NGEx

NGEx Resources Inc. (TSX:NGQ) (“NGEx” or the “Company”) is pleased to announce that it has been granted the Bada Potash Exploration License located in the Danakil Depression in Eritrea. This large license, encompassing over 431 square kilometers, is located 30 kilometres inland from the Red sea port of Mersa Fatma and 150 kilometres southeast of the capital city of Asmara. Please see attached map.

The Bada license is situated within the northern portion of an evaporite basin extending southward into Ethiopia, where exploration in the 1960’s resulted in the discovery of the large Crescent and Musley potash and sylvite deposits. Allana Resources Inc. have been drilling an area north of the Musley deposit and have reported an inferred resource of 105.2Mt grading approximately 20.8% KCl (sylvite and kainite - Allana press release dated September 17, 2008). BHP-Billiton and Sainik Coal Mining, a leading Indian coal mining company have large exploration licenses in the Ethiopian portion of the basin south of the Crescent and Musley deposits. In the Eritrean part of the basin, South Boulder Mines Ltd. have announced the discovery of shallow potash mineralization near the village of Colluli in Eritrea, 20 kilometres north of Musley and 30 kilometres southeast of Bada. South Boulder reports shallow potash-bearing horizons up to 19.7 metres thick averaging 20% to 25% KCl (see South Boulder press release dated October 18, 2010). South Boulder have announced plans for a pre-feasibility scoping study for low-cost open-pit mining at Colluli.

The Danikil Depression is known to continue northeast from Colluli and is believed to have potential for potash-bearing beds on the Bada license. However, only very limited historical exploration work has been done in the license area to date. Initial reconnaissance at Bada by NGEX found extensive shallow alluvium cover, young volcanic rocks or recent marine evaporites, with potential for potash-bearing rocks under much of the license area.

Exploration of the license will start in January, 2011. The initial phase will be to confirm the evaporite sequence and then to drill test the shallower portions of the basin for potash mineralization.

The Bada license area offers several significant advantages for any future operations. The area has easy access to the port of Mersa Fatma to the northeast, alluvial fans on the southeast side of the depression could be a viable source of fresh process-water, and the shallow nature of the mineralization found to the south at Colluli suggests the feasibility of low-cost open pit mining. NGEX’s Eritrean subsidiaries, have a 12 year operating history the country and a strong technical and support team.

Wojtek Wodzicki, President and CEO of the Company, commented, “We believe that there is potential for a significant potash discovery on the Bada license and we are excited about starting work on this new and unexplored portion of a major, world-class potash basin.”

Dr. Demetrius Pohl, a Qualified Person as defined by National Instrument 43-101 has reviewed and verified the technical information contained in this news release.

On behalf of the Board,

Dr. Wojtek Wodzicki

President and CEO

Follow-up drilling during the quarter by South Boulder Mines (ASX: STB) at the newly discovered Terminator Gold Prospect defined further shallow mineralisation that is considered open in all directions with some compelling targets defined.

Significant results included;

- TBAC014 - 31m @ 1.07g/t Au from 1m including; 8m @ 2.68g/t from 1m;
- TBAC024 – 60m @ 1.30g/t Au from 2m including; 10m @ 4.25g/t from 3m;
- TBAC025 – 14m @ 5.13g/t from 70m including; 8m @ 8.38g/t from 72m.

STB said the Duketon Nickel JV continues to deliver excellent results from the Rosie Ni-Cu-PGE Prospect. Most recent highlights include:

- Hole TBRC070 – 7.00m @ 2.61% Ni, 0.42% Cu, 3.75g/t Pt+Pd from 190m;
- Hole TBDD080 – 3.59m @ 2.27% Ni, 0.24% Cu, 3.10g/t Pt+Pd from 205m including; 0.76m @ 4.98% Ni, 0.25% Cu, 6.98g/t Pt+Pd from 207.84m.

Subsequent to the end of the period, a 15-20 combination RC and diamond drilling program has commenced at the Rosie Prospect with results expected in February.

A drilling contract has beenfinalised and logistics for first confirmation drilling at the Colluli Potash Project, Eritrea, have been confirmed. Drill testing of the buried potash horizons are scheduled for February/March.

The company completed a non-renounceable 1 for 10 non renounceable rights issue and shortfall placement to raise ~ $1.1m from the issue of 5,570,794 new shares at 20cents.

STB held cash at end of period $2.6m + cash in trust ($0.68m) for a total of $3.28m; cash + listed equities ~ $1.6m.