Intex Resources : SUCCESSFUL TEST PRODUCTION OF CONCENTRATE AND PELLETS - SALES AGENT APPOINTED FOR THE USA

OSLO (Norway): 27 July 2017: Successful initial test production of pellets has been completed and prepared for distribution to potential customers. Following the successful test, Ambershaw Metallics Inc ('Ambershaw') appointed a sales agent to reach out to clients in North America. Initial interest from steel producers has been very positive. 'The investment in Ambershaw is likely to be a significant success for Intex', says chairman Lars Christian Beitnes. Intex Resources ASA ('Intex' or 'Company') currently owns 5 percent of the Canadian mining company Ambershaw, as well as a convertible loan and an option to acquire a 51 percent equity stake in the company. Ambershaw's primary objective is to produce 'Super Premium DR grade Pellets' for delivery to steel manufacturers in North America. Ambershaw is also evaluating the production of high-grade magnetite concentrate as an incremental value opportunity. - The production of high grade magnetite concentrate and DR grade pellets from Ambershaw's own deposit is a major milestone and continues to demonstrate the quality of Ambershaw's ore, said Saradhi Rajan, Chairman of Ambershaw. The magnetite concentrate produced from the mine in Canada has the following specifications: Magnetite Fe SiO2 Al203 P2O5 S CaO Na2O K2O 93.5% 70.0% 1.97% 0.19% 0.03% 0.05% 0.11% 0.05% 0.04% The test production was performed on Legacy Hill's test facilities in England. Initial quality control tests indicate that Ambershaw pellets pass all compressive strength, drop and RDI simulation tests, meeting all the required parameters for traditionally produced pellets. Ambershaw is evaluating different processing methodologies and their associated costs, with a view to generating cash flow at the earliest opportunity. Ambershaw pellets are ready to be sent to several of the major steel manufacturers in the United States for testing in their furnaces. Following the successful test Ambershaw's sales agent has opened dialogue with several potential steel producers in North America. For further information please see the attached newsletter from Ambershaw or download it from the following link http://ambershaw.ca/201707-ami-update-note. Present value of USD 499 million Ambershaw is comfortable that prices for 'premium pellets' will continue to trade around the last 10 years average price of 130 USD / dmt . Ambershaw recently adjusted the pellet price estimate from historically low USD 95 / dmt, giving an expected EBITDA of USD 135 million in 2021 and a present value (NPV) of USD 499 million. The historical supply shortage of this product is expected to continue for the foreseeable future. - We are very pleased with the development and are convinced that when steel producers now try Ambershaw's high-quality products, they will be preferred in the market, says Intex CEO Cecilie Grue. - These figures are amazing and are a result of the quality of Ambershaw's ore, it's excellent geographical location and the well developed infrastructure that Ambershaw has access to. The development in Ambershaw so far suggests that the investment can be a big success for Intex, says chairman Lars Christian Beitnes. In February, Intex secured just under NOK 12 million in a private placement in conjunction with the Company increasing its investment in Ambershaw, while renegotiating favourable terms for a long-term investment in the Canadian mining company, thereunder extending the option to acquire a 51 % equity stake from March 2017 to February 2018. It is London-based Legacy Hill Resources Ltd ('Legacy Hill'), a leading mining operations team, who is majority owner and responsible for the operation of Ambershaw, along with Ambershaw's team. Legacy Hill is headed by D Saradhi Rajan. He has led and been involved with some of the most transformational transactions in the natural resources sector since 2005. He has been Senior Vice President, Vedanta Resources, a partner at a US$1.6billion hedge fund and a Managing Director at Bank of America Merrill Lynch. Attractive Mindoro Nickel In addition to the ownership stake in Ambershaw, Intex owns mining rights to one of the world's largest nickel deposits at Mindoro Island in the Philippines. Intex recently received a report based on laboratory tests with a new technology, showing that the production of Mindoro Nickel can be very profitable with today's nickel prices, both for limonite and saprolite, which are the two most important constituents of the nickel ore, see stock exchange announcement on 6 June 2017. The new technology provides a basis for a new business model that can lead to a sharp reduction in investment needs from original USD 2.5 billion to an estimated USD 26-35 million only, which corresponds to the expected EBITDA on a yearly basis. - This makes Mindoro even more attractive among other industrial players, something we also use in our communication with them. We have just returned from a trip to Asia where we are in dialogue with several parties. The new technology, where we sell nickel concentrate rather than nickel, has increased the interest of various industrial players, says Beitnes. Oslo, 27 July 2017 For further information contact: Cecilie Grue, mobile: [phone], Email: [e-mail]. Acting Chief Executive Officer Intex Resources ASA Lars Christian Beitnes, mobile: [phone], Email: [e-mail]. Chairman About Intex: Intex is a mineral company based in Oslo. The company focuses on responsible development of natural resources. Intex currently owns a minor ownership interest in the Canadian iron ore company Ambershaw Metallics, Inc., which in the course of 12-18 months will have a positive cash flow and the company has an option to become 51% owner of Ambershaw Metallics. In addition, the company has mining rights to Mindoro Nickel in the Philippines. More information is available at: www.intexresources.com
Intex - Press Release 27 July 2017.pdf