Advanced Explorations Inc. announced that it has signed a memorandum of understanding with Parkson Star Ltd. for the joint development of the Company's Roche Bay Iron Ore Project into production. Pursuant to the Cooperation Agreement, AEI will commence the formation of a subsidiary corporation named Savik Iron Mines Ltd. ('Savik') in a jurisdiction agreed upon by the parties. Upon receipt of requisite approvals, AEI shall effect the transfer of its interest in the Roche Bay and Tuktu Projects to Savik and, subject to making initial capital injections into Savik and fulfilling certain capital funding (CAPEX) obligations, Parkson shall have the right to earn an 80% equity interest in Savik.

AEI shall retain a 20% interest in Savik as free carry until the substantial completion of the mine and attainment of first commercial production. Additionally, under the terms of the Cooperation Agreement, AEI shall assign $13.3 million in corporate debts to Savik, including the outstanding convertible debentures held by XinXing Ductile Iron Pipe Co. Ltd. ('XDIP') and any interest accrued thereon.

The parties have also agreed to complete a definitive Joint Venture Agreement and ancillary agreements upon the satisfactory conclusion of due diligence and the capitalization and formation of Savik. In order to fund general and administrative expenses and legal costs related to the completion of the transaction as outlined, Parkson shall effect a non-brokered private placement in the Company totaling CAD 600,000.