Cap-Ex Ventures Ltd announced that it has signed a Collaboration Framework Agreement with Canadian National Railway Company to participate in the feasibility study of CN s proposed rail line to serve the Quebec and Labrador Iron Ore Trough.

This proposed rail line is expected to include a fully operational, continuous, multi-user railroad network, as well as a multi-user material handling facility located in the Pointe-Noire region in Sept-Iles, QC. This Agreement also establishes and secures the parameters and process of a Transportation Agreement and a Storage and Handling Services Agreement if and when the rail line project goes forward.

The feasibility study, which will examine the cost and engineering parameters of the proposed rail network and associated infrastructure, will be undertaken by CN, its partner in the venture, La Caisse de depot et placement du Québec (the Caisse ), along with a number of iron ore exploration and mining companies, such as Cap-Ex, that would form the customer base for the proposed rail line. Being part of this feasibility study is significant for Cap-Ex as it should shorten the scope of the Company s Preliminary Economic Assessment, which is expected to be completed by the end of the first quarter of 2013. It should also allow for a reduction in capital expenditures required for the Block 103 Iron Ore Project as Cap-Ex would not be required to develop such extensive infrastructure on its own.

It is extremely encouraging to see CN, as well as its partner, the Caisse, and other industry players in the iron ore mining sector, acting in such a pro-active manner to address the infrastructure requirements in northern Quebec and Labrador, stated Francois Laurin, President and CEO of Cap-Ex. As we work to advance our Block 103 Iron Ore Project, the execution of this Agreement is another step towards ensuring that the infrastructure necessary to bring the project to fruition are underway.

Under the terms of the Agreement, Cap-Ex will commit to fund $1.75 million over the next twelve months for the completion of the feasibility study and to secure capacity on the new rail line. The funds would be refunded to Cap-Ex under certain circumstances.

Source - Cap-Ex Ventures

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