N@N

Alexis Minerals Announces Record Gold Production with Third Quarter 2009 Results

TORONTO, ONTARIO--(Marketwire - Nov. 17, 2009) - ALEXIS MINERALS CORPORATION (TSX:AMC) has reported its third quarter 2009 Financial Statements and Management's Discussion and Analysis for the three month period ended September 30, 2009. The Company achieved record monthly gold production in September and then again in October at its Lac Herbin mine which continues to produce gold on schedule. During the quarter Alexis confirmed Proven and Probable Reserves increased 156% at Lac Herbin validating a minimum five year life of mine plan. The Company is successfully continuing with its key strategic priorities, being growth in production and exploring for significant gold and base metal deposits, and announced its offer to acquire Garson Gold Corp. during the quarter. These quarterly result documents can be reviewed in full on SEDAR ([ www.sedar.com ]) or on the Company's website at [ www.alexisminerals.com ].

(Note: All figures are reported in Canadian dollars, unless otherwise noted).

Q3 2009 Highlights:

- The Company reported revenue of CAD $6,564,130.

- Lac Herbin, in Val d'Or, Quebec, continued operating at full production on schedule to meet production objectives of 36,000 - 40,000 oz. of gold in 2009.

- Sold 6,575 ounces of gold at a realized average price of CAD $1,048/oz. (USD $940/oz.).

- Mined an adjusted 7,883 ounces of gold in the third quarter; and achieved a company record monthly production of 4,201 oz gold in September. The Company surpassed the September record in October, producing 4,291 oz. gold.

- The Company completed an independent evaluation of reserves at Lac Herbin resulting in a 156% increase over the last independent assessment in 2007. Mine life confirmed to be at least five years. Total Proven and Probable Reserves have been evaluated at 617,374 tonnes @ 7.36 g/t of gold (Au) for a total of 146,000 oz. Au.

- The Company completed a pre-feasibility study for the Lac Pelletier gold project confirming profitability and potential for commercial production in mid-2010.

- The Company commenced the refurbishment of its wholly owned Aurbel Gold Mill, expecting completion by the end of 2009, operation to start in January 2010; and an expected reduction in costs at Lac Herbin by an estimated $50/ozAu (10%).

- The Company completed 6,934 metres of exploration and 6,391 metres delineation drilling, for a quarterly total of 13,325 metres drilled.

- Exploration drilling at the Lac Pelletier Gold Project resulted in the discovery of new high grade results; and at least three new gold-bearing structures to the immediate west of the existing ramp confirming the potential for additional resource growth.

- Exploration drilling commenced at the Manitou-Barvue deposit, targeting 400 metres beneath the historic mine workings, with the hole having advanced to a depth of 1300 m.

- Exploration and delineation drilling at Lac Herbin continued to find more gold extensions to previously established Reserve areas and in new discovery areas adjacent to the mine.

- The Company raised $10,000,000 through a public offering of 11,656,000 units at a price of $0.50 per Unit and 7,450,000 "flow-through" common shares at a price of $0.56 per Flow-Through Share.

- Subsequent to the end of the quarter, the Company announced its offer to acquire Garson Gold Corp. Once concluded, this acquisition has the potential to at least double the gold resources of Alexis, providing Alexis with mine development programs which will allow Alexis to grow production levels to in excess of 150,000 ounces of gold per year by 2011, leading to an expected share price re-rating as a mid tier status gold producer.

Lac Herbin achieved its first full year of commercial production at the end of the third quarter 2009. It had achieved full production in December 2008. The mine produced a total of 46,319 tonnes, averaging 503 tonnes per day, during the third quarter at an adjusted average grade of 5.29 g/t for a production of 7,883 ounces. The year to date production is 122,915 tonnes at 6.08 g/t for 24,038 ounces of gold. The third of five milling campaigns was completed during Q3 -2009 with gold poured for the quarter of 7,169 ounces (year to date is 21,314 ounces).

A reconciliation of gold ore for 2009 year to date was completed at the conclusion of the third milling campaign in August 2009, resulting in an adjustment to the estimated gold production from the first eight months of the year (-2,600 ounces) applied in the third quarter. The reconciliation was done after the stockpile was totally eliminated. The grade estimating procedure of stockpiled ore has been re-formulated and the estimate of the fourth milling campaign, completed after the end of the third quarter was confirmed as accurate, being within 2% of the actual poured. A total of 27,161 ounces of gold have been poured at the mint to the date of this report, with one milling campaign remaining in 2009. The months of September and October saw record gold production and a return to better grades with a total of 18,073 tonnes at 7.23 g/t for 4,201 ounces and 18,411 tonnes at 7.25 g/t for 4,291 ounces, respectively. The production in the final quarter of 2009 is forecasted to be 48,500 tonnes at 7.81 g/t for 11,300 ounces. The stopes being mined are in the heart of the orebody and therefore expected to be higher grade. A re-estimation of quarterly production indicates an improving production, grade and cost trend through the first three quarters of 2009, since the mine achieved full production in December 2008.

The Q3 cash cost of sales per ounce sold was CAD $945 per ounce (see Non GAAP Measures), increased from CAD $598 in Q2-2009. The major reason for the increase in cash cost in Q3-2009 was the negative adjustment of ounces resulting from the re-estimated grade. The portion of the cash cost per ounce that is attributed to the re-estimation in the third quarter is estimated to be CAD $160 per ounce. The year to date cash cost is CAD $784 which is slighter higher than the 2009 projected CAD $757 per ounce as published in the NI 43-101 reserve report. However, despite the difficulties of lower grade and dilution, the cost per ounce for 2009 is expected to be in line with the life of mine (LOM) plan that would generate LOM cash costs of CAD $567 per ounce. It is higher than the guidance provided in of June, 2009 as the grade estimate used in the first six months of the year resulted in an over-estimation of the ounces in the stock pile. The cost per ounce is now expected to be approximately CAD $740 for 2009, in line with the NI 43-101 guidance for 2009, the first year of full production. Despite the extra mine development work completed, the operating cost per tonne for the third quarter was reduced to CAD $138/t from $147/t in second quarter, slightly higher than plan. This is expected to be lower in the fourth quarter as operating development is expected to be reduced, the milling costs are expected to decline as per our custom milling contract structure, and the benefits of the improved maintenance program are realized. The total cash cost is forecasted to be approximately CAD $740 per ounce in line with the life of mine plan on which the reserves are based and published to SEDAR.

The Company sold 6,575 ounces of gold and generated $6.56 million in revenue from mining operations during the quarter under review. Mine operating expenses were $6.21 million and amortization and depletion amounted to $1.03 million. The gross profit (loss) was ($0.95) million. Revenue from mining operations includes $6.89 million from gold sales reduced by $0.35 million in refining and royalty charges. The Company is subject to an NSR of 4.5% on Lac Herbin gold sales. The cost of sales per ounce sold excluding amortization and depletion was $945 per ounce (see Non GAAP Measures). This figure is higher this quarter as a result of the reduced grades as described under the Operational Review section of this report. The major reason for the increase in cash cost in Q3-2009 was the negative adjustment of ounces resulting from the re-estimated grade. The portion of the cash cost per ounce that is attributed to the re-estimation in the third quarter is estimated to be CAD $160 per ounce.

Alexis recorded a net loss for the quarter ended September 30, 2009 of $1.71 million compared to a net loss of $1.16 million for the quarter ended September 30, 2008. The Company incurred general and administrative expenses of $1.03 million during the quarter (Q3-2008: $1.20 million). As well, the Company recorded a future income tax recovery of $0.27 million for the three months ended September 30, 2009 (Q3-2008: a recovery of $0.04 million). Alexis averaged a sale price of $1,048 per ounce during Q3-2009.

Q3 2009 Financial Results Three Months Nine Months
 ended 30-Sep-09 ended 30-Sep-09

Tonnes of ore mined 46,319 122,915

Grade per tonne mined 5.29g/t 6.08g/t

Total gold ounces mined 7,883 24,038

Average recovery rate 96.88% 97.45%

Gold ounces sold 6,575 19,325

Average realized gold price (per oz CAD) $1,048 $1,083

Revenue from mining operations
 (net of Royalties and refining 
 charges CAD 000's) $ 6,564 $ 19,920

Mine operating
 expenses (excludes depletion and 
 amortization - CAD 000's) $ 6,212 $ 15,157

Amortization and depletion (CAD 000's) $1,303 $ 4,392

Gross profit (CAD 000's) ($951) $ 370

Net earnings (loss) (CAD 000's) ($1,715) ($2,210)

Basic and diluted earnings (loss) per share (CAD) ($0.01) ($0.02)

Cash flow from operating activities (CAD 000's) ($ 299) $ 4,136

Cash cost of sales per ounces sold (CAD) (i) $ 945 $ 784

 (i) See Non-GAAP Measures

Non-GAAP Measures

The Company has included certain Non-GAAP performance measures, namely cash costs per gold ounce sold and working capital, throughout this document. In the gold mining industry, these are common performance measures but do not have any standardized meaning, and are Non-GAAP measures. The Company believes that, in addition to conventional measures prepared in accordance with GAAP, we and certain investors use this information to evaluate the Company's performance and ability to generate cash, profits and meet financial commitments. These Non GAAP measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. The following tables provide a reconciliation of cash costs per gold ounce sold for the three and nine months ended September 30, 2009 and 2008, and a reconciliation of working capital to the financial statements for the nine months ended September 30, 2009 and December 31, 2008.

Working Capital 
----------------------------------------------------------------------------
(CAD 000's)

Current assets: September 30, 2009 December 31, 2008
 ------------------ -----------------
 Cash and cash equivalents $2,385 $4,529
 Amounts receivable 1,009 968
 Tax credits receivable 6,834 6,270
 Inventory 6,038 2,254
 Prepaid expenses 309 177
 Investments - 333
 Future income taxes - 662
 16,575 15,193
----------------------------------------------------------------------------

Current liabilities
 Accounts payable and accrued
 liabilities $7,990 $4,978
 Current portion of capital lease
 obligations 414 508
 Current portion of long-term debt 125 166
 Liability component of convertible
 debenture 4,063 -
----------------------------------------------------------------------------
 12,592 5,652

 Working capital
 (current assets less current liabilities) $3,983 $9,541


Cash cost per ounces sold
-------------------------
 Q3-2009 Q2-2008 2009 2008
 ------- ------- ---- -----

Revenue
From commercial production ounces 
 (CAD 000's) $6,564 $- 19,920 $-

Ounces sold 6,575 - 19,325 -

Mine operating expenses (CAD 000's) $6,212 $- $ 15,157 $-

Cash cost per ounce sold (CAD) $945 $- $784 $-
 (mining operating expenses divided by
 ounces sold)

Quality Control

The technical and scientific content of this press release has been reviewed by Keith Boyle, P.Eng., Chief Operating Officer, Alexis Minerals and Qualified Person as defined under NI 43-101 guidelines.

About Alexis Minerals

Alexis Minerals Corporation is a Canadian mining company listed on the Toronto Stock Exchange (symbol "AMC"). The Company owns one producing gold mine in Val d'Or and the right to earn a 100% interest in the Lac Pelletier gold property in Rouyn-Noranda. Alexis undertakes exploration in the mineral rich Val d'Or (100% ownership of 212 sq. km.) and Rouyn-Noranda Mining Camps (50% ownership of 785 sq.km and in joint venture with Xstrata Copper). Further information about Alexis Minerals can be found at its website: [ www.alexisminerals.com ]

Forward looking information.

This document may contain or refer to forward looking information within the meaning of applicable securities laws, based on current expectations, including, but not limited to, mineralization projections, future exploration priorities, estimates and costs, projected capital and operating expenditures, future exploration plans and techniques, estimates regarding the timing and costs of exploration, mineral prices, and future mining plans. Forward looking statements are subject to significant risks and uncertainties, including those risks identified in the annual information form of the Company, which is available under the profile of the Company on SEDAR, and other factors that could cause actual results to differ materially from expected results. Estimates and assumptions underlying the mineralization projections are based upon extensive technical and scientific analysis conducted by the management of the Company, the results from drill programs and other exploration, the analysis of external consultants and information obtained by the Company from third parties. Readers should not place undue reliance on forward-looking information. Forward looking information is provided as of the date hereof and we assume no responsibility to update or revise them to reflect new events or circumstances.