ARGEX Titanium Inc

Argex is doing everything right. This story is now getting out and has new exposure to the US and Canadian markets toda with a very nice analyst's new company report in today's issue of Jennings Captial "Rock Talk". This is no Mickey Mouse Co. folks! I am mpressed!

Here are excerpts from that report.

NOVEMBER 16, 2011

Jennings Capital Inc.

Member – CIPF. Jennings Capital (USA) Inc. is a member of SIPC.

ROCK TALK

RADAR SCREEN ADDITIONS ARGEX MINING INC. (TSXV-RGX)

KEN CHERNIN, MBA

Research Analyst

ken.chernin@jenningcapital.com

+1.902.496.7007

ARGEX MINING INC. (TSXV-RGX); NOT RATED

Argex Mining is a Quebec-based junior exploration company with

titanium and iron ore properties situated on Québec’s North Shore. The

Company’s two flagship assets consist of:

(1) Its 100%-owned La Blache

titanium dioxide property situated approximately 120 kilometres from the

coastal city of Baie-Comeau, and

(2) Its patented process through its

50.1% ownership in private company Canada Titanium Ltd. (CTL) to

produce high-purity pigment-grade titanium dioxide (TiO2) from the La

Blache ore through one environmentally friendly process, which if

successful on a commercial scale will enable Argex to forgo the costly

intermediary steps required with methods currently employed within the

industry.

According to a Preliminary Economic Assessment (PEA) Study on the La

Blache project, which is based on processing the ore into pigment-grade

TiO2 using the Company’s proprietary extraction process, Argex’s

operating cost net of by-product credits is estimated to average C$586

per tonne over the 25-year life project. This represents an estimated

one-third that of conventional methods and approximately 14% of the

current price of TiO2 pigment (Bulk volume, CIF U.S.A.).

Argex’s La Blache ore has been successfully processed into high-purity

TiO2 in a pilot plant in Mississauga, Ontario since February 2011.

According to the Company, Argex’s TiO2 pigment has achieved both

purity and whiteness (or clarity) consistent with that of major TiO2

industry producers. The Company is beginning to speak with industry

end-users regarding potential strategic agreements (such as off-take

agreements) and is now turning its focus to fine-tuning the coating of the

TiO2 (to prove durability under various weather conditions as well as

aging).

RECENT EVENTS:

_ October 26, 2011 - Argex announced that it received the results of

the PEA on its 100%-owned La Blache project, which was conducted

by BBA Inc. of Montreal, Quebec with the collaboration of Met-Chem

Canada Inc. and Genivar. According to the study, the project is

estimated to have a pre-tax IRR of 32%, an NPV (8%) of C$2.2 billion

versus capex of C$801 million, and a seven-year payback period

(based on the assumption of a staged, modular plant construction)

The study is based on a TiO2 price of US$2,846 per tonne.

_ October 18, 2011 – Argex announced that it completed the

acquisition of a 50.1% ownership interest in CTL in exchange for

C$1 million in cash and issuance of 2 million Argex common shares

at the closing of the transaction. Under the terms of the agreement,

CTL granted Argex an exclusive license in the Province of Québec

and a non-exclusive license for the rest of the world to use the

licensed technology for the recovery of TiO2. CTL will provide Argex

with all the information applicable to the technology and Argex will

pay CTL a 2% royalty on its production of TiO2.

_ July 20, 2011 - Argex announced preliminary brightness and colour

results from samples of its La Blache ilmenite TiO2 ore which was

processed using CTL’s proprietary technology. The test results,

which were performed on Argex’s uncoated TiO2 pigment, were

reported to have compared favourably with results obtained on

standard products made by leading TiO2 producers. According to

Argex, the brightness and colour figures obtained on the Company’s

products indicate that the CTL process is completely capable of

producing high purity TiO2 base products.

KEY PROJECT:

The Resource - La Blache Titanium/Iron/Vanadium Project, Quebec

(100% ownership)

_ Argex’s flagship property is situated in the Manicouagan region on

Quebec’s north shore and encompasses 40.4 square-kilometres and

is comprised of 73 contiguous claims. According to an NI 43-101-

compliant resource report prepared by Met-Chem Canada Inc., the

property contains 30.9 million tonnes of measured and indicated

resources grading 18.8% TiO2 and 63.3% iron oxide (Fe2O3), and

13.0 million tonnes of inferred resources grading 18.7% TiO2 and

63.1% Fe2O3. The property is located approximately 120 kilometres

from Baie-Comeau, which has a port facility and is home to an Alcoa

aluminium refinery.

_ In 2010, Argex completed an exploration program on Hervieux West

and Hervieux East consisting of more than 20,000 metres of

diamond drilling. Based on the drilling results, Met-Chem Canada

Inc. completed an initial NI 43-101-compliant mineral resource

estimate for both Hervieux West and Hervieux East deposits in May

2011. Met-Chem reported that the drill holes completed by Argex

show that the Hervieux East and Hervieux West deposits are in large

part open at depth.

The Process: Ore from the Mine to High-Purity TiO2 Pigment

_ The potential economic benefits of Argex’s project are obvious given

current TiO2 prices and the results of the PEA discussed above. But

Argex’s project represents a new source of high purity TiO2 in an

already tight global pigment market, and prices are poised to rally

given there is a possible 25% increase in TiO2 nameplate capacity

coupled with limited potential for meaningful feedstock (ore)

expansions. However, Argex’s process is expected to have

advantages over existing processes that we believe could extend far

beyond the La Blache project, which include a more environmentally

friendly alternative to existing technologies and a potentially higherquality

pigment.

HIGH-PURITY TIO2 PIGMENT FEEDSTOCK: PRICES POISED FOR FURTHER

INCREASES

_ What is TiO2?: TiO2 is a leading white pigment that is virtually an

essential ingredient in the manufacturing of anything white: Paint and

pigment coatings (approximately 62% of the end market); Plastics

(approximately 14% of the end market); and Paper and coatings

(approximately 14% of the end market). The global market was

approximately 5.015 million tonnes in 2010. Based on a current

average pigment grade price according to Industrial Minerals, this

represents a global market of ~US$17.5 billion. TiO2, has a historical

annual growth rate of approximately 3%-to-4%, and it is the

undisputed leading material for white coloured products because of

its exceptional brightness and whiteness.

_ Highly Correlated to Global GDP Growth – A large portion of TiO2

consumption is directly tied to the global residential and commercial

construction industries, given its primary end use in paints and

plastics. The World Bank’s most recent forecasts for global GDP

growth is 3.2% in 2011 and 3.6% in both 2012 and 2013. Leading

TiO2 consumer China’s economic growth is pegged at 9.3%, 8.7%

and 8.8% for 2011-2013. TiO2 demand in Asia is forecasted to be

41% higher in 2015, according to industry consultant TZMI.

_ Supply/Demand Imbalance has Begun – TZMI has also predicted

a supply/demand imbalance in the TiO2 market, and does not expect

this shortfall to be rectified in the short to medium-term, until

additional capacity is brought online through either new greenfield

projects or expansions to existing mineral sands projects. Artikol has

forecasted 2015 pigment consumption of 6.23mt, over one million

tonnes higher from the 2010 figure of 5.015mt. In the feedstock

market, global demand has just begun to outstrip supply, with

industry forecasts for this gap to widen considerably through to 2020.

_ Increasing Prices for Both Feedstock and Pigments – TiO2 prices

have been increasing along with stronger global demand, as

feedstock consumers (pigment producers) have been forced to

negotiate supply contracts in a market now faced with increasing

supply deficits, leading to steeper (and more frequent) price hikes.

For example, leading feedstock producer Iluka Resources recently

announced H2/11 price hikes between 50% and 75%. Pigment

producers have been forced to follow suit, with recent price

increases ranging between U$250 and $500/tonne reported so far

this year.

POTENTIAL CATALYSTS:

_ December 2012 – Release of the Preliminary Feasibility Study on the

La Blache Project.

_ 2012 – Possible agreements with industry end users of TiO2.