• Local board in the Philippines committed to the strategy - ITX and Mindoro Nickel perceived as an attractive asset

    Recent changes in local board and management as well as the changed focus, has already contributed to increased interest among potential local partners.

    Situation analysis & status
    For some time Intex has worked to find partners, investors and an operator for the Mindoro Nickel project. In addition to the previous process with MCC8, traction and interest has been achieved. The Mindoro Nickel project is a large and economically robust project located in the Philippines, in which the current Administration is moving slowly on its mining policy. Creating necessary social acceptability for mining projects in the Philippines is a challenge for several projects in the country, including the Mindoro Nickel project. It is the Company's view that the importance of correctly handling permitting issues and social acceptability has been somewhat underestimated by the Company - this is now improving. This includes the reinstatement of the Environmental Compliance Certificate (ECC) as a first step, although this needs to be amended to fit the current plans. It is observed that most international companies within in the industry pair up with local firms and other stakeholders as a tool to solve domestic challenges. In 2011 and 2012, the Company was simultaneously searching for international partners, operators and local partners. The Company is now of the opinion that local issues should have been solved first - and as such this strategy is now being implemented, which is expected to uplift the value going forward.  In addition, the strategy from 2011 and 2012 consumed resources and managerial capacity, and has delayed the development of the Company, including setting aside resources to expand and build the project portfolio.

    Way forward
    First, the Company today states that it has reached a high level of confidence that it will bring in a partner. Secondly, the strategy forward is refined - and Intex will bring in a local partner before an operator. By doing so, the Company will be able to solve domestic challenges in the Philippines in full cooperation with its local partner.Solving domestic issues is expected to create value for both parties prior to the stage where an operator / other partners enter into to the project. In order to achieve the highest possible end value for Intex, the Company is of the opinion that it needs to share the first part of the upside potential with a local partner. A joint plan with the local partner is therefore one of the tools that could be implemented to uplift future value, and should be implemented prior to the entrance of an operator.

    Thirdly, Intex aims to finance major costs associated with the next phase of the Mindoro Nickel project locally in the Philippines. The Company foresee a gradual reduction of its ownership through share sale and equity investments sourced from one or more Philippine partners / investors / board of directors in the Philippines. If an exchange listing is preferred as ownership structure, a Philippine listing may be perceived as more attractive over other exchanges.

    Finally, Intex aims to re-initiate dialogue with operators when it has reached its goals together with a local partner, and the timing of this is yet not decided, but pending on the outcome of the work domestically in the Philippines this may happen sooner than later.

    "We believe that making our subsidiary and the Mindoro Nickel project a more Philippine company in the style we operate will be a great improvement, the first phase of the realization process has been concluded and the direction forward is set. Mindoro Nickel belongs to the Philippines and therefore we follow the path to get there", says CEO Henno Grenness.

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    Oslo, 31 March 2014

    Henno Grenness
    CEO
    Intex Resources ASA

    For further information, please contact:
    Intex Resources ASA
    Munkedamsveien 45F
    0250 Oslo, Norway

    Tel: +47 2311 3344
    Fax: +47 2311 3345
    Email: vr@intexresources.com

    About Intex Resources:
    Intex Resources ASA is a diversified mineral exploration company, based in Oslo, Norway. The company is dedicated to the responsible development of natural resources. Intex's main asset is the world class Mindoro Nickel project, located in Mindoro, The Philippines. More information is available at: www.intexresources.
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