NGEx Resources Inc. Second Quarter 2013 Financial and Operational Highlights

NGEx continues to focus on adding to its resource base and further definition of its core copper-gold projects located in Region III, Chile and adjacent San Juan Province, Argentina. The district is an emerging copper-gold porphyry cluster that includes NGEx's 60% owned Los Helados, Josemaria, and Filo del Sol projects as well as the nearby Caserones copper mine, which is 75% owned by NGEx's joint venture partner Pan Pacific Copper Co. Ltd.

Wojtek Wodzicki, President and CEO, commented, "We are pleased with the results of this season's exploration program which has advanced what we believe is a very significant new copper-gold district. This district currently includes three major copper deposits- Los Helados and Josemaria both 60% held by NGEx, and the producing Caserones deposit held 100% by Pan Pacific and Mitsui. Filo del Sol, is another high potential exploration target also 60% owned by NGEx. We are encouraged by the large and growing resource base in the district, the potential for synergies between the existing deposits, and the opportunity to continue to increase resources through exploration."

SECOND QUARTER HIGHLIGHTS

NGEx drilled five projects during the 2012-2013 field season; Los Helados, Josemaria, Filo del Sol, several regional exploration targets along the Los Helados-Josemaria Trend, and Colmillos, an early-stage exploration project located approximately 250 kilometres to the south in Chile. Drilling was completed during the first quarter of 2013 with results issued throughout the second quarter as these became available. The Company initiated the resource updates to the Los Helados and Josemaria deposits in the third quarter, and anticipates that these will be completed in the latter half of the third quarter. Highlights from the quarter include:

• Receipt of final drill results from Los Helados. This season's drill program included a combination of infill holes designed to convert Inferred resources to Indicated and step-out holes designed to test areas outside the current resource boundary. The infill drilling increased the drill hole density in areas currently classified as Inferred, and has helped to confirm the geological model and grade distribution. Step-out drilling was successful in intersecting mineralization beyond the current resource boundary. The results of this season's drilling will be incorporated into an updated resource estimate expected to be complete in the third quarter.
  
• Receipt of final drill results from the Filo del Sol project. The results of this season's drilling expand the previously identified high grade copper zone at Filo del Sol, and extend the broader zone of disseminated copper, gold, and silver mineralization that surrounds the high grade zone.
  
• Receipt of final drill results from the Josemaria project which extended the zone of higher grade supergene enriched mineralization at the north end of the resource by approximately 200 metres to the north of previous drilling. The zone remains open to the northwest. The results of this season's drilling will be incorporated into an updated resource estimate expected to be complete in the third quarter.

Los Helados Project, Chile

A total of 32,707 metres were drilled at Los Helados during the 2012/2013 field season with 25 new holes completed and seven existing holes deepened. Drilling finished at the end of March. This season's drill program included a combination of infill holes designed to convert Inferred resources to Indicated and step-out holes designed to test areas outside the current resource boundary. Significant results received since the last quarterly report, include:

• LHDH62 with 1,345 metres of 0.39% CuEq (0.32% Cu and 0.10 gpt Au) and LHDH71 with 1,206 metres @ 0.44% CuEq (0.34% Cu and 0.14 gpt Au).LHDH69 with 1,147 metres of 0.46% CuEq (0.33% Cu and 0.19 gpt Au) including 134 metres of 0.61 CuEq (0.35% Cu and 0.38 gpt Au).

The drilling completed this year has defined the eastern, southern, and western limits of the known breccia body at Los Helados. However, the structure remains open to the north, and drill holes on the southern and eastern margins cut long intervals of strongly altered and weakly mineralized granite country rock indicating a robust system that extends for a considerable distance beyond the limits of the known breccia. While the known body at Los Helados comes to surface, many porphyry copper systems host multiple breccias bodies, and there is potential for further additional surface or sub-cropping discoveries in the vicinity. All results from the 2012/2013 program have now been received. The results of this season drilling will be incorporated into an updated resource estimate expected to be complete in the third quarter.

Filo del Sol Property, Argentina

A total of 820 metres were drilled at Filo del Sol during the 2012/2013 season. The drill program was concluded on February 18, 2013. The 2012/2013 drill program focused on expanding the high-grade copper-silver zone which occurs in the northern part of the mineralized system and has been traced by previous drilling over a distance of at least 1,200 metres. Significant results received since the last quarterly report include:

• FSDH08 with 38.1 metres of 1.23% copper, 0.21 g/t Au and 10.9 g/t Ag and FSDH11 with 65 metres of 0.77 g/t Au.

All assay results from Filo del Sol have now been received. The results of this season's drilling expand the previously identified high grade copper zone at Filo del Sol, and extend the broader zone of disseminated copper, gold, and silver mineralization that surrounds the high grade zone. Results from this year's drilling, combined with previously released drilling are encouraging and support plans for a larger drill program next season.

Los Helados-Josemaria Trend, Argentina

An additional 1,437 metres in 4 holes was drilled on early stage porphyry copper-gold targets located between Los Helados and Josemaria. These targets are part of the NGEx-PPC joint venture that includes Los Helados and Filo del Sol. The drill holes intersected encouraging porphyry style alteration with low grade copper and gold values. Further work is required to follow-up these results.

Josemaria Project, Argentina

A total of 8,242 metres in 18 diamond drill holes was completed during the 2012/2013 season. The focus of the program was the expansion of the zone of high-grade supergene mineralization discovered at the end of the 2011/2012 field season in holes JMDH49 and JMDH50 as well as resource conversion from Inferred to Indicated classification. The high-grade zone was extended some 200 metres to the north and now has approximate dimensions of 350 metres north to south and at least 250 metres east to west. It remains open to the west of holes JMDH69 and JMDH72 towards a large area of leached capping that has not yet been drill tested. Significant intersections received since the last MD&A include:

• JMDH69 with 250 metres at 0.86% CuEq (0.67% Cu and 0.28 g/t Au) and
• JMDH72 with 136 metres at 0.95% CuEq (0.80% Cu and 0.22 g/t Au).

All assay results from the 2012/2013 season have now been received and the Company plans to produce an updated resource estimate for Josemaria in the third quarter.

Conceptual Studies

In addition to the drilling completed this season the Company has initiated conceptual level studies, including mining engineering, process design, metallurgical testwork and baseline infrastructure options. The detailed metallurgical programs for both Los Helados and Josemaria are on schedule and are expected to be concluded in the third quarter. Geotechnical work was completed in the second quarter and preliminary mine development options were identified for further evaluation later in 2013 and into 2014 once the resource models are refined. Options identified so far include stand-alone development of Josemaria and /or Los Helados as well as an integrated project exploiting resources from both deposits. This work is ongoing and expected to continue into 2014.

Colmillos Project, Chile

The Colmillos project consists of 100% owned exploration licenses covering approximately 3,400 hectares. Mapping and sampling to date have defined a 4.3 by 0.7 kilometre trend of tourmaline breccia bodies with occasional copper oxides and strongly anomalous molybdenum analyses in rock chip samples. Copper mineralized tourmaline breccias are a common feature of many major porphyry copper systems. Three holes totalling 1,482 metres were drilled at Colmillos during the first quarter, and the program is now complete. The holes were drilled 600 metres apart along the trend of the tourmaline breccia. Assay results were received during this quarter. Highlights include:

The results from this first ever exploration drilling at Colmillos are encouraging. All three drill holes cut strong porphyry-style alteration and breccia hosted mineralization over appreciable lengths, which suggests that a significant porphyry copper system is present. The higher grade intervals cut in CLMH02 and CLMH03 are encouraging indications that higher grade portions of the system may be identified with additional drilling.

RESULTS OF OPERATIONS

The Company's net loss for the quarter ended June 30, 2013 was $6.0 million or $(0.04) per share as compared to a loss of $10.2 million or $(0.06) share for 2012. Net loss from continuing operations for the second quarter of 2013 was $6.0 million or ($0.04) per share compared with a net loss from continuing operations of $8.3 million or $(0.05) per share for 2012. Net loss from discontinued operations, comprising mainly of expenditures relating to the Hambok property in Eritrea, was $25,000 for the quarter ended June 30, 2013 as compared to $1.9 million for 2012.

There was a $2.3 million decrease in net loss from continuing operations in the second quarter of 2013 compared to the same period in 2012, primarily due to lower exploration expenditures as most of the planned exploration work was substantially completed in the first quarter of 2013. Write-down of mineral properties expenditures in the second quarter was lower at $1.2 million compared to $2.9 million in 2012. The Company recorded a write-down of its mineral properties interests (Paramillos and Papagallos) located in Mendoza province in Argentina to their net recoverable amounts in the second quarter of 2013. The Company has been unable to work on these properties due to continuing delays with permitting and has suspended option payments to the property owners of Paramillos.

The net loss for the six months ended June 30, 2013 was $23.1 million or $(0.14) per share as compared to a loss of $22.8 million or $(0.14) per share for the six months ended June 30, 2012. The slight increase in loss of $0.3 million was primarily due to increased exploration expenditures of $2.6 million on the Company's projects in South America, offset by lower write-down of mineral properties interests.

The operating losses are a reflection of the Company's status as a non-revenue producing mineral exploration company. As the Company has no main source of income, losses are expected to continue for the foreseeable future.

LIQUIDITY AND CAPITAL RESOURCES

At June 30, 2013, the Company had cash and working capital of $23.1 million and $20.8 million, respectively, as compared to cash and working capital of $17.3 million and $9.7 million, respectively, at December 31, 2012. The increase in cash and working capital is primarily a result of net proceeds of $33.3 million received from the completion of a private placement of 10 million shares at $3.40 per share in the first quarter of 2013, offset mainly by exploration and general and administration expenses.

Net cash used in operating activities was $26.6 million for the six months ended June 30, 2013 and consisted primarily of the loss from operations of $23.1 million, which included exploration expenditures and conceptual studies work of $18.9 million and was adjusted for the impact of non-cash items and changes in non-cash working capital items.

Cash flow from financing activities was $33.3 million, which comprised of net proceeds of $33.3 million from the completion of a private placement of 10 million shares at $3.40 per share and the exercise of stock options.

Net cash used in investing activities was $1.1 million, which consisted primarily of expenditures relating to mineral property option payments and equipment purchases.

The Company anticipates that its current financial position will provide sufficient working capital to fund its share of planned exploration expenditures, which are discretionary, and corporate expenses for the next twelve months. As the Company is an exploration company and has no sources of revenue, additional funding from equity financing, joint ventures or disposition of mineral properties and investments may be required to fund further exploration and corporate expenses.

There can be no assurance that such financing will be available to the Company in the amount required at any time or for any period or, if available, that it can be obtained on terms satisfactory to the Company.

OUTLOOK

The Company's exploration efforts are focused on large scale copper-gold targets that demonstrate the potential for world class discoveries. The Company is fully focused on its South American copper-gold projects including its very significant Los Helados project in Chile and Josemaria project in Argentina.

The planned drill programs were successfully completed during the South American summer season and we are now focused on compilation and interpretation of assay data and work on updated mineral resource estimates for the Los Helados and Josemaria projects. Metallurgical and geotechnical testing and a preliminary assessment of development options for the Los Helados and Josemaria deposits including a preliminary evaluation of possible synergies between the deposits will continue through the coming quarters. This work is ongoing and expected to continue into 2014. Planning for next year's exploration program is underway and is expected to include drilling to follow-up shallow high grade mineralization intersected at Josemaria and a drill program that may if successful, lead to an initial resource estimate at the Filo del Sol project. Exploration work on the South American projects is expected to resume during the fourth quarter of 2013. Subsequent to the financing completed earlier this year, the Company has sufficient funds to complete its planned exploration programs.

About NGEx

NGEx is a Canadian mineral exploration company with exploration projects in Chile, Argentina, and Canada. The Company's shares are listed on the Toronto Stock Exchange under the symbol "NGQ". The Company's focus is on advancing its South American projects which include several large copper-gold systems including the Josemaria, Los Helados, and Filo del Sol projects, located on a contiguous land package that the Company holds in Chile's Region III and adjacent San Juan Province, Argentina. Los Helados and Filo del Sol are part of a joint venture in which the Company holds 60% and Pan Pacific Copper Co., Ltd. holds 40%. Josemaria is part of a joint venture in which the Company holds 60% and Japan Oil, Gas, and Metals National Corporation (JOGMEC) owns 40%. In addition to the Vicuna Project the Company holds an extensive portfolio of 100% owned early stage exploration projects located in Chile and Argentina. It also owns a 100% interest in the GJ copper and gold project located in British Columbia Canada. The GJ project is optioned to Teck Resources who are earning up to a 75% interest.

On behalf of the board

Wojtek Wodzicki, President and CEO

Qualified Person

The disclosure of scientific and technical information in this news release regarding NGEx's projects, has been reviewed and approved by Mr. Bob Carmichael, B.A.Sc, P.Eng., Vice President, Exploration for the Company, who is a Qualified Person in accordance with the requirements of National Instrument 43-101. For a description of the quality assurance program and quality control measures applied by NGEx, please see NGEx's Annual Information Form dated March 26, 2013 available at http://www.sedar.com.

Additional Information

NGEx's consolidated financial statements for the three month period ended June 30, 2013 and related management's discussion and analysis are available on NGEx's website at www.ngexresources.com or under its profile on SEDAR at www.sedar.com.

Cautionary Note Regarding Forward-Looking Information

This news release contains "forward-looking information" within the meaning of applicable Canadian securities legislation, concerning the business, operations and financial performance and condition of NGEx Resources Inc. Forward-looking information includes, but is not limited to, statements with respect to the estimation of commodity prices, mineral reserves and resources, the realization of mineral reserve estimates, capital expenditures, costs and timing of the development of new deposits, the success of exploration activities, permitting time lines, currency exchange rate fluctuations, requirements for additional capital, government regulation of mining activities, environmental risks, unanticipated reclamation expenses, title disputes or claims and limitations on insurance coverage. Generally, this forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved" or the negative connotations thereof. All such forward-looking information is based on the opinions and estimates of the relevant management as of the date such statements are made and are subject to important risk factors and uncertainties, many of which are beyond the Company's ability to control or predict.

Forward-looking information is necessarily based on estimates and assumptions that are inherently subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to: risks and uncertainties relating to, among other things, changes in commodity prices, currency fluctuation, financing, unanticipated reserve and resource grades, infrastructure, results of exploration activities, cost overruns, availability of materials and equipment, timeliness of government approvals, taxation, political risk and related economic risk and unanticipated environmental impact on operations as well as other risks and uncertainties described under "Risks Factors" in the Company's Annual Information Form available under the Company's profile at www.sedar.com and the Company's website.

Although the Company has attempted to identify important factors that would cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated, or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. All of the forward-looking information contained in this document is qualified by these cautionary statements. Readers should not place undue reliance on forward-looking information.

Forward-looking information is provided for the purpose of providing information about management's current expectations and plans and allowing investors and other to get a better understanding of the Company's operating environment. These factors are not, and should not be construed as being, exhaustive. Statements relating to "mineral reserves" or "mineral resources" are deemed to be forward-looking information, as they involve the implied assessment, based on certain estimates and assumptions that the mineral reserves and mineral resources described can be profitably produced in the future. The forward-looking information contained in this press release is expressly qualified by this cautionary statement. The Company expressly disclaims any intention or obligation to update or revise any forward-looking information whether as a result of new information, events or otherwise, except in accordance with applicable securities laws.



Contact

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