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OTTAWA, ONTARIO--(CCNMatthews - July 13, 2006) - Andaurex Industries Inc. (TSX VENTURE:AWX) and Kings Minerals NL, an Australian mineral exploration company trading on the Australian Stock Exchange (ASX:KMN, www.kingsminerals.com), have executed a letter of intent dated July 1, 2006 whereby Andaurex will acquire a 51 percent interest in the San Anton Property in the State of Guanajuato, Mexico (the "Property"), which hosts the Cerro del Gallo gold/silver/copper porphyry deposit (the "Transaction"). The proposed Transaction will result in a change in control of Andaurex and will thereby constitute a Reverse Takeover ("RTO") under the policies of the TSXV. The proposed Transaction is subject to the completion of due diligence by both parties, the execution of a definitive agreement, and receipt of all required shareholder, regulatory, ASX, and TSXV approvals.

Under the terms of the Transaction, Kings will transfer all of the shares of its indirect, wholly-owned subsidiary, Kings-San Anton S.A. de C.V. (the "Kings Subsidiary"), to Andaurex in exchange for 75 million Andaurex common shares and 10 million Andaurex common share purchase warrants. The Andaurex common shares are being issued for a deemed price of $75 million ($1.00 per share), and a nominal deemed price has been allocated to the Andaurex common share purchase warrants. Each warrant shall be exercisable for one Andaurex common share for a period of five years from issue, at an exercise price of $1.00, subject to standard anti-dilution provisions. Andaurex currently has 7,060,808 common shares issued and outstanding, and no shares subject to issuance.

The Kings Subsidiary is incorporated under the laws of Mexico and owns a 51 percent interest in San Anton de las Minas S.A. de C.V. ("SAM"), which in turn owns the Property. The remaining 49 percent in SAM is owned by a wholly-owned Mexican subsidiary of Goldcorp Inc. (TSX:G, NYSE:GG) (the "Goldcorp Subsidiary"). The Kings Subsidiary and the Goldcorp Subsidiary have entered into a shareholders agreement governing their relationship in SAM and the Property. The shareholders agreement provides, among other things, that SAM's majority shareholder, currently the Kings Subsidiary, is entitled to oversee the day to day management of SAM. Once a decision has been made to mine the Property, the Goldcorp Subsidiary has the option to become the operator of the Property. The shareholders agreement also requires certain funding obligations by the parties. Failure to satisfy these funding obligations by any party will result in dilution of the party's interest in SAM. In addition, any failure to satisfy such funding obligations for a period of two consecutive years will result in the party in default being obligated to transfer its shares to the other shareholders. Additional information with respect to the shareholders agreement will be provided in the management information circular to be prepared in connection with the Transaction.

It is anticipated that Andaurex will complete a financing in conjunction with the RTO for gross proceeds of between $10 million and $15 million, the terms of which are being negotiated with the Company's investment advisors and will be announced shortly.

The Transaction is subject to shareholder approval. Andaurex intends to seek shareholder approval for the Transaction at a special meeting of its shareholders to be held on or about September 22, 2006, and will prepare and mail a management information circular with respect to the RTO for such purposes. At the special meeting, shareholder approval will also be sought for certain corporate actions to be taken in connection with the Transaction. In particular, shareholders will be asked to approve a change in the company's name to "San Anton Resource Corporation", to approve a change in domicile from a British Columbia to a Federal company, to authorize an increase in the authorized capital of the Company to an unlimited number of common shares, and to change the company's Stock Option Plan to reflect the post-RTO capital structure.

As a result of the proposed Transaction, Kings will become the majority shareholder of Andaurex with an interest of approximately 91 percent (92 percent fully diluted after warrant exercise), prior to the financing. The Transaction has been negotiated at arm's length and is an Arm's-Length Transaction as such term is defined by TSXV policies. A finder's fee of 150,000 shares will be payable to Kevin M. Keough in connection with the proposed Transaction.

The San Anton Property and Cerro del Gallo Deposit

The Property covers 20,100ha. and comprises nine contiguous exploration and exploitation concessions which entirely encompass the San Anton mineral field, including old mines formerly worked for high grade vein-hosted silver-gold. The property measures some 16kms by 15kms and is located approximately 23kms northeast of the historic Guanajuato mining field. Property access and infrastructure are excellent, with power and water readily available.

Exploration and mining in the area have historically focused on finding and exploiting high grade veins. In recent years, activity in Mexico's historic mining districts has been revived by the development and application of modern technologies that enable the profitable exploitation of large tonnage, lower grade deposits. The San Anton property is a potential multi-centre, bulk tonnage gold/silver/copper porphyry project, with possible zinc, lead, bismuth and molybdenum credits, and also has high grade epithermal vein potential. These epithermal veins were worked as recently as 2000 at the Dolores Mine. Several areas of porphyry and intrusion-related alteration, all of which may be geologically related, have been identified on the San Anton property and Cerro del Gallo is the only one that has been extensively explored to date.

Cerro del Gallo was first recognized as a possible porphyry copper-gold target by the Consejo de Recursos Minerales during detailed surface investigations in the 1970's. The alteration system was first drilled by the Guanajuato based Santa Fe Mining Cooperative in 1984 and later in 1997. Luismin S.A. de C.V. ("Luismin"), now a wholly owned subsidiary of Goldcorp Inc., commenced exploration at San Anton in 1994, focusing on Cerro del Gallo. Luismin completed a limited exploration program of rock chip sampling, trenching, geophysics and drilling. Exploration was however, constrained by the small size of their tenement holdings. It soon became apparent that the mineralization extended well beyond the Luismin tenements onto ground held by the Santa Fe Mining Cooperative which drilled four core holes close to the boundary and obtained similar results. Luismin purchased this tenement in May 2004 and consolidated ownership of the ground covering the porphyry system.

On July 22, 2004, Kings announced a Joint Venture with Wheaton River Minerals Ltd., subsequently acquired (2005) by Goldcorp Inc., which granted Kings the right to earn a 51 percent interest in San Anton by reimbursing $US510,000 to Wheaton River and by spending a minimum of $US1,000,000 on exploration in the first year and a total of $US3,000,000 over the first two years. Kings subsequently embarked on an aggressive program of exploration which focused on expanding mineral resources at the Cerro del Gallo porphyry gold/silver/copper prospect. This work included diamond core and reverse circulation drilling; a high resolution airborne magnetic and radiometric survey over the entire project area; the acquisition and interpretation of ASTER satellite imagery; and a ground 3D IP survey centered on Cerro del Gallo. In addition to these programs, historic data from previous exploration companies was acquired and integrated into Kings' datasets. On December 12, 2005, Kings announced that it had received confirmation from Goldcorp that it had earned its initial 51 percent interest in the San Anton project.

On February 28, 2006 an updated JORC compliant estimate for Cerro del Gallo was released by Kings. The resource estimate, which was based on a total of 24,635 metres of drilling in 110 drill holes, of which 24 holes were diamond core and 86 holes were reverse circulation, was prepared by Golder Associates Pty. Ltd., consulting geologists and engineers, of Brisbane, Australia, and is detailed in Table 1 and Table 2, below. In addition to the Notes following the tables, the following points are salient:

 - The Cerro del Gallo porphyry system remains open in all directions
   around the central felsic intrusion;

 - Every hole to date has intersected wide zones of porphyry-style
   gold, silver and copper mineralization;

 - The gold rich zone appears to be continuous around the central

 - A gold skarn and associated magnetic low have been identified
   within the alteration system and remain to be assessed;

 - Magnetic and coincident IP anomalies peripheral to the porphyry
   alteration system need to be assessed.

                                 Table 1
            Cerro del Gallo JORC(i) Compliant Mineral Resource
                        Using 0.3g/t AuEq Cutoff

Resource        Tonnes       Au      Ag      Cu       AuEq       AuEq
Category      Millions      g/t     g/t       %        g/t        Moz
Measured            10     0.80      16    0.09       1.28       0.41
Indicated          215     0.33      13    0.10       0.79       5.46
Inferred           229     0.30      11    0.10       0.71       5.22

                                 Table 2
            Cerro del Gallo JORC Compliant Gold-Rich Domain
                        Using 0.8g/t AuEq Cutoff

Resource        Tonnes       Au      Ag      Cu       AuEq       AuEq
Category      Millions      g/t     g/t       %        g/t        Moz
Measured            10     0.82      16    0.09       1.29       0.41
Indicated           90     0.49      17    0.13       1.07       3.10
Inferred            65     0.47      15    0.11       0.97       2.02

(i) JORC Code - Joint Ore Reserves Committee of the Australasian
    Institute of Mining and Metallurgy, Australian Institute of
    Geoscientists and Mineral Council of Australia, as amended or


1. Block model with grade estimate prepared by Golder Associates Pty. Ltd., Brisbane Office, Queensland, Australia.

2. The resource estimate is based on a total of 24,635 metres of drilling in 110 drill holes of which 24 holes were diamond core and 86 holes were reverse circulation face sampled holes. Most of the resource is within 300 metres of the land surface.

3. Gold assays by 30 gram fire assay with AAS finish (and gravimetric check), silver and copper assays by multi-acid digestion with AAS or ICP finish.

4. In-situ bulk density of 2.67 t/m3.

5. A geological block model with block sizes of 25m X 25m X 12m was constructed. A bulk mining scenario has been assumed.

6. Au, Ag and Cu grades were estimated by ordinary kriging within constrained geological domains using Vulcan(R) Version 6.0.

7. High grade cuts were applied for each geological domain ranging from 1.0 to 3.0g/t Au, 70 to 100g/t Ag and 0.3 to 1.0% Cu.

8. QA/QC checks on sampling and assaying quality are satisfactory.

9. Au equivalent has been calculated as AuEq equals Au + (Ag/60) + (Cu X 2.3).

10. The reported mineral resource estimate has been rounded to appropriate significant figures.

Measured, indicated and inferred mineral resources were calculated in compliance with the JORC Code by Mr. Robert Stewart of Golder Associates. Mr. Stewart is a Member of the Australian Institute of Geoscientists and has sufficient experience in the estimation of gold-silver-copper resources to qualify as a Competent Person as defined by the 2004 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves.

Other information in this release is based on information compiled by Graeme Rabone, a Fellow of the Australian Institute of Geoscientists. Mr. Rabone is a consultant to Kings Minerals NL and has sufficient experience relevant to the style of mineralization and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr. Rabone is a Qualified Person under NI 43-101 and is responsible for all technical information in this press release.

Golder Associates have also been engaged to prepare a National Instrument 43-101 compliant report in connection with the completion of the proposed Transaction which will be filed on SEDAR.

Board of Directors and Management of Resulting Issuer:

On completion of the proposed Transaction, Mr. Norman Seckold and Mr. Dudley Leitch will join the Board of Directors, Mr. Gregory Bowes and Mr. Donald Christie will remain as directors, and two new independent directors will be appointed. Following are their principal occupations during the last five years as well as those of some of the expected officers of the Company.

Norman A. Seckold Chairman and Director

Mr. Seckold graduated with a Bachelor of Economics degree from the University of Sydney in 1970. He has spent the past 25 years in the full time management of natural resource companies, both in Australia and overseas. Mr. Seckold is currently Chairman and Director of Palmarejo Silver and Gold Corporation, a TSXV-listed company, and a director of Bolnisi Gold NL, Kings Minerals NL, Planet Gas Ltd., and Cockatoo Coal Limited, all of which are listed on the ASX. He is also a director of V-Fund Investments Ltd., a privately held Canadian company, and Evenlen Pty. Ltd., a private Australian company. He was a director of Viking Gold Inc. from April 1996 through December 1999, a Canadian-listed company which discovered a gold deposit in northern Sweden. Viking Gold merged in December 1999 with Dragon Mining NL, an Australian company. Previously he served as director of Mogul Mining NL which drilled the Magistral and Ocampo gold deposits in Mexico and Valdora Minerals NL which developed the Rustler's Roost gold mine in Australia's Northern Territory and the Ballarat East gold mine in Victoria, Australia, both of which were mining companies listed on the Australian Stock Exchange.

Gregory B. Bowes President and Director

Mr. Bowes holds an Honours B.Sc., geology degree from the University of Waterloo and an MBA from Queens University. He was previously a mining analyst with Merrill Lynch Royal Securities, was Vice President of Northgate Exploration Limited (TSX: NGX), a large Canadian mining company, and President of its public subsidiary Orofino Resources Limited. Mr. Bowes was President of Markham Electric International, an engineering, design and project management company operating in developing countries, and is currently Vice-President and Chief Financial Officer of Orezone Resources Inc. (OZN:TSX, Amex), and President of Andaurex.

Dudley R. Leitch Director

Mr. Leitch graduated in Science, majoring in Geology and Mineralogy, from the University of Queensland, Australia. He has over 26 years of experience in mineral and petroleum exploration and development. Mr. Leitch is currently Managing Director of King Minerals NL and a director of Bolnisi Gold NL, both of which are mining companies listed on the ASX. He is also a director of Palmarejo Silver and Gold Corporation, a TSXV-listed mining company presently exploring and developing the Palmarejo-Trogan silver/gold project in the State of Chihuahua, Mexico. Mr. Leitch served as a director of ASX-listed Mogul Mining NL from May 1994 through December 1999. Prior to that, he was Managing Director of ASX-listed Valdora Minerals NL from November 1991 through May 1996 and a Director of Perseverance Corporation Limited (ASX: PSV). While serving with Perseverance, Mr. Leitch was responsible for the development of the former producing Nagambie gold mine from exploration to production in less than two years. He remains a director of a private company which has made investments in the resources sector and has identified significant resource projects, including the large coalbed methane reserves of the Northern Bowen Basin which are currently being advanced by several listed companies.

Donald H. Christie Director

Mr. Christie is a Chartered Accountant and co-founder of Ollerhead Christie & Company Ltd., a privately held Toronto investment banking firm which sources, structures and syndicates private placements and provides financial advisory services to a client base comprised primarily of colleges, universities, school boards and provincial government agencies. Prior to founding Ollerhead Christie & Company, Mr. Christie served as Vice President & Director of Newcourt Capital Inc., formerly the corporate finance subsidiary of then publicly traded Newcourt Credit Group (TSX, NYSE), which subsequently combined with the CIT Group, Inc. While at Newcourt, Mr. Christie was involved in over $1.5 billion of transactions. Mr. Christie holds a B.Comm degree from Queen's University and is presently a director of Andaurex and Alpha One Corporation.

Kevin M. Keough Vice President, Corporate Development

Mr. Keough was most recently President & CEO of Canstar Resources Inc., a TSXV-listed junior, and prior to that President & CEO of Nustar Resources Inc., a TSXV-listed shell company which under his tenure was reorganized around properties joint ventured from BHP Billiton, and later merged with TSXV-listed Candor Ventures Corp. to create Canstar. A graduate of Queen's University (Honours B.Sc., Geological Sciences), Mr. Keough commenced his 22 years of work experience exploring for oil & gas, gold, and diamonds in Canada, South Africa and Angola, including stints with Anglo American and De Beers. Later, he served as a Special Assistant to senior ministers in the Mulroney government. Subsequently he founded Keough Associates, and in 2001, 4PI Inc., which provided business development, corporate finance and management buyout services to organizations such as the National Research Council of Canada, as well as companies and investment banking firms, in particular CIBC Wood Gundy and Capital Canada Limited, both of Toronto.

Significant Conditions to Closing

Completion of the proposed Transaction is subject to a number of conditions, including but not limited to: (1) the execution of a definitive agreement to give effect to the proposed Transaction, such agreement to contain customary representations, warranties, covenants, indemnifications and closing conditions for a Transaction of this nature; (2) the satisfactory completion by Kings and Andaurex of their due diligence reviews; (3) completion of a financing in conjunction with the Transaction; (4) receipt of shareholder approval and (5) receipt of all required regulatory, TSXV, ASX and third party approvals and compliance with all applicable regulatory requirements and conditions. The Transaction cannot close until the required shareholder approval is obtained. There can be no assurance that the Transaction will be completed as proposed at all.

Investors are cautioned that, except as disclosed in the management information circular to be prepared in connection with the Transaction, any information released or received with respect to the RTO may not be accurate or complete and should not be relied upon. Trading in the securities of Andaurex Industries Inc. should be considered highly speculative.

Trading in the shares of Andaurex has been halted by the TSXV and trading will not be permitted to resume on the TSXV until such time as the TSXV has completed customary file review in accordance with its policies.

The TSX Venture Exchange has in no way passed upon the merits of the proposed Transaction and has neither approved nor disapproved the contents of this press release.

The securities of Kings and Andaurex, have not been and, after the closing of the proposed Transaction, including the securities of San Anton Resource Corporation., will not be registered under the United States Securities Act of 1933, as amended, or the securities laws of any state, and may not be offered or sold in the United States or to any U.S. person (as defined in Regulation S under the Securities Act of 1933) absent registration or an exemption from registration.


Kings Minerals NL
Dudley R. Leitch
Managing Director
+61 7 3831 3544


Andaurex Industries Inc
Gregory B. Bowes
President and Director
(613) 257-1463


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