Geodex Announces Expansion of Joint Venture with Arctic Star to Include Additional Properties

Geodex Minerals Ltd. ('Geodex) is pleased to announce that it has entered into an agreement with Arctic Star Diamond Corp. ('Arctic Star) to expand their joint venture on a group of diamond exploration properties located 100 km east of Gillam in Northern Manitoba to include a group of contiguous mineral propertied recently optioned to Arctic Star.

(PRWEB) November 5, 2004 -- Geodex Minerals Ltd. ('Geodex) is pleased to announce that it has entered into an agreement with Arctic Star Diamond Corp. ('Arctic Star) to expand their joint venture on a group of diamond exploration properties located 100 km east of Gillam in Northern Manitoba to include a group of contiguous mineral propertied recently optioned to Arctic Star.

In September of 2004 Geodex and Arctic Star entered into a joint venture agreement with respect to three mineral exploration licenses optioned to Geodex in December of 2003. Under Geodexs option agreement, which has been amended to accommodate the joint venture, Geodex has acquired the right to earn an 85% interest in the property by making initial payments of $20,000 cash and 100,000 shares to the optionor (which payments were made by Geodex), as well as additional payments of $25,000 and 100,000 shares on the first anniversary and $30,000 and 100,000 shares on the second anniversary. Geodex is required to spend a minimum of $200,000 on a work program during the first year (of which it has spent $140,000 to date) and a cumulative total of $600,000 before the third anniversary. Pursuant to the original joint venture agreement, Arctic Star agreed to fund the next $140,000 of work commitments to match Geodexs expenditures to date, and to apportion all other rights and obligations under the Geodex option on a 50:50 basis.

Arctic Star has been granted an option to acquire up to an 85% interest in seven mineral exploration licenses which are contiguous to the property optioned by Geodex from the same optionor. In order to earn its 85% interest in the properties, Arctic Star must pay a total of $120,000 and issue 400,000 shares to the optionor in four equal instalments over a period of four years, with the first instalment of $30,000 and 100,000 shares due upon receipt of regulatory approval of the option and the three additional instalments due on the first, second and third anniversaries thereafter. Geodex and Arctic Star have amended their previously announced joint venture to include the mineral exploration licenses optioned to Arctic Star. Under the revised joint venture, each of Geodex and Arctic Star will have the right to earn an undivided 42.5% interest in all ten licenses comprising the property, and will share all expenditures and payments on a 50:50 basis.

The optionor will retain the following with respect to each group of properties under each option: (i) a 15% interest, which will be carried to the stage of a full feasibility study. The optionor will be required to make a one-time election to participate within 90 days following receipt of a feasibility report. If the optionor elects not to participate, its 15% interest will be converted to a 0.5% gross overriding royalty from the proceeds of commercial production(GORR"); (ii) a further 2% GORR, which is subject to a 1% buyout by Geodex and Arctic Star for the sum of $1,000,000 and (iii) a 2% net smelter returns royalty from the proceeds of commercial production of any metallic deposits discovered and developed on the property, which is subject to a 1% buyout by Geodex and Arctic Star for the sum of $500,000.    

Geodex and Arctic Star have also agreed to pay the optionor a series of bonus shares based on the success of kimberlite discoveries on the project. A total of 100,000 shares will be paid for each individual separate Kimberlite body discovered which is bulk sampled at a scale of 200 tonnes or larger, to a maximum of three kimberlites under each option agreement.

In return for entering into the joint venture, Arctic Star has also agreed to make a one time payment of $20,000 to Geodex, and to issue to Geodex 100,000 common shares of Arctic Star.

Arctic Stars Option Agreement with the Optionor, and the revised joint venture agreement between Geodex and Arctic Star, are subject to regulatory approval.

The company also announces that it has terminated its agreement with the vendors of the New Canaan property in New Brunswick. This is due to the poor results received from surveys done in summer, 2004.

ON BEHALF OF THE BOARD OF DIRECTORS
GEODEX MINERALS LTD.
"Jack M. Maris"

Jack M. Maris    
President

For further information contact: Christopher R. Anderson, Investor Relations

(604) 689-7771, Toll free 1-888-999-3500, Email: info@geodexminerals.com

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