HALIFAX, NOVA SCOTIA -- (MARKET WIRE) -- 09/12/06 -- Greg Isenor, President of Merrex Gold Inc., ("Merrex")(TSX VENTURE: MXI) releases the following update on the ongoing 5000 meter diamond drilling program on Merrex's 50% owned West Voisey's Bay Joint Venture property located 12 kilometers southwest of Inco's Voisey's Bay nickel-copper-cobalt mine in Labrador.

The Drill Program

Prior geophysical exploration on the West Voisey's Bay Joint Venture property identified four targets areas, namely: Makhavinekh Lake (Mak Lake), West Makhavinekh Lake, Red Dog Fault and Konrad Brook. The current drill program places particular emphasis on the Makhavinekh Lake target area which contains several distinct geophysical drill targets within a four kilometer long by 1.5 km wide east-west aligned corridor. The prospectivity of this area is enhanced by its proximity to nickel, copper, cobalt mineralized troctolite at Inco's Ashley prospect and at the Luk gossan, located four kilometers and 2.5 km due north, respectively.

As previously announced the planned drill program is comprised of six holes intended to test a number of first priority geophysical targets. The driller, Major Drilling, is using a heli-portable drill capable of reaching depths of 1200 meters. The drill program is expected to continue until November. Currently drilling is in progress on the third hole of the planned six-hole program. Positive indicators consisting of olivine bearing gabbro, minor sulphides, some gneissic and melagabbro or ultramafic xenothiths and structural zones have been intersected in drilling.

Hole WVB-06-01

The first borehole, WVB-06-01, was sited to test a 1.5 km long, east-west trending Magnetotelluric (MT) conductor where it coincides with the strongest portion of a coincidental 1.5 x 2 km gravity and magnetic high near Makhavinekh Lake. The MT conductor is interpreted geophysically to lie between 600 and 900 meters in depth, shallowing towards the east. The target depth to the MT conductor for WVB-06-01 was estimated to be 900 meters. The borehole collared in granite and quartz monzonite for the initial 502.95 meters before entering an interval of minor sulphide mineralized olivine bearing gabbro alternating with layers of quartz monzonite to a depth of 662.63 meters where the hole was abandoned after becoming stuck in a zone of structural weakness interpreted to be a fault structure. Thus, the targeted MT conductor was not reached by hole WVB-06-01.

The geological environment intersected in borehole WVB-06-01 is broadly similar to that of the geological environment above the Eastern Deeps Ni-Cu-Co deposit at Voisey's Bay. In addition, the presence of a significant structural zone is also considered a positive indicator, comparable to the Voisey's Bay type model. Structural zones present at Voisey's Bay deposit area control the emplacement of the troctolite dykes and ore deposits. The presence of appreciable zones of gabbro is encouraging and confirms the success of the gravity surveys in predicting the location of favourable gabbro and similar troctolitic rocks which are known to host the Voisey's Bay ore deposits. Celtic is currently selecting representative samples of the different rock types for petrography and will carry out chemical analyses to further aid in comparison with data present from the troctolites and related rocks at the Voisey's Bay mine site.

After completing the second borehole WVB-06-02 (described below) a second attempt was made to complete borehole WVB-06-01 by placing a bypass wedge in the hole at 507.19 meters to deflect past the zone causing the drilling problems. Again, the drill became stuck and the hole was abandoned at a depth of 658.06 meters, apparently in the same structure that created the problem on the first attempt. As expected, similar rock types with weak mineralization were encountered in the by-pass hole. The hole has been suspended temporarily while additional drilling equipment is mobilized and drilling plans are designed to compensate for structural zone problems in this key target area.

Hole WVB-06-02

The second borehole, WVB-06-02, was sited on a separate, shallower MT conductor located near the shoreline of Makhavinekh Lake 1.5 km east-southeast of WVB-06-01. The estimated depth of the targeted MT conductor was 400 meters. The hole cut granite and quartz monzonite to a depth of 391.38 meters. From 391.38 meters to the bottom of the hole at 600.76 meters the core consisted of magnetic gabbro containing trace amounts of sulphides which in places appear to be partly assimilated by granite. The borehole was angled into the ground to intercept the base of the strongest MT geophysical response. As the borehole steepened during drilling, the strongest part of the MT conductor was not intercepted. A borehole UTEM survey is planned to explore for the presence of an off-hole EM conductor in this and all other holes to be drilled on the property.

Hole WVB-06-03

The drill is currently on the third hole, WVB-06-03, was collared 700 meters east of hole WVB-06-01 to test the strongest part of the 1.5 km long Makhavinekh Lake MT conductor, which remains untested. Hole depth is planned for a minimum of 850 meters to reach the MT anomaly.

The Next Three Holes

Following completion of WVB-06-03 and WVB-06-01 the drill will be moved 2.6 km east on the Makhavinekh Lake grid where a single drill hole will test a coincidental east-west trending UTEM conductor and strong MT conductor from a peninsula jutting into Makhavinekh Lake. The UTEM conductor is interpreted as a shallowly south dipping (sub horizontal) tabular conductor and intersects a strong MT conductor near the northeast end of the peninsula. A review of regional magnetic data reveals a magnetic linear feature that also correlates with the UTEM/MT conductor. Approximately 500 meters of drilling is planned for this target area.

Drilling will then move 8.5 km to the West Makhavinekh Lake grid to test a coincidental MT conductor and regional gravity high which is located along trend and near a regional east-west structure spatially related to the other Makhavinekh Lake drill targets. A single borehole approximately 1150 meters in depth is planned for this target.

Lastly, drilling will move 4.5 km south to the Konrad Brook grid to test a south dipping MT conductor with a single borehole. The conductor is located on the north flank of a coincidental regional gravity and magnetic high anomaly. Approximately 800 meters of drilling is required to reach the target zone.

General

The West Voisey's Bay Joint Venture, which consists of 511 mineral claims aggregating 127.75 square kilometers, is 50% owned by Merrex.

The technical information in this news release has been provided to Merrex by the Voisey's Bay Joint Venture operator Celtic Minerals Ltd. Gregory Isenor, P.Geo., President & CEO of Merrex is the named Qualified Person and has reviewed this news release.

Merrex Gold is a mineral resource exploration company focused on exploration for gold in Mali, West Africa, for zinc-lead in Cape Breton, Nova Scotia and for nickel in Voisey's Bay, Newfoundland. Merrex Gold Inc. invites the public to visit its website at www.merrexgold.com or to email us at info@merrexgold.com to be added to the Company's email list for press releases and updates.

This press release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, that address future exploration drilling, exploration activities and events or developments that the Company expects, are forward looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions.

THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ACCURACY OF THIS RELEASE.

Contacts:
Merrex Gold Inc. - Halifax office
Greg Isenor
President
(902) 832-5555

Merrex Gold Inc. - Vancouver office
John Cumming
Director
(604) 484-6613
info@merrexgold.com
www.merrexgold.com