Innu agree to mining development in Quebec

[admin]

Major agreement with the Innu Council of Pessamit for an important mining development

PESSAMIT, QC, May 4, 2010

A major mining development will be achieved on the North Shore of Quebec through an unprecedented partnership established with the Innu Council of Pessamit. The agreement with mining companies Argex Silver Capital Inc. (TSX-V: RGX) and St George Platinum Ltd. (CNSX: SX), recognizes and takes into account the claims of the Innu of Pessamit as regards of their title and their Aboriginal rights.

"Our title and our rights are not an obstacle to development. Instead, we now demonstrate our full commitment to contributing towards the development of the territory as long as it is done in an environmentally sustained fashion and respectfully of our Aboriginal rights," said the Chief of the Innu Council of Pessamit, Raphael Picard.

According to the agreement between the parties, Pessamit consents that Argex and St George will undertake a program of exploration on part of its ancestral territory (Lablache for Argex and a propriety group call Isoukustouc for St-Georges). An exclusive zone of 100 km of circumference will be placed around the projects. In return, Argex and St George will grant a right of first participation to Pessamit in any development project executed in the territory.

The exploration aims to identify deposits of titanium, iron and vanadium for Argex and platinum, palladium, rhodium, copper, nickel, cobalt and gold for St-Georges, on a territory of about 45 km(2) for Argex and 160 km(2) for St-Georges. After the exploration, the partners are considering an operating phase, which would create about 450 jobs, including over a hundred in the Innu community of Pessamit. Also planned are a titanium processing plant and a research center.

"This partnership represents a unique opportunity for our community development and a concrete example of the important potential contribution of the Innu in the economic development of the North Shore. This type of agreement is the way to move forward toward our future," concluded Chief Picard.

About Innu Council of Pessamit

The Innu Council of Pessamit is the political body that represents nearly 4,000 people in the community. The reserve is located on the north shore of St. Lawrence River, 54 kilometres southwest of Baie-Comeau and has an area of 25 242 ha.

-30-