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NGEx Reports Further Excellent Drill Results From Los Helados, Chile

May 5, 2011 - 08:30 ET
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VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 5, 2011) -NGEx Resources Inc. (TSX:NGQ) ("NGEx" or the "Company") is pleased to announce further very positive results from three more diamond drill holes completed this season at the Los Helados project located in Chile's Region 3. The results reported today are from holes LH-19 to LH-21. Highlights include: LH-19 with 558 metres of 0.48% copper and 0.19 g/t gold including the final 92 metres grading 0.88% copper and 0.20 g/t gold; LH-20 with 312 metres of 0.73% copper and 0.35 g/t gold including the final 108 metres grading 0.86% copper and 0.33 g/t gold; LH-21 with 728 metres of 0.47% copper and 0.19 g/t gold including 210 metres of 0.61% copper and 0.23 g/t gold with the final 8 metres of the hole grading 1.03% copper and 0.49 g/t gold (Note assays are rounded to two significant figures whereas assays in the table below show three significant figures).

The three drill holes released today are important because they extend the width of the zone of higher grade mineralization that is being delineated by the current drill program by approximately 150 metres to the west and 100 metres to the east of previously released drilling. LH-19 extends higher grade mineralization 150 metres to the west of LH-18 on the southern side of the system; LH-20 extends higher grade mineralization approximately 100 metres to the east of previously reported hole LH-17; and LH-21 extends higher grade mineralization approximately 150 metres to the west of previously reported LH-16. These drill holes mean the zone is still open laterally. Equally important, all three drill holes bottomed in mineralization grading between 0.86% copper and 1.03% copper leaving the zone open at depth. Holes were stopped due to the limits of current drilling equipment.

The three holes reported today are part of an on-going drill program that is expected to total 14 holes and will continue until the end of the summer exploration season in mid- May. The results of the 4 remaining holes from this season, LH-22 to LH-25 will be released as they become available over the next six weeks or so. The objective of the current drill program is to better define a zone of higher grade mineralization that was also intercepted in previously reported holes including; LH-12 with 711 metres of 0.54% copper and 0.26 grams/tonne gold, including 114 metres of 0.67% copper and 0.19 grams/tonne gold; and LH 16 with 701 metres of 0.67% copper and 0.30 g/t gold.

Intervals from the holes reported today are summarized in the table below. Intervals >0.5% copper are highlighted.

  From To Interval Copper % Gold
grams/tonne
LH-DDH-19 0 13.75 13.75 casing
and 13.75 194 180.25 0.248 0.214
and 194 752 558 0.477 0.192
including 298 478 180 0.565 0.262
and including 660 752 92 0.876 0.202
           
LH-DDH-20 0 24 24 casing
and 24 438 414 0.183 0.216
and 438 750 312 0.726 0.346
including 642 750 108 0.859 0.326
or including 674 702 28 0.992 0.376
           
LH-DDH-21 0 14 14 casing
and 14 22 8 0.070 2.167
and 22 750 728 0.471 0.187
including 60 126 66 0.485 0.282
and including 194 404 210 0.607 0.234
and including 468 608 140 0.588 0.178
and including 742 750 8 1.035 0.490

Intervals are core lengths.

Please see attached appendix for a summary of all the results to date from the current field season.

Commenting on the results, Wojtek Wodzicki, President and CEO, said, "The results we report today continue to expand the higher grade core of the Los Helados system. We continue to be encouraged by both the length and grade of the intercepts and by the fact that the drill holes contain long intervals of better than 0.6% copper plus gold. Because of the gold the reported intervals look even more encouraging on a copper equivalent basis. These three drill holes are all on the outer margins of the current drill pattern and they demonstrate that the system continues to be well mineralized and open to the west, south, east, and at depth. There is also potential for additional higher grade material north of LH-12. All three holes reported today bottom in mineralization grading approximately 0.9% copper along with significant gold. These holes along with those previously released confirm that mineralization extends to more than 750 metres depth and has excellent potential for additional high grade mineralization at depth. We are beginning to plan for a major infill drill program scheduled to start in November, 2011 at the beginning of the South American spring. This program will include drills with the capability to drill to more than 1 kilometre depth in order to test for the potential high grade core of the system. We are very encouraged by the results to date and are confident that we are working on a major new copper-gold discovery."

The higher grade mineralization reported above is hosted within a quartz-feldspar porphyry stock and cross-cutting magmatic-hydrothermal breccia body that, based on mapping and drilling to date, has an estimated area of approximately 600 metres by approximately 500 metres and extends to depths of more than 750 metres. The higher grade zone remains open in several directions and further drilling is required to confirm these dimensions and to define the limits of the mineralization laterally and at depth. Please see attached map, http://media3.marketwire.com/docs/ngex0505.pdf.

The higher grade mineralization at Los Helados is associated with potassic alteration which is represented by strong biotite alteration. Copper mineralization occurs primarily as chalcopyrite in both veinlets and breccia matrix. There is a close association of chalcopyrite with magnetite. In the upper parts of some drill holes, the potassic alteration is overprinted by a chlorite-sericite assemblage. This resulted in the introduction of pyrite and alteration of magnetite to hematite and apparently a slight reduction in copper grade. On the eastern side of the system, the topography rises steeply and a thicker section of relatively copper depleted chlorite-sericite and advanced argillic alteration is preserved in the wall of the valley. This may explain the thicker zone of lower grade material in the upper part of LH-20 which was collared at higher elevations. Drill holes such as LH-19 and LH-21 collared at lower elevations in the western part of the system have thinner zones of overprinting high level alteration and consequently intersect better grades at shallower levels. The system is open to the west where the topography is relatively flat. Interpretation of the drill results is an ongoing process and will be updated as additional data become available.

Los Helados is one of several large porphyry copper-gold systems including the Company's Josemaria and Filo del Sol projects all located within the large block of contiguous claims that the company controls in Region 3 Chile and adjacent San Juan Province, Argentina. Josemaria, located approximately 20 kilometres from Los Helados, has a previously released NI 43-101 compliant inferred resource of 460 million tonnes of 0.4% copper and 0.3 g/t gold. Nearby deposits held by other companies include Caserones-Regalito (Pan Pacific Copper-Mitsui) and El Morro (Goldcorp/New Gold). The Company holds a 60% interest in the Los Helados project. Japan, Oil, Gas, and Metals National Corporation ("JOGMEC") holds the remaining 40% interest in the project. Both parties contribute their pro-rata share of exploration expenditures.

Sample Preparation and Analysis and Qualified Person

The drill core was logged, sawed, and half cores were sampled in their entirety in two metre intervals or intervals corresponding to geologic breaks by Company personnel at the Company's field office in Copiapo, Chile. Samples were shipped ACME's Copiapo sample preparation facility for crushing and grinding. The sample pulps were analyzed by standard industry assay methods- in ACME's Santiago, Chile Laboratories. Copper and gold standards as well as blanks and duplicates (field, preparation and analysis) were randomly inserted into the sampling sequence for Quality Control. On average, 9% of the submitted samples correspond to Quality Control samples. The Quality Control/Quality Assurance (QA/QC) program on the Los Helados Project is under the management of Diego Charchaflie MSc., P.Geo (BC), a qualified person pursuant to NI 43-101. Dr. Wojtek Wodzicki Ph.D, P.Geo (BC), a Qualified Person as defined by National Instrument 43-101 and President and CEO of NGEX has reviewed and verified the technical exploration information contained herein.

On behalf of the Board,

Dr. Wojtek Wodzicki, President and CEO

APPENDIX

Summary of Los Helados Drill Results To Date From 2010/2011 Field Season

Hole From To Length Cu (%) Au (g/t)
LH-12          
           
Total hole 40 751 711 0.54 0.26
incl. 172 236 64 0.59 0.46
& incl. 306 332 26 0.68 0.30
& incl. 348 392 44 0.79 0.31
& incl. 516 630 114 0.67 0.19
& incl. 636 720 84 0.69 0.19
           
LH-13          
           
Upper section 18 180 162 0.20 0.18
           
Lower section 180 742.3 562.3 0.54 0.25
incl. 434 646 212 0.68 0.30
& incl. 658 710 52 0.82 0.26
           
LH-14          
           
Total hole 60 715 655 0.26 0.09
incl. 536 582 46 0.42 0.10
& incl. 588 622 34 0.41 0.11
& incl. 658 704 46 0.56 0.18
or incl. 694 704 10 0.83 0.22
Hole From To Length Cu (%) Au (ppm)
LH-DDH-15          
  0 30 30 casing  
  and 30 711 681 0.256 0.105
including 104 138 34 0.267 0.162
and including 138 152 14 0.021 0.511
and including 352 416 64 0.300 0.073
and including 506 604 98 0.435 0.118
and including 650 711 61 0.514 0.145
           
LH-DDH-16          
  0 32 32 casing  
and 32 76 44 0.021 0.296
and 76 777 701 0.672 0.303
including 76 126 50 0.498 0.328
and including 208 646 438 0.697 0.309
and including 646 678 32 1.124 0.559
and including 678 744 66 0.683 0.213
and including 744 777 33 0.939 0.241
LH-DDH-17 0 36 36 casing  
and 36 186 150 0.159 0.209
and 186 761 575 0.585 0.334
including 514 540 26 0.860 0.486
and including 564 761.3 197.3 0.707 0.264
           
LH-DDH-18 0 33   casing  
and 33 134 101 0.039 0.139
and 134 602 468 0.552 0.315
including 186 212 26 0.849 0.478
and including 424 452 28 0.747 0.371
and 602 695.4 93.4 0.285 0.078
Hole From To Length Cu (%) Au (ppm)
LH-DDH-19 0 13.75 13.75 casing
and 13.75 194 180.25 0.248 0.214
and 194 752 558 0.477 0.192
  including 298 478 180 0.565 0.262
and including 660 752 92 0.876 0.202
           
LH-DDH-20 0 24 24 casing
and 24 438 414 0.183 0.216
and 438 750 312 0.726 0.346
including 642 750 108 0.859 0.326
or including 674 702 28 0.992 0.376
           
LH-DDH-21 0 14 14 casing
and 14 22 8 0.070 2.167
and 22 750 728 0.471 0.187
including 60 126 66 0.485 0.282
and including 194 404 210 0.607 0.234
and including 468 608 140 0.588 0.178
and including 742 750 8 1.035 0.490
 

FOR FURTHER INFORMATION PLEASE CONTACT:

NGEx Resources Inc.
Sophia Shane
Corporate Development
(604) 689-7842
(604) 689-4250 (FAX)
ngexresources@namdo.com
www.ngexresources.com
 



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