Alexander Nubia International Inc. Reports Second Quarter Financial Results Provides Update on Key Projects in Egypt, and Ann...

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                     Three                 
                           Months   Six Months       Months      Six Months 
                       Ended June   Ended June   Ended June      Ended June 
                         30, 2012     30, 2012     30, 2011        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           As at 
                                                   June 30,    December 31, 
                                                       2012            2011 
----------------------------------------------------------------------------
Total cash on hand                                                          
 (cash & cash                                                               
 equivalents plus                                                           
 restricted cash)                                $  244,553   $   1,232,268 
----------------------------------------------------------------------------
Current liabilities(i)                           $  527,462   $     481,291 
----------------------------------------------------------------------------
Working capital                                                             
 (deficiency)(i)                                 $ (118,906)  $     821,107 
----------------------------------------------------------------------------
Total capitalized                                                           
 exploration                                                                
 expenditures                                    $8,117,712   $   7,331,946 
----------------------------------------------------------------------------
Total assets                                     $8,860,470   $   9,016,719 
----------------------------------------------------------------------------
                                                                            
(i) 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:




----------------------------------------------------------------------------
                                                                   Number of
                                                                 Performance
                                                                      Shares
Milestone for Issuance                                              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.