Orex Minerals Inc. announced that it has exercised the first option and formed a joint venture pursuant to an option agreement dated September 15, 2015 with Canasil Resources Inc. Orex has earned a 55% ownership interest in the Sandra Escobar project in Durango state, Mexico by paying Canasil CAD 500,000 upon signing and spending more than USD 2,000,000 in exploration and development at the Project. A joint committee will be formed to manage ongoing exploration at the Project with representation based on the proportional interest of each party. Under the terms of the Option Agreement, Orex had a second option to earn an additional 10% interest (for a total of 65%) by paying Canasil an additional CAD 500,000, and spending a further USD 2,000,000 on exploration and development at the Project in the next two years.

Orex notified Canasil that it would not be proceeding with the second option. The project consists of 6,976 hectares of mineral concessions and covers multiple mineralized epithermal quartz veins and breccia structures. These veins form a high level silver-gold-base metals system, hosted in andesitic and rhyolitic rocks, centered on a large rhyolite dome complex in the north and silver systems in smaller rhyolite dome complexes to the southeast.

Intense alteration zones and fluid flooding in permeable formations indicates the presence of bulk tonnage targets. Excellent infrastructure exists in the Sandra Escobar area, including paved road access, electrical power, water and manpower from nearby communities.