Advanced Explorations Inc. Announces Infrastructure Support Initiatives

TORONTO, ONTARIO -- (Marketwire) -- 02/05/13 -- Advanced Explorations Inc. (the "Company" or "AEI") (TSX VENTURE: AXI)(FRANKFURT: AE6) today announced its involvement in formal negotiations with three independent companies in respect to partnership on the development of key Roche Bay infrastructure. The primary focus of these negotiations is to engage in joint venture and/or long-term purchase and supply agreements such to reduce up front capital expenditures (Capex) and to stabilize long term pricing. Such reductions in Capex lower AEI's risk exposure to cost overages and enables AEI to focus on its core competencies in exploration and mining. The two key Capex reduction opportunities are the construction of a turn-key power plant and the joint operation and construction of the Roche Bay port facility.

The Turnkey LNG Power Solution

In accordance with the Company's plans to move forward with an LNG power solution at Roche Bay (see press release dated November 1, 2012), AEI has entered into a memorandum of understanding (MOU) for the joint finance of a feasibility study on the potential for construction of an LNG power plant at Roche Bay. Under the proposed definitive agreement with this partner, AEI would provide the option to the partner to develop and construct the LNG power plant in consideration for a long-term power purchase agreement. This turn-key LNG power solution will not only eliminate the associated Capex of constructing the power plant facilities, but will additionally provide for a potential reduction in operating cost of up to ($8/t), as identified by the Feasibility Study. With the high FOB costs currently reported by other Canadian producers (greater than $60/t), AEI is well situated to remain profitable and provide return on capital even through low commodity price cycles. In the current market, there is a clear focus on FOB cost and AEI is situated to become a lower quartile cost producer because of its ocean-based location.

The Company has also been in advanced level talks with an LNG distribution company for turn-key supply and storage of LNG at Roche Bay. As currently established, there is the potential for a truly turn-key solution; that is, AEI would be able to have a direct source of lower cost power with little to no Capex being attributed to its construction.

Port Facilities

The Company is currently negotiating a collaborative port development agreement with a world class shipping company for the development of a Roche Bay port facility. This Company represents a key resource and partner to the project given its direct experience in the region, and moreover, because of its ability to move the port development into advanced stages in a timely manner.

By utilizing a joint venture structure, AEI is able to focus on its core competencies, specifically exploration and mining, while the port operator will provide for an efficient and cost effective deployment of this key project asset. The parties contemplate a port facility to align with a start-up 5.5 Mtpy production rate as set out in the Roche Bay Feasibility Study while providing for significant future scalability.

John Gingerich, President & CEO, commented:

"Based on the Feasibility Study results, the power and port deals have the potential to reduce capital costs by $180 million dollars while still providing a reduction in overall operating cost. These Capex reduction opportunities have a direct and positive impact on the project's rate of return and NPV. Over the last several months AEI management has been focused on optimization of the Roche Bay 5.5 mtpa program and laying the foundation to either move to an 8 mtpa start-up or expansion. By further reducing operating cost and enhanced product quality (greater than 68% Fe concentrate), we are differentiating Roche Bay from other higher cost (Capex/Opex) iron ore producers."

ON BEHALF OF THE BOARD

John Gingerich, President & Chief Executive Officer

ABOUT Advanced Explorations Inc.

Advanced Explorations Inc., based in Toronto, Ontario, is a resource development company focused on developing its Roche Bay and Tuktu Iron Ore Projects in one of the world's largest developing iron ore districts, the Melville Peninsula in Nunavut. The Ocean-based Roche Bay Project boasts an NI 43-101 compliant resource estimate of over 500 million tonnes outlined within a small portion of the potential 140 km of banded iron formation. A positive feasibility study for the project's C Zone revealed a net present value of $642M on a base case 5.5 Mtpa start-up concentrate operation and substantial upside potential including becoming a low quartile cost producer. To date, the Company has delineated over 1 billion tonnes of iron under NI 43-101 among its Roche Bay and Tuktu deposits and continues to explore other targeted deposits in areas to the north, south and west of Roche Bay. The management team has extensive technical, exploration and Canadian Arctic mining expertise to effectively develop the high quality iron ore opportunities on the Melville Peninsula.

This news release also includes forward-looking statements that involve a number of risks and uncertainties. The information reflects numerous assumptions as to industry performance, general business and economic conditions, regulatory and legal requirements, taxes and other matters, many of which are beyond the control of the company. Similarly, this information assumes certain future business decisions that are subject to change. There can be no assurance that the results predicted here will be realized. Actual results may vary from those represented, and those variations may be material.

This news release does not constitute an offer to sell or a solicitation of an offer to sell any securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

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Contacts:

Advanced Explorations Inc.

(416) 203-0057 x226