Tirex Resources Ltd. (TSX Venture: TXX) announced the arrangement of a CA$9 Million financing in the form of a convertible debenture from the European Bank for Reconstruction and Development (EBRD).

The timing of the loan is remarkable considering even Tier 1 banks are hard pressed to secure any kind of credit. This will be the first time the EBRD has ever invested in mining in Albania, though the bank is the largest investor in Albanian business.

The EBRD was established in 1991 to nurture private sector business in emerging economies within eastern Europe and central Asia, and is the largest single investor in this region. In 2007, the EBRD invested €5.6 billion in projects in the region, which is the Bank’s highest level of investment to date.

The EBRD is owned by 61 countries and two intergovernmental organizations and invests mainly in private enterprises, usually in conjunction with commercial partners. The EBRD mobilizes significant direct foreign investment beyond its own financing in many investment situations and its prudent operational and financial policies along with its strong capital position has resulted in a credit rating of AAA from Standard & Poors, Aaa from Moody’s and AAA from Fitch. The EBRD has a subscribed capital totaling €20 billion.

The EBRD to date has cumulatively invested in over 40 projects in Albania, with a net business volume of over €400 million. While the EBRD is the largest institutional investor in Albania, today’s debt funding arrangement with Tirex reflects the first ever EBRD investment in the Albanian natural resource sector. As a condition of the EBRD financing, the EBRD has the right to appoint a nominee to the Tirex Board of Directors. It is expected that this Director will add significant additional expertise to Tirex as the company grows. Tirex is pleased to welcome EBRD as a long term financial partner to the company and looks forward to both EBRD and commercial partners playing a key role in future financing for Tirex, including production financing if required.

The financing arranged with EBRD will be by way of a Convertible Loan. Three equal tranches of €2,000,000 will be advanced over time. The first tranche will be made upon satisfaction of all conditions precedent, including TSX Venture Exchange approval.

The subsequent tranches will be made following Tirex’s application for loan advances, each of which will be conditional upon Tirex raising equivalent amounts of equity financing. All of the loans will mature and be payable five years following the date of the first advance. Tirex may pay the interest as it falls due, or accrue the same to maturity.

To suggest that raising the equity financing to match the loan amounts will be significantly easier since the matched funds from the bank essentially amount to investing at half price for equity investors is obvious. This represents a great step forward for Tirex and its Albanian projects at a time when most companies are battening down the financial hatches for a prolonged gale that will blow away most investors.

Albania maintains good relations with its neighbours and plays a constructive role in the region. The government has shown restraint in relation to sizeable Albanian minorities in Serbia and Montenegro and FYR Macedonia. Talks with the EU on a Stabilisation and Association Agreement (“SAA”) were initiated in 2003. The negotiations for the SAA have been concluded, and the agreed text was initialed on 18 February 2006. The text has now been proposed for signature to the European Council. Albania will continue to be required to show material progress of commitments, in areas such as the reform of the judiciary system and the fight against corruption. Albania is also pursuing accession to the NATO.

The macroeconomic environment has remained favourable in recent years although high trade and fiscal deficits remain significant risk factors. Economic growth is stable at around 5-6 per cent, driven mainly by construction, business services and transport. Official unemployment remains around 15 per cent of the labour force but underemployment is widespread. Annual consumer price inflation is subdued at 2-4 per cent. The exchange rate is relatively stable, subject to appreciation pressures and seasonal effect of uneven transfer of remittances peaking in summer and winter months.

More announcements as to the developments at Tirex’s project will be a bright spot in the otherwise anticipated long dark night of a global recession. In a best case scenario, Tirex will begin production just as the global economy strengthens and demand for base metals is again robust.

Find out more about Tirex Resources by visiting their web site at www.TirexResources.com