Alexander Nubia International Inc. Reports Second Quarter Financial Results Provides Update on Key Projects in Egypt, and Announces Option Grant and Amendment of Performance Agreements

TORONTO, ONTARIO--(Marketwire - Aug. 28, 2012) - Alexander Nubia International Inc.: (TSX VENTURE:AAN) ("AAN" or the "Company"), today reported its financial results for the three and six month period ended June 30, 2012. All amounts are in Canadian currency unless otherwise noted.

Key Operational and Financial Highlights of the Quarter and the Six months ended June 30, 2012:

• Hamama volcanogenic massive sulphide ("VMS") deposit at the Abu Marawat Concession:
• First stage exploration results indicate:
  • Western VMS Zone is a broad zone of VMS gossan traced at surface extending along strike for 1,100 m and up to 110 m wide;
  • Main VMS Horizon traced over 3,000 m;
• Completed a first pass diamond drilling program focused on the relatively accessible Central VMS Zone. A fence of drill holes confirmed mineralization from surface to a depth of 125 m, containing up to 9.60% zinc, 0.55% copper, 1.48 g/t gold and 44.3 g/t silver and mineralization remains open at depth;
• New discovery, the Valley VMS Zone, stratigraphically below the Main VMS Horizon. Deep Trench 72 (DT-72) returned 0.46% copper and 0.17% zinc over 24 m;
• Initial set of deep trench results confirms extensive at-surface gold mineralization in Western VMS Zone:
  • Select Deep Trench 87 (DT-87) returned 66 m grading 1.33 g/t gold, 53.7 g/t silver, and 0.11% copper with a core of 34 m grading 2.23 g/t gold, 93.9 g/t silver;
• Widespread zinc and copper values from the footwall stringer zone and in the Valley VMS Zone are suggestive that higher-grade base metals may exist deeper in the system below the zone of leaching; and
• At-surface copper mineralization in footwall stringer zone of the Central VMS Zone:
  • Select Deep Trench 82 (DT-82) returned 12 m grading 0.26% copper and 0.11% zinc in the stringer zone below the Central VMS Zone.
• Abu Marawat gold-copper deposit at the Abu Marawat Concession:
• The Abu Marawat Technical Report shows a mineral resource estimate, which management has determined to be equivalent to an inferred mineral resource of 397,000 ounces of gold plus gold equivalent⁽¹⁾;
• Resource is based on 50% of the available strike length at an average depth of 200 meters;
• Deposit is characterized as mesothermal with the potential to extend up to depths over 1,500 meters; and
• The remaining strike length, depth extension and new zones laterally to the main zone have yet to be tested sufficiently by drilling.

⁽¹⁾Gold-Equivalent Calculation

Management has used the following to determine the inferred mineral resource of 397,000 ounces of gold plus gold equivalent:

As disclosed in the Abu Marawat Technical Report, the Abu Marawat deposit inferred mineral resource is: 2.9 million tonnes at an average grade of 1.75 g/t Au, 29.3 g/t Ag, 0.77 % Cu and 1.15 % Zn, containing 162 thousand ounces Au, 2.7 million ounces Ag, 49 million pounds Cu, and 73 million pounds Zn. The gold equivalencies of silver, copper, and zinc are based on the metal prices used in the NSR model as follows: Au US$1400/ounce, Ag US$26/ounce, Cu US$3.50/pound and Zn $1.15/pound.

• Initiated a cost reduction and cash conservation program in order to minimize the Company's burn rate.
• On May 29, 2012, completed private placement of convertible debentures and warrants for gross proceeds of $215,000.

Key Operational and Financial Highlights Subsequent to Quarter-end:

• Successfully completed a reconnaissance exploration program at the Abu Marawat Concession;
• Surface sampling program identified three new targets and a new discovery, a copper-gold porphyry/vein target;
• All new targets located within 20 kilometers of the Abu Marawat deposit.
• Majority of assay results from a chip-channel sampling program contain significant gold, silver, or copper with a best value of 470 g/t gold at the Massaghat target;
• Some of the targets were historically mined for high-grade near-surface gold, but previous operators did no systematic exploration or drilling; and
• Continued to manage its cash position pending resolution of its financing options.

Selected Financial Results

		Three Months Ended June 30, 2012				Six Months Ended June 30, 2012				Three Months Ended June 30, 2011				Six Months Ended June 30, 2011
Exploration expenditures in the quarter		$	186,606			$	779,766			$	1,716,124			$	2,457,695
Net earnings (loss) for the quarter		$	(237,350	)		$	(419,570	)		$	(222,873	)		$	(398,561	)
Basic earnings (loss) per share for the quarter		$	(0.002	)		$	(0.004	)		$	(0.002	)		$	(0.005	)
											As at June 30, 2012				As at December 31, 2011
Total cash on hand (cash & cash equivalents plus restricted cash)										$	244,553			$	1,232,268
Current liabilities*										$	527,462			$	481,291
Working capital (deficiency)*										$	(118,906	)		$	821,107
Total capitalized exploration expenditures										$	8,117,712			$	7,331,946
Total assets										$	8,860,470			$	9,016,719
* As at June 30, 2012, payment of $390,290 of the current liabilities has been deferred by certain service providers until the Company completes a financing.

Review of Financial Performance for the Quarter and the six-months ended June 30, 2012

For the quarter ended June 30, 2012, the Company incurred $186,606 in exploration expenditures at the Hamama deposit, continuing the first phase of exploration commenced in Q1 2012. This compares to $1,716,124 for the comparable period of 2011. The decrease is primarily attributable to the completion of the Company's Phase 2 drill program at the Abu Marawat deposit in late 2011 and a deferral of the Company's next phase of drilling and other capital intensive exploration activity until such time as capital is raised by the Company. These expenditures bring total exploration costs less impairment provisions since commencement of exploration in Egypt to $8.118 million.

For the six months ended June 30, 2012, the Company incurred $779,766 in exploration expenditures (including initial exploration costs at the Hamama deposit of $503,958). This compares to $2,457,695 for the comparable period of 2011. The decrease is described above. Payment for $257,637 of the exploration expenditures incurred in the six month period ended June 30, 2012 has been deferred by certain vendors, service providers, management and employees and included in the total of $390,290 indicated above.

As is expected for an early-stage mineral exploration company, the Company incurred a loss of $237,350 for Q2 2012, and $419,570 for the six-months ended June 30, 2012, which are comparable to the losses incurred for Q2 2011 and the six months ended June 30, 2011 of $222,873 and $398,561, respectively. Payment for $132,653 of the operating expenses incurred in the six month period ended June 30, 2012 has been deferred by certain vendors, service providers, management and employees and included in the total of $390,290 indicated above.

At June 30, 2012, after incurring $186,607 in exploration costs in the quarter and using $235,860 to fund operations, the Company had a working capital deficiency of $118,906 (December 31, 2011 - working capital of $821,107), including cash and cash equivalents of $169,847. In order to address this situation, the Company has made arrangements with certain vendors, service providers, management and employees to defer payment on the accounts payable and accrued liabilities to these vendors at June 30, 2012 totaling $390,290, creating a working capital position of $271,384 excluding the deferred amounts. If the Company continues to defer payments to certain vendors, service providers, management and employees of the Company, and to curtail exploration activities, the Company expects have net cash outlays per month of $35,000. The Company expects its cash position to be sufficient to allow the Company to focus on raising required capital beyond the end of the year.

The Company is exploring various financing options which management believes that it can complete in the near future.

Outlook

"The Company had a focused exploration program and allocating the majority of resources to the Hamama VMS deposit while effectively managing our cash position", said Mr. Massoud. "We believe that the recent results at the Hamama VMS, combined with the 397,000 oz gold-equivalent resource¹ at the Abu Marawat deposit and the recently completed reconnaissance program, are excellent indicators of the tremendous prospective character of the Abu Marawat Concession and are measures of the untapped potential in the medium-term. Given the overall market tone, a risk-off approach to investment, we expect that by continuing to focus on the Hamama deposit, we can generate significant near-term corporate value."

The business objectives of the Company for the next 12 months are as follows:

Hamama Deposit

• Continued deep trenching and mapping program to identify and explore the property extensions;
• A geophysical program to identify potential massive sulphide pods at depth; and
• Diamond drilling to test the new Western VMS zone, numerous alteration zones and the stacked VMS lenses, north of the Main VMS horizon.

Abu Marawat Deposit

• Stage 3 diamond drilling program to upgrade resources from inferred to measured and indicated;
• Exploration drilling to test two new vein zones identified by deep trenching laterally from the main zone; and
• A preliminary economic assessment, contingent on developing a sufficient increase from the current inferred mineral resource.

General Business Objectives

• To continue exploration for precious and base metals within the other targets; and
• To raise funds required to advance exploration programs.

Readers are advised that these highlights should be read in conjunction with the Company's interim management's discussion and analysis, and the interim unaudited condensed consolidated financial statements for the second quarter ended June 30, 2012.

Option Grant

Options to purchase up to 1,650,000 common shares of the Company were approved for grant by the Board of Directors of the Company, including 1,350,000 to certain directors and officers of the Company. The options are exercisable for a period of three years from the effective date at an exercise price to be equal to the greater of $0.05 and the closing price of the common shares of the Company on August 29, 2012. The options vest over a two year period, with the first 25% of the options vesting on the date of grant and 25% vesting every 90 days thereafter. The stock option grants are subject to necessary regulatory approvals.

Amendment of Performance Agreements

Subject to the approval of the TSX Venture Exchange, the disinterested members of the Board of Directors of the Company approved amendments to the terms of the performance agreements dated September 28, 2010 between the Company and certain officers and employees of the Company (the "Performance Agreements"). The Performance Agreements have been amended to extend the date by which the milestones set out in the Performance Agreements must be achieved. Pursuant to the terms of the amended Performance Agreements, the Company is authorized to issue a maximum of 11,111,112 common shares of the Company (the "Performance Shares"), which will become issuable on the achievement by the Company of the following performance milestones:

Milestone for Issuance		Number of Performance Shares Allotted
The Company achieving a Mineral Resource (as defined by the Canadian Institute of Mining and NI 43-101) of gold or gold equivalents of at least 1.0 million ounces on or before February 28, 2014 (previously October 1, 2012)		5,555,556
The Company achieving a Mineral Resource (as defined by the Canadian Institute of Mining and NI 43-101) of gold or gold equivalents of at least 1.5 million ounces on or before August 28, 2014 (previously October 1, 2012)		2,777,777
The Company achieving a Mineral Resource (as defined by the Canadian Institute of Mining and NI 43-101) of gold or gold equivalents of at least 2 million ounces on or before February 28, 2015 (previously October 1, 2012)		2,777,779
TOTAL		11,111,112

All other terms with respect to the issuance of the Performance Shares remain the same.

Cautionary Note Regarding Exploration Results From Hamama Deposit

The potential quantity and grade of the mineral occurrence at the Hamama deposit is conceptual in nature. Insufficient exploration has been done to date to define a mineral resource and it is uncertain if future exploration will result in the target being delineated as a mineral resource. For additional disclosure regarding the Hamama deposit, see the Company's press releases dated April 30, 2012 and May 9, 2012 filed under the Company's profile on SEDAR at www.sedar.com.

Qualified Person

The technical information contained in this news release was prepared or reviewed under the direct supervision of Mr. Ralph Gonzalez (P.Geo.), the Company's Project Manager for exploration in Egypt. Mr. Gonzalez is a qualified person within the meaning of NI 43-101.

About Alexander Nubia International Inc.

Alexander Nubia International Inc. (TSX VENTURE:AAN) is a Canadian mineral exploration and development Company focused on advancing exploration projects in the Eastern Desert in Egypt. The Company holds two exploration concessions: Abu Marawat and Fatiri, which cover areas of 1,027 km² and 1,745 km², respectively. The Abu Marawat Concession contains two principal deposits: the Hamama volcanogenic massive sulphide ("VMS") deposit and the Abu Marawat gold-copper mesothermal vein deposit. Priority and resources have been allocated to the Hamama deposit based on recent discovery of a broad zone of VMS gossan at-surface containing high grade gold, an extensive and mineralized footwall stringer zone and excellent first-stage diamond drilling results. The Abu Marawat Technical Report shows a mineral resource estimate which the Company has based an inferred mineral resource of 397,000 ounces of gold and gold equivalent upon⁽¹⁾. With approximately $6 million in direct expenditures on the Abu Marawat deposit, this equates to a discovery cost of $15 per ounce. With only 50% of the available strike length drilled to an average depth of 200 metres, management of the Company believes that this allows substantial upside for increasing the resource through a modest drill program.

Further enhancing corporate value is a prospective land package containing several quality targets and deposits representing past producing gold mines and historical workings, all within a 35-kilometre radius and near to seaport, railway, electricity grid, international airport and paved highways.

Cautionary Notes

The securities of Alexander Nubia International Inc. described herein have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

Certain statements contained in this press release constitute "forward-looking statements". All statements other than statements of historical fact contained in this press release, including, without limitation, those regarding the Company's future financial position and results of operations, strategy, proposed acquisitions, plans, objectives, goals and targets, and any statements preceded by, followed by or that include the words "believe", "expect", "aim", "intend", "plan", "continue", "will", "may", "would", "anticipate", "estimate", "forecast", "predict", "project", "seek", "should" or similar expressions or the negative thereof, are forward-looking statements. These statements are not historical facts but instead represent only the Company's expectations, estimates and projections regarding future events. These statements are not guarantees of future performance and involve assumptions, risks and uncertainties that are difficult to predict. Therefore, actual results may differ materially from what is expressed, implied or forecasted in such forward-looking statements.

Additional factors that could cause actual results, performance or achievements to differ materially include, but are not limited to: stock market volatility; negative operating cash flow and working capital deficiency; need for additional financing; operations in Egypt and political instability; limited operating history; future issuances of securities may depress the trading price of the Common Shares; foreign investments and foreign operations (including various political, economic and other risks and uncertainties); dependence on a single mineral project; challenges to the Company's title to mineral rights; speculative nature of precious metal exploration projects; mineral projects and mineral operations; regulatory, consent or permitting delays; environmental risks; reliance on the management team and outside contractors; lack of availability of qualified management personnel; uninsured risks; gold price volatility; expenditures required to establish mineral reserves; fluctuations in currency exchange rates; related to the Phase I for the Company's Fatiri concession; conflicts of interest; dividends; high inflation rates; limited availability of debt financing in Egypt; competition from other businesses; reliance on various factors (including local labour, importation of machinery and other key items, and business relationships); a shift in commodity trends and demands; and vulnerability to fluctuations in the world market. Management provides forward-looking statements because it believes they provide useful information to investors when considering their investment objectives and cautions investors not to place undue reliance on forward-looking information. Consequently, all of the forward-looking statements made in this press release are qualified by these cautionary statements and other cautionary statements or factors contained herein, and there can be no assurance that the actual results or developments will be realized or, even if substantially realized, that they will have the expected consequences to, or effects on, the Company. These forward-looking statements are made as of the date of this press release and the Company assumes no obligation to update or revise them to reflect subsequent information, events or circumstances or otherwise, except as required by law.