Advanced Explorations Inc. announced that it has entered into an agreement with Xinxing Ductile Iron Pipes Co.,Ltd (XDIP) for the further exploration and development of the company's Tuktu 2 project. Under the Agreement, XDIP will have the right to earn 50% of AEI's interest in the Tuktu 2 project by providing investments totaling $20,000,000 in three stages, with an initial $5,000,000 payment to AEI secured by a two-year, non-interest bearing convertible debenture. AEI will use these funds to initiate a drill program on Tuktu 2 sufficient to investigate its directship ore (DSO) potential.

Should the results of the program warrant further exploration, XDIP has agreed to make additional future investments of $5 million and $10 million toward the Tuktu 2 project. The Tuktu 2 exploration work will focus on further delineating the scope and scale of any DSO resources, with the ultimate goal of completing a Tuktu 2 feasibility study. Under the Agreement, upon completion of XDIP's investment commitments and upon review of the advancement of a Tuktu 2 feasibility study, the Agreement contemplates the formation of a joint venture for the specific purpose of developing the potential Tuktu 2 iron ore asset (Tuktu DSO JV).