NGEX Resources Inc.

Donnelly & North Donnelly Zones Measured and Indicated Resources 2008

In September 2008 the Company completed an updated independent resource estimate on the Donnelly and North Donnelly zones at its GJ/Kinaskan gold-rich porphyry copper deposit in northern British Columbia.

The Donnelly and North Donnelly resource estimate is based on assay results from 169 diamond drill holes over a strike length of 1.6 kilometres. The measured and indicated resource, at a cut-off of 0.20% copper, is 153.3 million tonnes grading 0.321% copper and 0.369 g/t gold and contains 1.09 billion pounds of copper and 1.82 million ounces of gold.

Main and North Donnelly Measured & Indicated Resource

Main Donnelly Measured Resource

Main and North Donnelly Indicated Resource

Main and North Donnelly Inferred Resource

This updated resource estimate was commissioned following the 2007 drill program, which successfully allowed a substantial portion of the 2007 indicated resource category to be upgraded to the measured category.

The 2008 measured and indicated resource, at a cut-off grade of 0.20% copper, represents an approximate 25% increase in tonnage, 27% increase in contained copper and 31% increase in contained gold over the 2007 measured and indicated resource.

The Donnelly Zone has been drilled to date to an average depth of about 300 metres on about 50-metre centres. It is 1600 metres in strike length and up to 340 metres wide.

The Main and North Donnelly Zone resource estimate was prepared by qualified person Mr. Gary Giroux. P.Eng. using a computer-generated block model based on approximately 42,000 metres of diamond drilling in 169 drill holes. A total of 9,883 assayed samples were used to define the resource.

The drill programs and sampling were supervised by qualified person David Mehner, P.Geo., Project Geologist for Canadian Gold Hunter (the predecessor company to NGEx). Appropriate quality control and quality assurance protocols were utilized on the program. Standard reference samples, blanks and duplicates were inserted in each batch of samples for assay. The Canadian Gold Hunter drill samples were analyzed for gold by fire assay / atomic absorption and for copper by ICP, and by atomic absorption for those samples over 1%, by ALS-Chemex in North Vancouver, B. C., Canada. All assay results were examined by independent engineer Dr. Giles Peatfield, P.Eng. prior to release, in order to verify that QC protocols were honoured.

In August 2010 the Company entered into an Option Agreement with Teck Resources Limited whereby Teck is granted options to earn up to a 75% interest in the Company's 100% owned GJ copper-gold property. (See news release dated August 16, 2010)

RESOURCE ESTIMATE

The Mineral Resource estimate as of the effective date of October 15, 2012 is shown in the tables below:

 

* CuEq - Copper Equivalent is calculated using US$3.00/lb copper and US$ 1,400/oz gold, with no provision for metallurgical recoveries. Silver is not included in the CuEq. The formula used is CuEq% = Cu% + 0.6806*Au (g/t). Small discrepancies may exist due to rounding errors.

This resource remains open to expansion laterally and at depth and a drill program designed to expand the resource and begin to convert the Inferred resource to the Indicated category is scheduled to begin in late October. Approximately 28,000 meters of drilling is planned for Los Helados. Drilling at the Company's nearby Josemaria and Filo del Sol copper-gold projects will commence late in the fourth quarter.

The Mineral Resource estimate for Los Helados was prepared by Gino Zandonai, B.Sc., M.Sc. Mining, SME, MAusIMM, CRIRSCO, Senior Associate of Behre Dolbear International Ltd. in accordance with NI 43-101. Mr. Zandonai is the Qualified Person for the estimate and is independent of the Company. A Technical Report describing the details of the resource estimate will be available under the Company's profile on SEDAR within 45 days.

The Los Helados Mineral Resource was estimated using geological and assay data from 43 diamond drill holes representing 35,873 metres of drilling and 5 reverse circulation holes representing 1,366 metres of drilling. Drill hole assays were composited to 2 m intervals for grade interpolation. Specific gravity data was measured for all samples in 24 of the diamond drill holes (22,048m).

Domains were created based on mineral zones, alteration and lithology. Mineral zones were defined by the relative abundance of chalcopyrite and pyrite and four main zones were modeled: pyrite only, pyrite>chalcopyrite; pyrite<chalcopyrite and chalcopyrite only. The Los Helados deposit consists entirely of primary (hypogene) mineralization and does not have either a leached cap or an oxide mineral zone. The mineral zone domains were used to control the interpolation as they exhibited the most control on copper and gold grades.

Blocks were estimated by ordinary kriging in a single pass. Grades were estimated in the 40m × 40m x 20m block model using ordinary kriging for Au g/t, Ag g/t and Cu%. To assign a grade to a block, composites were sourced within a search ellipsoid of dimensions similar to the anisotropies from the ranges of the directional variograms calculated for each domain.


The minimum number of composites used to estimate a block was set at 2 and the maximum was 20, with a block discretization of 2x2x2. Only blocks that remained unestimated after the first pass were estimated with a search equivalent to one and a half the initial search in all directions, maintaining unchanged the remaining parameters.

As the Los Helados project is an early-stage project, no engineering or infrastructure data or studies are available to evaluate economic development parameters for the Mineral Resource. The base-case cutoff grade of 0.3% CuEq was chosen based on comparison with other similar deposits. The Los Helados project is located in an area of Chile which currently has several copper-gold porphyry deposits in similar geologic and geographic settings which are currently in advanced exploration or development. These other projects provide useful benchmarks and have been used to select the base-case cutoff grade for Los Helados, and to provide reasonable prospects for economic extraction.

It should be noted that the Mineral Resource estimate presented here is not a Mineral Reserve, and does not have demonstrated economic viability. While the Company strongly believes that the Mineral Resource warrants additional study to determine the development potential, there can be no guarantee that any or all of the Mineral Resource will ultimately be determined to be economically viable

METALLURGICAL TESTWORK

The results of the two locked cycle tests are shown in the table below:


Flotation testwork was carried out by SGS Lakefield Research at its facilities in Santiago, Chile on a composite sample constructed from 6 individual samples of drill core representing 600 meters of mineralization (totaling 1,200kg) from three different depths in two drill holes. SGS Lakefield completed a comprehensive initial testwork program consisting of sample preparation, grind time estimation, grinding testwork, rougher flotation kinetics, cleaner flotation tests and locked cycle flotation tests.

Grinding testwork was done on three composite samples, each representing a different depth interval from three holes. Testing included Bond Ball Work Index (BWI), Bond Abrasion Index and Bond Rod Work Index (RWI) and results are shown below:


Rougher and cleaner flotation tests were done in order to establish the optimum grind size, pH and reagent use to produce a commercial grade concentrate. All flotation tests were done on a composite sample comprised of MC-2 and MC-3.

Locked cycle flotation tests were then carried out using the following parameters:

•	Grind Size (p80)		160 microns
•	Regrind Size (p80)		35 microns
•	Rougher pH		9.5
•	Cleaner pH		12.2
•	Collector		20 g/t AP 3477
•	Flotation Time Rougher		8 minutes
•	Flotation Times cleaner		5,5,4,3 minutes (1st,Scav,2nd and 3rd)

Results from the locked cycle tests are shown in the table above. As expected, reducing the flotation times in the cleaner stages resulted in higher concentrate grade at lower recovery. Additional testwork will be performed on a much larger suite of samples to obtain more extensive metallurgical response data across the mineralization. This work will focus on further optimizing the balance between recovery and concentrate grade and continuing to refine the optimum flotation conditions for the Los Helados mineralization.

Summary Table

An updated Mineral Resource was estimated by Gino Zandonai, Senior Associate of Behre Dolbear International Ltd. It has an effective date of December 15, 2012 and replaces and increases the previous resource estimate completed in 2007. The following table summarizes the Mineral Resource Estimate by classification and at various cut-off grades.

JOSEMARIA INDICATED MINERAL RESOURCE - SULPHIDE ZONE
Cutoff (CuEq*)	Million Tonnes	Resource Grade			Contained Metal
		Cu (%)	Au (g/t)	CuEq* (%)	Cu (billion lbs)	Au (million oz)
0.50	306	0.46	0.35	0.70	3.10	3.46
0.45	388	0.43	0.32	0.65	3.68	4.05
0.40	487	0.40	0.30	0.61	4.31	4.68
0.35	575	0.38	0.28	0.57	4.81	5.18
0.30	656	0.36	0.26	0.54	5.21	5.55
0.25	731	0.34	0.25	0.51	5.54	5.84
0.20	807	0.33	0.23	0.49	5.80	6.08

JOSEMARIA INFERRED MINERAL RESOURCE - SULPHIDE ZONE
Cutoff (CuEq*)	Million Tonnes	Resource Grade			Contained Metal
		Cu (%)	Au (g/t)	CuEq* (%)	Cu (billion lbs)	Au (million oz)
0.50	73	0.52	0.30	0.73	0.84	0.70
0.45	105	0.46	0.27	0.65	1.07	0.92
0.40	171	0.40	0.24	0.56	1.51	1.32
0.35	243	0.36	0.22	0.51	1.93	1.68
0.30	326	0.33	0.19	0.46	2.36	2.02
0.25	419	0.30	0.17	0.42	2.78	2.33
0.20	541	0.27	0.15	0.37	3.22	2.69

JOSEMARIA INDICATED MINERAL RESOURCE - OXIDE ZONE
Cutoff (CuEq*)	Million Tonnes	Resource Grade			Contained Metal
		Cu (%)	Au (g/t)	CuEq* (%)	Cu (billion lbs)	Au (million oz)
0.30	44	0.22	0.33	0.45	0.22	0.47
0.20	61	0.19	0.30	0.39	0.26	0.59
0.10	76	0.16	0.27	0.35	0.27	0.66

JOSEMARIA INFERRED MINERAL RESOURCE - OXIDE ZONE
Cutoff (CuEq*)	Million Tonnes	Resource Grade			Contained Metal
		Cu (%)	Au (g/t)	CuEq* (%)	Cu (billion lbs)	Au (million oz)
0.30	6	0.10	0.35	0.34	0.01	0.07
0.20	12	0.12	0.28	0.31	0.03	0.10
0.10	24	0.10	0.17	0.21	0.05	0.13

* CuEq - Copper Equivalent is calculated using US$3.00/lb copper and US$ 1,400/oz gold, with no provision for metallurgical recoveries. The formula used is CuEq% = Cu% + 0.6806*Au (g/t). Small discrepancies may exist due to rounding errors.

Estimation Methodology

The Josemaria Mineral Resource was estimated using geological and assay data from a total of 54 diamond drill holes (25,827 metres) and 34 reverse circulation holes (13,164 metres). Of this total, 47 diamond drill holes (21,721 metres) are new since the initial resource estimate in 2007. There are 6 reverse circulation holes (2,247 metres) which were used in the initial resource estimate but not in the update as they were twinned and replaced by diamond drill holes.

Copper and gold grade data is comprised of assays on sawn drill core samples. All assays were completed at ACME's lab in Santiago, Chile. Gold analyses were by fire assay fusion with AAS finish on a 30g sample. Copper was analyzed by AAS using a 4 acid digestion and samples were also analyzed for a suite of 36 elements with ICP-ES. Quality control and quality assurance protocols for the assays include the use of standard reference material, blanks, and duplicate samples (see Assay Protocols below for further details).

Domains were created based on mineral zones, alteration and lithology. Mineral zones were defined by the relative abundance of chalcopyrite and pyrite and five main zones were modeled: oxide; pyrite only; pyrite>chalcopyrite; pyrite<chalcopyrite and chalcopyrite only. The Josemaria deposit consists predominantly of sulphide mineralization overlain by a thin (average 60m) oxide zone. The lithology domains were used to control the interpolation in the sulphide zone as they exhibited the most control on copper and gold grades, and the oxide zone was modelled as a separate domain.

Drill hole assays were composited to 2 m intervals for grade interpolation. Specific gravity data was measured for all samples in 10 of the diamond drill holes (5,204 m) and the average value of the SG for the sulphide and oxide zones from these holes was used in the estimate (2.69 and 2.65 respectively). Blocks were estimated by ordinary kriging in a single pass. Grades were estimated in the 20m × 20m x 20m block model using ordinary kriging for Au g/t and Cu%. To assign a grade to a block, composites were sourced within a search ellipsoid of dimensions similar to the anisotropies from the ranges of the directional variograms calculated for each domain.

The minimum number of composites used to estimate a block was set at 2 and the maximum was 25, with a block discretization of 2x2x2. Classification of blocks into Indicated and Inferred categories was based on a distance model adjusted through creation of wireframe volumes in order to avoid having isolated blocks of one category surrounded by the other. Indicated and Inferred blocks are generally within 75 and 150 metres of a drill hole respectively.

As the Josemaria project is an early-stage project, no engineering or infrastructure data or studies are available to evaluate economic development parameters for the Mineral Resource. The base-case cut-off grade of 0.3% CuEq was chosen based on comparison with other similar deposits. The Josemaria project is located in an area which currently has several copper-gold porphyry deposits in similar geologic and geographic settings which are currently in advanced exploration or development. These other projects provide useful benchmarks and have been used to select the base-case cut-off grade for Josemaria, and to provide reasonable prospects for economic extraction.

It should be noted that the Mineral Resource estimate presented here is not a Mineral Reserve, and does not have demonstrated economic viability. While the Company strongly believes that the Mineral Resource warrants additional study to determine the development potential, there can be no guarantee that any or all of the Mineral Resource will ultimately be determined to be economically viable.

The Mineral Resource estimate for Josemaria was prepared by Gino Zandonai, B.Sc., M.Sc. Mining, SME, MAusIMM, CRIRSCO, Senior Associate of Behre Dolbear International Ltd. in accordance with NI 43-101. Mr. Zandonai is the Qualified Person for the estimate and is independent of the Company. A Technical Report describing the details of the resource estimate will be available under the Company's profile on SEDAR within 45 days.

METALLURGICAL TEST WORK

The results of the locked cycle test are shown in the table below:

Test	Cu Head Grade (%)	Cu Recovery (%)	Cu Concentrate Grade (%)	Au Head Grade (gpt)	Au Recovery (%)	Au Concentrate Grade (gpt)
LCT 1	0.56	85.1	25.1	0.46	69.4	16.8

Flotation test work was carried out by SGS Lakefield Research at its facilities in Vancouver. Test work was done on a 162 kg composite sample constructed from 8 individual drill core composite samples from 4 drill holes representing 650 meters of mineralization (totalling 1,164kg). SGS Lakefield completed a comprehensive initial test program consisting of sample preparation, rougher flotation kinetics, cleaner flotation tests and one locked cycle flotation test.

Rougher and cleaner flotation tests were done in order to establish the optimum grind size, pH and reagent use to produce a commercial grade concentrate. Locked cycle flotation tests were then carried out using the following parameters:

Grind Size (p80) Regrind Size (p80) Rougher pH Cleaner pH

106 microns 36 microns 9.6 11.5

Additional test work will be performed on a much larger suite of samples to obtain more extensive metallurgical response data across the mineralization. This work will focus on further optimizing the balance between recovery and concentrate grade and continuing to refine the optimum flotation conditions for the Josemaria mineralization