Merrex Gold Diakha RC Drill Results including 70 metres averaging 1.55g/t Au from the Siribaya Gold Project

HALIFAX, July 6, 2016 - Greg Isenor, President and CEO of Merrex Gold Inc., ("Merrex" or the "Company") (TSX Venture: MXI) announces:


Highlights

- 41 holes totaling 6,623 metres completed
- Over 80% of drill holes with significant mineralization
- Hole 644 - 70 metres of 1.55g/t Au


RC Drill Results

During March and April, 2016 the Merrex-IAMGOLD joint venture completed 41 reverse circulation ("RC") drill holes totaling 6,623 metres within the northern extension of the Diakha deposit area of Siribaya gold project in Mali. Holes were drilled in a heel-to-toe pattern with depth ranging from 80 to 204m along drill fences approximately 100 to 150m apart with the objective of testing the gold mineralization in the projected strike extension of the Diakha deposit.

The results of this 'first pass' reconnaissance RC drill program returned significant gold mineralization in 34 of 41 holes and extended the mineralized strike length of the Diakha deposit area by approximately 600m from 800 metres to approximately 1.4 km.

These initial drill results in the northern extension area are comparable with the initial drill results from the 2014 'first pass' drill program in the southern Diakha deposit area. In both cases over 80% of the RC holes drilled returned significant gold mineralization. (see historical news release July 2, 2014)

See Map 1 below for locations of drill holes in the northern Diakha extension area reported here.

See Map 2 for a compilation of selected assay results from the 2014 and 2015 drilling programs in the Diakha southern deposit area.

See Table of Significant Assays below for a complete listing of significant assay results. The Table of Significant Assays was provided by the project operator.


Additional Program Updates

Diamond drilling is continuing with two rigs active within the southern Diakha resource area. Air core drilling is continuing on termite mound geochemical targets within a second structural trend to the northeast of the Diakha resource area.

Assays are pending and will be released when available.


Commentary

"We are pleased to report that the drilling program on the newly granted northern extension to the Diakha permit area has returned positive results and confirmed the extension of gold mineralization northward for approximately 600m along strike of the Diakha Deposit" said Merrex president Greg Isenor. "Of particular note hole SRC16-644 located near the centre of the extension area returned 70 metres with an average grade 1.55g/t Au. Additional drilling, both RC and core, will be required to better understand this extension to the Diakha deposit."

Map 1 RC drill hole locations - Diakha northern extension

Click Image To View Full Size

Note: The red dotted line in the south (bottom) of the map represents the old boundary of the Kambaya permit. Both the southern Diakha deposit area (see Map 2) and the newly granted Diakha extension area are now encompassed in a new single amended Kambaya permit.

Map 2 Compilation of 2014 and 2015 drilling - Diakha southern deposit area

Click Image To View Full Size

Note: The grey line labelled 'Permit Boundary' is the old permit boundary. The new permit boundary is approximately 1km north.


Table of Significant Assays

Diakha Deposit Northern Extension RC Drill Results
Hole#	UTM WGS84 Zone29			AZ	DIP	EOH	From	To	Length	Gold
	Easting	Northing	Elevation	Degree	Degree	(m)	(m)	(m)	(m)	(g/t)
SRC16-621	240665	1370499	155.58	115	-60	114	100	102	2	0.50
SRC16-622	240776	1370441	157.85	115	-60	150	4	11	7	0.63
						Including	4	6	2	1.46
							52	72	20	0.59
SRC16-623	240845	1370409	157.56	115	-60	150	8	10	2	0.53
							26	38	12	0.54
SRC16-626	240887	1370277	155.24	115	-60	150	92	96	4	0.56
SRC16-628	240577	1370544	153.32	115	-60	80	8	12	4	0.50
SRC16-629	240609	1370527	153.80	115	-60	120	90	92	2	0.59
SRC16-630	240663	1370103	153.72	115	-60	200	144	146	2	0.53
							150	152	2	0.55
							154	156	2	0.61
							160	162	2	0.57
							192	194	2	0.92
SRC16-631	240754	1370060	158.48	115	-60	200	8	12	4	0.67
							70	78	8	0.55
							108	110	2	0.51
							198	200	2	0.66
SRC16-632	240849	1370016	161.15	115	-60	200	188	200	12	0.81
						Including	188	190	2	1.26
SRC16-633	240938	1369974	161.04395	115	-60	100	6	8	2	0.90
							20	24	4	4.22
							70	74	4	1.35
							84	94	10	0.74
SRC16-634	240981	1369953	159.22	115	-60	200	0	2	2	0.58
							20	28	8	2.83
							42	46	2	0.50
SRC16-635	241068	1369914	156.04	115	-60	200	0	2	2	0.77
SRC16-637	240581	1370139	149.23	115	-60	186	176	178	2	0.76
							182	184	2	0.53
SRC16-638	240491	1370182	137.07	115	-60	200	16	34	18	0.53
						Including	22	28	6	1.03
							42	58	16	0.68
						Including	52	58	6	0.92
SRC16-639	240410	1370223	137.49	115	-60	200	64	66	2	0.53
							108	120	12	1.17
							132	150	18	0.85
							132	138	6	1
SRC16-640	240544	1370385	152.24	115	-60	156	4	14	10	0.53
							20	24	4	1.66
							38	48	10	1.02
							78	84	6	0.73
SRC16-641	240612	1370349	150.55	115	-60	138	0	2	2	3.11
							106	110	4	0.56
							124	132	8	0.50
SRC16-642	240675	1370320	154.77	115	-60	90	38	40	2	0.70
SRC16-643	240721	1370298	155.10	115	-60	198	164	168	4	6.87
SRC16-644	240735	1370239	156.59	115	-60	198	2	6	4	0.53
							12	82	70	1.55
						Including	14	16	2	7.4
						Including	30	42	12	2.79
SRC16-646	240539	1370005	146.31	115	-60	150	6	10	4	0.59
							12	14	2	0.67
							48	50	2	0.77
							64	66	2	1.34
SRC16-647	240608	1369968	151.65	115	-60	150	84	96	12	0.52
SRC16-648	240670	1369938	154.24	115	-60	174	24	26	2	0.57
							58	64	6	1.07
							74	78	4	1.12
							102	122	20	0.56
							152	156	4	1.92
SRC16-649	240756	1369906	163.63	115	-60	150	0	2	2	0.77
							38	46	8	0.52
							66	70	4	1.73
							84	92	8	1.13
							138	140	2	1.07
SRC16-650	240447	1370051	137.21	115	-60	204	44	48	4	0.92
							76	102	26	1.13
						Including	96	100	4	4.43
							110	112	2	1.02
							172	174	2	1.89
SRC16-651	240382	1370071	138.38	115	-60	150	106	114	8	0.73
							106	114	8	0.73
							148	150	2	0.83
SRC16-653	241013	1370217	155.31	115	-60	150	30	32	2	0.70
SRC16-654	240844	1369863	166.60	115	-60	150	72	82	10	1.28
SRC16-655	240314	1370109	137.79	115	-60	150	146	148	2	0.86
SRC16-657	240912	1369828	160.20	115	-60	150	10	12	2	1.07
							48	50	2	1.78
							56	64	8	0.57
SRC16-658	240473	1370308	142.69	115	-60	150	62	76	14	0.88
						Including	69	76	7	1.41
							96	114	18	0.51
							96	102	6	0.84
SRC16-659	240541	1370278	141.24	115	-60	200	24	36	12	1.34
							44	54	10	0.71
						Including	44	46	2	1.78
SRC16-660	240647	1370226	145.32	115	-60	200	112	118	6	0.76
							140	162	22	0.53
SRC16-661	240736	1370181	153.07	115	-60	140	10	12	2	0.50
Notes: Holes 624, 625, 627, 636, 645, 652 and 656 returned no significant values
Minimum intercept grade = 0.5g/t - Cut-off grade = 0.3g/t - Maximum dilution = 4m
Collar locations were by handheld GPS and may be imprecise

Technical Information and Quality Control Notes

The drilling results contained in this release have been prepared in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects. The sampling of, and assay data from, rock chips is monitored through the implementation of a quality assurance - quality control program designed to follow industry best practice.

Rock chips from Reverse Circulation (RC) drilling are collected at the rig site, at one meter intervals, under the direct supervision of IAMGOLD geologists. Samples are immediately weighted and later split to retain two samples of 3kg each. An air compressor is used to blow clean the splitter (riffles) between each sample. One sample is retained at the project site for reference purposes and the other is used to prepare 2-meter composite samples. Composite samples are prepared at the project site, by trained technician supervised by IAMGOLD geologists; two (2) consecutives samples of 3 kg are further split and mixed to get two (2) composite samples for each 2 meter interval. One is retained for reference purposes and the other is sent to the assay laboratory for analysis.

Samples were analyzed at the SGS Minerals Analytical Laboratory in Bamako, Mali, using a standard fire assay with a 50-gram charge and an Atomic Absorption finish.

Gold Intercept Interval - Computation of Composite Interval

Grade composite intervals were computed as follow: the minimum reported interval grade is 0.5g/t, with a cut-off of 0.3 g/t and a maximum interval dilution of 4m. No external dilution is included. Intervals with no samples were set to grade zero but were included in the composite if it occurred within the 4m internal dilution.

About Merrex's Siribaya Gold Project

The Siribaya Gold Project is a 50/50 joint Merrex-IAMGOLD advanced-stage gold exploration project in West Mali which consists of 11 contiguous exploration permits which cover a total area of 876.5 square kilometres and is located in the Kedougou-Kenieba inlier of the West African Craton region of western Mali along the borders with Senegal and Guinea.

The Diakha, Siribaya 1B, and Taya Ko deposits are hosted within highly prospective, Birimian-aged metasedimentary, volcanic and intrusive rocks proximal to the Senegal-Mali Shear Zone. At Diakha, gold mineralization occurs within an albitized sandstone similar to IAMGOLD's Boto gold deposit located approximately 10 kilometres to the north along strike. Zone 1B and Taya Ko occur within the north-northeast trending Siribaya structural trend, which extends over 10 kilometres along strike, and gold mineralization occurs within breccia-hosted stockworks or fault related silicified zones.

During 2014 and 2015 exploration was focussed primarily on the 1.2 km Diakha deposit area which is located along the Fekola-Boto trend in the western-most portion of land package approximately 10 kilometres south along strike of IAMGOLD's Boto gold deposit (scoping and pre-feasibility studies in progress) and approximately 20 kilometres south along strike from B2Gold's Fekola deposit (mine construction commenced).

The 2015 drilling program enabled geological 3D-modeling and completion of an initial NI 43-101 compliant resource estimate. The initial resource (table below) was released February 9, 2016.

siribaya Project - Mineral Resource Estimate*
	Classification	Zone	Tonnage (000s)	Gold Grade (g/t Au)	Contained Ounces (Au) (000s)
	Indicated	Zone 1B	2,102	1.90	129
	Total Indicated		2,102	1.90	129
	Inferred	Zone 1B	4,094	1.52	200
	Inferred	Taya Ko	882	1.02	29
	Inferred	Diakha	14,840	1.81	863
	Total Inferred		19,816	1.71	1,092

Notes:

1. 1.CIM definitions were followed for classification of Mineral Resources.

2. 2.Cut-off grades range from 0.45 to 0.60 g/t Au and vary by weathering material type.

3. 3.Mineral Resources are estimated using a gold price of US$1,500 per ounce.

4. 4.Bulk density varies from 1.55 g/cm3 to 2.63 g/cm3 based on deposit and weathering code.

5. 5.The resources are constrained by a Whittle optimized pit shell.

6. 6.Numbers may not add due to rounding.

7. 7.Assays are capped prior to compositing. Capping levels reduced the resource estimate gold grade

of Diakha by approximately 12%, and of Zone 1B and Taya Ko by approximately 4%.

*The resource estimate was prepared by RPA Inc. and is as at December 31, 2015. Readers are referred to Merrex news release of February 9, 2016 and the complete NI43-101 Technical Report filed on SEDAR January 25, 2016.

The 2016 drill program of approximately 17,500 metres includes 7000m of Diamond Drilling ("DD"), 6500m of Reverse Circulation ("RC") drilling, 3000m of Air Core ("AC") drilling and 1000m of Auger drilling. The 2016 drilling program is focusing on deeper DD core drilling to test high-grade (>6 g/t Au targets) near the bottom of the optimized pit shell of the Diakha resource area and a combination of DD and RC drilling to extend the Diakha mineralized zone within the interpreted northern extension of the Diakha deposit along the 800 metre strike length of newly permitted area. (See also news release May 4, 2016.)


Financial Advisory

Further to the Company's news release of June 21, 2016 the parties have modified the financial advisory compensation payable to Haywood Securities Ltd. No share purchase warrants will be issued.


Qualified Person

Greg Isenor, P.Geo., President of Merrex Gold and a Qualified Person as defined by NI 43-101, has reviewed and approved the contents of this release.

The mineral resource estimate referred to above, including verification of the data disclosed, is at December 31, 2015, was prepared by RPA Inc. and reported in accordance with National Instrument 43-101 (NI43-101) requirements and CIM Estimation Best Practice Guidelines. The supporting NI 43-101 Technical Report is available on SEDAR at www.sedar.com and on the Company's website at www.merrexgold.com.

Merrex is primarily a West African focused gold exploration company with experienced management, a solid exploration team, a prominent gold-producer as a JV partner and an expanding gold resource.

For further details about the Company's exploration activities visit Merrex's website at www.merrexgold.com. To be added to Merrex's email contact list please email your request to info@merrexgold.com.


On Behalf of the Board

Gregory Isenor
Gregory Isenor, P.Geo., President & CEO



MERREXGOLD
Suite 802, 1550 Bedford Highway
Bedford, NS B4A 1E6
Tel.: (902) 832-5555
Fax: (902) 832-2223



Forward Looking Statement: This news release contains forward-looking statements. All statements, other than of historical fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future (including, without limitation, statements regarding expected, estimated or planned gold and niobium production, cash costs, margin expansion, capital expenditures and exploration expenditures and statements regarding the estimation of mineral resources, exploration results, potential mineralization, potential mineral resources and mineral reserves) are forward-looking statements. Forward-looking statements are generally identifiable by use of the words "may", "will", "should", "continue", "expect", "anticipate", "outlook", "guidance", "estimate", "believe", "intend", "plan" or "project" or the negative of these words or other variations on these words or comparable terminology. Forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond the Company's ability to control or predict, that may cause the actual results of the Company to differ materially from those discussed in the forward-looking statements. Factors that could cause actual results or events to differ materially from current expectations include, among other things, without limitation: changes in the global prices for gold, niobium, copper, silver or certain other commodities (such as diesel, aluminum and electricity); changes in U.S. dollar and other currency exchange rates, interest rates or gold lease rates; risks arising from holding derivative instruments; the level of liquidity and capital resources; access to capital markets, financing and interest rates; mining tax regimes; ability to successfully integrate acquired assets; legislative, political or economic developments in the jurisdictions in which the Company carries on business; operating or technical difficulties in connection with mining or development activities; laws and regulations governing the protection of the environment; employee relations; availability and increasing costs associated with mining inputs and labour; the speculative nature of exploration and development; contests over title to properties, particularly title to undeveloped properties; and the risks involved in the exploration, development and mining business. Risks and unknowns inherent in all projects include the inaccuracy of estimated reserves and resources, metallurgical recoveries, capital and operating costs of such projects, and the future prices for the relevant minerals. Development projects have no operating history upon which to base estimates of future cash flows. The capital expenditures and time required to develop new mines or other projects are considerable, and changes in costs or construction schedules can affect project economics. Actual costs and economic returns may differ materially from estimates and the Company could fail to obtain the governmental approvals necessary for the operation of a project; in either case, the project may not proceed, either on its original timing or at all.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.


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