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Alexis Confirms Profitability of Lac Pelletier Gold Project and Potential for Commercial Production by Mid 2010

TORONTO, ONTARIO -- (Marketwire) -- 07/16/09 -- ALEXIS MINERALS CORPORATION (TSX: AMC) is pleased to announce positive results from the pre-feasibility study on the Lac Pelletier Gold Project in Rouyn Noranda, Quebec. The study estimates that the Lac Pelletier Mine offers a 155% internal rate of return (IRR) and generates over CDN $20.7 million free cash flow on production of approximately 118,100 ounces (109,300 ounces recovered) ounces of gold (oz.Au) over an estimated 3 year project life. Lac Pelletier offers Alexis an opportunity to bring a second satellite mine operation into production to complement cash flow earned from the Alexis Lac Herbin mine in Val d'Or, Quebec. The Company's total annual gold production would increase in 2010 to annual levels of between 75,000 and 85,000 oz.Au per year with both mines in production, representing a strong move towards the new Corporate Strategy focused on developing Alexis into a mid-tier gold-producing mining company.

Highlights of the Pre-Feasibility study for Lac Pelletier are:

- Measured and Indicated Resources, using a 3.0 g.Au/t cut-off grade, total 917,883 tonnes (t) @ 7.11 grams of gold per metric tonne (g.Au/t), for 209,895 ounces gold with additional Inferred Resources of 391,770 tonnes @ 6.52 g.Au/t for 82,127 oz.Au (Table 1);

- Proven and Probable reserves were calculated using a cutoff grade of 5,5 g.Au/t to be 483,362 t @ 7.60 g.Au/t for 118,100 oz.Au (Table 2);

- The net present value (NPV) of production at a 7% discount rate is CDN $16.9 million with an IRR of 155%;

- The study estimates total pre-production capital expenditures of CDN $8.8 million net of recovered gold ($9.8 million) and uses an average price of USD $887/ozAu at a US$ exchange rate of 1.15 (CDN $1,020/oz.Au). A rebate of 1.4 M$ for exploration expenses was integrated in year 1 covering the preproduction expenses.

- Total operating costs are projected at CDN $144/t (includes shipping and current, third-party custom milling prices of CDN $ 42/t);

- Total cash costs are projected to be US $554/oz.Au (CDN $637/oz.Au).

- Project Schedule developed to complete mine refurbishment and a 40,000 tonne bulk sample in 2009 with commercial production achieved in mid 2010.

The Lac Pelletier deposit offers good upside potential for the expansion of Resources and Reserves through the further exploration and delineation of remaining resource areas in the deposit and on any extensions. The Lac Pelletier deposit is also sensitive to gold price. Management is encouraged by the projected bullish trend of gold in the current economic climate. Higher gold prices may allow the use of lower cut-off grades during production with the potential to enhance current reserves within the mine area, Table 1. The project economics are also influenced by mining and processing costs. The refurbishment of Alexis'Aurbel gold mill by December 2009 (See Press Release: June 16, 2009) is likely to lower production costs by an estimated 10%. This reduction may also decrease the lower cut-off grade, enhancing Reserves.

The Lac Pelletier project is located in the Rouyn-Noranda mining camp, on an Alexis wholly-owned property four kilometers southwest of the town of Rouyn-Noranda, and approximately 100 km. from the Company's first gold mine at Lac Herbin, near Val d'Or, Quebec. Alexis advanced surface site preparation at Lac Pelletier in early 2008 with the installation of power supply, road work, building construction and settling ponds for the project. The project was then delayed due to the industry-wide escalation of mining costs and concern towards the approach to mining methods suggested by several mining contractors. A pre-feasibility study was initiated in 2008 to assess the potential of the project and in order to review the proposed mining approach. With recent and forecasted gold prices being sufficient to make this project economic, management has elected to proceed with refurbishment of the underground workings and completion of a bulk sample in 2009, after which a production decision will be made in Q1-2010.

A 40,000 tonne bulk sample is expected to be completed by the end of 2009 from the current workings with the recovery of approximately 9,400 oz.Au. Given a positive production decision in early 2010 the deposit is expected to reach commercial production by mid 2010. La Pelletier should produce between 40,000 and 50,000 ounces of gold per year. Adding this output to projected production at the Lac Herbin mine, the Company anticipates total annual gold production to increase to between 75,000-85,000 oz.Au per year from 2010 onward.

Dewatering the existing ramp commenced on June 10, 2009 and has now progressed providing access to the first level of the mine. Concurrent with rehabilitation work in the ramp, final building construction has been completed and permitting rights obtained. Commencing in August 2009, development will advance to allow mining of 40,000 tonnes of ore which is anticipated to contain 10,200 oz.Au. Milling of this ore, with projected 92.5% mill recoveries by the end of 2009, should provide approximately 9,400 ounces of gold, largely offsetting the cost of the refurbishment and bulk sampling program in 2009. Subsequent preproduction costs in 2010 are estimated to be CDN $8.8M. (NOTE: Preproduction costs: 18.6M$ - Gold revenue: 9.8M$ equals 8.8M$).

Lac Pelletier Resources and Reserves

Alexis Minerals has completed an updated calculation of Resources on the project, Table 1. Mineral Resources were prepared by Claude Gobeil, P.Eng., Senior Resource Geologist with Alexis Minerals, and Qualified Person under NI 43-101 for the Resource estimation. The parameters and methodology used are described in a NI 43-101 technical report which will be filed at within 45 days.

Alexis Minerals has completed an updated, independent calculation of Reserves on the project, Table 2. The Pre-Feasibility study, including the evaluation of mineral reserves, was prepared by Francois Chabot (ing., M.Sc.), Independent QP, Golder Associes Ltee. The parameters and methodology used are described in a NI 43-101 technical report which will be filed at within 45 days.

 Table 1: Stated Resources at Lac Pelletier Mine at variable cut-off grades
                          Rouyn-Noranda, Quebec.

Cut-off   Measured (M)     Indicated (I)    Total     Inferred        Total
 Grade                                      M + I         (Inf)        (Inf)
                                        Contained                 Contained
                                               Au                        Au
         tonnes   grade   tonnes   grade            tonnes   grade
(g Au/t)     (t) (gAu/t)      (t) (gAu/t)  (oz.Au)      (t) (gAu/t)  (oz.Au)
 g/t Au  61,000    6.19  856,883    7.18  209,895  391,770    6.52   82,127
 g/t Au  61,000    6.19  782,898    7.53  201,635  274,253    7.88   69,510
 g/t Au  18,290    8.52  582,932    8.59  166,007  213,644    8.82   60,558
 g/t Au  18,290    8.52  520,245    8.93  154,370  159,795    9.88   50,781
 g/t Au  18,290    8.52  398,814    9.76  130,161  159,795    9.88   50,781
     (1) The mineral resources are classified as measured, indicated and
     inferred, and comply with the CIM mineral resource definitions
     referenced in National Instrument 43-101.
     (2) Resources were estimated based on different lower cut-off grades
     and minimum mining widths of 2.0 metres.
     (3) Mineral resources that are not mineral reserves do not have
     demonstrated economic viability.
     (4) The quantity and grade of reported inferred resources in this
     estimation are conceptual in nature and there has been insufficient
     exploration to define these inferred resources as an indicated or
     measured resource and it is uncertain if further exploration will
     result in upgrading them to an indicated or measured resource
     (5) The tonnages and grades quoted are undiluted. Gold grades were
     capped at 30.00 g.Au/t.
     (6) Calculate using traditional Polygonal method on longitudinal
     section using true widths determined from sections drawn at 90 degrees
     to the strike of the mineralization.

  Table 2: Stated Reserves at Lac Pelletier Mine, Rouyn-Noranda, Quebec.

Mine Reserves(i)           Tonnes     Grade (g.Au/t)       Contained Ounces
-------------                                                          Gold
Proven                      9,258              8,00                   2,381
Probable                  474,104              7.59                 115,747
Proven & Probable         483,362              7.60                 118,128
     (1) The mineral reserves are classified as Proven and Probable Reserves
     as defined by the CIM mineral resource definitions referenced in
     National Instrument 43-101.
     (2) Base case assumes a gold price of US$887/oz gold; US$ exchange rate
     of $1.15 (CDN $ 1,020) and minimum mining widths of 2.0 metres.
     (3) Reserve tonnages and grades are diluted at 10 to 20% at 0,0 gr Au/t
     depending of mining method.
     (4) Gold grades are capped at 30.00 g.Au/t.
     (5) A cut-off grade of 5,5 gr (undiluted) was used.


Falconbridge Ltd. and Thundermin Resources previously completed an underground exploration program on the deposit in 1992. Historical work on the current deposit area includes 42,656 m of surface and underground diamond drilling; 1,050 m of ramp development and 292 m of lateral drifting with two levels developed in ore. The 1992 program treated a bulk sample of 11,634 tonnes at a custom milling facility, the Camflo Mill, in Malartic, Quebec. Alexis acquired the 722.6 Ha Lac Pelletier property in 2005. Alexis Minerals previously filed an independent Resource Evaluation of the deposit (See Press Release: August 31st 2006) and reviewed the potential economics in an independent Scoping Study (See Press Release: April 19, 2007). The past-producing Stadacona mine (production of 2,742,000 tonnes grading 5.49 g/t Au from 1928 to 1958) is also located on the eastern side of the property, approximately four kilometers to the east of the ramp. The property is subject to a 1% NSR royalty to Falconbridge (Xstrata) and a 2.5% NSR to Thundermin Resources Inc.

Alexis continues to fulfill its strategy of expanding its gold profile in addition to finding new resources in the highly prolific mining camps of the Abitibi district. The Company's large land holdings in the area provide the foundation for discovery and production integral to the advancement of its strategy of finding world class deposits.

Quality Control:

The technical and scientific content of this press release has been reviewed by Francois Chabot (ing., M.Sc.), Independent QP, Golder Associes Ltee. and Claude Gobeil, P.Eng., Senior Geologist; Qualified Persons as defined under NI 43-101 guidelines.

About Alexis Minerals

Alexis Minerals Corporation is a Canadian mining company listed on the Toronto Stock Exchange (symbol "AMC"). The Company owns one producing gold mine in Val d'Or and the right to earn a 100% interest in the Lac Pelletier gold property in Rouyn-Noranda. Alexis undertakes exploration in the mineral rich Val d'Or (100% ownership of 212 sq. km.) and Rouyn-Noranda Mining Camps (50% ownership of 785 and in joint venture with Xstrata Copper). Further information about Alexis Minerals can be found at its website:

Forward looking information.

This document may contain or refer to forward looking information within the meaning of applicable securities laws, based on current expectations, including, but not limited to, mineralization projections, future production estimates and cost of production projections, projected capital and operating expenditures future exploration plans and techniques, estimates regarding the timing and costs of exploration, mineral prices, and future mining plans. Forward looking statements are subject to significant risks and uncertainties, including those risks identified in the annual information form of the Company, which is available under the profile of the Company on SEDAR, and other factors that could cause actual results to differ materially from expected results. Estimates and assumptions underlying the future-looking information are based upon extensive technical and scientific analysis conducted by the management of the Company, the analysis of external consultants and information obtained by the Company from third parties. Readers should not place undue reliance on forward-looking information. Forward looking information is provided as of the date hereof and we assume no responsibility to update or revise them to reflect new events or circumstances.

Alexis Minerals Corporation
David Rigg
President and CEO
(416) 861-5889
(416) 861-8165 (FAX)
Email: [email protected]

Alexis Minerals Corporation
Bruce Barch
VP Investor & Corporate Affairs
(416) 861-5905
Email: [email protected]

Alexis Minerals Corporation
Louis Baribeau
(514) 667-2304
Email: [email protected]

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