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Since commencing exploration in early 2004, Argentex has assembled an impressive land portfolio of high-quality silver-gold prospects in the Argentine provinces of Santa Cruz and Rio Negro. In total, the company holds 100% mineral rights to 30 properties with over 369,710 acres (149,616 hectares) of land.

Early exploration success in 2004 and 2005 has built a solid foundation for continued growth in the near future. With its extensive land position in the Deseado Massif and Somuncura Massif, two highly prospective silver-gold districts, Argentex has longer term potential to become an exploration leader in the Patagonia region.

Investment Considerations:

Focus on silver-gold properties
All Argentex land holdings within active Patagonia exploration region
Extensive land portfolio, featuring flagship Pinguino silver-gold property
Drilling highlights include interval of 8.8 meters of 1,094 g/t silver
Open-ended mineralization with limited amount of drill testing to date
Numerous epithermal veins remain to be tested
Positive investment climate in Argentina
Experienced and successful management team

Argentina's Favorable Climate for Foreign Investment

Federal mining laws were re-written in 1993 to encourage foreign investment in the mining sector, which precipitated a rush of mining and exploration companies seeking to test Argentina's mineral potential. In the following years, Argentina's international ranking rose to first overall in a long list of countries rated for their investment climate and geological potential for developing new mines. Within the past year, commodity prices in silver, gold and copper have reached decade highs and this has generated a renewed interest in Argentina. In fact, the Argentine government recently reported that mining investment increased to US$810 million in 2005, representing a 32% increase from 2004. Much of this new investment was spent in exploration, including record drilling levels in 2005. Argentina's Mining Secretariat believes that this trend underscores investor confidence "in the predictability of the country for long-term risk investments."

Rising commodity prices, the rapid depletion of existing mineable reserves and high demand for raw materials worldwide continue to drive new exploration and development programs around the globe. With higher levels of exploration spending within prospective terrains, such as southern Patagonia in Argentina, new areas will be tested and new occurrences of silver-gold are likely to be discovered as a result of this work. Existing properties with mineralization could be the focus of exploration funding to expand their current discoveries along strike and at depth.

Under-Explored Mineral Potential

In the past, Argentina's mining sector focused on industrial minerals and a handful of small base metal and gold mines. However, over the past decade, the federal government has invested in large-scale regional provincial mapping, which provides a base of geological information for exploration companies. The Argentine government does not make significant investments in grassroots programs, such as regional geochemical surveys to highlight the prospective geology of a region. Rather, it has been exploration and mining companies investing new money into early stage work programs and development over the last 10 years that has caused the boom in Argentina's mineral industry.

The Deseado Massif and Somuncura Massif are two geological environments that are highly prospective for the discovery of epithermal silver-gold mineralization in Patagonia. Many new discoveries in both of these regions have come as a result of exploration activities undertaken by junior companies.

All of the properties held by Argentex are located within these promising geological environments. In Santa Cruz province, the company's developing Pinguino and Condor properties, together with a large number of early-stage land holdings, are all located within the Deseado Massif. Argentex also has a large land position in the Los Menucos area of the Somuncura Massif, Rio Negro province.