Fourth Quarter Highlights & Subsequent Events

Baca Oil & Gas: Preliminary Injunction Hearing date set for May 20, 2009. Lexam Explorations intends to vigorously defend its mineral rights in order to proceed with the oil and gas exploration.

Otish Uranium: Results from final core drill holes have been received. Highlights include: 0.072% U3O8 over 6.33 m, incl. 0.196% U3O8 over 1.46 m.

Treasury: Lexam Explorations’ financial position remains strong. As of December 31, cash and securities totaled CAD8,262,701 and no long-term liabilities.

The loss during the fourth quarter of this year was due to permitting and legal expenses associated with the Baca Oil and Gas Project (CAD0.3 million), exploration at the Otish Uranium Project (CAD0.7 million) and administrative expenses (CAD0.2 million).

At the end of the fourth quarter Lexam Explorations had a working capital of CAD9.6 million, compared with working capital of CAD10.5 million in 2007.

Baca Oil & Gas Project – Colorado, US

The Baca Oil and Gas project is located in south-central Colorado, US. Lexam Explorations owns 75% of the oil and gas rights. The remaining 25% is owned by ConocoPhillips. Lexam Explorations is advancing the project and is planning to drill two natural gas wells that will reach depths of 4,265 m.

During the Fourth Quarter, Lexam Explorations announced that the United States Fish and Wildlife Service (USFWS) had issued a Finding of No Significant Impact (FONSI). The USFWS’ decision was reached based on the results of an Environmental Assessment (EA) conducted by the Service under the National Environmental Policy Act (NEPA). The USFWS environmental review process lasted 15 months and involved extensive public meetings, participation, and comment by all interested parties. This decision by the USFWS was the final approval required before Lexam Explorations could move forward with its planned exploration for oil and gas.

The purpose of the EA is to ensure that exploration is conducted in a reasonable manner that protects the project’s surface and other resources. The EA includes specific terms and conditions applicable to Lexam Explorations’ proposed exploration that are designed to accomplish this objective.

The Baca Project has been consistently challenged by opposition groups and on November 3, 2008, the San Luis Valley Ecosystem Council (SLVEC) made a motion to reopen litigation against the USFWS. The SLEC maintains that the USFWS decision to issue a FONSI based on the EA does not comply with NEPA.

During the First Quarter of 2009, the District Court of Colorado ordered that the motion to reopen litigation against the USFWS be allowed to proceed. Since reopening the case Lexam Explorations has successfully made a motion to intervene in the courts proceedings in order to vigorously defend its right to mineral exploration. A Preliminary Injunction Hearing date has been set for May 20, 2009.

On April 3, 2008, Lexam Explorations announced that the Colorado Oil and Gas Conservation Commission (COGCC) had renewed the company’s state permits to drill. Since Lexam Explorations was not able to complete the wells within the stated one year time frame the permits expired in April 2009. As the company expects to successful prevail against the SLVEC in its attempt to seek a preliminary injunction, Lexam Explorations will be filing applications with the COGCC in order to renew the previously approved permits.

Otish Uranium Project – QUEBEC, CANADA

The Otish Uranium project is located in north-central Quebec, Canada. In January 2007, Lexam Explorations entered into an option to earn 50% of the project from Golden Valley Mines by spending CAD3 million over three years. To date, approximately CAD3.2 million has been spent by Lexam Explorations and as a result is now executing its option to earn 50% of the project from Golden Valley Mines.

In 2008, Lexam Explorations and Golden Valley Mines completed 69 holes totaling 2,800 m of diamond drill core in the Mistassini portion of the project. Drill highlights that were released during 2008, include: 0.14% U3O8, over 5.6 m (meters) and 0.42% U3O8 over 2.4 m, including 1.63% U3O8 over 0.6 m and including, 2.02% U3O8 over 0.4 m.

Additional drilling announced during February 2009 included 0.072% U3O8 over 6.33 m, incl. 0.196% U3O8 over 1.46 m.

The objective of the drill program was to confirm and then expand the historically documented uranium mineralization. Drilling successfully accomplished these goals and has outlined new high-grade mineralization as highlighted by the drill results above. The U3O8 mineralization is shallow, located approximately 20 m below surface and the estimated thickness of the zone is 5 m. The mineralization is located in two separate zones that are separated by 2.4 km. The exploration potential between these two areas remains untested.

Lexam Explorations and Golden Valley Mines are currently in the process of evaluating the data from the 2008 exploration program. The objective of this work is to help quantify the uranium discovered thus far, identify targets that possess high-grade potential for follow up drilling in 2009 and, if warranted, prepare a NI 43-101 resource estimate.

During 2008, Lexam received a provincial rebate totalling CAD347,867 from the Quebec government in connection with 2007 exploration expenditures. The amount relates to the provincial government’s rebate program that is designed to promote mineral exploration, particularly in Quebec’s northern areas. The company expects an approximate rebate of CAD899,154 based upon the completed exploration expenditures last year.

Rubicon Minerals – 4.4 Million Shares (CAD8.4 Million)

In early 2007 Lexam Explorations announced that it had traded its Nevada properties for Rubicon common shares. Since then, Rubicon has announced a series of encouraging drill results from its Phoenix Gold Project, located in the heart of the prolific Red Lake gold district of Ontario that have increased the value of these shares versus Lexam Explorations’ base value.

Highlights from Rubicon’s 2009 exploration drilling include: 173.7 g/t gold over 2.5 m and 260.5 g/t gold over 0.5 m.

Lexam Explorations owns around 4.4 million shares of Rubicon that have a current market value of CAD8.4 million (as of April 27, 2009). It is important to note that Lexam Explorations has prepaid taxes in relation to these shares based on Rubicon’s price at the time the shares were received (CAD2.00 per share). Therefore, Lexam Explorations is not required to pay any additional tax until Rubicon’s shares exceed CAD2.00 per share.

The company has no current intention to sell any additional shares of Rubicon, since it is providing Lexam Explorations shareholders a unique way to benefit from the rising gold price and Rubicon’s growing discovery.