Auxico Resources Canada Inc. announce that it has entered into a Memorandum Of Understanding ("MOU") with Cooperativa Estanífera de Mineradores da Amazônia Legal Ltda ("CEMAL"), with regard to the exploitation and commercialization of rare earths from the tin tailings originating from deposits located over an estimated area of 18,000 hectares in Masangana, counties of Ariquemes and Monte Negro, in the state of Rondonia, Brazil. The properties are estimated to contain 30,000,000 tonnes of tin tailings, however the data for this estimate has not yet been reviewed nor verified on the ground by Auxico's Qualified Person. The deposits are located within the Rondonia Tin Province, which hosts one of the larger cassiterite (tin ore) reserves.

Samples of the concentrates taken by the property owners from the property were recently analyzed by Coalia Research Institute in Thetford Mines, Quebec. The results of selected concentrate samples are presented in the table below, indicating a total rare earth oxide content of 63.49%. Under the terms of the MOU, Auxico has an exclusive 180-day period to conduct due diligence, for which the Company will pay a one-time fee of $100,000 to CEMAL.

After the due diligence is completed and to Auxico's satisfaction, the parties will then sign a definitive contract and enter into a joint venture ("JV") for the development of the properties in Brazil, whereby Auxico will have a minimum of 51% of the net profits of the JV. Auxico will be committing 100% of the capital required for the technical operations, exploration, exploitation, concentration, transport and commercialization of rare earths from the tin tailings from the properties in Brazil. Auxico will have the option to purchase or lease the properties, at a price to be agreed upon with CEMAL.