Temex sets terms for Mill City earn-in on certain claim groups near Noront Ni-Cu-PGE discovery

    TSX Venture Exchange: TME, Frankfurt Exchange: TQ1      TORONTO, Dec. 12 /CNW/ - Temex Resources Corp. (TSX Venture Exchange: TME, Frankfurt: TQ1) ("Temex" or "the Company") announces that it has entered into a binding letter of intent with Mill City Gold Corp. ("Mill City") whereby Temex has granted Mill City the option to acquire a 50% interest in 64 staked mining claims (the "Claims") totaling 1012 units (40,480 acres), in the general area of the Noront Resources Ltd. ("Noront") recent Ni-Cu-PGE discovery. The Claims, which are located in the Sachigo Greenstone Belt in the James Bay Lowlands region of northern Ontario, are in two areas, one of which includes approximately two thirds of the Claims and are located north of the Noront Double Eagle discovery. The northern claims are subject to a 2% NSR royalty payable as 1% NSR to each of Noront and Baltic Resources Inc. Temex now holds a direct interest in 4391 mining claim units covering over 175,000 acres in the immediate area and region of the Double Eagle discovery making Temex one of the largest landholders in the region. The other claim blocks were recently acquired by Temex to the southwest of the Noront discovery and are currently 100% owned by Temex.     The Claims cover features thought to represent geological environments similar to the geological environment near the Noront Ni-Cu-PGE discovery. It is believed that the recently acquired Claims have never been subjected to any previous exploration for Ni-Cu-PGE mineralization, and for the most part, the Claims have not been covered by a modern magnetic and electromagnetic geophysical survey. The initial exploration program will consist of a combination of airborne and ground geophysical surveying followed shortly thereafter by diamond drilling of any priority targets.     In order to earn its undivided 50% interest in the claims Mill City shall, upon execution and delivery of a definitive Option and Joint Venture Agreement, make a cash payment of $300,000 and issue to Temex 250,000 common shares of Mill City, and complete an aggregate of $2,500,000 of exploration expenditures over a three-year period. Mill City must also issue an additional 250,000 shares on the first anniversary of the agreement.     Mill City shall be entitled to extend for one year the time for completion of each milestone of the Work Commitment by notice to Temex if given prior to the applicable anniversary of signing. Each extension shall require Mill City to issue Temex 250,000 common shares of Mill City.     During the earn-in period, Temex will act as Mill City's Agent to carry out the exploration programs and is entitled to charge an industry standard management fee. Upon Mill City earning its 50% interest in the Claims, Temex shall have 60 days from the date of exercise of the Option to elect either to form a 50:50 Joint Venture with Mill City for further exploration and development of the claims or to forego the Joint Venture and reduce its undivided 50% interest in the Claims to a 15% carried and non-assessable interest in the Claims to the date of commencement of commercial production from the Claims. Should Temex elect to form a joint venture, Temex shall be the operator and the Joint Venture shall be governed by a joint management committee.     The terms of the transaction are subject to TSX Venture Exchange approval.      Bruce Durham, P. Geo., is the designated qualified person responsible for the preparation of this news release.      Temex is a well-funded Canadian exploration company focused on advancing its precious metal, diamond, nickel and uranium projects in Manitoba and Ontario.      On behalf of the Board of Directors,      "Ian Campbell"      Ian Campbell     President and CEO      (x)The TSX Venture Exchange has not reviewed and does not accept     responsibility for the adequacy or accuracy of this news release(x)      %SEDAR: 00005513E  For further information: on Temex please contact Ian Campbell or Bruce Durham, at (416) 862-2246 or visit the Company's website at www.temexcorp.com