GEXCO AB’S AFFILIATE PREPARES FOR FIELD WORK ON TAIVALJÄRVI SILVER MINE

(NGM:GXCO)

GEXCO AB’s wholly owned subsidiary Silver Resources Oy has signed an agreement with E.ON Kainuun Sähköverkko Oy regarding to the delivery of an 1,2 km long power transmission line to the Taivaljärvi Silver Mine. Construction of the 20 kV power transmission line will be done by Eltel Networks Oy and will be commissioned in the middle of June 2010. This will enable further works inside of mine area.

The power line will connect the Taivaljärvi Silver Mine to the local power network. The capacity of the power line allows the dewatering of the mine decline, the ventilation and underground drilling.

”The signing of this agreement is the first important milestone in front of the planed feasibility works and ensures coming development works at Taivaljärvi Silver Mine. It is also a starting point for the “New Gexco” comments: Timo Lindborg CEO of Gexco AB

Stockholm 3rd June 2010

Timo Lindborg, CEO

Gexco AB (publ)

About Gexco AB

Gexco AB (Gexco)'s business concept is to exploit mineral deposits in the Nordic countries with regard to human society and environment. Gexco owns through its wholly-owned subsidiaries a silver deposit in Taivaljärvi in Finland and a gold deposit in Hopeavuori in Tampere region in Finland. Gexco also have mineral deposits containing gold in Bindal and in the Narvik area and copper, lead, zinc, gold plus silver in Mo i Rana in Norway.

Gexco applies SveMin's & FinnMin's respective rules for reporting (public mining & exploration companies). Gexco has chosen to report mineral resources and ore reserves according to the internationally accepted JORC or NI 43-101-code. Gexco applies International Financial Reporting Standards (IFRS) as approved by the European Union. The shares of Gexco AB are quoted NGM Equity in Stockholm under ticker symbol GXCO,

ISIN-code for Gexco-shares is SE0001057910.

ISIN-code for Gexco-warrants is SE0003299718.

Read more about Gexco on www.gexco.se

For further information:

Timo Lindborg, CEO, Gexco AB, tel. +358 40 508 3 507