January 10, 2012
Abacus Files Ajax Copper-Gold Project Feasibility Study Technical Report

Vancouver, British Columbia -- January 10, 2012. Abacus Mining & Exploration Corporation (TSXV: AME "Abacus") is pleased to announce that further to its news release of December 21, 2011, the Ajax Project Feasibility Study Technical Report has been filed under AME's profile on SEDAR at www.sedar.com and on AME's website at www.amemining.com

The NI 43-101 compliant independent Feasibility Study supports a 60,000 tonne per day conventional milling plant, producing a copper-gold concentrate containing 25% Cu and 18 g/t Au. The Study was led by Tetra Tech WEI (Wardrop) in conjunction with a team of globally recognized consultants.

The previously announced highlights of the Ajax Project include: 

Base Case Highlights: (all economic figures in US$)

  • Total proven and probable mineral reserves of 3 billion lbs Cu and 2.7 million ozs Au at 0.27% Cu and 0.17 g/t Au based on $2.50 Cu and $1,085 Au
  • 23 year mine life at a processing rate of 60,000 t/d or 21.9 million t/a at a LOM stripping ratio of 2.4:1
  • LOM production of 2.5 billion lbs Cu and 2.28 million ozs Au in concentrate
  • Initial capital costs of $795 million, including contingency of $87 million
  • Cash cost per lb of copper of $1.28 net of gold credits

The base case of the pre-tax economic model has an internal rate of return (IRR) of 14.5% and a net present value (NPV) of US$416 million at an 8% discount rate, with payback of the initial capital of 7.8 years. The following table shows the leverage to increases in metal prices from the base case scenario. 
 

  Base Case Scenario Alternate Case Scenario1 Alternate Case Scenario2
Cu US$/lb $2.75 $3.00 $ 3.50
Au US$/oz $1,085 $1,300 $1,700
Exchange Rate (US$:C$) 0.92 0.94 0.98
Pre-tax Internal Rate of Return 14.5% 19.5% 30.3%
Cash Cost per lb Cu (net of gold credits) $1.28 $1.11 $0.79
Pre-Tax Net Present Value
(8% discount rate)
$416 million $818 million $1,601 million
Payback Years 7.8 3.8 2.2



Joint Venture Next Steps
Abacus delivered the final Feasibility Study to KGHM in late December 2011 in accordance with the provisions of the Joint Venture Shareholders' Agreement of October 12, 2010. KGHM will have 90 days to acquire a further 29% in the Joint Venture company for a cash consideration equal to 29% of the Proven and Probable copper equivalent reserve in the FS, to a maximum of US$35 million, towards use by Abacus for its share of project capital. 

In the event that KGHM chooses not to increase its interest in the joint venture, Abacus then has 90 days to elect to purchase KGHM's 51% interest for US$37 million, and 90 days thereafter to close on this purchase. Should Abacus choose not to purchase KGHM's interest in its entirety, Abacus' interest in the Joint Venture can be increased to 51% by paying approximately US$1.5 million to KGHM.

The technical information in this news release has been reviewed and approved by Dave Laudrum, P.Geo., Abacus's Chief Geologist and qualified person for the Ajax Project within the meaning of National Instrument 43-101. 

On Behalf of the Board,
ABACUS MINING AND EXPLORATION CORPORATION

James D. Excell
President & CEO

[email protected]

Donna Yoshimatsu
Director, Investor Relations

[email protected]
(647) 345-0826

About Abacus
Abacus Mining is a mineral exploration and mine development company with a feasibility stage copper-gold project located in the Ajax Mining Camp southwest of Kamloops, B.C. The Ajax copper-gold project is a joint venture between Abacus Mining & Exploration and KGHM Polska Miedz through KGHM Ajax Mining Inc. owned 49% by Abacus and 51% by KGHM. The December 2011 feasibility study confirms a proven and probable reserve of approximately 3 billion lbs copper and 2.7 million ozs gold supporting an average annual production of 109 million lbs copper and 99,000 oz gold over 23 years at a rate of 60,000 tonnes per day. The environmental review and permitting process was initiated in early 2011 with the submission of the Project Description, a copy of which is available on the Company's website and www.eao.gov.bc.ca.

Forward-Looking Information 
This release includes certain statements that are deemed "forward-looking statements". All statements in this release, other than statements of historical facts, that address events or developments that Abacus Mining and Exploration Corp. (the "Company") expects to occur, are forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in the forward-looking statements. Factors that could cause the actual results to differ materially from those in forward-looking statements include changes to commodity prices, mine and metallurgical recovery, operating and capital costs ,foreign exchange rate, and ability to obtain required permits on a timely basis including permission from Kinder Morgan to have access to the pipeline right-of-way, exploitation and exploration successes, and continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. Forward-looking statements are based on the beliefs, estimates and opinions of the Company's management on the date the statements are made. Except as required by applicable securities laws, the Company undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change.

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