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International Enexco Targets Copper Production By 2014

Press Release Distribution Services: http://tojongmboh.emailwire.com

(EMAILWIRE.COM, September 15, 2011 ) International Enexco Ltd. (TSX.V:IEC) has a diverse project portfolio that includes copper, gold, silver and uranium. The company's flagship property and the main focus now, however, is the Contact Copper Project in northeastern Nevada, which management plans to have in production by 2014. The project is owned 100% by Enexco, and recently, the land position was expanded to incorporate neighbouring lands onto which the Contact Copper deposit may extend.

Among the stand-out aspects of the company is the fact that, with only 26 million shares outstanding of which insiders own almost 40%, the project already has a pre-feasibility study in place (updated in 2010) and will embark on a full feasibility study before the end of 2011 to ensure it hits its 2014 production target.

According to the pre-feasibility report, the company can produce 25 million pounds of cathode in an on-site SX-EW plant per year with a 10 year mine life, with a capital investment of $86 million and at a production cost of $0.93 per pound. Using a copper price of $2.25 a pound, the study stipulates after-tax net present value of US$44 million, delivering a 20.2% internal rate of return.

The following is excerpted from the updated pre-feasibility study conducted by Gustavson Assoicates, LLC based in Nevada:

"The economic model for the project shows an internal rate of return (IRR) of 20.2% using a copper price of $2.25/lb. The project is sensitive to copper price. Copper prices of $1.40 lb are required to generate positive rates of return."
"The Contact Copper Project is an oxide copper project that has an updated NI 43-101 compliant mineral resource estimate containing a total in Measured and Indicated Resources of 135.2 million tons at 0.263% Cu at a 0.10% Cu cut-off grade, along with 53.5 million tons of 0.272% Cu in the Inferred Resource category. The project is designed as a conventional open-pit, heap-leach operation and has a minable reserve totaling 54.1 million tons of 0.293% Cu in Proven and Probable categories. Copper production will be by standard solvent extraction-electrowinning (SX/EW) to produce high-purity copper cathodes on site. The SX/EW plant is sized to produce 69,450 lb of copper cathode per day. These production rates have been based upon the current estimated reserves, and a mine life targeted at a minimum of 9 years."

"Mining and processing will be conducted on a seven day per week schedule. After reaching steady state SX/EW copper production, 12,500 to 21,800 tons of ore will be placed on the leach pad on a daily basis. The strip ratio for the mine is 2.86:1 waste to ore. Just under thirty five tons of LME grade-A cathode copper will be produced daily from the SX/EW plant, equivalent to approximately 12,500 tons per annum."

"Gustavson finds that the resource base and economics are sufficient to advance the Contact Project to the level of a feasibility study. Gustavson recommends that Enexco undertake a feasibility study, and estimates the cost of the study at $1.2 million."

All this from the pre-feasibility study that does not take into consideration a doubling of the land position as a result of the favourable outcome achieved in negotiations with Enexco's neighbour to the east, Allied Nevada Gold Corp.

Company spokesman Spiros Cacos says,"International Enexco has commenced its feasibility study and expects to have completed a full mine plan and production schedule by year end.

In addition, as part of the feasibility, Enexco plans the commencement of the Pad, Crushing Circuit and Plant Design."

EXPANSION THROUGH EXPLORATION
In a press release dated July 27, 2011, the company announced that it had signed a letter of intent to acquire a total of 3,400 hectares of Allied Nevada's ground immediately to the east of and contiguous with Enexco's land.

According to the release:

"The properties are being acquired from Allied Nevada in a stock transaction valued at approximately CDN$1 million, in exchange for a total of about 8,400 acres that adjoin Enexco's Contact Project. With the acquisition, Enexco will hold approximately 15,000 acres in the district within 155 patented claims and 609 unpatented lode claims. Under the Letter of Intent Allied Nevada will receive 3.2 million shares of Enexco stock."

In an interview with Minesite.com, he elaborated further:

"This makes a substantial difference to the company," says Arnold Armstrong, the president and chief executive of copper and uranium specialist International Enexco. He's talking about the company's recent acquisition of a sizeable plot of ground adjacent to its Contact Copper project in Nevada. "We've been trying for three or four years to acquire this ground," he continues, "because there was one block of patented claims at the end of our orebody that made it difficult for us it meant our mine plan had to be restricted to property boundaries."

Now that Enexco has tied up the adjacent ground, the company will implement an expansion drilling program while advancing the deposit to full feasibility.

MANAGEMENT IN PLACE
International Enexco's management team has a long history of mine finance and development, as embodied in the president of the company, Arnold Armstrong.

Mr. Armstrong has practiced law for over 50 years and is a member of the Armstrong Simpson firm of independent lawyers, a successful Canadian boutique law firm. Mr. Armstrong and his family owned Armada Investments Ltd. the principal family management company through which he has built a diversified portfolio of assets and businesses. Mr. Armstrong's business experience is extensive and diverse. He has held the positions of Chairman, President, CEO and/or Director of several successful mining and exploration companies including as one of the founding Directors of Silvercorp Metals Inc. (NYSE - SVM). Under his command his group of public companies has made several significant coal, nickel, copper, gold an silver discoveries in the United States, Canada, China and Mongolia. Mr. Armstrong has also fostered several joint ventures within his companies including those with Cameco Corp., AREVA and Phelps Dodge.

In addition to Mr. Armstrong, the company's chief operating officer, Bill Willoughby, is a veteran mining engineer with an illustrious history. Before joining Enexco in 2008, he worked for the Teck Cominco group of companies after graduating from the University of Idaho with a Ph.D. in Mining Engineering in 1989. He is a registered Professional Engineer in Idaho, and has worked in the design, operation and management of a number of projects worldwide..

In July this year, the company added former Nevada governor Jim Gibbons to the board, and not just because of his political experience. Gibbons is himself a geologist who wrote his thesis in 1973 on one other than the Contact Mining District of Nevada.

According to the company's press release of July, 2011:

Gibbons graduated from the University of Nevada, Mackay School of Mines in 1967 with a Bachelor of Science in Geology. In the following 4 years, he served as a Captain in the United States Air Force as a pilot and veteran of the Vietnam War. He returned to the University of Nevada and completed his Master of Science in Geology in 1974 with his thesis on the Geology of the Contact Mining District, Elko County, Nevada while also working as an exploration geologist for Union Carbide. His knowledge of the Contact area is of special significance to Enexco, which has been working to advance its Contact Copper Project, located in the centre of Mr Gibbons' thesis area. Mr Gibbons' thesis still stands as the principal work on the geology and exploration potential of the district.

Arnold Armstrong is enthusiastic about Gibbons' participation:

"The addition of Mr Gibbons is a tremendous step forward for Enexco and brings the guidance of an individual with vast experience in all aspects of government and non-governmental relations, not to mention his exceptional knowledge in the administration, permitting and development of all manner of projects."

After his appointment to the Board of Directors Mr Gibbons said: "I am confident that the Enexco projects will continue to move toward development and production. Enexco's mineral future is strategically structured to secure a bright future for the company in the mineral industry. As such, I am pleased to be part of this growing company."

The company's web site concludes:

The Contact Property is an advanced stage, copper oxide project. A large copper resource has been identified on the property and Enexco will advance the project towards production in an expedient manner. The recently announced acquisition of additional lands contiguous with the resource is expected to positively impact the project, for which most recent resource calculations estimate greater than 700 million pounds of copper in Measured and Indicated categories. Enexco will continue on its path towards copper production in Nevada as well as expand the known resources through additional exploration and drilling.

International Enexco currently has 25.8 million shares out with a further 2.9 million warrants and options issued for fully diluted capitalization of 28,618,077.


Legal Disclaimer/Disclosure: A fee has been paid for the production and distribution of this Report. This document is not and should not be construed as an offer to sell or the solicitation of an offer to purchase or subscribe for any investment. No information in this Report should be construed as individualized investment advice. A licensed financial advisor should be consulted prior to making any investment decision. The Bottom Line Report makes no guarantee, representation or warranty and accepts no responsibility or liability as to its accuracy or completeness. Expressions of opinion are those of the Bottom Line Report only and are subject to change without notice. The Bottom Line Report assumes no warranty, liability or guarantee for the current relevance, correctness or completeness of any information provided within this Report and will not be held liable for the consequence of reliance upon any opinion or statement contained herein or any omission. Furthermore, we assume no liability for any direct or indirect loss or damage or, in particular, for lost profit, which you may incur as a result of the use and existence of the information, provided within this Report.

International Enexco Ltd.
Corporate
604.669.8368
info@enexco.ca


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