AXI

Advanced Explorations Inc. (the "Company" or "AEI") (TSX
VENTURE:AXI)(FRANKFURT:AE6) today announced that it has engaged ICBC
International Capital Limited ("ICBCI") as its lead financial advisor in Hong
Kong for the purpose of the Proposed Capital Financing (as defined below). AEI
has engaged ICBCI to assist its preparation for a valuation, based on the
valuation report to be issued by relevant third party independent technical
experts, that is to form the basis of a proposed capital financing (the
"Proposed Capital Financing") for a joint venture to be set up by AEI and
XinXing Ductile Iron Pipes Co., Ltd. ("XDIP", together with AEI, the "JV
Partners") for the Roche Bay project (the "Proposed JV"). ICBCI will also
explore with the JV Partners the feasibility for consolidation of all AEI's iron
ore assets (Tuktu, Tuktu-2 and Roche Bay) as part of asset injection into the
Proposed JV. Should this proposal be accepted, an expansion of the financing
structure would be required along with a revision to the framework agreement
between the JV Partners. AEI has concluded this engagement with the consultation
and support of XDIP. 


ICBCI's primary focus is to work within China's regulatory and financing
framework to secure the Proposed Capital Financing. ICBCI is a subsidiary of the
Industrial and Commercial Bank of China Ltd. ("ICBC"), one of the world's
largest banks by capitalization as at the date of this press release. Given the
breadth of ICBCI's expertise, AEI and XDIP will benefit greatly from the advice
and development scenarios presented by ICBCI. With global markets substantially
discounting resources projects, these advisory services allow an external party
to properly value AEI's assets and to put a definitive financing solution in
place.


The Company has been focused on optimizing the Feasibility Study to further
reduce capital and operating cost. Recent announcements with respect to port and
LNG power partnerships are but two examples that will have a positive impact on
the project financials. Further optimization of the Roche Bay development plans
include updating the expected project revenues based on a higher grade
concentrate (greater than 68% Fe) than was used in the FS marketing study and to
expand the measured and indicated resource base to support a mine life greater
than 25 years. The larger resource base will also allow AEI to model a
development scenario at an 8 mtpa start-up which, through improved economy of
scale, should further reduce the per tonne FOB operating cost. ICBCI will assist
AEI in providing the associated updated financial models in connection with the
Proposed Capital Financing.


John Gingerich, President & CEO, commented:

"We are extremely pleased to conclude the engagement with ICBCI that follows
from 10 months of discussions on the various strategies/plans in respect to the
proposed capital financing for the Roche Bay AEI-XDIP mine plan and potentially
larger regional development scenarios. Through this process, a strong working
relationship has evolved between the ICBCI and AEI teams. AEI is proud to have
secured the interest and support of a prominent financial advisor recognized in
China and around the world. By engaging one of the world's largest banks which
has an institutional investor client base in China, AEI will have solid
financial guidance so as to move ahead on an expedited basis. We believe this
relationship to be the jumping off point from which we can regain significant
market capitalization."


ON BEHALF OF THE BOARD

John Gingerich, President & Chief Executive Officer

ABOUT Advanced Explorations Inc.

Advanced Explorations Inc., based in Toronto, Ontario, is a resource development
company focused on developing its Roche Bay and Tuktu Iron Ore Projects in one
of the world's largest developing iron ore districts, the Melville Peninsula in
Nunavut. The Ocean-based Roche Bay Project boasts an NI 43-101 compliant
resource estimate of over 500 million tonnes outlined within a small portion of
the potential 140 km of banded iron formation. A positive feasibility study for
the project's C Zone revealed a net present value of $642M on a base case 5.5
Mtpa start-up concentrate operation and substantial upside potential including
becoming a low quartile cost producer. To date, the Company has delineated over
1 billion tonnes of iron under NI 43-101 among its Roche Bay and Tuktu deposits
and continues to explore other targeted deposits in areas to the north, south
and west of Roche Bay. The management team has extensive technical, exploration
and Canadian Arctic mining expertise to effectively develop the high quality
iron ore opportunities on the Melville Peninsula. 


This news release also includes forward-looking statements that involve a number
of risks and uncertainties. The information reflects numerous assumptions as to
industry performance, general business and economic conditions, regulatory and
legal requirements, taxes and other matters, many of which are beyond the
control of the company. Similarly, this information assumes certain future
business decisions that are subject to change. There can be no assurance that
the results predicted here will be realized. Actual results may vary from those
represented, and those variations may be material.


This news release does not constitute an offer to sell or a solicitation of an
offer to sell any securities in the United States. The securities have not been
and will not be registered under the United States Securities Act of 1933, as
amended (the "U.S. Securities Act") or any state securities laws and may not be
offered or sold within the United States or to U.S. Persons unless registered
under the U.S. Securities Act and applicable state securities laws or an
exemption from such registration is available.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Advanced Explorations Inc.
(416) 203-0057 x320

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