AuEx Ventures Inc. - Reef - Wed Jan 7, 2009

Context Methodology Property Summary Current Drilling Argentina Spain Nevada

Reef

Status: Available for joint venture.

Target: The Reef property contains a "Carlin-type" gold system hosted by Devonian to Mississippian sedimentary rocks. Anomalous gold and indicator elements occur within jasperoid and decalcified limestone along the western limb and axis of a southward-plunging anticline. Apparently coeval complex fault systems suggest potential for prospective collapse zones within the anticline.

Location: The Reef Project lies in the central Pancake Range of western White Pine County, Nevada about 22 miles southeast of Eureka. The property lies in unsurveyed Sections 22-26, 35, and 36, T16N, R55E.

Ownership: The Reef property consists of 80 unpatented mining claims controlled by AuEx. The claims lie on lands administered by the BLM.

History: AuEx located the REE mining claims between June and October, 2007. The claims cover an area accessed by several old drill trails that lead eastward from an established two-track road extending north-south along the axis of the Pancake Range. The AuEx mapping effort at Reef documented the collars of several shallow reverse circulation or rotary drill holes apparently the result of one or more previous exploration programs in the area. The maturity of vegetation in the disturbed areas suggests that the previous work dates to the 1980's or earlier. A few widely-scattered prospect pits and one caved shaft are the only obvious remnants of historical prospecting in the area.

Geology: The claim block spans the crest and western limb of a broad anticline in middle Paleozoic rocks. The anticline plunges gently southward exposing Devonian Devils Gate Limestone at its core within 1000 feet north of the northeastern corner of the claim block. The Mississippian-Devonian Pilot Shale, Mississippian Joanna Limestone, and Mississippian Chainman Shale lie in-succession above the Devils Gate in exposures of the western limb of the anticline. The western part of the claim block covers the eastern margin of a Cretaceous quartz diorite stock that has intruded the Paleozoic sequence. Conglomerates and sandstone of the Mississippian Diamond Peak Formation overlie the Chainman and older units at the western edge of the claim block. Rhyolite dikes or sills cut the Paleozoic sequence locally within the claim block. Tertiary flows and tuffs cover most of the eastern limb of the anticline.

Elevated gold, arsenic, antimony, and mercury in rock chip samples are associated with silicification and sanding of carbonate rocks in the Paleozoic sequence. Zones of jasperoid occur along bedding in the Joanna and along breccias developed adjacent to faults. Alteration extends locally into the underlying Pilot Shale and the overlying Chainman Shale. Silicification occurs also in the Devils Gate Limestone.