Minex : North Eastern Resources

Potential New Significant Gold Producer in Russia with Phased Optionality

Zegen Gol - History

The Zegen Gol project was brought to the attention of NER in early 2011

The project was recommended based on the results of a TEO (Russian equivalent of an Order of Magnitude Study)

The results concluded:

•A programme of 85 trenches and 25 diamond drill holes defined an “Inferred” gold resource of 374,000 oz.  The trenching and drilling also identified the potential to increase the size of the resource to +1Moz Au

•Given the above the project was deemed to be an attractive investment opportunity subject to a positive outcome from a competent due diligence review

•The due diligence review was carried out by Tetra Tech who concluded that “the deposit at Zegen Gol constitutes target mineralisation worthy of further exploration works but would not be considered as a resource as understood by JORC/CIM guidelines” because of sample preparation QA/QC

•NER carried out a 2 hole twinned drilling programme as well as resampling of core and coarse rejects to provide confidence required to support the assay results from the pre-NER work – the results of this resampling/assaying were positive