₂ production

MONTREAL, June 5, 2012 /CNW Telbec/ - Argex Mining Inc. ("Argex") (TSXV: RGX) (FSE: ASV) (OTCBB: ARGEF) is pleased to report the results of a TiO₂ grade sensitivity study. The objective of the study was to evaluate the impact of different TiO₂ grades of ilmenite feedstock on the operational parameters of the CTL hydrometallurgical process. The internal study was completed in collaboration with BBA Inc. of Montreal, Quebec.

Three different raw material scenarios were considered for the sensitivity analysis with TiO₂ grade ranging from 32.0% to 53.9% and Fe/Ti ratio ranging from 2.2 to 1.0. The results of the sensitivity analysis are reported in relative percent terms compared to a reference scenario which is based on the operational parameters for the production of TiO₂ pigment using a raw material similar in composition to the mineralization outlined at Argex's La Blache property (TiO₂ grade of 18.9% and Fe/Ti ratio of 3.9). The operational parameters considered in the study include raw material input tonnage, TiO₂ pigment output tonnage, plant capital expenditures (capex), and plant operational expenditures (opex) per tonne of TiO₂ produced. It was assumed for the purpose of the study that the selected feedstock for each of the scenarios was purchased from a third-party supplier, with the purchase and associated transportation costs not factored into the study. Credits for Fe₂O₃, V₂O₅ or others by-products were also not taken into consideration for the opex parameter of the sensitivity analysis.

The sensitivity analysis is based on the production of TiO₂ pigment from a conceptual hydrometallurgical plant based on the CTL process with capacity corresponding to the size of one industrial module as it is envisioned. The production capacity of one industrial module is defined by the size of the acid regeneration units, which was fixed at 58,000 tonnes of Fe₂O₃ per year and corresponds to two pyrohydrolysis units capable of processing a total of 36 cubic meters per hour of iron chloride solution. The capex of the hydrometallurgical plant was adjusted for each scenario based on the equipment required to handle different production levels of TiO₂ pigment. Operating cost assumptions are unchanged from the La Blache PEA unless noted otherwise. Finishing and coating equipment capex and opex were excluded from the analysis. The costs for electricity and natural gas were set to $0.048 per kWh and $5.50 per million Btu, respectively.

Argex President and CEO, Roy Bonnell, commented on the results of the sensitivity study. "The internal analysis, completed with BBA, demonstrates improved project economics by using higher TiO₂ grade feedstock for the CTL process. These promising results, demonstrate not only the important value-added that the acquisition of the Lac Brûlé property represents, but also why we have initiated preliminary testing of selected third-party ilmenite concentrates in order to determine the optimal feedstock specifications to maximize the profitability of the process."

"The internal study shows that an increase in the TiO₂ grade of the feedstock significantly lowers the operating cost per unit of TiO₂ produced," said Enrico Di Cesare, COO and V-P Technology of Argex. "With a similar capital investment, we could increase potential revenues by more than three times and reduce our operating expenses per tonne of TiO₂ produced by close to 70%. Furthermore, because of the fixed quantities of iron that an industrial module can process due to equipment constraints, results show that lower iron content in feedstock allows the company to process a larger amount of raw material."

About Argex Mining Inc.

ARGEX MINING INC. is 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 run-of-mine material 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.

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