Merrex Gold Diakha Diamond Drilling Results including 19 metres averaging 9.28g/t Au from the Siribaya Gold Project, Mali

HALIFAX, August 30, 2016 - Greg Isenor, President and CEO of Merrex Gold Inc., ("Merrex" or the "Company") (TSX Venture: MXI) announces:


Highlights

-19 holes totaling 6,414 metres completed

-All completed drill holes intersected gold mineralization

-Hole 185 - 19 metres of 9.28g/t Au

-Hole 189 - 18 metres of 6.73g/t Au

-Hole 179 - 38 Metres of 2.37g/t Au

-Mineralization extended along strike and down dip


The 2016 Diamond Drilling Program

The 2016 diamond drilling program within the current Diakha resource area commenced in the second half of March and finished in late July, 2016 with two rigs active. The drill program was designed as a follow-up to the initial 2015 resource estimate (see details below) and further evaluated the geological model and controls on gold mineralization. The program specifically targeted areas with high-grade intersections near the bottom of the resource pit shell to test the down dip extension of high-grade mineralization.

A total of 19 holes totaling 6,414 metres were completed. All completed holes returned significant gold intercepts including hole 185 returning 19 metres of 9.28g/t Au, hole 189 returning 18 metres of 6.73g/t Au and hole 179 returning 38 metres of 2.37g/t Au. (See Table of Significant Assays below for a complete listing of significant assay results. The Table of Significant Assays was provided by the project operator.)

Although the interpretation of the drilling cross sections is still in progress, the 2016 diamond drilling results are believed to have extended mineralized zones along strike and down-dip where tested.

Additionally, some of the best results are in holes at the north and south ends of the resource area. To the north, where the southern resource area meets the newly permitted northern Diakha strike extension area, the diamond drill assay intervals together with the 2016 RC drill results in the northern extension area, (see News Release July 6, 2016) provide further evidence of the potential to expand the resource to the north with additional drilling. To the south, the strong diamond drill assay intervals, particularly in hole #185, may suggest continuity with previous high grade assay intervals previously reported in this area.

See Map 1 below for locations of drill holes in the southern Diakha resource area reported here.

These diamond drill results, and the RC drill results released July 6, 2016, will be incorporated in an updated resource model as warranted. (See 2015 Resource Estimate Table below.)


Commentary

"We are extremely pleased with the positive results from the 2016 diamond drilling program completed in the Diakha resource area" said Merrex president Greg Isenor. The continuity so far observed along strike and down-dip extensions of the gold mineralization within the Diakha deposit area is encouraging. Significant additional drilling, both RC and core, will be required to establish the combined size and grade of the expanding 800 metre southern Diakha resource area and the developing 600 metre northern Diakha mineralized zone."

Both this diamond drilling in the Diakha resource area and the RC drilling to the north of the resource area are expected to add to the current resource. Further drilling is required.

Map 1 - Diakha Southern Region 2016 Diamond Drill Results Only
Click Image To View Full Size


Table of Significant Assays

Diakha Deposit Southern Region - Diamond Drill Results - 2016
Hole#	UTM WGS84 Zone29			AZ	DIP	EOH	From	To	Length	Gold	Gold (capped*)
	Easting	Northing	Elevation	Degree	Degree	(m)	(m)	(m)	(m)	(g/t)	(g/t)
SRD16-172	240711	1369753	156	115	-60	303	20	24	4	0.66	0.66
							88	116	28	0.99	0.99
						Including	94	98	4	2.78	2.78
						Including	101	109	8	1.26	1.26
							229	231	2	5.33	5.33
SRD16-173	240811	1369710	161	115	-60	16	0	3	3	0.83	0.83
SRD16-174	240815	1369708	171	115	-60	300	13	23	10	1.10	1.10
							29	40	11	0.99	0.99
						Including	29	32	3	1.52	1.52
						Including	35	40	5	1.21	1.21
							48	53	5	6.53	6.53
							62	65	3	0.53	0.53
							72	80	8	1.44	1.44
						Including	73	75	4	4.79	4.79
							96	102	6	0.59	0.59
						Including	96	98	2	1.18	1.18
							120	124	4	1.92	1.92
							198	204	6	0.91	0.91
							213	216	3	7.42	7.42
SRD16-175	240622	1369796	152	115	-60	400	58	60	2	1.47	1.47
							117	119	2	0.91	0.91
							235	245	10	2.69	2.69
						Including	235	241	6	4.28	4.28
							296	298	2	2.59	2.59
SRD16-176	240755	1369456	169	115	-60	250	75	77	2	1.38	1.38
							192	196	4	0.80	0.80
							205	214	9	1.95	1.95
						Including	207	212	5	3.16	3.16
SRD16-177	240670	1369497	168	115	-60	375	123	125	2	0.56	0.56
							190	193	3	0.72	0.72
							200	204	4	0.97	0.97
							214	216	2	0.56	0.56
							272	276	4	0.73	0.73
							291	293	2	0.93	0.93
							300	306	6	0.70	0.70
							315	325	10	0.77	0.77
							335	339	4	1.11	1.11
SRD16-178	240613	1369522	171	115	-60	450.6	237	242	5	1.42	1.42
							412	416	4	0.98	0.98
SRD16-179	240772	1369338	170	115	-60	251.3	78	116	38	2.37	1.92
						Including	83	98	15	3.84	2.71
						Including	104	111	7	3.62	3.62
							176	178	2	2.60	2.60
							238	249	11	2.05	2.05
SRD16-180	240664	1369388	167	115	-60	350	201	205	4	5.61	5.61
							335	339	4	0.85	0.85
SRD16-181	240616	1369632	160	115	-60	450	74	78	4	0.67	0.67
							85	87	2	0.65	0.65
							100	105	5	0.68	0.68
							161	166	5	1.36	1.36
						Including	161	163	2	2.40	2.40
							222	225	3	2.37	2.37
							415	417	2	0.53	0.53
SRD16-182	240907	1369167	162	115	-60	250	25	30	5	3.06	3.06
						Including	26	28	2	7.02	7.02
							56	59	3	0.50	0.50
							66	68	2	0.63	0.63
							78	83	5	0.58	0.58
							104	106	2	0.75	0.75
SRD16-183	240824	1369206	172	115	-60	350.5	115	127	12	0.60	0.60
						Including	115	121	6	0.96	0.96
							150	152	2	0.96	0.96
							191	197	6	0.51	0.51
							290	297	7	0.89	0.89
						Including	294	297	3	1.07	1.07
SRD16-184	240757	1369125	160	115	-60	450	125	127	2	0.55	0.55
							129	131	2	0.61	0.61
							151	153	2	0.52	0.52
							169	171	2	0.91	0.91
SRD16-185	240748	1369245	148	115	-60	400	103	106	3	1.53	1.53
							161	180	19	9.28	6.38
						Including	167	180	13	13.44	9.86
						Including	171	175	4	36.53	24.90
							192	205	13	1.64	1.64
						Including	196	201	5	2.68	2.68
							245	252	7	0.62	0.62
							268	270	2	1.53	1.53
SRD16-186	240623	1369572	165	115	-60	320	93	95	2	0.53	0.53
							107	109	2	0.63	0.63
							207	212	5	1.26	1.26
							218	221	3	0.50	0.50
							299	306	7	1.61	1.61
SRD16-187	240721	1369694	162	115	-60	400	60	68	8	2.71	2.71
						Including	64	66	2	9.45	9.45
							88	116	28	0.97	0.97
						Including	88	102	14	1.17	1.17
							111	116	5	1.51	1.51
							255	259	4	1.72	1.72
							271	274	3	0.72	0.72
SRD16-188	240706	1369805	165	115	-60	397.7	27	31	4	0.98	0.98
							45	51	6	1.30	1.30
							108	118	10	1.49	1.49
							123	132	9	1.52	1.52
							139	149	10	0.51	0.51
							153	156	3	0.67	0.67
							162	165	3	0.55	0.55
							265	267	2	0.93	0.93
							280	291	11	0.80	0.80
						Including	283	287	4	1.35	1.35
SRD16-189	240766	1369777	165	115	-60	400	18	36	18	6.73	5.44
						Including	19	28	9	12.01	8.67
							84	90	6	0.80	0.80
							95	99	4	0.56	0.56
							115	126	11	1.12	1.12
							215	237	22	1.40	1.40
							250	252	2	0.67	0.67
SRD16-190	240757	1369405	164	115	-60	300	35	37	2	0.61	0.61
							58	60	2	0.60	0.60
							67	69	2	26.59	16.59
							74	76	2	0.56	0.56
							121	123	2	0.51	0.51
							136	139	3	0.64	0.64
							149	161	12	0.52	0.52
							173	176	3	1.20	1.20
							208	218	10	0.53	0.53
							244	248	4	4.24	4.24
							253	255	2	3.04	3.04

Note: * Gold (capped). Assays were clipped at 25g/t

Note 1 : Elevation and collar locations are with hand GPS accuracy and may be imprecise

Note 2 : SOH = Start of Hole - EOH = End Of Hole

Note 3 : Minimum Interval grade = 0.5g/t, Cut off = 0.3g/t Max. Dilution = 6m

Note 4: Three (3) holes are abandoned holes at 5,6 and 16 metres

Note 5 : Reported Azimuth and Dip is at surface (0m)

siribaya Project - Mineral Resource Estimate*
	Classification	Zone	Tonnage (000s)	Gold Grade (g/t Au)	Contained Ounces (Au) (000s)
	Indicated	Zone 1B	2,102	1.90	129
	Total Indicated		2,102	1.90	129
	Inferred	Zone 1B	4,094	1.52	200
	Inferred	Taya Ko	882	1.02	29
	Inferred	Diakha	14,840	1.81	863
	Total Inferred		19,816	1.71	1,092

Notes:

1. 1.CIM definitions were followed for classification of Mineral Resources.


2. 2.Cut-off grades range from 0.45 to 0.60 g/t Au and vary by weathering material type.
3. 3.Mineral Resources are estimated using a gold price of US$1,500 per ounce.
4. 4.Bulk density varies from 1.55 g/cm3 to 2.63 g/cm3 based on deposit and weathering code.



5. 5.The resources are constrained by a Whittle optimized pit shell.




6. 6.Numbers may not add due to rounding.



7. 7.Assays are capped prior to compositing. Capping levels reduced the resource estimate gold grade

of Diakha by approximately 12%, and of Zone 1B and Taya Ko by approximately 4%.

*The resource estimate was prepared by RPA Inc. and is as at December 31, 2015. Readers are referred to Merrex news release of February 9, 2016 and the complete NI43-101 Technical Report filed on SEDAR March 8, 2016.


Technical Information and Quality Control Notes

The Siribaya Gold Project drilling results contained in this news release were prepared in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects. The sampling of, and assay data from, drill core was monitored through the implementation of a quality assurance - quality control program designed to follow industry best practice.

Drill core (HQ and NQ size) samples were selected by the IAMGOLD geologists and sawn in half with a diamond saw at the project site. Half of the core was retained at the site for reference purposes. Sample intervals are generally one metre in length. The samples were assayed at the SGS Minerals Analytical Laboratory in Bamako, Mali, using a standard fire assay with a 50 gram charge and an Atomic Absorption finish.


About Merrex's Siribaya Gold Project

The Siribaya Gold Project is a 50/50 joint Merrex-IAMGOLD advanced-stage gold exploration project in West Mali which consists of 11 contiguous exploration permits which cover a total area of 876.5 square kilometres and is located in the Kedougou-Kenieba inlier of the West African Craton region of western Mali along the borders with Senegal and Guinea.


Qualified Person

Greg Isenor, P.Geo., President of Merrex Gold and a Qualified Person as defined by NI 43-101, has reviewed and approved the contents of this release.

The mineral resource estimate referred to above, including verification of the data disclosed, is at December 31, 2015, was prepared by RPA Inc. and reported in accordance with National Instrument 43-101 (NI43-101) requirements and CIM Estimation Best Practice Guidelines. The supporting NI 43-101 Technical Report is available on SEDAR at www.sedar.com and on the Company's website at www.merrexgold.com.

Merrex is primarily a West African focused gold exploration company with experienced management, a solid exploration team, a prominent gold-producer as a JV partner and an expanding gold resource.

For further details about the Company's exploration activities visit Merrex's website at www.merrexgold.com. To be added to Merrex's email contact list please email your request to info@merrexgold.com.


On Behalf of the Board

Gregory Isenor
Gregory Isenor, P.Geo., President & CEO



MERREXGOLD
Suite 802, 1550 Bedford Highway
Bedford, NS B4A 1E6
Tel.: (902) 832-5555 Fax: (902) 832-2223


Forward Looking Statement

This news release contains forward-looking statements. All statements, other than of historical fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future (including, without limitation, statements regarding expected, estimated or planned gold and niobium production, cash costs, margin expansion, capital expenditures and exploration expenditures and statements regarding the estimation of mineral resources, exploration results, potential mineralization, potential mineral resources and mineral reserves) are forward-looking statements. Forward-looking statements are generally identifiable by use of the words "may", "will", "should", "continue", "expect", "anticipate", "outlook", "guidance", "estimate", "believe", "intend", "plan" or "project" or the negative of these words or other variations on these words or comparable terminology. Forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond the Company's ability to control or predict, that may cause the actual results of the Company to differ materially from those discussed in the forward-looking statements. Factors that could cause actual results or events to differ materially from current expectations include, among other things, without limitation: changes in the global prices for gold, niobium, copper, silver or certain other commodities (such as diesel, aluminum and electricity); changes in U.S. dollar and other currency exchange rates, interest rates or gold lease rates; risks arising from holding derivative instruments; the level of liquidity and capital resources; access to capital markets, financing and interest rates; mining tax regimes; ability to successfully integrate acquired assets; legislative, political or economic developments in the jurisdictions in which the Company carries on business; operating or technical difficulties in connection with mining or development activities; laws and regulations governing the protection of the environment; employee relations; availability and increasing costs associated with mining inputs and labour; the speculative nature of exploration and development; contests over title to properties, particularly title to undeveloped properties; and the risks involved in the exploration, development and mining business. Risks and unknowns inherent in all projects include the inaccuracy of estimated reserves and resources, metallurgical recoveries, capital and operating costs of such projects, and the future prices for the relevant minerals. Development projects have no operating history upon which to base estimates of future cash flows. The capital expenditures and time required to develop new mines or other projects are considerable, and changes in costs or construction schedules can affect project economics. Actual costs and economic returns may differ materially from estimates and the Company could fail to obtain the governmental approvals necessary for the operation of a project; in either case, the project may not proceed, either on its original timing or at all.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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